Recently, cocoa crops in Africa have been devastated due to heavy rains and drought, leading to a skyrocketing price of cocoa. The effects of this have been felt as far as Finland, where chocolate manufacturers are seeking alternative raw materials and raising prices. According to Bloomberg, the price of cocoa has surpassed $10,000 per ton for the first time ever, with futures prices rising by about 60 percent in New York this month alone and more than doubling for the year.
The primary reasons for the price increase can be traced back to Ghana and Ivory Coast, the world’s largest producers of cocoa beans. Weather conditions in both countries have led to ruined cocoa crops, with heavy rains and plant diseases affecting the trees. The El Niño weather phenomenon in the region has caused fluctuations in rainfall patterns, leaving some areas excessively moist and others exceptionally dry. Climate change has also played a role in making cocoa cultivation more challenging.
In response to the increased market prices, chocolate manufacturers globally have had to adjust their pricing strategies. Some have raised prices, while others have reduced product sizes or replaced cocoa with other raw materials. Finnish company Fazer has also felt the impact of rising cocoa prices, leading to price increases for their products. The company is exploring alternative raw materials to replace cocoa and reduce costs while maintaining product quality.
Fazer has not made any significant changes to its products yet, as this would require altering packaging and potentially impacting taste. However, the company is experimenting with cereal-based chocolate bars as a potential alternative to cocoa. CEO Lara Saulo emphasizes the need for long-term development work to prepare for future scenarios and mitigate the impact of rising cocoa prices on consumers.
In the short term, the industry is waiting for indications of the autumn cocoa harvest to determine the future supply and pricing trends. If
