Since the start of the year, prices per cocoa tonne have risen
by around 20%, topping 3,600 dollars in late February, a
thirty-year high. Moreover, over the past two years of crisis, the
price of cocoa beans has surged by 40%, putting major domestic
chocolate producers in the face of a dilemma: surviving in the
context where raising chocolate prices is not an option on a market
that fell by 10% in 2009 and by around 20-25% in 2010.
Solutions domestic chocolate producers have embraced include
long-term cocoa purchase contracts landed in periods when prices
were more reasonable. Another strategy was to boost production by
shifting to foreign markets, less harmed by the falling demand.
Thus, revenues had a growth base, with fixed costs maintaining
flat.
Mihu] Cr`ciun, general manager of Kandia, one of the best-known
domestic brands, says that despite the accuracy of some
mathematical calculations, they cannot be applied as such on the
domestic market, where demand has significantly shrunk over the
past two year.
ZF English
A new crisis: Cocoa bean prices reach 30-year high
Since the start of the year, prices per cocoa tonne have risen by around 20%, topping 3,600 dollars in late February, a thirty-year high.