Sugar prices to soar 30%-40% in coming weeks
Consumers who have become accustomed to falling food and beverage prices over the past few months are going to be in for a some sugar shock: the price of sugar is set to rise 30%-40%, and chocolate, soft drinks and cocoa beverages will increase as well.
Sugar prices, which have already risen by 20% this year, are now posed to go higher yet. David Franklin, chairman and managing director of Sugat, says that the price of sugar on markets all over the world are at peak prices, and consumers can expect prices to increase within coming weeks. The rising price of sugar and cocoa is expected to push the price of chocolate and chocolate products up as well.
The price of cocoa, which constitutes an average of 15% of chocolate products, has doubled in price since 2005 to reach $3,510 per ton. The price of sugar, a key ingredient in chocolate products, more than doubled in 2009. Moreover, water prices are set to increase by another 15% in June. One senior industry source predicts that the price of chocolate and chocolate products will increase by 5%-9% this year, but not immediately.