CHOCOLATE LOVER NOT A HAPPY BUNNY AS FOOD INFLATION HITS
THE price of chocolate is on the march higher along with mortgage rates, clothing, food and the general cost of living.
The Firetrail Chocolate Index, prepared by funds manager Firetrail Investments, has revealed a 32 per cent leap since the start of January in the cost of the core ingredients that are used to make chocolate, such as milk and cocoa.
Anthony Doyle, head of investment strategy, Firetrail Investments S3 Global Opportunities Fund, said food inflation was creeping into the chocolate market as well to match the price hikes seen in other categories such as meat, seafood and packaged groceries. “With all the talk about rising commodity prices and food inflation, spare a thought for the Easter bunny this year,” Mr Doyle said.
“Class IV milk, which is used to produce butter and milk powder, has risen by 67 per cent to around $US25 per hundredweight. Class IV milk prices are now at record highs. Raw sugar has risen from $US15.75 to $US20.31 per pound, while the price of cocoa has risen from $US2472 per metric ton to $US2667.”
He said prices of milk, raw sugar and cocoa – like many other commodities – had ratcheted higher following a pull back of supply during the past two years of the pandemic. With economies reopening, demand has shifted higher for many commodities, resulting in higher prices.
Industry experts predict almost $9bn could be spent in Australia over the Easter holiday, with food retailers forecast to rake in as much as $1.5bn in sales from chocolate Easter eggs, bunnies and hot cross buns.
Coles was expecting to sell more than 15 million chocolate Easter eggs and eight million Easter bunnies this Easter, as a survey conducted by the retailer showed that almost 80 per cent of families were planning to buy eggs and bunnies as presents over the holidays.