Soaring cocoa prices leave chocolate makers with bitter taste – The Sopris Sun

As the calendar turns to the dog days of summer, business has slowed for Carbondale-based Pollinator Chocolate.

Pollinator Chocolate founder Mark Burrows keeps afloat by selling wholesale to restaurants and hotels in the Valley and beyond, while staying busy selling coffee to a loyal following at the Cocoa Club on Highway 133. Meanwhile, the chocolate world is rocked by a cocoa bean shortage, leading to skyrocketing bean prices that have hurt Burrows’ business.

Located on the west coast of Africa, the two neighboring countries of Ghana and Côte d’Ivoire produce 65% of the world’s cocoa. Earlier this year, the region faced severe drought and flooding, which led to reduced fruiting of cocoa trees and the spread of disease. Farmers in the region were left with two-thirds to three-quarters less than their usual harvest.

Cocoa is a commodity whose prices are controlled by the stock exchange. Values ​​have fluctuated wildly in recent months as the market tries to adjust to the shortage. In April this year, the price of a metric ton (MT) of cocoa beans exceeded $10,000 for the first time in history. Until 2023, prices have been hovering between $2,000 and $3,000. After the shortage, Burrows said the market is expected to stabilize around $7,000 to $8,000 per ton.

On June 18, Burrows sent an email to customers outlining the chocolate industry’s problems and announcing that it would raise prices by $1 per bar. Pollinator Chocolates’ specialty bars normally cost between $10 and $12. With bean prices quadrupling, Burrows explained the relatively modest price increase, saying that for now, the $1 increase is intended to reduce the price shock for consumers. However, as the year progresses, Burrows said prices will likely continue to rise to accommodate the new market.

While rising costs are making business difficult for Pollinator Chocolate and other artisanal chocolatiers, Burrows pointed to a bittersweet silver lining. For farmers in parts of the world that still produce cocoa — notably Southeast Asia and South America — rising prices mean farming is more profitable than ever, and for independent farmers who were once barely…
decent wages have multiplied.

Treating farmers fairly has always been a pillar of Pollinator Chocolate’s mission. Since its inception, Burrows has worked with cocoa brokers who not only source high-quality beans, but also ensure that no slavery or child labor is used on the farms they purchase from.

Moreover, as the massive price hike has made cocoa farming more profitable in the short term, Burrows said new plantations are already springing up around the world to tap into the market. That will likely drive down prices eventually, but, Burrows hopes, not at the expense of farmers’ wages.

Major candy makers like Hershey’s and Ghirardelli hold huge stocks of cocoa and are likely to use up the stored beans before buying more. To cut costs, Burrows said consumers could see less real cocoa in their Snickers bars and more filler ingredients by the end of the year.

However, small artisanal chocolatiers who do not have the same massive cocoa stocks must take the risk of paying a higher price to continue making their products.

For Burrows, the changing costs have highlighted how the supply chain – often blamed for shortages during the pandemic – is constantly impacting local businesses.

“This is what we’ve heard for years, but no one really understands: what it takes to transport a bag of coffee from Venezuela to your neighborhood,” Burrows said. “It’s the same thing with cacao… It’s heavy… You have to transport it and a lot of humans have to be involved in the process.”