1130819 SIP myths you must know!

The cost of the raw material used in chocolates, cocoa, has reached an all-time high.
It’s bad news for chocolate lovers. Chocolate was already slightly bitter, and now it might taste even more bitter to you. Don’t worry about the taste because it’s not about the flavour, but rather about the rising cost. In fact, the rising prices of cocoa, the main ingredient in chocolate, are adding bitterness to its taste. The price of cocoa has been consistently high. Additionally, there is an African connection to the inflation. Cocoa cultivation is primarily concentrated in West Africa and Latin America. Four countries in West Africa, including Ivory Coast, Ghana, Cameroon, and Nigeria, account for 75% of global cocoa production. Ivory Coast alone produces nearly half (50%) of the world’s cocoa.

The adverse effects of unfavourable weather predictions and their impact on cocoa production in West Africa have contributed to the inflation. Moreover, high demand and reduced production are additional factors making chocolates more expensive.

How costly has cocoa become?
This year, the international market witnessed a nearly 21% increase in cocoa prices. The crop has suffered from diseases and heavy rainfall, leading to a decrease in cocoa production. The combination of high demand and low supply indicates that cocoa and the resulting chocolates are becoming more expensive.

Is El Niño affecting your chocolate?
El Niño can also influence cocoa production in the upcoming season. There are concerns about the impact of El Niño on weather conditions in Ivory Coast, which could affect cocoa production in the country.

Putin is also targeting chocolate
The use of Artificial Intelligence (AI) platforms like Gro Intelligence, which predict climate and agriculture-related conditions, suggests that the Russia-Ukraine war has also impacted cocoa prices. In cocoa cultivation, fertilizers play a crucial role. Due to the war, fertilisers have become more expensive, which has affected cocoa prices.