100% rise in cocoa prices sees Easter egg costs spike
The price of Easter eggs this year is up by more than the already high annual inflation rate. The situation is being trumped by a 100% rise in the cost of the humble cocoa bean from this time last year.
Ghana's cocoa output for the 2023/24 season is expected to be almost 40% below a target of 820,000 metric tons according to two sources from the country's sector regulator. Strong seasonal winds and a lack of rain are among the main factors; however, adverse weather is not the only reason. Ghana also says the 'cocoa swollen shoot virus', which causes yields to drop and kills cocoa trees, had wiped off about 500,000 hectares of farmlands. Ghana is the world's second largest cocoa producer, behind Ivory Coast. Ivory Coast said earlier this week that cocoa arrivals at its ports were down 32% in February YoY.
(AI Video Summary)
The price of Easter eggs
The price of Easter eggs is going to be higher this year because the cost of cocoa beans, the main ingredient in chocolate, has gone up a lot. This increase in price is much higher than the usual inflation we see every year. Part of the reason for this is that there has been a decrease in how much cocoa is being made in Ghana, a country known for its cocoa production. This is because there have been strong winds and not enough rain, which have made it hard for cocoa trees to grow. On top of that, there is a virus called cocoa swollen shoot virus that has affected a large area of farmland. Ivory Coast, which is the biggest producer of cocoa in the world, has also seen a drop in the amount of cocoa being brought into its ports. All of these factors have led to the cost of making Easter eggs going up.
In order to deal with this increase in price, some companies that make Easter eggs may decide to make the eggs smaller. This way, they can still sell them at a price people can afford. This is called "shrink inflation." So, when you go to buy Easter eggs this year, don't be surprised if they are smaller than usual.
The price of cocoa
The price of cocoa has been going up a lot. In London, the price of cocoa went up by 72.5% last year. And in just the first two months of this year, it has gone up by almost 48%. The main reason for this is the increase in the cost of cocoa beans and the decrease in how much cocoa is being made. All of this has led to Easter eggs costing more to make. That's why companies are likely to make smaller Easter eggs this year - to save money.
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