The world prices for chocolate will increase dramatically due to the growth of the value of palm oil, which promised Bloomberg. The agency indicated that the price of palm oil, which is used in the production of many products – from chocolate to toothpaste and lipstick, jumped by 120 percent over the past year.
Now the ton is worth $ 1091 – this is the maximum level. In production, the consequences of the coronavirus pandemic are negatively affected, and the demand for raw materials is still high. “The rise in prices to unprecedented maxima will inevitably affect consumer habits,” said the head of the Kaleesuwari Intercontinental Trade Strategy Division, Gnanacekar Tiagarajan.
Basic palm oil suppliers – Malaysia and Indonesia, they account for about 84 percent of the global market. The coronavirus pandemic caused labor deficit in these countries and led to a reduction in production. The largest consumers are China and India – at the same time increase import volumes.
Alternatives to palm oil yet. If firms will use other raw materials, it will cost more, the agency notes. For example, soybean oil, the second consumption, last year went up by 150 percent, and the sunflower is more than twice.
Palm oil uses many large transnational food manufacturers, such as Mondelez and Nestle. It is contained in cookies, chocolate, lipstick, in the means for makeup and skin care. In addition, it serves as raw materials for the production of biofuels.