Chocolate prices are rising due to climate change impacting cacao production. Major companies such as Orion and Haitai have increased prices significantly on multiple products. West Africa’s cacao supply is especially affected, leading to a staggering 246 percent price increase in cocoa compared to previous years.
The recent surge in chocolate prices is attributed to climate change, which has resulted in increased production costs of cacao, a key ingredient in chocolate products. Notably, Orion has raised prices on average by 10.6 percent for 14 of its items, with certain products, such as Choco Songyi and Bichobi, experiencing price increases of up to 20 percent. Similarly, Haitai Confectionery & Foods has adjusted the prices of 10 products, including Homerun Ball and Pocky, by 8.6 percent following similar trends.
The escalating cacao production costs are largely influenced by extreme weather conditions and the reduction of suitable growing areas, predominantly affecting West Africa, which serves as a crucial supply region for the global chocolate market. Recent data from the Ministry of Agriculture, Food and Rural Affairs indicates that cocoa prices have reached an alarming $9,236 per ton, marking a staggering 127 percent increase from the previous year and a vast 246 percent rise compared to the average price in prior years.
Cacao is an essential ingredient in chocolate production, and its cultivation is highly sensitive to climate conditions. Over recent years, climate change has prompted severe weather events and a reduction in agricultural areas suitable for cacao farming, leading to diminishing supply levels. This trend poses significant risks not only to chocolate pricing but also to the broader agriculture sector, with other commodities such as sugar, flour, and palm oil experiencing similar price hikes.
In summary, the rise in chocolate prices reflects the broader impact of climate change on food production costs, particularly for vital crops such as cacao. As confectionery companies respond to these increases, consumers may witness further fluctuations in product prices. With continued emphasis on sustainable practices, addressing these challenges will be crucial to ensure the stability of both the chocolate industry and global food supplies.
Original Source: www.koreatimes.co.kr
