Why Is High Quality Cacao So Expensive?

This is a question we are frequently asked. Our friends at Seleno Health have written a great blog on this topic, and we're excited to share it with you.

Why Has The Price of high-quality cacao gone up so much?

Seleno Health is 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 fifty years, and highlight why choosing quality, safety-tested, ethically sourced, and sustainable cacao is more critical than ever.

The Perfect Storm: Why Cacao Prices Are Skyrocketing

Cacao prices have surged dramatically, reaching record highs per ton in 2024, nearly triple the price from the previous year. 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.

The key causes of Cacao price increases

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.

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.

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.

  
  

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 significant 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.

In the US, tariffs have added another layer of cost increases. Despite what a certain someone claims, the importer of the product pays the tariff, not the country or company sending it to the US. Ultimately, the US consumer bears the burden of these tariffs because businesses must raise prices to offset the tariff 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.

Tariffs and cacao prices

In the US, tariffs have added another layer of cost increases. Despite what a certain someone claims, the importer of the product pays the tariff, not the country or company sending it to the US. Ultimately, the US consumer bears the burden of these tariffs because businesses must raise prices to offset the tariff costs.

Global Cacao Price Trends: A 50-Year Perspective

To understand the current price surge, let’s examine cacao’s price history over the past fifty 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:

• 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.

• 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.

• 2010

  • Prices hovered around $2,000–$3,000 per ton, with occasional spikes due to weather events or political instability in producing regions.

• 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 aforementioned factors. 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, they believe this is a critical time to double down on choosing cacao that is safe, high-quality, ethically sourced, and sustainable. Here’s why:

• Quality and Flavor

  • High-quality cacao, like their ceremonial-grade beans, offers unparalleled flavor and benefits, rich in antioxidants, magnesium, and flavonoids. The Cocoa of Excellence Program 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.

• Safety (Cadmium Testing)

  • Cadmium contamination, particularly in Latin American cacao due to volcanic soils, poses health risks, especially to the kidneys. The EU’s 2023 regulation sets strict cadmium limits (0.6 mg/kg for cocoa powder), making testing essential. At Seleno Health, they rigorously test their 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, which puts your health at risk.

The maximum permitted levels of cadmium in cacao-based products as specified by the EU.

Specific cocoa and chocolate products	Maximum permitted cadmium levels
Milk chocolate with ≤30% total dry cocoa solids	0.10 mg/kg
Chocolate with ≥30 to <50% total dry cocoa solids	0.30 mg/kg
Chocolate with ≥50% total dry cocoa solids	0.80 mg/kg
Cacao powder (as an ingredient in sweetened cocoa powder) sold to the final consumer	0.60 mg/kg

• 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, Seleno Health ensures farmers receive a living wage, supporting their livelihoods and communities. Their cacao is sourced from farm to table, eliminating the middlemen and ensuring that the farmers benefit from the profits, not the corporate middlemen.

• Sustainability:

  • With deforestation linked to 94% and 80% forest loss in Côte d’Ivoire and Ghana, respectively, sustainable practices are critical. Their cacao is grown in rich agroforestry that supports the flora and fauna of the Amazon rainforest. Their commitment to sustainability ensures your cacao supports the planet, not harms it.

• Slave labor

  • Slave labor (and child labor) is used extensively throughout cacao-growing regions, especially in Africa. One of the main reasons that slave and child labor is used is that companies refuse to pay a sustainable price for their cacao. It's essential to know precisely where your cacao comes from in order to avoid purchasing cacao that is produced using slave labor. Cacao purchased through a middleman is most likely to be produced using slave labor.

A Call to Conscious Cacao 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. Seleno Health and Rooted Nutrition are committed to transparency, from 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 the full range of ceremonial cacao and join us in celebrating cacao that’s good for you, the farmers, and the planet.

Working to Keep Costs Down

Seleno Health and we here at Rooted Nutrition have been working hard to contain cacao prices as much as possible, without cutting corners or requiring sacrifices from the farmers. We have both absorbed significant price increases and tariff costs. We will continue to do our best to avoid large price increases while still providing you with the most amazing ceremonial cacao!

Questions about cacao

If you have questions about our cacao products, please email us at info@rooted-nutrition.com, and we will be happy to answer them!