Chocolate producers are keeping a close eye on the Ebola outbreak in West Africa, since its the source of 70 percent of the worlds cocoa and the harvesting season is in full swing. ...the World Cocoa Foundation, which works to help cocoa farmers become sustainable and prosper. Ivory Coast is the number one cocoa producer in the world, and it has held Ebola at bay, McCoy said. But there is concern that Ebola will cause disruption in the cocoa industry and lead to higher prices, Bloomberg reported Oct. 6. Beckman said he cant speculate on future prices, but noted that cocoa prices are down since the beginning of October. The price was $3,059 Oct. 9, compared with $3,150 Oct. 1. But in September 2013, the price was $2,616, according to the International Cocoa Organization. M&M Mars spokesman Katie Burns said sourcing and pricing of cocoa is an industry issue, and declined to comment on the effect on chocolate or cocoa prices. A rise in cocoa prices would come on the heels of price hikes by Hershey and its competitors that were announced last summer. Hershey said in July it would raise wholesale prices eight percent due to rising prices of cocoa, dairy, nuts, packaging, fuel, utilities and transportation. Politico reports that border closings due to Ebola could affect labor for Ivory Coasts cocoa harvest. Cocoa is a vital economic driver in the region and past challenges, including political unrest, have not stopped the export of this critical source of revenue and livelihoods for these countries, Beckman said. Hershey has other tropical sources for cocoa and can adjust its sourcing, if necessary. Will Hershey Spike Cocoa Prices In Order To Avoid West Africa?
Posted on: Mon, 20 Oct 2014 22:08:05 +0000
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