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Chocolate prices are rising this Halloween as El Nino affects cacao bean crop

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Hotter and drier weather has negatively affected the cacao bean crop growth with cocoa futures rising to $3,786/metric ton - the highest since 1970.

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The cacao bean is roasted to make cocoa and has been growing in warmer climates with less rainfall, especially in the largest cacao-producing area in West Africa.

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According to Wells Fargo's Agri-Food Institute analyst David Branch, Ghana, Nigeria, Cameroon, and the Ivory Coast produce 75% of the world's cocoa beans.

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Maintaining a good cacao crop has been difficult because of the lack of consistent weather with good rainfall, humidity, wind protection, and nitrogen-rich soil.

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Part of the reason the already-vulnerable cacao crop is being threatened is because of the weather phenomenon El Nino which could last until mid-2024.

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There was a cocoa deficit even last season. Along with rising sugar prices, this has added to chocolate makers' concerns about raising prices.

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Candy brand Mars stated that it has worked to absorb the costs of inflation wherever possible to make their chocolate as affordable as possible.

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While Mars hasn't increased their candy prices since June, specialty chocolate makers remain unaffected as they already pay double the market price.

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However, the ripple effect of the cocoa shortage may be seen in reduced candy sizes even if the prices don't change, which is still worrisome.

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