The cost of chocolate is set to climb even higher. Why? Because the main ingredient in chocolate, cocoa, has seen its price double in the past year.

The Ivory Coast and Ghana, the world’s top two cocoa producers, have faced challenges. Heavy rain has led to a significant drop in cocoa output, leaving warehouses empty. This scarcity has caused cocoa prices to soar, reaching a 40-year high.

For companies like Guan Chong Bhd, a Malaysian listed firm in the cocoa business, this has hit hard. Higher raw material cost Their shares have tumbled over 50%, reaching levels not seen since the Covid-19 pandemic.

As cocoa prices continue to rise, chocolate manufacturers are feeling the squeeze. The increased cost of raw materials is taking a bite out of their profits. The big question now is: How high will cocoa prices go? We may not have that answer, but one thing's for sure – there's no substitute for the pure joy of chocolate. Perhaps it's time to take a closer look at the chocolate manufacturing industry.