Valentine's Day is here and if you are thinking of buying chocolates for your loved ones, you might be in for a surprise.
The price of cocoa, the key ingredient in chocolate, has hit an all-time high due to crop damage in West Africa. Fox News reported.
As a result, chocolate makers are feeling the pressure and passing price increases on to customers.
Global cocoa prices hit a new record for the ninth consecutive day on Sunday, raising concerns that supply shortages could prolong due to extreme weather and disease-hit cocoa plants in West Africa's top-producing region.
Benchmark ICE London cocoa futures rose to a record 4,916 pounds per metric ton on Friday before closing up 2.1% at 4,757 pounds/tonne.
These prices have more than doubled since the beginning of last year.
In New York, benchmark ICE cocoa futures hit a new high of $6,030 a tonne on Friday, closing up 1.4% at $5,888 a tonne, having nearly doubled since the start of last year.
This month, a Reuters cocoa survey predicted a global deficit of 375,000 tonnes for the 2023-2024 season, more than double what was predicted in the survey conducted in August, indicating the market's third consecutive deficit.
Rising costs are showing up on retail store shelves, with chocolate giant Hershey anticipating a further drop in demand for its products from cash-strapped consumers following a 6.6 drop. % in sales in the fourth quarter.
