Danish chocolate manufacturers face rising prices and reduced staff due to cocoa costs

Diseases affecting cocoa trees and climate change in major cocoa-producing countries have led to a significant rise in the prices of chocolate and cocoa butter. As a result, Danish chocolate manufacturers are feeling the pressure, forcing them to reduce staff, increase prices, or alter their production methods.

John Jensen, director and owner of Aalborg Chokoladen, shared that one product they have discontinued is the strawberry heart chocolate. He explained, “It’s far too expensive — it simply doesn’t make financial sense to produce it today.” The cost of cocoa has surged, with Jensen’s purchasing price rising from 40 to 120 kroner per kilogram, and pink strawberry chocolate being even more costly. He has opted to reduce production of filled chocolates, continuing with lighter options like gluten-free rum balls, which require less chocolate.

Operating expenses for filled chocolates have increased substantially, while items like cream puffs and marzipan, coated in thinner layers of chocolate, have not seen the same impact on budgets. Jensen noted that marzipan was once the most expensive ingredient, but now chocolate takes that title.

Peter Frellsen, director of Frellsen Chocolade, also reported significant increases in cocoa purchasing costs, stating, “My father, who has been in the industry for 55 years, has never seen anything like this.” As of now, consumers are paying an average of 27% more for the same piece of chocolate compared to January 2022.

The price surge is not solely due to inflation but also due to difficulties in cocoa harvests in Ghana and the Ivory Coast, where cocoa trees are suffering from diseases and climate changes. With recent Ghanaian yields yielding only half the usual amount, experts highlight a worrying trend: many cocoa farmers are aging, and fewer young people are willing to enter the profession due to its increasing challenges fueled by climate issues. Efforts are underway to adapt cocoa farming practices by planting shade trees, which can help create a more favorable microclimate and provide additional income for farmers.