Cocoa prices have experienced a significant increase in recent months, with the cost of a ton of cocoa rising from $2,500 to over $10,000. This has led to increased costs for retailers, who are facing empty warehouses as they struggle to stock up on the expensive commodity. The price increase has also resulted in shortages of popular chocolate brands in some supermarkets and prompted major companies like Mondelez and Lindt & Sprüngli to announce price increases to offset the rising costs.
The reasons behind the price increase include additional expenses for transport, energy, packaging, and personnel. According to Katharina Koßdorff, Managing Director of the trade association of the food industry, these factors have contributed significantly to the spike in prices. Despite this, farmers in main cocoa-producing countries such as Ghana and Ivory Coast have not seen much benefit from the price increases due to state regulation of cocoa prices.
The decline in cocoa harvests caused by climate change has further exacerbated shortages and led to smuggling of cocoa. Fairtrade is working to support cocoa farmers by offering guaranteed minimum prices and a Fairtrade Premium to invest in sustainable practices. The resilience of Fairtrade products in Austria last year saw a 12% increase in sales despite high inflation. Green coffee and orange juice experienced a 13% increase in turnover during that time period.
Fairtrade continues to promote ethical practices and support farmers in light of new regulations and market challenges. Despite rising prices and inflation, consumers are increasingly valuing sustainability when making purchasing decisions.
