Cocoa prices have surged in recent months, with the cost of a ton rising from $2,500 to over $10,000. This has led to significant price increases in the chocolate industry, which is expected to continue in the coming months. According to Hartwig Kirner, Managing Director of Fairtrade Austria, the spike in prices is due to increased costs for transport, energy, packaging and personnel.
Retailers are struggling to keep up with demand as they scramble to stock up on cocoa at higher prices. Some supermarkets have already experienced shortages of popular chocolate brands due to the price increase. Price negotiations with major companies like Mondelez and Lindt & Sprüngli have resulted in announcements of price increases to offset rising cocoa prices.
Despite the high inflation caused by the price increase, Fairtrade sales in Austria saw a 12% increase last year, with cocoa beans experiencing a 13% increase in turnover. The resilience of Fairtrade products shows the importance of sustainability to consumers. Fairtrade continues to support cocoa farmers by offering guaranteed minimum prices and a Fairtrade Premium to invest in sustainable practices. However, 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. The recent decline in cocoa harvests due to climate change has led to shortages and smuggling of cocoa.