Cocoa hits record $11,839 per ton, amid pricing challenge for Chocolate makers, consumers 

As the price of cocoa continues its climb, chocolate makers like Hershey Co. are under pressure to increase prices, further exacerbating the impact on consumers already grappling with high costs.

On Monday, cocoa futures rose by as much as 4.8%, reaching $11,839 per ton.

The commodity has nearly tripled in price this year, fueled by persistent supply deficits, primarily caused by poor harvests in West Africa, which produces the majority of the world’s cocoa.

Although the current main-crop harvest has been somewhat stable, the smaller mid-crop outlook has taken a hit due to severe weather conditions. Heavy rains have flooded farms, while the arrival of the dry Harmattan winds is drying out the soil, straining crops.

The cocoa industry’s supply woes are compounded by longstanding challenges, including crop diseases and low wages for farmers, which have hindered efforts to boost production. Additionally, the long maturation period for newly planted cocoa trees means a recovery in output will take years, delaying any substantial rebound in supply.

The tightness in global cocoa stocks is reflected in dwindling U.S. exchange inventories, which have continued to fall as chocolate companies, facing a major supply shortfall from the previous season, have been forced to draw down their reserves.

For now, however, the chocolate industry and consumers face the brunt of these supply constraints, which could leave lasting effects on both production costs and consumer prices in the foreseeable future.