Why Chocolate Could Soon Be More Expensive
Food prices are on the rise, CNN reports the producer rice index — which tracks price changes from a seller's perspective — saw a 9.7% increase over its 12-month tracking period. From produce to meat to milk and eggs getting more expensive, what we pay at the super market for our weekly grocery bill is a little eye popping. Well, it appears to be happening again, but with one of our favorite treats. Chocolate lovers listen up: your beloved confection is about to get a little more expensive. Perhaps, you already lived this price increase during Valentine's Day.
Anthony Cirone, co-owner of New York City's Li-Lac Chocolates told CBS News, "The Valentine boxes — we got hit with a 50% increase, and when we asked why we were told it was 100% due to container-ship pricing, transportation costs." Translation: any increase your chocolate makers are getting to create their products, they are passing along to the consumer. Well, according to a report from the Wall Street Journal, prices for this commodity are on the rise. The publication states cocoa futures are up 8.4 percent, the equivalent of $2,731 a metric ton. Why such a rise in price?
Droughts and cost of other ingredients contribute to price hike
The Wall Street Journal reports that droughts in West Africa's Ivory Coast, which the publication dubs as "the world's largest exporter of cocoa beans," are at the root of the price hikes. Per the Science of Cooking, cocoa is key to make the creamy, delicious, chocolate, we love so much. Reuters explains that cocoa farmers need both periods of rain and sun for optimal growing, and apparently the season has been rather dry this year. Sadly, this act of Mother Nature already has chocolate makers raising prices.
CNN Business reported early this month that Hershey announced they are raising prices on their candy bars, with Steven Voskuil, Hershey's chief financial officer, citing the rising price of ingredients and labor costs on their side of the business equation. In addition to the rise in price of cocoa beans, the story noted sugar has also experienced a price increase. CNN Business further explains that with the increase in demand for chocolate during the pandemic, consumers have been more accepting of these price increases.