2024-04-11 09:00:45
Manufacturer Nestlé Froneri Israel said that “due to significant increases in the prices of certain raw materials and inputs, with an emphasis on the extraordinary increase in cocoa prices, we are forced to increase the price of about a quarter of our products, an average of 6.3%.”
It is also reported that the new price list for retailers will come into force after Passover.
The company said: “It is important to note that this upgrade only partially offsets rising raw material costs as we continue to absorb a significant portion of costs.”
Note that last month cocoa futures jumped to an unprecedented level of $10 thousand per ton and continue to rise. This year prices have already doubled, which entails an increase in prices for chocolate and chocolate products.
Thus, futures jumped 4.5% to $10,080 per ton – a level that seemed unthinkable just a few months ago.
According to reports, such prices are due to poor harvests of major producers in West Africa, resulting in the third year in a row that the world has experienced supply shortages. The industry is also struggling with low profitability for cocoa farmers, raising concerns about the ability to obtain enough beans.
In addition to concerns over physical supply shortages, pressure is also building in the financial market, where some traders are selling futures to hedge against physical assets. But while they wait for the contracts to expire, they need money to meet margin calls on losses, which also affects the price.
Earlier, Cursor wrote that the Diplomat company announced a price increase.
2024-04-11 09:00:45