FCIA Article Summary: Climate-Related Cocoa Shortages Impact the Chocolate Industry

The global chocolate industry faces significant challenges due to climate-induced cocoa shortages. West Africa, which supplies over 60% of the world's cocoa, has experienced heavy flooding and crop diseases, exacerbating a bean deficit. Cocoa prices have surged, reaching $12,500 per ton, a 400% increase from the average over the past decade. This has impacted both large-scale and craft chocolate producers, with the latter feeling the strain due to their reliance on high-quality, ethically sourced beans.

Specialty chocolate makers like Dandelion Chocolate and Fruition Chocolate Works have raised prices by 10%-20% while navigating fluctuating supply and increasing production costs. Many are rethinking their sourcing strategies, focusing on origins with unique flavors and ethical practices. Despite rising costs, some view higher cocoa prices as an opportunity to improve farmers' livelihoods.

With cocoa stocks predicted to hit a 45-year low and the chocolate industry expected to grow at 4% annually, these supply chain challenges demand innovative solutions to ensure sustainability and quality for the future.

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