BRUGES, Belgium — As Valentine’s Day approaches, chocolates that symbolize love may come with a hefty price tag this year, reflecting the soaring costs of cocoa beans on the commodities market. Traditionally, chocolates have conveyed deep affection, but this time, they may also highlight the depth of one’s financial resources.
The price surge in cocoa beans has been remarkable, with industry insiders witnessing dramatic changes. Philippe de Sellier, who leads the renowned Leonidas chocolate brand and the Belgian chocolate federation, notes that cocoa prices have escalated spectacularly for the past two to two-and-a-half years. The cost was less than $2,000 per ton in summer 2022, but it skyrocketed to over $12,000 during the last holiday season, stabilizing around the $10,000 mark ever since.
Bart Van Besien, a policy adviser from a fair trade organization, mentions this unprecedented price level, indicating that it hasn’t been seen in 50 years. Belgian chocolatiers, known for their expertise and craftsmanship, are feeling the strain as many struggle to manage the increased costs associated with their products, particularly during the Valentine’s season. Some chocolate businesses are experiencing significant difficulties, with Dominique Persoone, owner of the famous Chocolate Line in Bruges, admitting that while he still has a steady supply of beans—partly due to his own cocoa plantation in Mexico—many of his peers face serious challenges due to high bean prices.
Persoone notes that some chocolatiers are considering closing for Valentine’s Day, transforming this potentially lucrative time into an unexpected break as they await a more favorable market during Easter. Rising prices mean that many producers cannot maintain typical profit margins, resulting in increased costs for consumers. While Persoone raised his chocolates’ prices by 20% over the past year, de Sellier emphasizes the variability of increases among different producers.
A perfect storm of issues is contributing to the cocoa price crisis, blending climate change, diseases affecting cocoa crops, commodity speculation, and the socio-economic challenges faced by farmers globally.
Van Besien attributes the reduced cocoa production to climate change, noting alterations in rainfall and drought conditions impacting crucial growing regions in West Africa. Moreover, extreme temperature variations in equatorial areas have led to significant harvest failures. Concurrently, global advancements have lifted many from poverty, particularly in countries like China, leading to a higher demand for chocolate.
The long-term decline in cocoa prices drove many farmers away from cocoa cultivation, seeking better lives in urban areas, which has further exacerbated the situation. De Sellier remarks that the majority of cocoa is sourced from the Ivory Coast and Ghana, where farmers require better compensation for their labor. Persoone agrees with the notion that the prices previously paid to farmers were not equitable.
Ironically, while prices are currently favorable for farmers, many are abandoning cocoa farming, leading to a paradox in the industry. Van Besien points out that with current pricing, farmers could have invested in sustainable practices and provided educational opportunities for their children, had they not left their farms.
As for the consumers, purchasing a box of fine chocolates for Valentine’s Day might evoke a sense of guilt due to the ethical implications surrounding cocoa production. Van Besien suggests that although internal conflicts about guilt exist, the focus should be on imposing laws that prevent purchasing cocoa below production costs, relieving consumers from moral dilemmas.
Both de Sellier and Persoone express hope that cocoa prices will stabilize in the future, ideally in the range of $5,000 to $6,000 per ton, which would ensure that profits return to farmers. Despite the price hikes, purchasing chocolate may still be viewed as a manageable indulgence. Persoone notes, “It’s a small luxury that most people can still afford,” hoping the market remains accessible for the foreseeable future.
