Cocoa Crises: A Sweet Industry's Bitter Challenge

As a pastry chef and entrepreneur running a small-scale baking business, I have always believed in the magic of cocoa. From the velvety richness of couverture chocolate to the deep, earthy notes of cocoa powder to the creamy allure of cocoa butter, these ingredients are the essence of our creations.

- Vaidehi Bhandari

However, the last few months have been quite challenging for businesses that use real cocoa in their operations. The sweet industry is faced with a bitter struggle now that cocoa prices are soaring to nearly three times their usual rates.

The cocoa crisis is not just a conundrum for large manufacturers, but a pressing concern that threatens the very survival of small businesses.

WHY THE CRISIS?

The ongoing crisis is a complex issue that stems from several intertwined factors.

Climate Change has had a severe impact on cocoa-producing regions, particularly in West Africa. About 70% of the world’s cocoa is supplied by Africa, making it the global hub for all things chocolate. Unpredictable weather patterns, such as extended periods of droughts and unexpected rainfall, have wrecked cocoa crops, leading to major shortages.

While the current climate is a key culprit in this situation, there are other factors as well.

Cocoa is considered a “poor man’s crop”. Multitudes of West African farmers saw cocoa as their chance to escape poverty. Consequently, we were able to enjoy low chocolate rates for decades. Unlike other commodities, cocoa harvesting did not develop into a plantation business. Even today, the crop is largely grown by small stakeholders, lacking the resources to re-invest in their plots.