Multi-Decade High Prices for Tea, Cocoa and Sugar

The Financial Times reports that the prices for tea, cocoa, and sugar have reached multi-decade highs. Prices for orange juice and coffee have not been higher in over a year. Bad weather, output issues, and lack of investment in production are limiting supplies in the face of robust demand, creating strong pricing conditions that are also attracting investors.

Look out for higher prices in 2010 for the products that use these soft commodities.

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3 Comments on “Multi-Decade High Prices for Tea, Cocoa and Sugar”

  1. writejesse says:

    Interesting. I gather this is bad news for Cadbury, Nestle, Rocky Mountain Chocolate, and other chocolate makers?

  2. Dr. Duru says:

    Sure looks like it to me! Hershey’s (HSY) is already well off its highs of 2009 (it peaked in 2005).

  3. […] By Dr. Duru After reporting on prices at multi-decade highs for foodstuffs like tea, cocoa, and sugar and soaring prices for oranges due to the Florida freeze, we finally have a food commodity plunging […]


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