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Rising cocoa prices and an affordable alternative for chocolate production

Recently, the prices of bonbons and chocolate bars have soared due to the rising cost of cocoa. The price of this essential ingredient can reach up to thirteen euros per kilo. This price increase is mainly due to poor harvests in West Africa, from where at least 70 percent of the world’s cocoa originates.



Causes of the price increase

Cocoa prices recently surpassed $9,000 per ton for the first time on the New York Stock Exchange, making cocoa more expensive than copper. In just the past month, cocoa prices have risen by 60 percent, and in 2024, they have already doubled. The primary reasons for this spike are poor harvests and diseased cocoa trees in West Africa. This region, which produces the majority of the world’s cocoa, has faced temperature fluctuations and heavy rainfall over the past three years. These adverse weather conditions have severely impacted cocoa production.


In addition to climate issues, cocoa farmers have been struggling with poverty for years. This lack of resources makes it difficult for them to invest in their plantations and protect them from extreme weather, leading to reduced production and higher prices.


Impact on the chocolate industry

The rising cocoa prices have significant implications for the chocolate industry. Manufacturers who process the raw cocoa beans into products like cocoa butter and chocolate bars are particularly affected. With the increased cost of cocoa, many producers are forced to raise the prices of their chocolate products. This price hike is compounded by rising sugar prices, making chocolate increasingly expensive for consumers.


Moreover, chocolate manufacturers face the challenge of managing supply chain disruptions due to the fluctuating availability of cocoa. As a result, the overall cost of producing chocolate products has risen, impacting both large-scale chocolate producers and small artisanal chocolatiers.


An affordable and tasty alternative: Carob powder and cocoa extract

Fortunately, there is a good alternative to cocoa: carob powder. This ingredient is not only used as a thickening agent in baby food but also in drinks, soups, whipped cream, and sauces. Although carob powder does not provide the same flavor experience as cocoa, as it absorbs moisture and lacks cocoa butter, it still offers a different but enjoyable taste.


This is where Dutch Essentials comes in. We have developed a solution to create the same flavor experience by using cocoa extract that can be added to products where cocoa is usually used. This ensures the same taste experience while ultimately being more cost-effective. This way, consumers can continue to enjoy their favorite chocolate flavor without the high costs.


By using cocoa extract, we can reduce dependence on expensive cocoa while maintaining the quality and flavor of chocolate products. This is a win-win situation for both producers and consumers. The development of this alternative allows us to continue enjoying delicious chocolate, even in times of rising raw material prices.

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