If you've noticed the price of Cacao creeping up recently, you're not alone. Cacao has been facing a tough time due to extreme weather conditions and supply chain challenges. Let's dive into why cacao prices are on the rise and how we're dealing with it.
Climate Woes: El Niño, La Niña, and Record Heat
In 2023, the world experienced its hottest year on record, largely due to the climate phenomena of El Niño and La Niña. These weather patterns wreaked havoc on cacao crops, particularly in the Southern Hemisphere where much of the world's cacao is grown. The erratic conditions, characterized by heavy rains followed by droughts, weakened cacao trees, affecting their yield and quality. Moreover, the same adverse weather hampered transportation, making it challenging to get cacao beans to ports for export.
Ole Hansen, head of commodity strategy at Saxo Bank, highlighted the impact, noting, "Adverse weather conditions, mostly in the Southern Hemisphere, have played an important role in sending several food commodities sharply higher."
Retailer Responses: Coping with Cost Increases
In response to the rising costs of cacao, retailers have adopted varying strategies. Some have refrained from increasing prices immediately, leveraging existing stockpiles. Others have chosen to maintain prices by reducing product sizes while keeping the cost constant. Additionally, certain retailers are opting to blend cacao with fillers or bulking agents to stretch their supply without compromising on price.
Indigo's Commitment to Quality Amidst Rising Prices
At Indigo, we're committed to maintaining our standards of quality, even in the face of rising cacao prices. We refuse to compromise on the integrity of our products by bulking them out with fillers or reducing pack sizes. This dedication to excellence means that our prices may reflect the true cost of premium cacao, ensuring that you receive the best product possible.
Exploring Alternatives: Carob and Cacao Blends
If you're looking for alternatives to traditional cacao products, consider exploring carob. This sweet superfood provides a similar taste profile to cacao and can be a delicious substitute. Another innovative approach is blending cacao powder with other beneficial powders like mushrooms or additional carob. These blends not only offer unique flavour combinations but also provide added health benefits while making your cacao supply last longer.
Discover our range of Cacao products HERE.