Classic Valentine’s trio—roses, dinner, chocolates—may surprise lovers with higher prices this year, thanks to cocoa and sugar hikes, shaking up the traditional romantic scene.
Last week, cocoa prices reached unprecedented highs due to adverse weather and disease issues affecting crop yields in Ghana and the Ivory Coast, which collectively produce 60% of the world’s cocoa.
Sergey Chetvertakov, principal research analyst for cocoa and sugar markets at S&P Global noted that, “This has led to a decrease in production, and had created a shortage of cocoa supplies in the market.”
He mentioned that this marks the third straight year of insufficient cocoa supply, indicating no immediate relief ahead.
Cocoa futures have risen by almost 40% since the year began, reaching an intraday record high of $5,874 per metric ton on Thursday.
David Branch, senior vice president at Wells Fargo Agri-Food Institute, explained, “What’s driving all of this is basically this El Nino that’s in place right now. It’s really affecting the crop.”
He observed that this also impacts sugar crops.
The El Niño weather phenomenon has ushered in drier temperatures across Southeast Asia, India, and certain regions of Africa, contributing to a surge in soft commodities such as sugar and cocoa last year.
Chocolate and cacao have long been linked to love and fertility since the times of the Maya and Aztec civilizations.
These commodities were introduced to Western Europe by Spanish conquistadores. Today, chocolate and Valentine’s Day are inseparable, despite criticism suggesting the association is fueled by marketing tactics.
However, amidst persistent global inflation, sweets offer a more affordable means of partaking in the celebrations.
Kim, a 28-year-old woman in Singapore, mentioned that she typically chooses to bake cookies for her loved ones on Valentine’s Day instead.
Mintec’s Valentine’s Day meal index, monitoring prices of typical Valentine’s Day items like chocolates, lobster tails, beef loins, and potatoes, surged 13.8% year-on-year in January.
The spike was attributed to elevated lobster tail prices, with the report highlighting that January’s average prices are 40% higher than last year’s due to production shortfalls in vital regions like Maine and Canada.
According to a report from Mintec-subsidiary Urner Barry on Feb. 8, lobster prices are anticipated to stay high in February due to reduced supplies from Canada and the U.S.
