Let's Talk About Cacao.

Cocoa prices have been steadily increasing over the last few years. These recent months have seen a sudden surge in pricing and we would like to shed some light about why.
Coming from the perspective of chocolate makers and also people who work very closely with smallholder farmers, we believe it is imperative that people know why prices of chocolate will increase dramatically, and come to terms with a new price that reflects the global cacao climate.

 

 

Why is this Happening?

In the past 2 years, cocoa bean prices have doubled and 80% of this has happened within the first 3-4 months of 2024. This has caused prices to reach unprecedented levels.

• El Niño induced weather patterns have caused record low cacao harvests globally.

• Increased demand for chocolate products has further strained the dwindling harvests and supplies.

• Industrial demand for low-quality cocoa beans have reduced incentives for farmers to produce high-quality, fermented cocoa beans.

• Financial institutions have used the record low yields from the past 2 years as an indication to buy more cacao commodity futures, creating an everlasting negative feedback loop.

These factors have collectively contributed to the sharp rise in cocoa bean prices, posing challenges for both producers and consumers in the chocolate industry.

This is not likely to be a temporary situation. While El Niño has catalysed cocoa's price surge and market speculators have exacerbated it by piling into commodity futures, deep-rooted systemic and structural issues underpin the production squeeze; from climate change to chronic under-investment in rejuvenating old plantations, these problems will not be resolved within a single harvest season.

A Message from Us

As much as we love bringing you the finest chocolates, we must address a significant change that is impacting our industry as a whole. Due to the recent surge in cocoa bean prices locally and globally, we find ourselves face a difficult situation ahead.

We will be adjusting our prices to reflect the increased cost of cocoa beans, as we are sure many, if not all producers will do as well. This increase will be as gradual as possible, reflecting the global market. This decision was not made lightly, however it is necessary for us to maintain continuity with the smallholder farmers we work with as well as our esteemed employees. We will do all of this while not wavering our commitment to provide you with the highest quality chocolate possible.

At Primo Chocolab. Bali, we stand by our core principles of empowerment through direct trade with our suppliers and partners. While these price adjustments may pose a challenge, it allows us to maintain our commitment across the value chain of fair compensation to the hard working farmers that grow the cacao and consistent, high quality chocolate that our customers know, love and expect from us.

 

We appreciate your understanding and continued support during this time. Rest assured, every bite of our chocolate still carries with it the same dedication to flavour, craftsmanship, pleasure, and joy.

Thank you for being a part of the Primo Chocolab Family. Together let us further the mission to savour the sweetness of life, one delectable bite at a time.