Shoppers may get a bitter surprise in their Easter baskets this year. Chocolate eggs and bunnies are more expensive than ever as changing climate patterns eat into global cocoa supplies and the earnings of farmers in West Africa.
“It is likely consumers will see a price spike on chocolate candy this Easter,” Wells Fargo said in a report this month. Cocoa is traded on a regulated, global market. Farmers sell to local dealers or processing plants, who then sell cocoa products to global chocolate companies. Prices are set up to a year in advance. Many farmers blame climate change for their poor crops. Cacao trees only grow close to the equator and are especially sensitive to changes in weather.
Opanin Kofi Tutu, a cacoa farmer in the eastern Ghana town of Suhum, said the shortfall in production coupled with higher fertilizer costs are making it difficult to survive. “The exchange rate to the dollar is killing us,” he said. The National Retail Federation, an American trade association, expects spending this Easter to remain high by historical standards despite rising candy prices. Its latest survey showed that consumers were expected to spend $3.1 billion on chocolate eggs and bunnies and other sweets this Easter, down from $3.3 billion a year ago.