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Chocolate price rise: Problems & solutions!

#Teamforest know that many of you are uncertain as to the scale of the problem caused by the cocoa price hike, the choices you have and – most importantly - the best solutions for your business.


We’ve broken the subject down to help:


1.    The cause of the price increase

2.    Cost transparency, so you can see the true figures.

3.    A set of solutions (& silver linings!)


No time to read on? Grab your phone. Our Account Managers are fully up to speed and ready to tailor solutions to you and your customers.

1.    The cause of chocolate price increases.


Several factors have combined to push cocoa prices up:

  • Climate change & reduced production

  • Rising production & transportation costs

  • Increased demand

  • The cost of uncertainty


Climate change is challenging the agricultural industry, including cocoa farming. Unpredictable rainfall, droughts, diseases, high temperatures…it’s all shaking the growth and yield of cocoa crops. As the supply chain becomes more fragile, costs within each link increase, and everyone feels the impact.


Producing cocoa is becoming more expensive, partly due to the demand for sustainable and ethical farming. Efforts to reduce child labour and provide fair wages to farmers increase production costs too. Then you’ve the rising costs of fertilisers and pesticides on top!


Transportation is driving up costs too. A covid hangover, shipping delays, congested ports, fuel costs, all such factors make transporting cocoa expensive.


Growing demand for real chocolate from emerging countries, such as India and China, is adding to the strain on supply as well.


Finally, uncertainty and speculation alone increase costs. Throughout the supply chain, everyone becomes extra cautious, adding a margin to try to protect themselves against the unknown.



2.    How big is the increase?


Raw cacao prices recently hit a record high of £4,700 per tonne – that’s more than double the price in February 2023 (£1,900 per tonne). Unfortunately, the price increase of 15-20% so far this year is looking set to continue throughout 2024.


To highlight the relevance, Callebaut prices are going up around 28% on the first July. That’s an £8.00 increase on our cost price for every 2.5kg bag! Ouch.

But at Forest Produce we’re keen to focus on support and solutions.

Read on...



3.    A set of solutions (& silver linings!)


At the highest levels, industry experts are reviewing where costs are best absorbed within the supply chain, and questioning whether ethical practices are going to become a double-edged sword for producers.


Meanwhile, at #teamforest we’ve quickly stepped up to support you in the following ways:


  • New, cheaper chocolate ingredients to choose from, including a wide range of ICAM products (which #teamforest are truly loving!).

  • Extended range of chocolate alternatives for you to tempt customers with (including dessert options, countertop/retail items, patisserie and garnish solutions).

  • Recipe ideas & inspirational tips to stretch chocolate further.

  • Support with pricing tactics & diversions (menu psychology).

  • Help to positively communicate the situation to your customers, so that you can build trust and engagement along the way.

  • Our own schedule for chocolate focused promotions, designed to soften the blow as much as we can!



By fast responding in all these ways, at Forest Produce we'll ensure that this situation at least brings you the benefits of a further extended product range and support with cost-conscious dish redesigns.

Just ask your Account Manager for details, and we will make sure you swiftly receive the help that suits you most.


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