Chocolate prices hit record high on Valentine's Day

Chocolate, one of the best-selling products on Valentine's Day, is breaking records worldwide with its prices this year. Ivory Coast and Ghana, which produce 60% of the world's cocoa, have lost a significant portion of their crops due to poor weather conditions as well as an increase in plant diseases. 

INSUFFICIENT COCOA SUPPLY

S&P Global cocoa and sugar markets research analyst Sergey Chetvertakov stated the following to CNBC regarding the decline in cocoa production in Ghana and Ivory Coast: "This has led to a drop in production and created a cocoa supply shortage in the market." Chetvertakov added that the cocoa supply has been insufficient for the third consecutive time and that this will not improve in the near future.

Cocoa prices have risen by 40% since the beginning of the new year. Currently, the price of 1 ton of cocoa is 5,874 dollars. 

THE RESULT OF EL NINO

David Branch, senior vice president of the Wells Fargo Agri-Food Institute, whose views were included in the CNBC report, stated that the current situation is a result of El Nino, adding that this also affects sugar prices. 

El Nino is a term used to describe large oscillations in ocean waters that affect atmospheric temperatures. 

According to NielsenIQ, which conducts global price analyses, chocolate prices have increased by 11% worldwide compared to the same period last year. 

However, experts do not yet expect the rise in prices to reduce demand globally.

News Source: 12punto