Cocoa
Consumers from California to Switzerland are developing a taste for dark chocolate, driving up candy prices in both high-end boutiques and mass market drugstores. The cost of one kilogram of chocolate in the U.S. is expected to hit a record $12.25 this year. This is a 45% increase from 2007, according to market-research firm Euro monitor International. Prices are on the rise due to a shortage of cocoa beans, which are roasted and ground to make
chocolate. Market experts estimate that supplies will fall short of demand this year for the first time since 2010 and
dry weather is expected to hurt the next harvest in West Africa, where 70% of cocoa beans are produced.
Coffee
The long-awaited switch by coffee buyers back to Arabica, from less expensive Robusta supplies, will happen next season. Changes in market dynamics have set the scene for this ‘material’ shift in 2013-14, of potentially some 2m bags. Brazil is the top coffee growing country – mainly of Arabica beans and ranks second in the consumption league. This should see a switch of some 1.25m bags in Brazil according to the International Coffee Organization.