The quotations of the cocoa put the chocolate under pressure

The chocolate is dealing with the surge in cocoa prices that puts pressure on the margins of the transformers and the budgets of consumers. Creating the conditions for a negative spiral from which it could become difficult to go out.

The reasons behind the price boom

Starting from the numbers, over the last year the quotations of the cocoa have almost quadrupled (reaching 10,000 dollars per ton, about 9,200 euros) mainly due to the bad harvest recorded by the main producing countries, that is to say Ivory coast e Ghana (major cocoa’s producers) affected by penalized atmospheric phenomena such as extreme heat. In addition, the increase in the prices of pesticides and fertilizers has put pressure on the farmers, making it difficult to purchase these vital components for crops, with the result of leaving more space for parasites. In addition, the hedge fund, investment funds that bet on future prices even buying assets on the open, have amplified the trend.

Prices Alerts on the distribution’s chain

Thus, from ice cream to chocolate bars, from cocoa -based drinks to snacks, there are many products on the shelf grappling with this scenario. Great names in the sector such as Lindt and Nestlè have announced raises of the price lists, also to be achieved through a reduction in the weight of chocolates and the like (so-called S-Grammature), politics already implemented since last winter by the small/medium -sized transformation industries, in this case obliged to reduce the weights to maintain a shelf price still convenient to the consumer.

It must be said, however, that so far the impact has been limited, given that the companies of the distribution - in most cases - have ensured in the past stable prices through long -term contracts (so -called forecast), preferring, in this case , the increase in the stocks planned and spread over time, at having to, gather, increase prices towards the consumer with the relative risk of unsold

The impact of the legislation

To the factors already mentioned is added the Community regulation on deforestation, which will impose severe checks for the supply of agricultural subjects with the aim of avoiding the demolition of trees to make way for crops such as that of cocoa. Before they enter into force, some transformation operators have decided to take incette of cocoa beans already present in the European warehouses and therefore free from the new regulation, giving another push to prices. The risk is to further feed the negative spiral, complicating the return to the previous normality.