- Cocoa's price will almost double in 2024, outpacing Bitcoin in the past 12 months.
- Rising cocoa costs could lead to higher prices for Easter chocolate.
- Hershey and Cadbury both said consumer prices were likely to rise.
With cocoa prices so high, parents may want to use their Easter chocolate as a tax deduction this year.
According to Bloomberg, cocoa prices were already steadily rising in 2023, but the price of cocoa products has nearly doubled since the beginning of this year. Wholesale prices in New York have increased by more than 47%, or more than $8,900 per ton, in recent weeks, pushing bean prices to “unthinkable” levels, the magazine said.
Cocoa’s 186% rise over the past 12 months also outpaced Bitcoin’s record-breaking 150% rise over the same period.
Experts expect the price hikes to hit stores in time for Easter. Last year, US retailers priced chocolate 11.6% higher than in 2022, BI previously reported.
In earnings calls in January and February, Hershey and Cadbury executives pointed to the possibility of higher prices for consumers given cocoa supply shortages. Heavy rains in West Africa, where most of the world's cocoa is grown, have disrupted production for the past six months.
Michelle Bach, President and CEO of Hershey, said in a February 8 earnings call that, “Given the current cocoa price situation, we will utilize all tools, including pricing, as a means of business management.'' I intend to do so.''
