Fox Business' Madison Alworth speaks with the brand Chinsky to the owner of the Enjou Chocolate to influence the impact of cocoa prices on the chocolate industry.
Consumers with sweet teeth this year will cost one of the most popular Valentine's Day behaviors.
Cocoa prices increased compared to a year ago due to crop conditions with rising production costs, and some jobs were not the option of raising the prices of different chocolate products.
Ray Bitzel Jr., owner of Bitzel's chocolate, an artisan chocolate factory in Swann, Georgia, has attracted a heavy cost to holding customers. However, the sweet therapy store should raise prices to cost increased costs.
“The price of chocolate has almost doubled from 18 months ago,” Bitzel told Fox Business. “That's too bad.”
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David Branch, director of the Fargo Agri-Food Institute, David Branch, reported that the price of cocoa has doubled since the beginning of 2024, forcing industries that rely on prices to raise prices. The branch told Fox Business that “almost all major candy producers” stated that they had to raise their prices.
A set of chocolates of Bitzel chocolate in Suwanee, Georgia. (Bitzel's chocolate)
The issue, according to the branch, is that cocoa production has been hammered for many years because the key areas of cocoa production in West Africa are facing a temperature above normal, causing the risks to grow crops. The prevalence of cocoa swelling virus (CSSVD), one of the most devastating cocoa diseases that can cause significant damage, also increases production problems.
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The Branch of the International Cocoa Organization's Data Branch predicted that cocoa world production will be reduced by 13.1 percent compared to the year, resulting in a deficit for the third year in consecutive year.
Since January 2023, the price of cocoa beans has increased by more than 355 %. From January 2024 to December 2024, more than 143 % increased and reached $ 12.565 per ton of metric.
To date, the delivery of Cocoa from the Ivory Coast, the world's largest commodity producer, has grown by 76 % annually. But future prices near November 2024 in London have risen 33 % and 26 % in New York. Wells Fargo's report says that while the market has better product expectations than the previous season, it seems that the current supply risk and supply deficit are still big concerns.
Chocolate made by Bitzel chocolate in Suwanee, Georgia. (Bitzel's chocolate)
Bitzel's biggest concern is to make sure he does not raise prices. Bitzel, as an artisan chocolate, said he uses mining cocoa, which did not see prices fall.
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Now, Bitzel estimates that commercial raw chocolates are about $ 8 per pound and $ 12 for white chocolate.
“Our job is just to understand how Really good and qualityBitzel said, and there is no need for absolute wealth.
He said there is a price point where people refuse to buy and they are looking for other chocolate options. This year, the business is seeing more customers, some of which is falling on Friday's Valentine's Day. However, every customer buys less than usual, he said.