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Chocolate prices rise worldwide due to cocoa shortage in West Africa

By our News Team | 2023

Chocolate may be ‘the language of love’, but consumers are not loving the price hikes as cocoa crops in Africa continue to struggle.

With the second of the two annual cocoa harvests underway in Africa’s top cocoa-producing regions of Ghana and Ivory Coast, FMCG companies that manufacture and market chocolate-based products are bracing themselves for further unavoidable price hikes that will reduce their sales.

 

Cocoa prices have already gone up by nearly 50% in the past year, due mainly to smaller harvests in both countries because of adverse weather conditions and crop diseases. 

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Photo by Pixabay via Pexels

Growers in Ghana and Ivory Coast are also having to pay more for imported fertilisers and pesticides – further driving up the price. Together, these West African nations provide about two-thirds of the world’s cocoa supply.

 

“The looming El Niño weather phenomenon adds to the apprehension, and analysts predict a third consecutive global shortage for the new season that is commencing, potentially resulting in continued inflation in the chocolate sector,” Food Business Africa reports.

 

Among the multinationals feeling the price squeeze are Mondalez – which includes the Cadbury and Toblerone brands in its stable – and Lindt & Spruengli, which has Lindt in its brand portfolio.

 

Consumers shop around for chocolate deals

 

Recently, Mondelez CEO Dirk Van de Put said consumers are “shopping around more, hoping to find deals”. 

 

It seems retailers are also trying to find ways to keep chocolate prices down. According to news agency Reuters, one such battle resulted in Mondelez pulling Cadbury and Milka bars from Belgian supermarket chain Colruyt’s shelves after failing to agree on prices. 

 

Reuters warned that the worsening situation is putting chocolatiers’ margins and profitability at risk.

 

Hershey, which is a major chocolate player in the North American market, has seen its sales volumes decline as consumers balk at paying higher prices for its products.

 

“The world could see further increases in chocolate prices as concerns mount over a potential cocoa crop shortage in Ghana and Ivory Coast,” Food Business Africa said in a report published on Tuesday (3 October).

  

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.