There is also an increasing risk that El Nino-induced weather disturbances could cause the global cocoa market to sink into a deficit for the third year, Zero Hedge reported.

According to Bloomberg, harvests in Ivory Coast and Ghana – some of the world’s largest cocoa producers – are producing lower crop yields, which has led to tighter supplies, therefore supporting higher prices.

“The market does not seem convinced that production will recover enough to avoid a supply deficit for 2023/24,” ADM Investor Services Inc. analysts said in a note, Zero Hedge reported.

Cocoa futures rose 1 per cent in New York, topping $4,000 a tonne for the first time in 45 years.

Earlier this week, Oreo-maker Mondelez International said it would have to hike prices on some of its products due to the soaring cocoa and sugar prices.