Cocoa prices have dropped from the 24-year high reached last month but a leading industry expert has warned that manufacturers should brace themselves for a continued upward trend.
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Cocoa prices on London’s LIFFE futures exchange dropped to GBP1679.67 per tonne yesterday (2 March). In February, cocoa prices had reached a high of GBP2045.
Speaking to just-food, a spokesperson for the International Cocoa Organisation (ICCO) said that while prices may have eased, the factors driving increased cocoa costs are expected to remain in the “foreseeable future”.
“We still see a shortage of supply propelling cocoa prices,” the spokesperson said.
In response, chocolate makers have moved to protect their margins by reformulating recipes, reducing the size of products and increasing prices.
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By GlobalData“While in the short term this will provide a cushion, there is a worry that it could also have a detrimental impact on demand. Already we have seen demand weaken in Asian markets. It is possible that this could spread to established markets in Europe and America,” the spokesperson added.
