The unusually high temperatures on one hand, and the intense rainfall that destroyed cocoa crops in West Africa on the other, have led to a 153% increase in cocoa prices within a short period.
Consequently, chocolate prices are rising, creating further issues for consumers who bear the brunt of the high costs.
Indeed, extreme weather phenomena have affected other products as well. Rice, for instance, has been impacted by the drought in Thailand and India, resulting in significant effects on crops and sugar prices. Torrential rains have also affected sugar plantations in Brazil, the world’s largest sugar exporter.
Rice prices in the EU have increased by 18.9% within a year, while sugar prices have risen by 30.8% during the same period.
Disruptions in the global, European, and Cypriot markets are already apparent, with further price increases expected in the coming months.
Already, one of the largest importers of chocolate products in Cyprus is warning us of new price increases.
In a statement to the Cyprus Stock Exchange, the company announces significant price hikes in chocolate products in the near future.
Starting from April 1st, there will be significant increases in chocolate products by 20-30%, with a reassessment scheduled for August depending on cocoa prices in the international market.
Sharp increases in basic agricultural products continue in Cyprus, where prices are significantly higher than the EU averages for the same products, partly due to production costs in the agricultural sector.
Specifically, based on recent EU data, while the average price of pork in the EU has increased by 1.3%, in Cyprus, this increase is 7.7%. Similarly, the price of chicken meat in the EU increased by 1.1%, but in Cyprus, it’s 5%.
The food category shows an increase of 4.8% in the EU and 2.1% in Cyprus, while bread and cereals increased by 3.6% in the EU and 2.9% in Cyprus. The meat category has increased by 3.9% in the EU and 2.1% in Cyprus.
Fish and seafood have decreased by 0.6% in Cyprus and increased by 3.8% in the EU. The milk, cheese, and egg category decreased by 0.4% in Cyprus and by 0.4% in the EU.
The oils and fats category increased by 6.1% in Cyprus and 6.3% in the EU. Cyprus also shows a significant increase in the fruit index by 15.3%, compared to 7.8% in the EU, while the vegetable category increased by 1.6% in Cyprus and 10.5% in the EU.
In the general index, Cyprus recorded a 2.1% increase in January 2024 compared to January 2023, with the EU average being 3.1%.
The category of sugar, jam, honey, chocolate, and confectionery increased by 5.3%, with the EU average being 7.8%, while the food products category increased by 3.3% in Cyprus and 7.3% in the EU.
