A rally in raw ingredient costs is cutting into the New Zealand chocolate industry, prompting fears a 'shockwave' could hit our producers.
A political crisis in Africa’s Ivory Coast could spell trouble for food companies like Nestle and Cadbury, as global cocoa prices skyrocket.
Nestle New Zealand spokesperson Maurice Gunnell says the firm has faced a 400 percent increase in cocoa costs over the past two year
s, and the latest turmoil in Africa will only make things worse.
"Several commodities have been increasing, chocolate and sugar included.
"There’s different drivers behind each of them, the rises mean even though we look to absorb most of them, we are now looking at having to pass on some of that cost to consumers."
Local producers have been feeling the pinch too.
Hamilton chocolate maker Paul Donovan, of Donovan’s Chocolates, says while they don’t take product from the Ivory Coast, they still have to operate in a volatile market.
"I would anticipate in about 3 months time, our prices in our business will start to increase.
Raw material costs will rise, and I think across the industry prices will start to go up as that pressure increases."
The Ivory Coast produces around a third of total global supply.
