Cocoa Prices Explode

Before I got interested in cocoa, I had never thought about where cocoa comes from. I don't know why, but I think it's the same for many of us.

A bit like the blue and red pills in The Matrix , it can be a real shock to get interested in them. You discover a lot of things.

The subject has been particularly hot for some time, because we are currently living in a historic period in the chocolate industry. A significant situation is challenging all stakeholders: the spectacular increase in the price of cocoa.

As the founder of Bassan Chocolat, I make artisanal chocolate. My business is ethical and organic. I pay attention to these changes. They do not only reflect an economic fluctuation, but reveal a profound transformation of the market, highlighting the urgency of adopting more responsible practices.

The New Economic Landscape of Cocoa

Recently, the price of cocoa on the stock exchange has more than doubled, reaching US$12 per kg.

This exceeds the records of the 1970s. This price increase, unprecedented in recent history, highlights the challenges facing the industry. With large investments by hedge funds in the cocoa market, pressure on prices is increasing. This makes the situation more unstable.

It must be said that after the crisis of the 70s, the price of cocoa remained stable, around $3 per kg.

It can therefore be said that the purchase price paid to cocoa producers has remained the same for 50 years. It is easy to see that if the price per kg has not followed inflation, a gap has developed. This gap has become a big chasm that has weakened cocoa cultivation.

Multiple and Diverse Impacts

On Consumers and Manufacturers

This increase directly affects chocolate manufacturers. They are facing higher costs in a difficult post-Covid context. One might think that the term mass chocolate only concerns a few little-known manufacturers. But in reality, almost the entire chocolate industry uses industrial chocolate.

Hershey is often mentioned when we think of mass-produced chocolate, and it is true that they are directly in this niche. But we forget to mention other, lesser-known companies, such as Cacao Barry, this company is part of the Barry Callebaut group. The vast majority of chefs in Quebec and Canada work with Cacao Barry.

And despite their aura of quality, they remain industrial chocolate manufacturers. Their sales model is Business to Business, which keeps them in the shadows. Their chocolate is sold under the name of the chefs who transform it. Thus, the true origin of the chocolate, as well as the manufacturing stages, remain invisible.

Chefs are therefore stuck in this whirlwind. Many have difficulty putting forward anything other than their own know-how as added value to their creation. It is therefore normal that everything related to agriculture, chocolate manufacturing and its supply falls into silence.

This is a great opportunity for chefs to rediscover artisanal chocolate. They can also showcase chocolates from brands like Bassan Chocolat. Consumers should expect a sharp rise in chocolate prices. This is due to the increase in the cost of sugar, wages and inflation.

Chocolate, beyond its transformation, requires a lot of work for chefs. It is an art. If we want them to continue creating, we must preserve the use of cocoa butter. It is important to avoid substitutes such as palm oil.

About Cocoa Producers

On the side of cocoa producers in Ivory Coast and West Africa, the situation is dramatic. Unfortunately, they are not really benefiting from this price increase. Even though the price of cocoa has almost tripled, the increases for producers remain very low.

The chocolate industry still relies on exploitative mechanisms. Cocoa-producing countries are beginning to legislate with supply management systems and regulations.

An Opportunity for Bassan Chocolat?

Artisanal chocolate making, as Bassan Chocolat does, uses high-quality beans and often costs more. Our direct ties to producers in the Americas and the Caribbean protect us from some of the fluctuations.

Working directly with them allows us to collaborate together to offer an alternative to chefs. We can work with chocolate differently. It is important to promote authentic chocolate bars. This avoids the excessive use of cocoa powder and avoids poor quality cocoa liquor.

Bassan Chocolat: A Reinforced Commitment

At Bassan Chocolat, we are more determined than ever to promote a sustainable and fair production model. We work closely with our producer partners to ensure fair remuneration and encourage environmentally friendly agricultural practices.

A Critical Moment for the Industry

The increase in the price of cocoa represents a critical moment for the chocolate industry. It invites us to reflect on our consumption and the choices we make as producers and consumers.

At Bassan Chocolat, we firmly believe that the future of chocolate must be built on foundations of quality, fairness and sustainability. Join us in this journey to make a difference and support a brighter future for all stakeholders in the cocoa sector.