%Cocoa prices are near their highest level in 45 years as the crop in Ivory Coast, Africa continues to deliver poor yields.
Ivory Coast, which is the world’s top cocoa producer, has reported that the cocoa grind in July of this year was down 31.2% from a year earlier at 39,301 metric tons.
The decline is due to poor bean quality and low volumes at mid-year as poor growing conditions and disease continue to ravage cocoa crops in Africa.
The grind is part of the process of transforming cocoa beans into chocolate. A poor grind inevitably leads to higher prices for chocolate among consumers.
Cocoa is currently trading at $8,235 U.S. per tonne, near its highest level in 45 years as the global supply of the active ingredient in chocolate continues to dwindle.
The current situation is pressuring the stocks of chocolate makers such as %Hershey (NYSE: $HSY), Mondelez (NASDAQ: $MDLZ), and Tootsie %RollIndustries (NYSE: $TR).
There had been some hope that the cocoa crop in 2025 would rebound after several years of declines, but that has not materialized.
Between April 1 and August 17, cocoa bean arrivals at Ivory Coast’s two main ports totaled 350,000 tons, down 30% from around 500,000 tons last year, according to export data.
Ivory Coast remains the world’s top cocoa producer and competes with the Netherlands for the lead in grinding.
Hershey’s stock has declined 10% over the last 12 months to currently trade at $177.99 U.S. per share.
