Prices rise, but not forever

Chocolate fans face another set of prices that rise with the delay of the cocoa market that strikes retailers – but it may be the best news in the store by the upcoming Easter.

Cocoa prices have increased in recent years, as they reached a record rise amid harmful weather conditions, pests outbreaks in West Africa, which produce around them. Three quarters From the global offer.

This trend with the most enlarged retail prices all over the world, which increases the costs of consumers and Sweet request request in this process. A 2024 survey by the UK Consumers Group? The chocolate products that were found were the category that is the average annual inflation rate in grocery stores last year, by 11 %. In the United States, The price of popular products such as Hershi kisses similarly jumped about 12 % on an annual basis.

Adalber Lechner, head of the Swiss giant Lindt & Sprüngliand Tell CNBC in April He does not believe that cocoa prices “will decrease to the levels they were before.”

The future cocoa contracts remained volatile but were generally diluted this year, as it decreased from 8177 dollars per ton in the beginning of January to about $ 7,855 in August. This compares with $ 2,374 three years ago.

The recent decrease in chocolate prices will not appear in the short term, according to Tircy Allen, an expert in agricultural commodities at JP Morgan.

“We have a little alcohol that is happening here,” Allen told “Squawk Box Europe” on Thursday.

She said that chocolate was still dealing with the high prices of cocoa from the fourth quarter of 2024 when they saw record levels.

She said, “These increasing prices were really this late impact on the industry as a whole,” at a higher cost to do the business that is transferred to the consumer. “There is this continuous deficit in the market, and the great exhaustion of the availability of cocoa pills and the availability of products. So higher prices for a longer period, I am afraid,” she continued.

Lydia Tott, head of public affairs at the Shokusi Trade Association, said that the quadruple price of cocoa prices over the past two years has increased significantly from production costs, which increases the margins of manufacturers, especially given that retail prices tend to delay.

“The influence of all parts of the industry is from smaller companies to the great international exporters,” CNBC told CNBC.

However, the expectations may be brighter in time for the crowded Easter season, and Trissi Allen of JP Morgan indicated.

Followed by the industrial demand from manufacturers completely with the improvement of the supply, with increased production, the best weather conditions and the new farms in Ecuador and Brazil that reach the stage of maturity, according to the JP MORGAN analysis, although cocoa prices remain higher in terms of structural aspect for a longer period at $ 6000 per metric ton.

Sam Meridith from CNBC contributed to this story.