It’s hard to believe, but somehow it always comes together before Christmas, when demand for food, especially certain types, is regularly at record highs. Now, the season has not even started yet, and producers of important products are already reporting that there are not enough of them on the market, so they will have to raise prices significantly.
The offer is no longer enough
This happens especially with chocolate products, where a truly rarely seen situation has come together. As everyone knows, chocolate is made primarily from cocoa and sugar. It is usually the case that one of these raw materials may increase in price while the other decreases, and so it is compensated, and then the state of affairs may be reversed.
However, economists are now stating that there has literally been a unique and historically rarely seen phenomenon. The prices of both raw materials have been rising for a long time, reaching new records. In particular, cocoa reached levels that had never been seen before. This is disturbing. It means only one thing: there is not enough supply on the market to satisfy demand at current prices.
Prices therefore rise to gradually decrease demand. In reality, however, it is the result of a bad harvest on the most important export markets, i.e. actually a lack of this food. In a market economy, the balance of supply and demand is controlled by price. When something is scarce, it grows quickly. If, on the other hand, there is a lot of it, then it decreases again.
Unfortunately, it has gone so far that the manufacturers of chocolate confections, without which we cannot imagine Christmas, announce that they will have to significantly increase their prices. The Lindt and Hershey groups, for example, have already expressed themselves in this sense. At the same time, it is the first-named that faces frequent criticism for the fact that its products are already extremely expensive now, and what only after the price increase.
Foto: Shutterstock
There is a way to buy cheaper
However, prices will rise as long as it pays for producers and as long as people buy their products. Of course, they will also use this to increase their margins, while traders will do the same.
But that’s exactly what customers fear, so they do the first thing that comes to mind. They buy to stock up while they still have the money. The truth is that sweets can last for some time in the pantry at home, so it can be worthwhile to pick up special prices and buy them in advance.
Also read: The price of a key food item has skyrocketed. Buy fast, you won’t be able to afford it in a few days
However, there is another tip. It is true that sweets from renowned brands are relatively expensive in the Czech Republic. All you have to do is go to Germany and the prices are often one-third to one-half. Chocolate confections are often sold there also in large and very advantageous packages. If you need to stock up, it can be worthwhile to go shopping abroad.
Foto: Shutterstock
2023-11-05 11:00:00
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