Chocolate Prices To Be Hammered Again
Cocoa prices continue to soar, as does the cost of chocolate. Chocolate prices are already so high that some candy manufacturers have cut back production or abandoned it. Consumers are also paying record-high and soaring prices.
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According to Bloomberg, “Poor harvests in the crucial region have left the world facing another annual deficit. Cocoa stockpiles held at US ports have fallen and are at a three-year low.” Price changes have also triggered margin calls.
About two-thirds of cocoa is grown on the Western Coast of Africa. Periods of heavy rain and crop disease have killed or damaged some plants, usually exported at this time of year.
Coffee
Cocoa is just one example of the challenges climate change creates for food-related commodities. A short supply of coffee beans has caused higher prices for retailers such as Starbucks, which could have long-term effects on their earnings.
There appears to be no end in sight for climate effects on crops periodically. As droughts and floods grow, so will the extent of the problems.
