Can Manufacturers Beat The Cocoa Crisis – Or Is It Time To Say Good-Bye To Our Favourite Dessert?

Cocoa has long been an indispensable part of global trade and consumption, significantly impacting both the environment and societal aspects of the world. Articles on this key ingredient have been prevailing in the international media, and unfortunately, not because of its intense, pure chocolate flavour with notes of dried fruits and nuts. Cocoa was mainly mediated from the following point of view:

• Cocoa production is facing a crisis because of climate extremes, making the world’s chocolate supply vulnerable.
• Cocoa prices have soared by 400%, reaching US$10,000 per ton.
• A significant percentage of Ghanaian tree harvest is compromised due to an infection known as CCSVD—cacao swollen shoot virus disease.
• Chocolate companies are succumbing to “shrinkflation,” reducing the bars’ size while keeping prices unchanged.

If you’re interested in gaining a further understanding of why cocoa manufacturers are facing this unprecedented set of challenges, or if you have a soft spot for dessert and question its future presence, you’ve come to the right place.

Understanding The Cocoa Crisis And Its Implications

The chocolate industry had seen quite flourishing days until early 2024, when climate change, disease pressures, and unfavourable weather conditions started an agonising global cocoa shortage. Cocoa beans are primarily grown in West African countries, with the Ivory Coast and Ghana accounting for around 58% of the worldwide market. In the face of climate change, the cocoa industry has become a destructive loop, with farmers driven to reckless measures such as desperately cutting down forests, solely to keep this industry alive. In such unfortunate times, a growing concern has been nurtured about the sustainability of the cocoa sector, the well-being of farmers, and the psychological state of individuals who struggle with a guilty pleasure – or a compulsive desire – for chocolate.  

To maintain the reputation of a reputable cocoa manufacturer today means facing a complex set of challenges and having no choice but to implement robust policies and innovative technologies. Minimising environmental impact is no longer optional, and cocoa manufacturers worldwide are being held responsible for prioritising fair trade, responsible sourcing, and organic certifications. The good news, however, is that there are STILL several suppliers that specialise in cocoa wholesale, supplying bulk products to chocolatiers worldwide.

Are there any solutions?

Addressing the cocoa crisis requires a multifaceted approach, emphasising the need to focus on long-term sustainability and resilience. Research data suggests that innovative agricultural techniques are key to developing more disease-resistant cocoa trees, with breeding programs at the forefront of addressing this issue. The governments of Ghana and Ivory Coast have started boosting farmers’ remuneration to attract more investment in cocoa production, addressing the issue of previously underpaid crops. This approach aims to cultivate a positive supply response capability among farmers by providing them with a viable financial option to invest in more sustainable farming practices and inputs. To underscore the urgency for these prudent adjustments, Barry Callebaut AG – one of the world’s leading manufacturers of chocolate -anticipated unfortunate deficits in cocoa supply, with shortages as catastrophic as 500,000 tons in the coming years.

Once again, it is up to farmers and companies to work together to enhance biodiversity-centred and climate-resilient practices, all of which are vital for surpassing the cocoa crisis and maintaining ecosystem resilience in the face of climate change. These nearly disastrous circumstances are the result of several factors, such as climate change, disease outbreaks, aging trees, low farmer incomes, and heightened global demand. With that in mind, key solutions for surpassing the cocoa crisis include:

• Climate-resilient cocoa varieties: investments in breeding and distributing disease-, drought-, and heat-resistant trees.
• Agroforestry systems: intercropping cocoa with other trees.
• Precision agriculture: leveraging sensors and satellite data to monitor tree health and predict yields.
• Improved irrigation: affordable water management solutions.
• Traceability and certification: Ensure environmental standards by expanding the use of traceability systems and certifications.
• Carbon farming incentives: enabling farmers to capture carbon through regenerative practices.
• Ethical consumerism: spreading awareness for producing chocolate ethically and sustainably.

What would A World Without Chocolate look like?

A world without chocolate would have a profound impact on our society, affecting global culture, economics, and personal celebrations. To develop a further understanding, we should take a look at this situation from the following angles:

• Industry shocks: According to research performed in 2023, the chocolate industry was estimated at $119.29 billion. Consequently, it generates a substantial amount of money, creating jobs for numerous individuals worldwide. It is a key factor in helping farmers and manufacturers make a living, becoming a considerable driver for economic growth and development. Although the economy is not solely reliant on chocolate, the overall ambience of our society could suffer from these shortages, with workers and businesses involved in chocolate production facing substantial economic hardship.
• Lost traditions: As individuals living in a society where we constantly have to adjust and modify to fit into a new situation or environment, we have been forced to imagine without numerous vital things. However, our souls balk at the thought of a world without chocolate. Halloween without peanut butter cups? Easter without a monumental chocolate Easter Egg? Valentine’s Day without a chocolate-filled heart-shaped box? It feels too peculiar to comprehend. From ancient Aztec traditions to European hot chocolate cafes, chocolate embodies cultural identity, fostering togetherness through shared traditions.
• Psychological consequences: While it is unreasonable to state that chocolate is a magical cure for mental health issues, it certainly has a positive impact on our mood and overall well-being. Thus, the world would be far less interesting without chocolate, for this small (or huge) indulgence provides serotonin and tryptophan, lifting our spirits and boosting our brain power.

Overall, the risk to the cocoa supply endangers chocolate production, urging immediate action and a responsible approach.