Cocoa prices are skyrocketing.

American consumers will face higher chocolate prices this coming Halloween due to cocoa costs more than doubling since the beginning of last year, according to a recent report by Wells Fargo's Agriculture and Food Research division. This situation may prompt American consumers to think twice before purchasing this favorite sweet treat.

Although wholesale cocoa prices have cooled from their peaks late last year, producers are still passing the increased costs on to consumers. Many chocolate companies are scaling back seasonal product lines and implementing contractionary inflation policies – reducing portion sizes while keeping prices the same.

The surge in cocoa prices is due to severe supply disruptions in West Africa, a region that accounts for approximately 70% of global cocoa production. Heavy rains in late 2023, followed by droughts caused by El Niño in 2024, increased crop diseases, leading to a sharp drop in cocoa yields.

According to the International Cocoa Organization, global cocoa production fell 12.9% year-on-year to 4.37 million tons this past season, creating a supply deficit of 494,000 tons, the largest in over 60 years.

Ganiyu Adeogun, a Nigerian cocoa farmer, said: "If the rain had come at the right time, the cocoa yield would have been higher, and farmers would have harvested more. But nobody can predict the weather."

According to preliminary estimates from cocoa exporters, production will decrease by 10% in the 2025-2026 crop year (beginning in October) in four West African producing countries. And cocoa prices are likely to remain high at least until the end of the next crop year, due to the current record cocoa supply deficit.

Tariffs ranging from 15% to 25% recently imposed on major suppliers of cocoa and cocoa products imported into the US are also an additional cost factor.

Andrew Naum, CEO of Sweetland Candies, USA, said: "In the past few years, we have never seen cocoa prices skyrocket like this, almost tripling. With input costs soaring like this, it's really difficult for our business to cope."

In light of this situation, analysts advise consumers to look for sweets with lower cocoa content, compare prices across retailers, and consider unbranded alternatives that may be more economical than branded products.

Source: https://vtv.vn/gia-ca-cao-tang-chong-mat-100251010164915639.htm