The price of cocoa has surged significantly in recent months, with a ton priced at $7,500 currently, up from $2,500 last September. This increase is expected to lead to significant price hikes in the chocolate industry in the coming months. Retailers are facing empty warehouses as they had previously secured cocoa through futures contracts at lower prices. With the need to restock at higher prices expected by autumn, manufacturers are grappling with increased costs for transport, energy, packaging, and personnel.
Supermarkets have already felt the effects of the rising cocoa prices, with some experiencing shortages of popular chocolate brands like Milka. This scarcity is due to price negotiations with companies such as Mondelez and Lindt & Sprüngli who have announced impending price increases due to the spike in cocoa prices. Despite this increase in price, farmers have not benefited significantly from it as governments regulate cocoa prices. Climate change has also impacted cocoa cultivation leading to lower harvest yields further exacerbating the price hikes.
To combat these challenges Fairtrade is working to support cocoa farmers through guaranteed minimum prices and premiums to invest in sustainable farming practices. In Austria Fairtrade sales have remained resilient despite the price increases indicating a growing preference for sustainable products in the market. In 2023 Fairtrade products generated sales of 663 million euros in Austria with significant increases seen in categories like orange juice and cocoa beans. Supporting sustainability in farming is crucial for maintaining stability in the cocoa supply chain and ensuring fair compensation for farmers
