Africa’s cocoa industry has been hit hard by heavy rains and drought, leading to devastating effects on crops. The consequences have been felt as far as Finland, where the price of cocoa has skyrocketed. This has forced chocolate manufacturers to seek alternative raw materials and raise prices in Finland as well. According to Bloomberg, the price of cocoa 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 behind 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.
Finnish company Fazer is not immune to these market changes. The impact of rising cocoa prices has led to price increases for their products. In response, Fazer is exploring alternative raw materials to replace cocoa and reduce costs while maintaining product quality. While Fazer has not made any significant changes to its products yet, 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, companies like Fazer are waiting for indications of the autumn cocoa harvest to determine future supply and pricing trends. If the situation does not improve, consumers may experience further price increases as the cost of cocoa continues to climb.
Despite these challenges, companies are looking for innovative solutions to navigate uncertain market conditions and ensure a sustainable future for their products. With long-term planning and innovation, they can continue to provide high-quality products while adapting to changing market circumstances.