Welcome to the Conexión Chocolate blog, where we explore the intricacies of the cacao market and its effect on our industry. As professional chocolatiers, it is vital to understand the factors influencing cacao prices, as this knowledge is essential for both your business strategy and the sustainability of cacao producers.
Why Are Cacao Prices Rising?
In recent years, the cacao market has experienced significant price increases. Prices that were around $2,500 per ton in 2023 have skyrocketed to over $12,000 per ton by 2025. Here are some key factors behind this surge:
1. Supply and Demand Dynamics
- Growing Global Demand: The appetite for high-quality chocolate, especially dark chocolate, continues to rise, particularly in emerging markets.
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Supply Disruptions: Global events, such as the COVID-19 pandemic, have disrupted supply chains and affected labor availability, leading to production shortfalls in key cacao-producing regions.
2. Climate Challenges
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Impact of Climate Change: Cacao is sensitive to environmental changes. Rising temperatures and erratic weather patterns can diminish yields and heighten vulnerability to pests and diseases.
3. Economic Factors
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Rising Costs of Inputs: The costs of fertilizers, labor, and sustainable farming practices have increased, prompting farmers to adjust cacao prices accordingly.
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Currency Fluctuations: Variability in exchange rates can make cacao more expensive in specific markets, impacting overall pricing.
4. Speculation in Commodities
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Increased trading and speculation can lead to price volatility in the cacao market, complicating the pricing landscape further.
Impact on Producers
The rising prices of cacao can have both positive and negative implications for producers:
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Increased Revenue Potential: Higher cacao prices can improve farmers' livelihoods, allowing them to invest in better farming practices and product quality.
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Vulnerability to Price Drops: Conversely, producers face significant income loss if prices suddenly decline, underscoring the need for stable market conditions.
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Focus on Quality: As consumers increasingly prefer ethically sourced and high-quality cacao, producers are motivated to adopt sustainable practices and obtain certifications.
The Tariff Dilemma
Compounding the challenges are the tariffs imposed by the United States. For Ecuador, a significant cacao exporter, tariffs have increased by 10%. While this is a notable rise, it is essential to recognize that other chocolate-exporting countries face even steeper tariff increases, further complicating the market. Here’s how this impacts pricing:
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Increased Export Costs: The higher tariffs impose additional financial burdens on Ecuadorian producers, raising the costs of cacao entering the U.S. market and potentially increasing prices for chocolatiers.
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Competitive Disadvantage: Although Ecuador faces a significant tariff increase, other countries deal with even more considerable hikes. This situation can create a complex competitive landscape, prompting chocolatiers to consider sourcing from nations with more favorable tariff conditions.
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Potential Pass-Through to Consumers: Over time, these increased costs are likely to trickle down the supply chain, resulting in higher prices for consumers and potentially affecting overall demand.
What Conexión is Doing About This
At Conexión Chocolate, we buy directly from four cacao cooperatives comprised of 4,500 smallholder family farmers dedicated to developing expertise in the country of origin. We source only fine-flavor Nacional cacao from Ecuador, which is in danger of extinction. Like the rest of the industry, we face global price pressures, with buyers competing for a limited supply, driving prices higher.
Despite these challenges, we remain steadfast in our commitment to:
- 100% traceable fine flavor Arriba Nacional cacao
- Paying premiums to farmers
- Ethical sourcing and sustainability
- Preserving award-winning flavor and quality
Cacao and Chocolate Summit: The Latin Epicenter of Sustainability and Know-How in the Supply Chain
Stay tuned! Join us in Quito, Ecuador, on October 1, 2, and 3 for the Cacao and Chocolate Summit, where we will focus on elevating quality and sustainability at the origin.
Why We Adjusted Our Prices
To continue supporting our farmers, protect our supply chain, and ensure we deliver top-quality chocolate, we’ve updated our price list. This decision accounts for:
- The true cost associated with high-quality, traceable cacao
- Rising global competition for cacao beans
- Our ongoing investments in sustainable farming practices
We invite you to break the mold and create a meaningful impact where it is most needed!
The current cocoa crisis is one of the most disruptive in decades. However, every challenge presents an opportunity. At Conexión, we view this moment as a chance to reinforce our commitment to transparency, traceability, and genuine sustainability, all rooted in Ecuador.
Ready to partner with a brand that prioritizes farmers, flavor, and ethics?
➡️ Contact us today for quotes and volume pricing
Thank you for your continued support and partnership in making a positive impact in the cacao industry 🍫🌱