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Chocolate Prices Have Been Rising in 2023. Here's Why
Summary
The invasion of Ukraine by Russia originally affected the orders of chocolate producers for cocoa, causing the price of cocoa to rise to a 46-year high and increase by around 40% since October. Reduced orders for cocoa were the result of fuel price hikes and worries about energy shortages in Europe following the invasion. But as European fuel supplies shifted away from Russia, chocolate manufacturers found themselves in a competitive market for scarce cocoa beans. 75% of cocoa is produced in West Africa, where an emerging El Nino weather trend and high fertilizer costs following the invasion are further factors driving up cocoa prices.
Why This News is Important
This is significant news since rising cocoa prices affect consumer costs as well as the cost of producing chocolate. The price of cocoa has significantly increased due to a combination of factors including weather patterns, supply chain interruptions, and geopolitical events. The industry and those who buy chocolate goods may be impacted if chocolate manufacturers decide to pass on the increased costs to customers. It also emphasizes how global events and commodity markets are intertwined, with geopolitical crises having the potential to spread across several industries and impact supply dynamics and prices.
Ref: (https)://time.com/6291600/cocoa-chocolate-high-price-russia/
Summarized by: Pan Piyatassakorn 6405617