Chocolate prices are increasing due to climate change affecting cacao production, with significant price hikes from major companies like Orion and Haitai Confectionery & Foods. The cacao production is declining, particularly in West Africa, leading to a rise in cocoa prices by 127 percent over the last year. Experts warn that further increases in agricultural products are likely as global warming impacts sourcing and production.
The cost of chocolate products, including snacks and confectionery items, has experienced a significant increase, primarily attributable to the adverse effects of climate change on cacao production. Notably, Orion has raised the prices of 14 of its products by an average of 10.6 percent. Furthermore, specific items like Choco Songyi and Bichobi surged by as much as 20 percent. Similarly, Haitai Confectionery & Foods has escalated prices on 10 of its offerings, including Homerun Ball and Pocky, by 8.6 percent. These price hikes coincide with a decline in cacao production, exacerbated by extreme weather conditions and the reduction of suitable cultivation areas.
The most pronounced impacts of these climatic changes are observed in West Africa, which is responsible for a substantial portion of global cacao supply. As per the Ministry of Agriculture, Food and Rural Affairs, the cocoa price, a processed derivative of cacao, reached $9,236 per ton last Tuesday. This price marks a striking increase of 127 percent from the previous year and a remarkable 246 percent compared to average prices in preceding years. Industry experts predict that if climate change continues unabated, other agricultural commodities and processed goods will likely face similar price escalations, further elevating costs for consumers. Recent years have already reflected price increases in essential products such as sugar, flour, and palm oil due to related environmental factors.
The correlation between climate change and agricultural productivity is increasingly apparent, with cacao cultivation representing a vulnerable sector. The environmental challenges posed by climate change, including extreme weather events and land degradation, have a direct impact on the ability to yield cacao which is essential in chocolate production. With West Africa leading the world in cacao supply, any disruptions in this region can significantly affect the global chocolate market and contribute to rising costs.
In summary, the rise in chocolate prices reflects the escalating struggles within the cacao production sector due to climate change. As major confectionary companies like Orion and Haitai Confectionery & Foods increase their prices, consumers may face higher costs for chocolate-based products. The implications of climate change extend beyond cacao to potentially impact various agricultural products, indicating a broader concern regarding food pricing and agricultural sustainability. Immediate and sustained efforts are required to address these urgent environmental challenges.
Original Source: www.koreatimes.co.kr
