Chocolate Makers Face Stiff Competition from Rising Cocoa Costs

Kate Rumsey, owner of Rumsey’s Chocolaterie in Thame, Oxfordshire, shares her concerns about the uncertain future of her business. She admits that she hasn’t experienced times as challenging as they are right now.

Despite owning a beloved chocolatier shop on Thame’s High Street since 2007 and being surrounded by chocolate lovers who might believe otherwise, Rumsey faces significant difficulties due to soaring cocoa prices driven by climate change and crop diseases. She expresses disappointment that things have only worsened despite initial hopes of improvement after the COVID-19 pandemic.

The cocoa bean plantations in West Africa have been severely impacted by extreme weather conditions and underinvestment in farms, resulting in reduced yields. Last year brought severe droughts to the region, while intense rains hit it again in December 2023. These wet and humid conditions allowed a fungal infection called black pod disease to flourish, rotting cocoa beans on the trees.

Rumsey’s Chocolaterie is now paying about three times as much for wholesale cocoa compared to two years ago. This significant increase has forced her business into a tough position where she must decide how to move forward without compromising quality or profitability. Sia Kambou of The Ivory Coast, another major source of cocoa beans affected by similar issues, supports Rumsey’s concerns about the future.

Johnny Baxter from Dorset Chocolate near Sturminster Newton echoes these worries and explains that he too is adapting by creating new recipes with more fruit inside chocolate. He believes in innovation but also anticipates that prices are unlikely to drop soon, potentially making chocolate a premium product reminiscent of its 200-year-old status as an exclusive taste.

Rumsey provides specific examples of the price increase for her business: one chocolate variety cost 4,500 per tonne a few years ago but now costs over 13,000 per tonne. Market activity is also driving up prices, and Rumsey acknowledges that she might have to pass some of these increases onto customers.

As an independent business owner who has been in the industry for 29 years since its inception by her father-in-law Nigel Rumsey in 1991, Kate Rumsey expresses uncertainty about what Thame High Street will look like in a year’s time. She hopes to remain in operation but acknowledges that it is indeed a tricky and challenging period.