Since January 1, 2024, prices have surged from $1,730 per ton to $8,276, nearly five times as much. Will we do without cocoa? Where it is not necessary, yes.
But where cocoa is a crucial component of a preparation, rather than degrading the product, it is better to sell less and focus on products that truly deserve it. Quality always benefits serious companies in the long term.
Cocoa Price Increase. Source: Il Sole24Ore
The commodities rally (today’s focus is on cocoa) has managed to cripple entire economies, with Ghana, one of the major producers, in financial default due to the crisis and subsequent speculation, leading to rarity, bottlenecks, hoarding, and erratic “stop & go” sales.
The President of the Italian Republic, Sergio Mattarella, recently visited Accra, the capital of the struggling African country, also to assess what aid might be provided to the defaulting country, given that the transformation of cocoa into chocolate is a key feature of the Italian confectionery industry.
At the moment, no one can be happy about the situation, as some in the confectionery supply chain might be tempted to resort to substitutes or easy solutions. Rather than degrading the product, it is indeed better to reduce quantities and safeguard quality.
There will be better times; we will continue to defend product quality because those who endure difficulties will emerge stronger in the future. “Per aspera ad astra,” as they say… through hardships, one reaches the stars.
We remain hopeful that in the meantime everyone will act responsibly.
