Skyrocketing Cocoa Prices: A Challenge for Retailers, Consumers and Farmers Alike

Cocoa prices have skyrocketed in the past few months, with a ton of cocoa now costing over $10,000. This is a significant increase from September, when the same ton cost just $2,500. The price is currently hovering around $7,500 and it is expected to lead to significant increases in prices in the chocolate sector in the coming months.

Retailers are struggling to keep up with the demand for cocoa at these higher prices. Many are facing empty warehouses as they scramble to stock up on this valuable commodity. Factors contributing to the price increase 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 rise in prices has already had an impact on supermarkets, with some branches 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, farmers in main cocoa-producing countries like Ghana and Ivory Coast have not seen much benefit from the price increases. The state regulates cocoa prices and recent decline in cocoa harvests due to climate change has led to shortages and smuggling of cocoa. Fairtrade is working hard to support cocoa farmers by offering guaranteed minimum prices and a Fairtrade Premium to invest in sustainable practices.

Despite high inflation, Fairtrade sales in Austria saw a 12% increase last year, with cocoa beans experiencing a 13% increase in turnover. The resilience of Fairtrade products in Austria shows that consumers value sustainability and ethical practices when making purchasing decisions. In light of new regulations and market challenges, Fairtrade continues its commitment to support farmers and promote ethical practices in the cocoa industry.

In conclusion, the rise in cocoa prices has had far-reaching effects across different sectors of society including retailers, consumers and even farmers who produce this valuable commodity. While some may see it as an opportunity for profits others may view it as a challenge that needs urgent attention from all stakeholders involved