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COFFEE AND COCOA CLIMBING
How can food producers mitigate the impact of rising ingredient costs ?
Since the start of 2024 , the global agricultural commodities market has experienced significant volatility . While the price of both coconut and palm oil has risen by more than ten percent , sugar ’ s price has retreated from the record highs seen towards the end of 2023 .
Nevertheless , two key commodities have seen their prices surge , with one recording a record high – coffee and cocoa . The price of coffee has risen sharply since the start of the year , increasing by more than 30 percent during this time . In fact , coffee ’ s price has been rising at an alarming rate for an extended period , increasing by 67.37 percent in the last year .
However , the increase in coffee prices has been dwarfed by the comparative surge in cocoa costs . London cocoa prices almost touched £ 10,000 / ton in April 2024 , an all-time price high for the commodity , which represented an astounding 300 percent price rise year-over-year ( YoY ).
Given the considerable increases in key ingredient prices , consumers must prepare themselves for increased costs when purchasing cocoa- and coffee-based products .
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