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18 April 2014 | Gurjit Degun
Easter egg prices have risen over the past 12 months due to increasing input costs.
According to Mintec, the production costs of a 100g wrapped milk chocolate bar rose by 21.5 per cent year-on-year. The current cost is £2.26, whereas 12 months ago it was £1.86.
The firm puts this down to price increases in the raw materials, such as cocoa butter and milk powders, that make up chocolate. Cocoa butter saw a price increase of 65 per cent year-on-year in March to £4.75 per kilogram, from £2.95 per kilogram a year ago. “This neared the record high prices reached in October 2013, following high demand for chocolate products from traditional and emerging markets,” said Mintec.
The price of cocoa beans has also continued to rise, from 15.4 pence per 100 grams 12 months ago to 18.6 pence currently. “This follows a second consecutive seasonal supply deficit in cocoa beans which is expected in 2013/14, with demand outstripping supply and resulting in a decline in cocoa bean stocks that is likely to continue into the 2014/15 season,” explained Mintec.
However packaging costs including aluminium foil and paper have fallen by between 10 - 20 per cent over the past year. Aluminium was 12.4 pence per 100 grams 12 months ago and is currently 10.9 pence per 100 grams. The price of paper is 5.9 pence per 100 grams at present, whereas it was 6.3 pence last year.
Mintec added: “As the global recession lifts, there has been a strong demand from manufacturers and also an increase in consumption, particularly from emerging markets such as Asia. Prices in the short-term, therefore, are likely to remain high due to the supply and demand imbalance for cocoa products.”