It would appear one set of commodities is bucking the trend of the last 6 months. As metals and energy prices have crashed, the price of cocoa and sugar, key ingredients in chocolate have increased 75% and 10% respectively. Fears over supplies from the Ivory Coast and Ghana in West Africa, two of the world’s leading producers who together account for 60% of the world supply of cocoa raised the price on the London Liffe market to over £2000/ton, levels not seen since 1985. Sugar prices also shrugged off the sale of commodities in the Fall to increase 9% in 2008 and continue into 2009 as fears of supply in Pakistan, Iran and India encouraged speculators to bid up the price.
Still one consolation for manufacturers facing the twin threats of falling demand due to the recession and rising raw material costs ” at least the aluminum wrappers won’t cost as much as last year!