Chocolate costs remain high as cocoa crops get hit by weather and disease
Madison Alworth of Fox Business speaks with Mark Chinsky, co-owner of Enjou Chocolat, to discuss the impact that Sky High Cocoa prices have had on the chocolate industry.
Consumers with sweet teeth will pay more for one of the most popular Valentine’s Day treats this year.
Cocoa prices have skyrocketed compared to a year ago, with crop conditions coupled with rising manufacturing costs, with some companies having no choice but to raise prices for different chocolate products.
Ray Bitzel Jr., owner of chocolate at Bitzel, an artisan chocolate factory in Suwanee, Georgia, has absorbed a large amount of costs to keep customers. Still, sweet treat shops had to raise prices to account for increased costs.
“The chocolate prices 18 months ago were basically almost doubled,” Bitzel told Fox Business. “That’s so bad.”
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David Branch, sector manager at Wells Fargo Agri-Food Institute, said that cocoa prices have more than doubled since the beginning of 2024, forcing an industry that relies on products to increase prices to maintain profitability. I reported that I was doing it. Branch told Fox Business that “almost all major candy makers” have shown that prices need to be increased.
A selection of chocolate chocolates from Bitzel from Swanney, Georgia. (Bitzel chocolate)
The problem, according to the branch, is that major cocoa production areas in West Africa face higher than normal temperatures, pose a risk to crop development, which has hindered cocoa production for several years. The prevalence of cocoa swollen shoot virus disease (CSSVD) exacerbates production problems as it is one of the most devastating diseases in Cacao, which causes serious losses.
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The branch cited data from the international cocoa organization, which is projected to forecast production shortages for the third consecutive year, with global cocoa production falling 13.1% year-on-year between 2023 and 2024.
Since January 2023, cocoa bean prices have risen by more than 355%. From January 2024 to December 2024, it soared over 143%, reaching an all-time high of $12,565 per metric tonne.
Every year, cocoa, the world’s largest producer of goods, increases by 76% per year. However, futures prices near the November 2024 contract increased 33% in London and 26% in New York. The market expects better crops than last season, but supply risks and current supply deficits still appear to be major concerns, a Wells Fargo report said.
Chocolate made from Bitzel chocolate from Swanney, Georgia. (Bitzel chocolate)
Bitzel’s biggest concern is to make sure he doesn’t raise prices too much. As a craftsman chocolatier, Bitzel said he uses premium cocoa that he hasn’t seen a price cut.
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Currently, Bitzel estimates that raw commercial grade chocolate is about $8 per pound and $12 per pound if it is white chocolate.
“Our job is to understand how to make it. Really good, high quality productsand there’s no need to claim absolute property for that,” Bitzel said.
He said there are prices where people stop buying and seek alternatives to chocolate. This year, the business is seeing more customers. Bitzel is partially attributed to Valentine’s Day on Friday. However, each customer is buying less than usual, he said.