Rising Cocoa Prices - what, why & where?

In recent reading, you'll understand that Barry & Aude went to visit a cocoa plantation in the Ivory Coast in 2024. 

The learnt from the farmers there how to correctly farm, harvest and quality check the cocoa beans from plant to harvest stages. 

So, now that we've seen the price of cocoa (and real chocolate) rise over the past years, the questions begs to be asked as to whether these excessively hard workers are being rewarded - or whether equilibrium is further from ever before.

The Hidden Reality Behind the Global Chocolate Supply Chain

Over the past two years, cocoa prices have surged to historic highs, sending shockwaves through the global chocolate industry. Consumers have seen chocolate prices increase on supermarket shelves, and headlines have focused on supply shortages and record commodity markets.

But behind these rising prices lies a difficult truth: most cocoa farmers are not seeing meaningful increases in income — despite working harder than ever.

This disconnect highlights one of the most persistent inequalities in global agriculture.

The Cocoa Price Boom — What Happened?

Global cocoa prices rose dramatically between 2023 and 2024 due to a combination of climate shocks, crop disease, and declining harvests across West Africa, which produces more than 60% of the world’s cocoa supply.

Extreme weather, aging trees, and plant diseases reduced yields, pushing cocoa futures to record highs. At first glance, higher prices should have meant higher farmer incomes - but equality is never that easy.

1. Farmers Don’t Sell at Market Prices

Most cocoa farmers — particularly in Ghana and Côte d’Ivoire — do not sell cocoa at global market rates.

Instead, governments set a fixed “farmgate price” before the season begins. Cocoa is often sold forward through contracts months in advance, meaning farmers receive predetermined payments regardless of later price spikes.

Even when global prices surge, farmers’ earnings may remain unchanged until the next pricing cycle — if adjustments happen at all.

2. Only a Small Share of Chocolate Value Reaches Farmers

The chocolate value chain is heavily imbalanced. For every €1 spent on a chocolate bar, cocoa farmers typically receive around eight cents or less.

The majority of value is captured later in the supply chain by:

• Traders and exporters

• Processors and manufacturers

• Branding, marketing, and retail

This structural imbalance means rising retail prices rarely translate into proportional wage increases for producers.

3. Price Volatility Cancels Out Gains

Even when farmgate prices rise temporarily, volatility often erases benefits.

Farmers have faced delayed payments, unsold crops, and income gaps despite global price fluctuations. In some regions, thousands of farmers have waited months to be paid for harvested cocoa, leaving families unable to afford basic necessities. 

Commodity markets can swing rapidly — cocoa prices fell sharply after peaking, dropping roughly 40–45% during 2025. Farmers bear the risk, while downstream companies can hedge prices through financial markets.

4. Structural Costs Are Rising Faster Than Income

Cocoa farming is becoming more expensive and more physically demanding.
Farmers face:

• Climate-driven crop losses

• Disease outbreaks damaging trees

• Higher fertiliser and labour costs

• Aging plantations requiring reinvestment

Even during price booms, many farmers remain below a living income threshold because production costs rise alongside market prices.

The Human Cost Behind Chocolate

Despite producing one of the world’s most loved foods, the majority of cocoa farming households still live in poverty, as we've seen in our video installments on Instagram & TikTok . Some farmers are abandoning cocoa entirely because rising global prices have not translated into sustainable livelihoods & things can be excessively hard. 

What Could Help Farmers Benefit Fairly?

Industry experts and sustainability organisations highlight several solutions:

• Paying living-income premiums beyond market prices

• Transparent supply chains

• Long-term purchasing contracts

• Direct trade relationships

• Investment in farm productivity and climate resilience

Some initiatives have begun improving incomes, but progress remains uneven across the sector.

At Brodericks, where we buy our real, Belgian chocolate, there is a percentage of money sent to the plantation in question. With Puratos, we have been able to finance 50% of a  maternity ward in 2025 with the view to have it completely by the end of 2026.

Is it enough? Probably, not, no. But we'll continue to do so and hope that when others catch on to this, we can make a greater difference.