Consumers could start to feel the impact as West Africa faces systemic issues have led to a historic supply deficit with no easy solutions.
Cocoa prices are soaring to record levels. What it means for consumers and why ‘the worst is still yet to come'
But consumers could start to feel the impact as West Africa faces systemic issues that have led to a historic supply deficit with no easy solutions. The world is facing the largest cocoa supply deficit in more than 60 years and consumers could start to see the impact at the end of this year or early in 2025, Joules said. The International Cocoa Organization has forecast a supply deficit of 374,000 tons for the 2023 to 2024 season, a 405% increase from a deficit of 74,000 tons in the previous season.
"Given that cocoa prices and other manufacturing costs have been rising steadily over the past year, it is likely consumers will see a price spike on chocolate candy this Easter," Branch told clients in a research note this month. Heavy rains exacerbated the disease issues, Branch said, and the El Nino weather phenomenon has also led to drier conditions resulting in lower cocoa yields in previous years. Seasonal harmattan winds were more extreme this year also impacting crop yields, Branch said.
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