Cocoa prices have more than doubled and sugar prices have risen by about 45 per cent since February this year, according to an ANZ analysis. The increases are raising ingredient costs for confectionery makers ahead of Halloween in Australia.
Cocoa has reached around $8300 per tonne as weather conditions and crop disease have affected supply in Côte d’Ivoire and Ghana, which together account for around 60 per cent of global cocoa production. Meanwhile, weather conditions have pushed down sugar production forecasts in several major producing regions.
Michael Whitehead, ANZ executive director of food, beverage and agribusiness insights, said the price movements reflected broader pressures across global agricultural commodity markets.
“The story behind a Halloween chocolate bar starts long before it reaches Australian supermarket shelves,” he said. “Poor weather conditions and crop disease in some of the world’s major cocoa-producing regions have contributed to a rise in cocoa prices this year, while sugar markets have also faced supply pressures.”
Cocoa from West Africa passes through processing, transport and manufacturing before reaching the Australian market. Disruptions in producing regions can increase costs across the supply chain, putting pressure on chocolate and confectionery prices.
Despite higher input costs, demand for confectionery is likely to remain resilient as Australian families prepare for Halloween.
Australia has about 4.8 million children under 15. If each receives 20 miniature chocolate treats, consumption could reach 96 million pieces in one evening. At an average weight of 10g each, this would amount to about 960 tonnes of chocolate, containing an estimated 440 tonnes of sugar and requiring around 430 million cocoa beans to produce.
- Further reading: ‘Real’ chocolate is making a comeback as cocoa prices fall.
