Why chocolate is becoming more and more expensive
The price of chocolate is rising massively. Manufacturers have to pay more for the ingredients. The reasons are to be found in West Africa.
If you want to buy some chocolate before Christmas, you will be amazed at the prices. Food in Germany has been getting more expensive for months. But chocolate in particular. According to figures from the Federal Statistical Office, chocolate prices in November were 13.1 percent higher than in the same month last year.
The reasons for the chocolate inflation lie in the ingredients. Their prices have risen even more sharply. The price of cocoa in particular has been going through the roof since spring and has already risen by more than 60% since the beginning of the year.
Most of the cocoa for our chocolate comes from West Africa. German manufacturers imported almost half of it from Côte d'Ivoire in 2022. Ghana and Nigeria are also important producers.
However, the region is suffering from heavy rainfall as a result of climate change. "This leads to plant diseases. As a result, the supply volume has fallen," the Federal Association of the German Confectionery Industry (BDSI) told ntv.
Sugar costs more
However, the poor harvest not only affects chocolate buyers in Germany through higher prices, but above all the cocoa farmers and their families in countries such as the Ivory Coast. According to the BDSI, the "state-guaranteed minimum prices for cocoa farmers there have so far only inadequately reflected the sharp rise in world market prices." In addition, pesticides are becoming increasingly expensive for farmers.
But it is not just cocoa that is driving up chocolate prices. Sugar prices in the EU have also been rising sharply for months. Added to this are higher costs for producers for personnel, logistics, packaging and energy.
For this reason, the industry does not expect an end to chocolate inflation in the coming year. On the one hand, the cocoa harvest remains dependent on the weather conditions in the growing regions. But there are also new challenges, says the BDSI: "Proof of traceability in accordance with the EU Deforestation Regulation from the end of 2024 at the latest is already leading to higher costs for domestic companies."
The supply chain laws in Germany and the EU are also intended to ensure that chocolate production becomes more sustainable and socially responsible, including for cocoa. Chocolate is likely to become more expensive in 2024 simply to meet these requirements.
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Due to the inflation in food prices, especially chocolate, you might find agricultural raw materials like cocoa significantly more expensive during your Christmas shopping this year. This is primarily due to increased prices of cocoa, a key ingredient, which have soared by over 60% since the beginning of the year, largely attributed to climate change-induced plant diseases in West Africa, where most of the world's cocoa is sourced.
Furthermore, the rising prices of agricultural raw materials like cocoa and sugar, combined with higher costs for producers in labor, logistics, packaging, and energy, contribute to making chocolate one of the most inflation-affected food items, potentially leading to increased prices for consumers and challenges for producers around the world.
Source: www.ntv.de
