Chocolate’s Climate Disaster
Chocolate contains varying amounts of cacao. The percentage of cacao in milk chocolate is 45%, and for dark chocolate, it can be as high as 70%. Some companies have raised chocolate prices by over a quarter this year. The price may also affect the earnings of Hershey’s and other candy makers.
More Food Problems –Wine Prices
Cocoa prices continue to fluctuate wildly as traders try to measure the effects of weather that has destroyed crops in Ivory Coast and Ghana, which supply about two-thirds of the industry’s worldwide inventory. Some investors’ gamble now depends on what the weather will be like next year. After reaching $12,000 a tonne, cocoa dropped to $9,000 and rallied again.
According to the FT, “In a bid to encourage farmers to invest in their plantations and boost yields, both Ghana and Ivory Coast’s regulators have increased the set prices paid to farmers.” Uncertainty about the weather next year means the plan may not help much.
Price Manipulation
Climatecrisis247 believes that artificial attempts to manipulate cacao prices will probably not work when crop figures start to appear next year. This means that chocolate prices, already well above record levels, may not drop. That, in turn, means the chocolate industry will suffer as it tries to raise consumer prices to offset its costs. Food markets that use chocolate may have to move to replacements.
