Why Has the Price of Chocolate Skyrocketed?

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This article, originally published by Grist, highlights the impact of climate change on the cacao industry in West Africa. Côte d’Ivoire, Ghana, Cameroon, and Nigeria are central to a $100 billion industry. These countries cultivate cacao trees, which produce beans that are processed into chocolate, a beloved global commodity. However, the chocolate industry is now facing challenges due to climate change, particularly with rising temperatures affecting cacao growth during key harvest periods.

Two reports released on Wednesday demonstrate how oil, coal, and methane emissions are exacerbating the climate issues in the region, leading to increased chocolate prices. Kristina Dahl, vice president for science at Climate Central, one of the organizations behind the reports, emphasized the threat that climate change poses to cocoa production. These changes call for a reevaluation of human priorities and actions to mitigate future climate impacts.

Approximately 70 percent of the world’s cacao is grown in West Africa, with these four countries as the major producers. Cacao thrives in rainforest conditions with high humidity and rich soil. However, temperatures above 89.6 degrees Fahrenheit cause water stress, hindering plant growth and diminishing the quality and yield of cacao beans.

In the past year, warming has extended the duration of higher temperature days beyond the ideal range in nearly two-thirds of cacao-producing regions in Côte d’Ivoire, Ghana, Cameroon, and Nigeria, likely resulting in a poor harvest. Climate Central’s report reveals that between 2015 and 2024, climate change has increased the number of days with excessive temperatures by two to four weeks annually. Moreover, altered rain patterns and increased temperatures are accelerating droughts, spreading diseases like pod rot, and degrading soil quality.

Emmanuel Essah-Mensah, a cocoa farmer in Ghana, described climate change as a severe issue affecting production, citing up to 60 percent loss of cocoa plants due to drought and consequential income decline. Last year’s adverse conditions, including droughts, floods, and diseases, resulted in record-high cocoa prices, contributing to increased chocolate costs.

Kat Kramer, a climate policy consultant and co-author of a report by Christian Aid, remarked that the findings expose the industry’s vulnerability to climate change, urging chocolate consumers to advocate for emissions reductions. Cocoa, used in pharmaceuticals and cosmetics, remains crucial, with the U.S. importing around $2.8 billion worth annually.

Alla Semenova, an economist, noted that global cocoa prices increased by 144 percent in December, impacting consumer prices as production costs rise. Despite rising prices, West African farmers like Josephine George Francis do not benefit due to increased costs associated with cultivation in a warming world.

Besides cocoa, sugar, another key ingredient in confectioneries, faced rising prices due to extreme weather affecting sugarcane production. Semenova indicated that climate change not only affects cocoa production quantity but also the quality and type of ingredients used in chocolate production.

In response, companies like Mars and Hershey are adapting by reducing cocoa content in their products or introducing new options without cocoa entirely. Analysts foresee declining demand for chocolate as prices continue to increase, a trend that persists even during events like Valentine’s Day.

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