As the Easter holidays approach, rising cocoa prices are pushing up the prices of bunnies and chocolate eggs, according to Bloomberg, cited by Agerpres.

Cocoa futures have doubled in less than three months, and on the New York Stock Exchange this week, the largest cocoa contract topped $8,900 a tonne, an all-time high. Cocoa trees in West Africa, the most important cocoa-growing region, have been hit by disease and a series of extreme weather events that could lead to a third year of global supply shortages. Refineries are already suffering from shutdowns, and new environmental regulations looming over European importers are creating new obstacles to the supply of cocoa beans.

The upward trend in cocoa prices is accelerating just ahead of Easter, an important holiday for chocolate consumption in countries such as the US, Brazil and the UK. Even though chocolate makers buy beans months in advance, rising stock market prices are starting to be felt, and some chocolate bars are becoming more expensive, smaller or filled with other flavors to soften the impact.

“Consumers have not seen the real value of chocolate for a long time. Persistently low producer prices and climate change have led to record high cocoa prices. It was a shock to some, but it was expected,” said Emily Stone, founder of cocoa distributor Uncommon Cacao.

Consumers are suffering from rising prices, post-pandemic inflation is hitting household finances.

“It’s very expensive,” said school counselor Isabel Cristina Brandao as she selected three brands of chocolate eggs from a pastry shop in Sao Paulo. She remembered a shopping cart that was full a few years ago. “Now we’re paying more for a lot less,” Brandao added.

Producers buy cocoa beans at record prices

According to research firm NIQ, the average price of chocolate eggs in the US rose 12% last year. 44% of households say they now buy less chocolate or sweets because of inflation.

According to consumer group Which?, prices of some popular brands of chocolate eggs in the UK have risen by 50%.

These changes include only a small portion of the higher quotes for cocoa, as the key ingredient used in Easter sweets was likely bought in the fourth quarter of 2023 or earlier.

The high cost is also felt in sweets made for upcoming holidays such as Halloween and Christmas, as manufacturers purchase cocoa beans at record prices.

And Swiss chocolate maker Lindt & Spruengli AG announced this month that it would raise prices in 2024 and 2025 due to rising raw material costs.

While some companies may have cheap inventory to cover production for the next six months, they will opt for gradual price increases rather than shock consumers with sharp increases, said Judy Gaines, president of J Ganes Consulting.

And other chocolate producers, who have raised prices, do not rule out the continuation of the trend. In February, Mondelez International CFO Luca Zaramella hinted that a hike was possible, while Hershey CEO Michele Buck said the company was sticking to its “commitment to set prices to cover inflation.”