The British daily Financial Times reported on March 29 (local time) that the international cocoa market is soaring due to the impact of climate change, leading to a “shlink inflation” phenomenon in chocolate products. Shlink inflation refers to a “trick-raising＇” in which the volume of a product is reduced while leaving the price unchanged or raising the price.
According to the U.K. consumer group Location, Easter egg-shaped chocolates have either increased in price or decreased in volume at local retailers this year. Maltiser’s Easter egg chocolate, which cost £8, has been increased to £13 at large supermarkets. Terry’s Easter egg chocolate has been reduced by 30 grams each and the Mars milk chocolate egg has been reduced from 252 grams to 201 grams.
This phenomenon is closely related to the sharp rise in the price of cocoa, a raw material for chocolate. On March 26, the price of cocoa for May delivery on the New York Mercantile Exchange exceeded $10,000 at $10,000 per ton. It has more than doubled this year.
Cocoa prices were below $5,000 per ton two months ago in New York and below $3,000 a year ago.
West Africa, such as Ivory Coast and Ghana, the main cocoa producers, has been sluggish due to climate change and aging cocoa trees due to chronic lack of investment, but this year’s harvest has dropped sharply due to the addition of bad weather.
JENNIFER KIM
US ASIA JOURNAL
