Rising Chocolate Prices Linked to Climate Change Impact on Cacao Production

Chocolate prices have surged due to rising cacao production costs linked to climate change, with significant increases implemented by major confectionery companies. Extreme weather impacts are particularly acute in West Africa, which supplies the majority of global cacao, leading to a sharp rise in cocoa prices. Experts anticipate further price increases across agricultural commodities due to climate change’s long-term effects.

The rising prices of chocolate products, such as cookies, chips, and snacks, can be attributed to the adverse effects of climate change on cacao production costs. Notably, Orion, a prominent confectionery company, has raised prices of 14 of its products by an average of 10.6 percent. Among these, Choco Songyi and Bichobi experienced price increases as high as 20 percent. Similarly, Haitai Confectionery & Foods has raised prices for 10 products, including Homerun Ball and Pocky, by 8.6 percent.

This price escalation coincides with a reported decline in cacao production, primarily due to extreme weather conditions and diminishing cultivation areas. Sources within the industry have indicated that West Africa, a critical region for cacao supply, has faced the most significant production challenges. As reported by the Ministry of Agriculture, Food and Rural Affairs, the price of cocoa—processed from cacao—has reached $9,236 per ton, marking a staggering 127 percent increase from the previous year and a 246 percent rise compared to average past prices.

Experts caution that the implications of climate change will likely extend beyond cacao, affectively increasing prices of various agricultural products and processed goods as global warming advances. They have observed notable price surges in other commodities such as sugar, flour, and palm oil in recent years.

Cacao is the primary ingredient in chocolate, and its production is being increasingly threatened by climate change. Alterations in weather patterns, land degradation, and shifting agricultural zones are contributing to reduced yields. West Africa is particularly vital as it supplies a majority of the world’s cocoa, making disruptions due to climate events particularly alarming for industry stakeholders. The increasing costs of cocoa are a reflection of broader trends impacting agriculture due to environmental changes.

In conclusion, the rise in chocolate prices reflects the escalating costs of cacao production driven by climate change. Major confectionery companies, including Orion and Haitai Confectionery & Foods, have implemented significant price increases in response to these market pressures. Furthermore, the ongoing threats to cacao production underscore the anticipated economic repercussions across the agricultural sector as climate change continues to unfold, potentially affecting a broader range of staple products.

Original Source: www.koreatimes.co.kr