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Wednesday, Mar 12, 2025
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Rising Cacao Prices Threaten Easter Chocolate Costs Amid Global Supply Challenges
Record highs in raw cacao prices are prompting significant increases in retail chocolate prices, particularly ahead of the Easter holiday.
As the Easter holiday approaches, chocolate prices are set to escalate significantly, driven by a surge in raw cacao prices which have reached unprecedented levels in recent months.
Philippe Smets, a boutique chocolate maker based in inner-west Sydney, reports a 25% increase in the cost of cacao beans, which constitutes about 70% of his chocolate products.
This means that even small-scale producers like Smets must adjust their prices to accommodate the rising costs.
According to industry analysis by Pia Piggott of Rabobank, global cacao prices have remained very high, with averages surpassing $17,000 per tonne in February 2023 and reaching nearly $20,000 per tonne in December 2022. By comparison, prices were around $7,200 per tonne in early 2022, highlighting a dramatic increase over the past year.
The primary driver of this price hike is a global shortage of cacao beans, exacerbated by supply deficits in recent years.
Piggott noted that West Africa, which produces approximately 50% of the world’s cacao, has experienced significant crop losses due to cacao swollen-shoot virus, a disease that has led to considerable reductions in yields.
This disease is responsible for up to 50% of harvest losses in countries such as Ghana.
Additionally, while recent rainfall in key cacao-producing regions has improved growth and may temper future price increases, experts do not anticipate a significant decline in prices in the near term.
As a result, retailers expect chocolate prices to rise by up to 20% this Easter as they grapple with increased production costs.
Some chocolate producers are responding to rising costs by modifying their products.
Measures include shrinking the size of chocolate bars or substituting higher-cost ingredients with more affordable alternatives, such as increased sugar content.
In contrast, Smets emphasizes his commitment to producing high-quality, ethically sourced chocolate, aligning with the 'bean to bar' movement that seeks to ensure transparent sourcing practices.
With ethical concerns surrounding labor practices in cacao farming, particularly in West Africa, Smets travels to origin countries to directly engage with cacao producers.
The U.S. Department of Labor estimates that around 1.5 million children are involved in child labor in cocoa farms across Ghana and Côte d'Ivoire, prompting many in the chocolate industry to prioritize ethical sourcing practices.
After a life-changing battle with non-Hodgkin lymphoma and a shift from a corporate career, Smets established his chocolate business, Chocolat Philippe, in Sydney in 2015. He has since self-financed his venture, which has garnered local interest through online sales and partnerships with local stores like The Deli Erskineville.
Despite current challenges posed by rising ingredient costs, Smets remains dedicated to creating premium chocolate without additives, reinforcing the values and quality he aims to share with consumers.
Philippe Smets, a boutique chocolate maker based in inner-west Sydney, reports a 25% increase in the cost of cacao beans, which constitutes about 70% of his chocolate products.
This means that even small-scale producers like Smets must adjust their prices to accommodate the rising costs.
According to industry analysis by Pia Piggott of Rabobank, global cacao prices have remained very high, with averages surpassing $17,000 per tonne in February 2023 and reaching nearly $20,000 per tonne in December 2022. By comparison, prices were around $7,200 per tonne in early 2022, highlighting a dramatic increase over the past year.
The primary driver of this price hike is a global shortage of cacao beans, exacerbated by supply deficits in recent years.
Piggott noted that West Africa, which produces approximately 50% of the world’s cacao, has experienced significant crop losses due to cacao swollen-shoot virus, a disease that has led to considerable reductions in yields.
This disease is responsible for up to 50% of harvest losses in countries such as Ghana.
Additionally, while recent rainfall in key cacao-producing regions has improved growth and may temper future price increases, experts do not anticipate a significant decline in prices in the near term.
As a result, retailers expect chocolate prices to rise by up to 20% this Easter as they grapple with increased production costs.
Some chocolate producers are responding to rising costs by modifying their products.
Measures include shrinking the size of chocolate bars or substituting higher-cost ingredients with more affordable alternatives, such as increased sugar content.
In contrast, Smets emphasizes his commitment to producing high-quality, ethically sourced chocolate, aligning with the 'bean to bar' movement that seeks to ensure transparent sourcing practices.
With ethical concerns surrounding labor practices in cacao farming, particularly in West Africa, Smets travels to origin countries to directly engage with cacao producers.
The U.S. Department of Labor estimates that around 1.5 million children are involved in child labor in cocoa farms across Ghana and Côte d'Ivoire, prompting many in the chocolate industry to prioritize ethical sourcing practices.
After a life-changing battle with non-Hodgkin lymphoma and a shift from a corporate career, Smets established his chocolate business, Chocolat Philippe, in Sydney in 2015. He has since self-financed his venture, which has garnered local interest through online sales and partnerships with local stores like The Deli Erskineville.
Despite current challenges posed by rising ingredient costs, Smets remains dedicated to creating premium chocolate without additives, reinforcing the values and quality he aims to share with consumers.
