Expensive Cocoa Supply Is About to Hit Chocolate Makers, Spurring Demand Pullback

Analysts say global processing probably slowed last quarter
But replenishing beans will become much costlier for grinders

New York cocoa futures hit an all-time high of more than $11,000 a ton in April as poor West African harvests curbed output. — New York cocoa futures hit an all-time high of more than $11,000 a ton in April as poor West African harvests curbed output.
Photographer: Dado Galdieri/Bloomberg

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By Mumbi Gitau and Dayanne Sousa

July 10, 2024 at 2:11 AM UTC

This article is for subscribers only.

Cocoa processing likely slowed a bit last quarter, but a steeper slump is looming as chocolatiers start to really feel the pinch of pricey beans.

Despite an historic shortage sending cocoa prices to a record this year, that has yet to fully filter through to chocolate makers. That’s because many of the beans that they’ve been grinding into the butter and powder used in confectionery were secured before the worst of the crunch took hold.