The Rising Cost of Cacao
Last year, cacao prices rose at an unprecedented rate, impacting everyone in the chocolate industry—from the hardworking farmers to the end consumers. Climate change, political instability, and diseases affecting cacao crops drive production costs. This blog explores the cascading effects on farmers, the compromises made by commercial chocolate companies, and why choosing craft chocolate made from ethically sourced cacao and high cacao content is a more conscious choice for chocolate lovers.
The Hidden Cost to Farmers
For cacao farmers in regions like Ghana, Côte d’Ivoire, and Indonesia, this price hike should ideally mean better incomes, but the reality is much more complex. Despite the increasing cost of cacao, many small-scale farmers still live below the poverty line, earning less than $1 per day. Rising production expenses—exacerbated by climate challenges and the cost of disease-resistant cacao trees—force farmers to work harder with fewer returns, as much of the profit goes to intermediaries rather than farmers themselves.
Because of their dependence on cacao, farmers remain locked in a cycle of poverty. They are unable to diversify their income or invest in better farming practices. Many consumers seek ethically sourced chocolate but might not realize the broader issues that create this economic disparity in the first place.
The Decline in Quality of Commercial Chocolate
As commercial chocolate companies contend with high cacao prices, they prioritize profits, often at the expense of quality. This leads to less cacao and more fillers—think palm oil, artificial flavours, and refined sugar. These changes compromise the complex flavours of bean-to-bar chocolate and diminish the health benefits that cacao traditionally offers, such as antioxidants and magnesium.
This shift is disappointing for consumers who seek high cacao content and richer flavours. Meanwhile, for those looking for healthier, vegan chocolate, craft chocolate remains an appealing alternative with its minimal ingredients and focus on quality.
Understanding Cacao Futures
Cacao futures are financial contracts that obligate the buyer to purchase cacao at a predetermined price at a future date. These contracts are traded on commodity exchanges and are used by large chocolate companies and traders to hedge against price volatility. Essentially, cacao futures allow these companies to lock in prices for future cacao purchases, protecting them from unexpected price spikes.
While cacao futures can stabilize prices for large companies, they do little to help small farmers who lack access to such financial instruments. Farmers are often left vulnerable to price fluctuations and market dynamics beyond their control. The complexity of the cacao futures market underscores the disconnect between the global financial system and the everyday realities of cacao farmers.
Why Choose Directly Sourced Craft Chocolate?
For consumers who prioritize quality and ethics, craft chocolate is the better choice. Unlike commercial brands, craft chocolate makers embrace direct trade, allowing a more significant share of profits to go directly to farmers. This direct trade chocolate model fosters sustainability, enabling farmers to reinvest in their farms and communities. Moreover, craft chocolate typically contains higher cacao levels, retaining the full antioxidant power and unique flavour of each cacao variety.
Conclusion: Why Your Chocolate Choice Matters
With the rise in cacao prices, every chocolate purchase is a choice for quality and ethics. By supporting small-batch chocolate that focuses on sustainable cacao sourcing, consumers make a difference—both for the taste of their chocolate and the well-being of farmers. Choosing artisan chocolate is a simple but impactful way to support ethical practices in the chocolate industry.
crafting ethical chocolate since 2013. Her
passion for cacao’s rich history and vibrant
flavours comes alive in her chocolate tastings,
where she teaches participants how to properly
savour chocolate while sharing insights into
sustainable sourcing and the art of chocolate
making. Audrey’s mission is simple: to create
happiness through chocolate while supporting
a more equitable and sustainable world.