Cocoa prices have surged significantly in recent months, with a ton of cocoa now costing over $10,000. This price increase is expected to have a major impact on the chocolate industry in the coming months, according to Hartwig Kirner, Managing Director of Fairtrade Austria.
As retailers scramble to keep up with demand for cocoa at these higher prices, many are facing empty warehouses. Factors contributing to the spike in prices include additional costs for transport, energy, packaging, and personnel, as highlighted by Katharina Koßdorff, Managing Director of the trade association of the food industry.
The effects of the price increase are already being felt in supermarkets, where some branches are experiencing shortages of popular chocolate brands. Price negotiations with major companies like Mondelez and Lindt & Sprüngli have led to announcements of price increases to offset rising cocoa prices.
However, not all cocoa farmers are benefiting from the price increase. In countries like Ghana and Ivory Coast, where cocoa is grown in large quantities, state regulators control cocoa prices. The recent decline in cocoa harvests due to climate change has led to shortages and smuggling of cocoa. Fairtrade is working to support cocoa farmers by offering guaranteed minimum prices and a Fairtrade Premium to invest in sustainable practices.
Despite high inflation rates, Fairtrade sales in Austria saw a 12% increase last year. Cocoa beans experienced a 13% increase in turnover alone. The resilience of Fairtrade products like green coffee and orange juice shows that consumers value sustainability when making purchasing decisions. As new regulations and market challenges arise, Fairtrade continues to support farmers and promote ethical practices throughout the supply chain.
