Rising cacao bean prices could potentially lead to an increase in the cost of "Kazakhstan" chocolate by "LOTTE Rahat."
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In recent years, the price of chocolate in Kazakhstan has seen a significant increase, affecting both locally known brands like "Kazakhstanskiy" chocolate and imported brands. This trend can be attributed to several interconnected factors.
Global Supply Chain Disruptions and Commodity Price Inflation
The global market for raw materials essential for chocolate production, such as cocoa, sugar, and dairy, has experienced price increases due to supply shortages, increased transport costs, and inflationary pressures. These global trends have a ripple effect on local prices in Kazakhstan.
General Inflation in Kazakhstan
Like many countries, Kazakhstan has experienced inflation that impacts food prices broadly, including chocolate. Inflation affects the cost of raw materials, packaging, labor, and transportation, all of which contribute to higher retail prices.
Increased Production and Import Costs
Kazakhstan may rely on imported cocoa and other ingredients, which could have become more expensive due to currency fluctuations, tariffs, or increased international freight costs in recent years.
Economic and Geopolitical Influences in the Region
Regional economic shifts, such as changes in trade relations or the economic impact of nearby countries’ conditions (e.g., Russia), can indirectly affect prices through supply chain or currency volatility.
While specific detailed data on "Kazakhstanskiy" chocolate is limited in the current search results, these general economic factors are consistent drivers of chocolate price increases in Kazakhstan, reflecting broader global and regional trends in commodity and inflation pressures.
Efforts to Combat Price Increases
In response to the rising prices, the Minister of Trade in Kazakhstan has suggested switching to local brands like "Bayansulu" and "Mishka na Severe" to combat the rise in prices for imported chocolate. JSC "LOTTE Rahat," a major chocolate producer in Kazakhstan, is also making efforts to diversify their cocoa bean suppliers and find more favorable supply conditions to control the cost of their products.
In addition, JSC "LOTTE Rahat" is considering partial replacement of imported chocolate with more affordable Kazakhstani alternatives. The company exports its products to multiple countries, with an export share over 20%. Despite this, they emphasize that their chocolate is not just "Kazakhstani," but rather an exclusive product.
Price Increases Across the Globe
The price increases for chocolate are not unique to Kazakhstan. In Russia, some companies are producing smaller chocolate bars to make price increases less noticeable. Prices for raw materials have shown volatility and have increased more than 60% in Ghana since August 7.
In conclusion, the significant increase in the price of chocolate in Kazakhstan is a complex issue, influenced by global, regional, and local factors. Understanding these factors can help consumers and businesses navigate this challenging market and make informed decisions.
- The increased prices of cocoa, sugar, and dairy, essential components in chocolate production, are contributing to the rise in the cost of local brands like "Kazakhstanskiy" as well as imported brands in Kazakhstan, due to global supply chain disruptions, commodity price inflation, and general inflation in the country.
- Businesses in Kazakhstan, such as JSC "LOTTE Rahat" and the local brands "Bayansulu" and "Mishka na Severe," are implementing strategies to combat the price increase, such as diversifying cocoa bean suppliers and partial replacement of imported chocolate with more affordable Kazakhstani alternatives.
