A couple of days ago, the Financial Times reported that Hershey is the latest in of a long string of food processors that will divert an increasing amount of their financial resources in commodity market hedging against future price increases.
Hershey raises Prices
The increases in commodity prices have had their effects on many consumer products and, given the rally in cocoa prices, it was only a question of time before chocolate prices would follow suit. Last week Hershey announced that it would increase candy bar prices by 11%.
Chocolate from Fiji?
File this under “Who knew?” Several Fijian news outlets reported that the cocoa sector there will get a boost in the next governmental budget and that a cocoa growers cooperative may actually begin to manufacture chocolate there.
Indonesia’s Cocoa Problems
Since 1980 Indonesia, and specifically its Sulawesi province, has emerged as a major cocoa producer in the world. Starting from inauspicious beginnings, Sulawesi represents on of the successes of the chocolate industry’s diversification strategy. Total production increased from only 12,400 tons in 1979/80 to a predicted harvest of 480,000 tons during the current season. But all is not well with Indonesian cocoa.
Another African Chocolate Producer
I just read that the South African company Chocolates by Tomes will begin making their own chocolate exclusively from African ingredients. According to an article at iAfrica.com, the company had previously imported its chocolate from Barry Callebaut but decided to begin its own production using cocoa from Ghana and the Côte d’Ivoire, vanilla from Madagascar and sugar and milk powder from South Africa. That’s a great development and I applaud Chocolatier Richard Tomes for taking this step.
