Cocoa crops in Africa have been hit hard by heavy rains followed by drought, leading to a global impact on prices. The price of cocoa has surged recently, prompting chocolate manufacturers to look for alternative raw materials and raise prices in countries like Finland.
According to Bloomberg, the price of cocoa reached an unprecedented high of $10,000 per ton this year. Cocoa futures prices have increased by 60% in New York this month alone. The main reason for this price increase is adverse weather conditions in Ghana and Ivory Coast, the world’s largest cocoa-producing countries.
The El Niño weather phenomenon has brought heavy rains to the region, exposing cocoa trees to diseases and causing the beans to rot on the trees. This was followed by exceptionally dry conditions, impacting cocoa production. Climate change has only made things worse, with the El Niño phenomenon becoming stronger.
Chocolate manufacturers are responding to the rising cocoa prices in various ways. Some have increased prices, while others have reduced the size of their products without changing the price. Finnish company Fazer has also raised prices due to the cocoa price hike and is exploring alternative raw materials to replace cocoa.
Fazer is researching potential substitutes for cocoa and experimenting with cereal-based chocolate bars. While they aim to maintain product quality, they are also looking at cost-saving measures. The company is preparing for various future scenarios as they navigate the challenges posed by the cocoa price increase.
Despite efforts to mitigate the impact of rising cocoa prices, uncertainty remains in the industry. Operators are monitoring the autumn cocoa harvest to determine future supply availability. High cocoa prices may eventually be passed on to consumers, affecting their purchasing decisions. As the industry grapples with ongoing challenges, there is a need for innovative solutions to adapt to changing landscape.
In conclusion, adverse weather conditions and climate change have led to a surge in the price of cocoa globally, impacting chocolate manufacturers and consumers alike. While some companies are finding alternative raw materials and raising prices, others are reducing product sizes or implementing other strategies
