Alberta chocolatiers feel the pinch as global cocoa prices soar
Global cocoa prices have surged as supply fell short by 29 per cent compared to 2023
Alberta specialty chocolate stores are forced to raise prices as the global cocoa prices surge to record levels.
Climate change and diseases have resulted in a shortage of the global supply of cacao whereas demand has continued to grow. This has led to a surge in prices for the main ingredient in the world's favourite indulgence, chocolate.
According to Barchart.com, a provider of real-time stocks and commodities information, farmers in Ivory Coast shipped 29 per cent less cacao as of Monday this year compared to the same time last year.
Jacqueline Jacek, owner of Jacek Chocolate Couture in Sherwood Park, Alta., said as a specialty chocolate shop owner they already pay 40 per cent or higher for fine-flavour cocoa beans compared to bulk ones and her suppliers have raised their prices even more.
"The last two orders I just placed for specialized cacao were 25 per cent up," she told CBC's Edmonton AM on Wednesday.
WATCH | Edmonton specialty store grapples with cocoa price hikes
According to the International Cocoa Organization (ICCO), a global organization composed of both cocoa producing and cocoa consuming countries, the daily price for cocoa on March 14, 2023 was around $2,600 US per tonne, and on March 13 this year the price has jumped to around $6,600 US per tonne.
Recently, there has been a push from cacao farmers for better liveable wages as well. In October 2023, Reuters reported that Ivory Coast raised the farm gate prices — price at which agricultural products are sold by farmers at the point of production — by 11 per cent and Ghana raised their farm gate prices by 63 per cent.
Jacek said when it comes to farmers she doesn't disagree with the price increase. "What it does mean is consumers are going to have to start paying more for chocolate and significantly more," she said.
Sven Anders, professor of agriculture economics at the University of Alberta, said because cocoa production happens in such a concentrated region, any environmental risk has a huge impact on the supply. Two-thirds of the world's cocoa production comes from West Africa, specifically Ivory Coast and Ghana.
"If something happens, the shocks for cocoa supply or production are going to be much more pronounced than if something is produced all around the world," he said.
He said factors like El Niño and climate change in general which are causing drier than usual conditions and disease pressures such as swollen shoot virus and black pod rot "are basically reducing the production more substantially than, you know, during other periods."
Brian Beck, president of Cocoa Community Confections, a chocolaterie based in Calgary, was at the World Cocoa Foundation meeting that took place in Amsterdam on Feb. 7. He told CBC's Eyeopener that although the meeting was about sustainability in the industry, there were behind the scenes conversations on the price hikes.
"I think there's a deep anxiety out there about sort of structurally what's going on in the world that might have an impact down the road," he said on Thursday.
He said environmental factors have been affecting supply for a while and hiked prices might be the new normal. "Once upon a time people would talk about $2000 a metric ton as the price. It might be twice that as a standard going forward," he said.
And although that means specialty chocolates will have to further raise their prices, Jacek said they will work on pricing that people can still pay for.
"Because that's the end of our business," she said. "So we're working really hard to find that good balance where we can still be profitable but it makes sense for the consumer."
LISTEN | Combatting the cost of cocoa
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With files from Tara McCarthy