Efforts by Chocolate Manufacturers to Mitigate Rising Cocoa Prices

Chocolate manufacturers like Hershey's and Lindt are taking proactive measures to counter the rising cocoa prices. These companies engage in cocoa forward agreements with cocoa farmers to secure beans at fixed prices for future production needs. Additionally, they use futures contracts through exchange entities to hedge against price volatility, ensuring a stable supply and cost of cocoa. By locking in costs through such agreements, chocolate makers like Hershey's and Lindt aim to shield themselves from abrupt price surges and maintain consistent chocolate prices for consumers.