Why is Cacao Expensive
Why Is Cacao So Expensive?
Understanding Global Price Trends and the Value of Ethical Sourcing
At Seleno Health, we’re passionate about bringing you the finest ceremonial cacao, sourced with intention and respect for both people and the planet. But if you’ve noticed the price of cacao creeping up, you’re not alone. Over the past few years, cacao prices have soared to unprecedented levels, with global markets reflecting a perfect storm of challenges. In this article, we’ll explore why cacao is becoming so expensive, dive into the global price trends over the last 50 years, and highlight why choosing quality, safety-tested, ethically sourced, and sustainable cacao is more important than ever.
The Perfect Storm: Why Cacao Prices Are Skyrocketing
Cacao prices have surged dramatically, reaching record highs of over $10,000 per ton in 2024, nearly triple the price from just a year prior. This spike is driven by a combination of environmental, economic, and structural factors, particularly in West Africa, which produces over 80% of the world’s cacao.
Here’s a closer look at the key drivers:
1. Climate Change and Extreme Weather: Cacao trees thrive in a narrow equatorial band, requiring specific conditions of heat, humidity, and rainfall. Climate change has disrupted these conditions, with phenomena like El Niño bringing excessive rainfall and heatwaves to West Africa. In 2023, heavy rains in Ghana and Côte d’Ivoire exacerbated diseases like the swollen shoot virus and black pod disease, reducing yields by up to 50% in affected areas. The International Cocoa Organization (ICCO) projects a global shortfall of 374,000 tonnes for the 2023-2024 season, compounding two previous years of deficits.
2. Disease and Aging Plantations: The cacao swollen shoot virus (CSSV), spread by mealybugs, has devastated crops in West Africa, with no chemical treatment available. Infected trees see yield declines of up to 25% in the first year and 50% in the second, often requiring removal. Aging cacao plantations, many of which have not been adequately reinvested in, are also less productive and more vulnerable to pests and diseases.
3. Structural Challenges and Low Farmer Incomes: In countries like Côte d’Ivoire and Ghana, where cacao farming is often nationalized, farmers receive fixed prices that are often too low to support reinvestment in their farms. This perpetuates a cycle of poverty, limiting resources for soil health, new trees, or disease management. The lack of financial resilience makes it harder for farmers to adapt to climate and disease challenges.
4. Regulatory Shifts and Sustainability Demands: The European Union’s Deforestation-free Regulation (EUDR), set to impact imports in 2025, bans cacao grown on recently deforested land. While this is a positive step for the environment, it adds complexity for West African farmers, who rely on Europe as a major market. Additionally, stricter regulations on cadmium—a toxic heavy metal found in some cacao due to soil contamination—require rigorous testing and compliance, increasing costs.
These factors have created a supply crunch, driving cacao prices to levels never seen in the history of cacao farming. Prices are hitting $12,000 per ton in 2024, a 300% increase year-over-year, signaling widespread concern about the chocolate and cacao industry’s future.
Global Cacao Price Trends: A 50-Year Perspective
To understand the current price surge, let’s look at cacao’s price history over the last 50 years. Data from sources like the Federal Reserve Bank of St. Louis (FRED) shows cacao prices have fluctuated due to supply disruptions, demand growth, and market dynamics. Below is a summary of key trends:
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1970s–1980s: Cacao prices peaked in 1977 at around $5,500 per ton (adjusted for inflation), driven by supply shortages and speculative trading. Prices then stabilized in the $2,000–$3,000 range as production grew in West Africa.
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1990s–2000s: Prices remained relatively low, averaging $1,500–$2,500 per ton, as global supply expanded with increased planting in Côte d’Ivoire and Ghana. However, low prices often meant farmers struggled to earn a living wage.
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2010s: Prices hovered around $2,000–$3,000 per ton, with occasional spikes due to weather events or political instability in producing regions.
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2020s: Prices began climbing steadily from 2021, reaching $3,200 per ton in 2023 and surging to over $10,000 in 2024, driven by the factors mentioned above. Forecasts suggest prices may stabilize at a higher baseline of $4,000+ per ton in the coming decade due to ongoing supply challenges.
Why Quality, Safety, and Ethics Matter More Than Ever
As cacao prices soar, the temptation to cut corners on quality or sourcing practices grows. However, at Seleno Health, we believe this is a critical time to double down on choosing cacao that is safe, high-quality, ethically sourced, and sustainable. Here’s why:
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Quality and Flavor: High-quality cacao, like our ceremonial-grade beans, offers unparalleled flavor and health benefits, rich in antioxidants, magnesium, and flavonoids. The Cocoa of Excellence Programme emphasizes standardized quality assessments to ensure beans meet sensory and chemical standards, enhancing the consumer experience. Choosing quality cacao supports farmers who invest in better practices, even amidst rising costs.
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Safety (Cadmium Testing): Cadmium contamination, particularly in Latin American cacao due to volcanic soils, poses health risks, especially to kidneys. The EU’s 2023 regulation sets strict cadmium limits (0.6 mg/kg for cocoa powder), making testing essential. At Seleno Health, we rigorously test our cacao to ensure it meets safety standards, protecting your health and peace of mind. Many cacao brands are selling high cadmium cacao at reduced prices that puts your health at risk
Read more about the cadmium in cacao issue here - https://selenohealth.com/blogs/learn-about-cacao/cadmium-in-cacao
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Ethical Sourcing: Low farmer incomes are a root cause of the cacao crisis, as they limit reinvestment in sustainable practices. By sourcing from fair trade cooperatives, we ensure farmers receive a living wage, supporting their livelihoods and communities. Our cacao is sourced from farm to table cutting out the middlemen and ensuring our farmers are benefitting from the profits not the corporate middle men.
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Sustainability: With deforestation linked to 94% and 80% forest loss in Côte d’Ivoire and Ghana, respectively, sustainable practices are critical. Our cacao is grown in rich agroforestry’s that support the flora and fauna of the Amazon rainforest. Our commitment to sustainability ensures your cacao supports the planet, not harm it.
A Call to Conscious Consumption
The cacao crisis is a wake-up call for all of us. As prices rise, choosing quality, safe, and ethically sourced cacao isn’t just about enjoying a better product—it’s about supporting a sustainable future for cacao farmers and the environment. At Seleno Health, we’re committed to transparency, from our cadmium-tested, ceremonial-grade cacao to our partnerships with farmers who share our values. Together, we can make a difference, one mindful purchase at a time.
Explore our range of ceremonial cacao and join us in celebrating cacao that’s good for you, the farmers, and the planet.