Chocolate-based product prices are rising sharply due to climate change affecting cacao production. Orion increased prices of 14 products by an average of 10.6%, while Haitai raised prices on ten items by 8.6%. Severe weather conditions, particularly in West Africa, have resulted in diminishing cacao supplies, and cocoa prices have soared to $9,236 per ton, reflecting a 127% increase from the previous year.
The surge in prices for chocolate-based products has been largely attributed to climate change, which has adversely affected cacao production. Recently, Orion, one of the prominent confectionery companies, raised prices of over a dozen products, averaging a 10.6 percent increase, with certain items like Choco Songyi and Bichobi witnessing jumps of up to 20 percent. Similarly, Haitai Confectionery & Foods adjusted the prices of ten of its offerings, such as Homerun Ball and Pocky, by approximately 8.6 percent.
This price escalation is occurring in the context of diminishing cacao production, a crucial ingredient for chocolate. Extreme weather patterns and reduced growing areas are particularly impacting cacao yields in West Africa, a region which constitutes a significant fraction of the global supply. The Ministry of Agriculture, Food, and Rural Affairs reported that the price of cocoa—processed cacao—has soared to $9,236 per ton as of last Tuesday, marking a 127 percent increase from the previous year and an astonishing 246 percent rise from historical averages.
The alarming rise in chocolate product prices is an indicator of broader economic implications stemming from climate change. The cacao plant is highly susceptible to changes in temperature, humidity, and rainfall, factors that are becoming increasingly unpredictable due to global warming. As West Africa remains the dominant source of cacao for the world, the ongoing disruptions to its cultivation methods pose a significant threat to chocolate availability and affordability. The agricultural sector is experiencing similar pressures, with other staple ingredients such as sugar and flour also witnessing price surges due to climatic effects.
In summary, the recent increase in chocolate product prices signals a troubling trend largely driven by climate change’s impact on cacao production. Major companies like Orion and Haitai have had to raise the prices of their products in response to severe declines in cacao supply and skyrocketing cocoa prices. This situation serves as a dire warning that ongoing climate challenges may further escalate prices across various agricultural goods, necessitating urgent action within the industry to adapt and mitigate these impacts.
Original Source: www.koreatimes.co.kr
