As Easter approaches, Britons can expect a £255 million price tag, with chocolate and lamb costs soaring by over 50% and 27%, respectively. The perfect storm of rising production costs, cocoa shortages, and strong demand is driving up prices.
Last year, Britons spent over £255 million on Easter eggs, according to data company Kantar.
However, with prices rising across the board, this Easter promises to be more expensive than ever.
The price of chocolate has skyrocketed, with some chocolate eggs increasing in price by more than 50% per 100g.
The global chocolate market is influenced by various factors, including cocoa bean production costs, demand, and trade policies.
The average price of chocolate per kilogram has fluctuated over the years, ranging from $2,000 to $4,000.
In 2020, the global chocolate market reached a value of $130 billion, with Europe being the largest consumer region.
Factors such as climate change, disease outbreaks, and economic fluctuations can impact cocoa production and prices.
According to the International Cocoa Organization, Africa produces over 70% of the world's cocoa beans.
At Tesco, a ‘Twix white chocolate Easter egg’ went from £5 to £6, while its size shrunk from 316g to 258g.
Similarly, a ‘Terry’s Chocolate Orange’ decreased in size from 157g to 145g due to ‘sky-high cocoa prices’ caused by massive cocoa shortages.
The global cocoa supply is facing a significant shortage due to factors such as climate change, disease, and pests affecting 'cacao trees'.
Cocoa production declined by 6% in 2020-21, with Côte d'Ivoire and Ghana accounting for 60% of the world's total output.
Rising demand from emerging markets and limited arable land contribute to the shortage.
The impact is felt across industries, including chocolate manufacturers, bakeries, and restaurants, leading to price increases and product shortages.
The price of lamb has also risen sharply, with a leg of lamb joint now costing £13.94 per kilo on average, up 10% from last year.
This represents a nearly 27% increase over two years.
The tight supply of lambs in 2022 and 2023, combined with strong demand, have driven up prices.
Manufacturers are turning to ‘shrinkflation‘ – reducing portion sizes while maintaining prices – to offset rising production costs.
This means consumers are getting less for their money.
For example, Cadbury Mini Eggs now cost £1.80 for an 80g pack, up from £1.25 last year.
The price of hot cross buns has also risen, with supermarkets charging an average of £1.71 for a four-pack of premium ‘extra fruity’ buns, up 12% from last year.
The recent official cost of living data shows that UK food prices rose 3.1% in the 12 months to February, with the prices of lamb and chocolate increasing by 16%.
Meanwhile, Easter baking ingredients like butter and eggs have climbed nearly 19% and 5% respectively.
The price of chocolate has been driven up by poor harvests in west Africa, particularly Ghana and Ivory Coast, where more than half of the world’s cocoa beans are harvested.
Cocoa production involves several stages, from cultivating cacao trees to harvesting and processing the beans.
Cacao trees require a tropical climate with high humidity and temperatures between 64°F and 90°F (18°C and 32°C).
The ideal region for cocoa production is near the equator, where the temperature and rainfall are consistent.
Farmers typically harvest cacao pods every 2-3 months, containing 20-40 beans each.
After harvesting, the beans are fermented to develop flavor and aroma, then dried to reduce moisture content.
The cocoa bean market prices had fallen back after hitting an all-time high of £10,137 a tonne last year but have recently marched higher, reaching £6,200 a tonne in late March.
The price of putting a Sunday roast on the table has also risen sharply, with one recent survey suggesting the overall cost had increased by 22% in the past 12 months and 76% over five years.
The report by the supply chain company Inverto attributed this to shortages, particularly of lamb, which has become pricier due to strong demand and tight supplies.
- theguardian.com | Cost of Easter rises as UK chocolate, lamb and hot cross bun prices soar
