The cost of chocolate continues to soar as cocoa prices skyrocket, with Cadbury Australia doubling the retail price of two iconic chocolate bars for the first time in more than a decade.
Affecting global buyers, the cocoa supply crisis is the result of erratic weather conditions that have impacted production in West Africa, which is where some of the crop’s largest growers are based.
Crop disease has also spread and ravaged the country’s plantations due to an increase in rainfall during the summer of 2023, with the Ivory Coast experiencing twice its normal level of precipitation.
To add to supply woes, the consumption of cocoa products continues to grow rapidly worldwide, with Mordor Intelligence predicting the cocoa bean market will grow by nearly US $7 billion by 2029.
Earlier this year, Reuters explored the situation, confirming that major cocoa factories in Ivory Coast and Ghana – which reportedly produce 60 percent of the world’s cocoa – had stopped or cut production because they couldn’t afford to buy cocoa beans.
Brands such as Cadbury rely on these factories to turn cocoa beans into butter, powder and liquor that are vital ingredients in the chocolate-making process, leading to a supply-demand mismatch.
Between January and April of this year, the price of cocoa tripled, standing at US $11,776 (AU $17,605) per tonne during its peak, which has significantly impacted Australia’s $5.5 billion chocolate industry.
According to market insight reporter FXStreet, the price of cocoa has risen overall by 90 percent this year, following a 45 percent increase in 2023.
Australian consumers have threatened to boycott Mondelez-owned Cadbury after it announced that it will raise the price of Freddo Frogs and Caramello Koalas.
“Due to the record global price of cocoa, and increased input costs, we have adjusted the RRP from $1 to $2, the first price change in over a decade,” said Cadbury in a recent social media post.
“We appreciate your understanding and continued support as we strive to deliver the high-quality chocolate you love, made with the best local ingredients.”
Perhaps anticipating backlash, the chocolate-maker turned off the comments on its post, but disgruntled consumers took to social platforms to call the announcement “crazy” and “outrageous”.
On 12 August, ING confirmed that cocoa prices had been up by around 10 percent in the previous week, but hinted at a possible recovery.
“A significant drop in showers in top-producing countries led to below-normal soil moisture that could hamper crop growth in the current season,” said the leading European bank in its commodities feed.
“However, some market participants estimate that mixed weather conditions in the upcoming months could lead to a recovery in West Africa’s cocoa production and flip the market into a surplus in the ongoing season.”
