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Valentine's Day Chocolate Prices Surge Amid Global Cocoa Shortage

As cocoa prices hit record highs due to poor weather and crop diseases, consumers face steep costs for Valentine's Day treats.

An agricultural worker harvests cocoa pods at a cocoa plantation in the village of Hermankono on November 14, 2023. Unusually heavy rains in Ivory Coast have lowered substantially the production of cocoa expected from farms. Ivory Coast supplies around 40% of the world's cocoa and the country has suspended temporarily the sale of export contracts. As a result, cocoa prices are breaking records on the financial markets.
Heart-shaped gift boxes of Chocolates in a Target store aisle in Queens, New York on January 05, 2023.
A shopper browses candy at Hershey's Chocolate World in Hershey, Pennsylvania, on Thursday, Nov. 11, 2021.
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Friday, Feb. 9, 2024. Mexican discount retailer BBB Foods Inc. priced its initial public offering at the top of a marketed range to raise about $589 million, adding momentum to a rebound in US listings. Photographer: Michael Nagle/Bloomberg via Getty Images

Overview

  • Cocoa prices have soared nearly 40% since the start of the year, reaching an all-time high due to adverse weather conditions and disease affecting major producing countries.
  • Despite the price hike, demand for chocolates remains strong, with 92% of Americans planning to share sweets for Valentine's Day.
  • The global cocoa shortage is the result of three consecutive years of insufficient supply, with no immediate signs of improvement.
  • Valentine's Day meal staples like lobster tails and beef loins have also seen price increases, further impacting holiday budgets.
  • Economic indicators suggest the U.S. is avoiding recession, but the Federal Reserve's cautious approach to interest rates adds uncertainty to the market.