In recent months, the world market price for cocoa has experienced a significant increase. The price of a ton of cocoa has gone from $2,500 in September to over $10,000 today, with the current price hovering around $7,500. This spike in prices is expected to lead to significant price increases in the chocolate sector in the coming months.
The recent decline in cocoa harvests, exacerbated by climate change, has led to shortages and smuggling of cocoa. Despite this, farmers in main cocoa-producing countries like Ghana and Ivory Coast have not benefited much from the price increases as the state regulates cocoa prices. Fairtrade is working to support these farmers by offering guaranteed minimum prices and a Fairtrade Premium to invest in sustainable practices.
The effects of the price increase are already being felt in 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. Most retailers are facing empty warehouses as they scramble to stock up on cocoa at much higher prices than before. 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.
Despite high inflation, Fairtrade sales in Austria saw a 12% increase last year. Cocoa beans experienced a 13% increase in turnover. The resilience of Fairtrade products in Austria shows that sustainability is important to consumers even when faced with new regulations and market challenges. In light of these challenges and new regulations, Fairtrade continues to support farmers and promote ethical practices in the cocoa industry.
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