Diary of a Chocolate Maker: Joyfully into the Unknown
Hey there chocolate lovers,
Have you seen cocoa bean prices in the news recently?
Last month, commodity cocoa prices soared to unprecedented heights, hitting a historic high of $12,212.00 per ton. As cocoa beans get pricier, cocoa butter also rises (in fact, it has quadrupled!). Fluctuations in the commodity cocoa market don’t always affect our smaller slice of sustainably grown cocoa, but for reasons we’ll discuss below, this surge has sparked changes for both “big chocolate” and smaller bean-to-bar makers like us.
Most cocoa is produced for commodity-level markets, where prices fluctuate based on futures (speculative prices based on availability). As we know, if supply goes down, prices go up. Predicting cocoa's future has become a dance of navigating complex webs of variables, facing challenges like climate change, weather patterns and disease outbreak.
Cocoa Futures courtesy of TradingEconomics.com
In the end of April 2024, Cocoa Futures reached its highest recorded price, over $12,000 per ton.
The challenges faced by West African cocoa-producing regions are…grim. Ghana and Cote d'Ivoire, who produce more than half of the global cocoa supply, have been grappling with issues like the Cocoa Shoot Swelling Virus and Black Pod Mold, adverse weather conditions from El Niño, and naturally lower yields from cocoa trees that are aging out of production. And these issues aren’t new—in fact they’ve been happening for the last several years, resulting in significantly less cocoa in the market, which again hikes the commodity price. Additionally, recent legislation by the European Union will soon require distributors to trace cocoa products back to deforestation-free lands. The EU Deforestation Regulation will reshape the European purchasing standards. In short, deforested beans will no longer be imported. All of this means "Big Chocolate" companies are now pushed to explore alternative bean origins–usually smaller countries like Ecuador, the Dominican Republic, and Colombia.
Cacao swollen shoot virus infected cacao plants showing A and B, red vein banding of flush leaves; C, yellow vein banding of mature leaves; D, extensive chlorophyll depletion with green vein banding; E, leaf malformation (puckering and cupping); F, stem swelling; G, deformed cacao pods with smooth surface; H, dieback of diseased trees; and I, healthy cacao farm for comparison. Photo credits: Owusu Domfeh, Cocoa Research Institute of Ghana (CRIG) (B, C, G) and Adolf Boakye, CRIG (H). Courtesy of The Phytopathological Society.
But amid these challenges lies a silver lining for cocoa farmers in other parts of the world. For them, the increased prices are a boon. The surge in cocoa prices means increased revenue, potentially transforming livelihoods and fostering investment in cocoa infrastructure. Farmers engaged in transparent-trade relationships (like those we buy beans from through Uncommon Cacao) stand to benefit from them in particular and we are proud to be part of that relationship.
At Videri, we're facing our challenge with adaptability and creativity. We've secured our stash of beans and cocoa butter, so we feel prepared. We're actively exploring new bean blends and bean roasts to prepare when those supplies become more costly. We are digging in our heels and joyfully going into the unknown.
We believe in the power of bean-to-bar chocolate and its ability to improve lives. We remain committed to making exceptional chocolate, from the best ingredients, in a welcoming space that inspires joy, curiosity, and appreciation of cacao.
For further reading, please consider these primary resources below.
Join the conversation by dropping us a line to hello@viderichocolatefactory.com!