Home / Business and Economy / Barry Callebaut CEO: El Nino Could Hike Cocoa Costs
Barry Callebaut CEO: El Nino Could Hike Cocoa Costs
4 Jun
Summary
- El Nino weather may increase cocoa bean prices significantly.
- Higher rainfall in Ecuador and temperatures in West Africa noted.
- War in the Middle East impacts fuel costs for operations.
El Nino weather patterns are projected to potentially drive up cocoa bean prices by several thousand pounds per metric ton, according to the CEO of Barry Callebaut. This climate phenomenon could reduce crop yields, thereby limiting supply and increasing costs.
While El Nino events typically occur every two to seven years, the World Meteorological Organization estimates an 80% chance of its development between June and August 2026, potentially lasting until at least November 2026. Current observations include higher than normal rainfall in Ecuador and elevated temperatures in West Africa.
Beyond weather impacts, the CEO also cited concerns regarding fuel costs. He anticipates that the ongoing conflict in the Middle East will primarily affect fuel prices, which represent Barry Callebaut's main cost concern for the upcoming year due to its direct impact on operations and indirect influence on demand.
