(NewsNation) — Cocoa prices have hit record highs, passing $9,000 per metric ton, making the ingredient more expensive than copper and causing candy companies to struggle with rising costs.
Ivory Coast and Ghana, the two countries that produce 60% of the cocoa in the world, have been hit with a series of unfortunate circumstances leading to low yields that have driven up prices.
Farmers have grappled with black pod disease and swollen shoot virus, along with changes in weather conditions that reduced yield. There has also not been a new round of planting since 2000, making many cacao trees past their maximum yield age.
Farmers have also been switching to more profitable crops like rubber since they aren’t seeing the results of soaring prices. Both Ivory Coast and Ghana set fixed prices for farmers at the start of the season.
Prices spiked to nearly $10,000 per metric ton, compared to around $4,000 per metric ton in December 2023. That in turn is causing difficulty for candy companies and raising prices for consumers.
The Hershey Company reported flat earnings in Q4 of 2023 as prices for cocoa rose, and both Hershey and Nestle have seen a dip in stock prices.
Some candy companies have already responded by decreasing the size of candy bars or pushing candy that has less chocolate or even none at all, Business Insider reported, with Hershey putting more investment into gummy candies.
For consumers, it means Easter candy could be more expensive, and not just this year. The impact of rising cocoa prices could continue to drive costs higher, making Easter in 2025 even more costly.
