Chocolate risks becoming even more expensive if West Africa¡¯s new cocoa harvest ends in disappointment.
Cocoa prices have soared about 47% in the past year on fears that bad weather and crop disease will hurt output in Cote d¡¯Ivoire and Ghana, which make up two-thirds of world supply. An El Nino weather phenomenon could make matters worse, and analysts expect a third straight global shortage for the new season that¡¯s just starting.
That means inflation on the treat aisle may persist even as cost pressures ease for food more broadly. Top chocolate manufacturers like Hershey Co. and Lindt & Spruengli AG have already warned of possible further price hikes, and there are signs that pricier goods are hurting demand from Europe to the key growth market of Asia.
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