Fazer starts change negotiations again – the high price of cocoa is discouraging

A food company Fazer will start change negotiations, which may lead to the dismissal of more than twenty employment relationships.

One of the main reasons is the significant price increase of raw materials, especially cocoa. In addition, Fazer cites general uncertainty about the economic outlook and the changed purchasing behavior of consumers as reasons.

Negotiations start in the company’s confectionery and mill operations. A maximum of 14 can be dismissed from Fazer Makeis and nine from Fazer’s mills.

Myllypuoli produces, for example, flour for industrial use and porridge for consumers. In this sector, the challenges of profitability and the rise of fixed costs are pressing.

The change negotiations include 153 employees in the confectionery side in Finland and 191 in the mills in Finland and Sweden. Fazer’s based on the announcement the reduction intentions are mainly aimed at Finland, but “the changes may also affect the number of personnel at the Swedish mill”.

About the confectionery business disciplined by the record price of cocoa, because it is used as a raw material for chocolate.

At the beginning of the year, the per ton price of cocoa futures has hovered around $11,000, while at the beginning of last year it was around four tons. A future is a commitment to buy a product at a certain price at a certain time, in this example, tons of cocoa in March.

The price has dropped a bit of the highest December peaksbut according to an analyst source heard by the news agency Reuters on Friday, the level will still remain high.

Root causes are complex: climate change is destroying cultivation in Africa, cocoa farms are not being modernized and unstable cocoa futures are playing a tough game in the financial markets.

There are also enough intermediaries in the supply chain: two international chocolate producers told Reuters they were reducing purchases from Ivory Coast after the country’s ports raised their prices.

Fazer there are now frequent change negotiations.

They started at the xylitol factory in Lahti two weeks ago negotiations concerning the whole person. They have 40 employees, and the intention is to lay off the staff for a maximum of 90 days per employee.

In December, Fazer stopped 30 job roles of its Finnish support functions, which include, for example, personnel and financial administration. About half were offered new roles.

Correction 21.1. 5:30 p.m.: The story previously incorrectly stated that Fazer’s confectionery side has 153 employees in Finland and mills 191 in Finland and Sweden. In reality, these figures represent the number of employees involved in change negotiations.