El Niño returning in 2023 may soon cause dessert prices to rise. About what he wrote CNBC.
According to Rabobank expert Carlos Mera, El Niño has a “sweet tooth” as it causes droughts in countries where sugarcane, coffee and cocoa are grown. Orange juice, cocoa, coffee and sugar futures rose in 2023 due to extreme weather conditions associated with El Niño. Orange juice prices have reached an all-time high, increasing by 80 percent. The cost of cocoa rose 64%, coffee reached a 15-year high and sugar rose 13%.
“The cocoa industry is characterized by high forward sales volumes, due in part to the nature of the cocoa trade in Ivory Coast and Ghana. For example, they sell the harvest a year before harvest. This means that the chocolate in the store was probably purchased at a lower price a year ago,” Merah explained.
The impact of El Niño peaks in December, but its effects are delayed. Therefore, consumers will feel a sharp increase in prices only in 2024.
Hydrometeorological center in November promise Russians will have a warm winter due to the effect of El Niño.
Previous experts guess Sharp increase in chocolate prices.