Cocoa prices have reached a new record. How will this affect the cost of chocolate.

Cocoa futures reach new record due to supply issues

Cocoa futures have reached a new record in New York due to supply issues, Bloomberg reports.

On Monday, cocoa futures rose by 4.8% to $11,839 per ton. Cocoa prices have nearly tripled this year, leading to an increase in the cost of confections.

This price increase is a result of low cocoa yields in West Africa - the largest production region. For the third consecutive year, the world is facing a cocoa shortage. Recent adverse weather conditions continue to threaten the region, leading to a reduction in global cocoa stocks, which were already low.

Additionally, cocoa supply is also affected by plant diseases and low wages for farmers. As new trees take several years to start bearing fruit, production cannot quickly recover.

Experts predict that cocoa prices may decline next year, as rising prices will force producers to increase production while consumption may decrease.

Currently, the cocoa market situation is critical. Many chocolate manufacturers from Malaysia to Germany and Chicago are facing market problems. Those companies that miscalculated prices have already faced lawsuits in courts. With nearly zero liquidity in the market, chaotic consequences may arise, which could impact enterprises.