The global cocoa market is currently facing a severe crisis, marked by skyrocketing prices and unprecedented market volatility. The primary driver behind this crisis is a significant supply shortfall due to poor harvests in West Africa, which accounts for about 70% of the world's cocoa production. This region has been hit hard by extreme weather conditions, including prolonged droughts and the Harmattan winds, which have severely impacted crop yields. Additionally, diseases affecting cocoa trees have exacerbated the situation, leading to the largest supply deficits seen in over a decade.
At the same time, global demand for cocoa is on the rise. This growing demand, coupled with speculative trading in the futures market, has driven cocoa prices to historic highs —reaching up to 150% increase in prices than the previous year. The resulting cost increases are being passed down the supply chain, leading to higher chocolate prices and a decline in sales, as consumers shift to cheaper alternatives.
The cocoa crisis underscores the vulnerabilities within the global agricultural supply chain, particularly for commodities heavily reliant on specific regions. As the crisis continues, it raises serious concerns about sustainability and the future stability of cocoa production, with potential long-term impacts on both farmers and consumers worldwide​.
It's going to be a challenging time for the global chocolate industry. Although it's been speculated that the market will stabilise over the coming years as the crops improve over the subsequent seasons, it's still unclear whether the prices will return back to pre-shortage or if it will even go down at all.
We hope our customers can understand and continue to support us. One thing that we didn't want to compromise on is quality. We didn't want to resort to using cheaper alternatives at the expense of taste, ethics and quality. We use Valrhona, a B-corp certified company, which is highly regarded as the best couverture chocolate in the professional and chef industry. While we do price our products competitively, we are confident that our premium price reflects our care and passion into creating luxury chocolates that not only taste delicious but also align with our ethics.
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