Cocoa prices have soared to a 32 year high and chocolate lovers everywhere may be left with a bitter taste in their mouth. Usually when commodity prices soar it is because of a shortage caused by a bad crop.

But the Ivory Coast which produces almost half the world’s cocoa beans actually has a bumper crop this year. The rising prices are due to a man made shortage caused by political unrest in the African nation.

More than seven million people there are dependent on the cocoa crop for their livelihood and chocolate makers everywhere both large and small are dependent on their beans.

The problem is being caused by a disputed presidential election there. According to the UN, Alassane Ouattara is the certified winner of the election. But the ten-year incumbent president, Laurent Gbagbo refuses to step down. The two sides are entrenched on opposite ends of Abidjan separated by UN troops in a tense and violent stalemate.

Ouattara ordered a ban on the export of cocoa beans to try and force his rival out by cutting off his finances. With world reserves already low this has led to significant price hikes. With so many growers there dependent on the crop this also given rise to a growing black market.

Producers are saying that if the higher prices continue they will have to pass the increase on to consumers. Large exporters in the US are for the most part obeying the ban which could reduce world supply by 10 percent.

While there are cocoa growers in South America, they charge twice as much for their beans as the Ivory Coast. Demand for chocolate is also growing worldwide as China and India are acquiring a taste for it. So if you are a chocolate lover be warned, your favorite chocolate bar may get more expensive or smaller or both.

Image via Wikipedia