Chocolate prices are rising ahead of valentines day, as crop damage in West Africa has driven the price of cocoa to an all-time high last week. The spike in prices brings concerns that ongoing shortages could continue.
Cocoa plants in West Africa have been hit by both disease and extreme weather. Earlier this month, a Reuters cocoa poll predicted a global deficit of 375,000 tons for the 2023/24 season, which would mark the third straight deficit.
Rising prices are hitting consumers, and Hershey expects softening demand to continue. Its sales volumes were down 6.6% in the fourth quarter and the company predicts continued impact on earnings growth this year.
