Chocolatiers Face Challenges with Skyrocketing Cocoa Prices

Maninder Kahrod, the owner of The Chocolate Quarter in Birmingham, has been running his business for nine years. He expressed growing concern about the economic pressures facing chocolatiers due to soaring cocoa prices, which have more than doubled over the past year. According to Ms Kahrod, this increase is largely attributed to climate change and a fungal infection that has led to decreased crop yields.

In contrast to previous periods when cocoa price increases were minor and occasional, the current situation presents a significant worry for Ms Kahrod. She highlighted that many chocolatiers have had to close their doors due to these escalating costs, and she herself has observed a decline in sales because of the ongoing cost-of-living crisis.

She noted that customers desire more but are now spending less. For instance, during holidays like Valentine’s Day or Christmas, people who used to buy three Easter eggs are now purchasing just one and sharing it instead. Ms Kahrod emphasized her reluctance to increase prices further because chocolate is already considered a luxury item by many consumers.

“There is a limit as to how much you can raise your prices,” she explained. “As soon as they go up too high, customers start looking elsewhere.” This has forced the business to operate on smaller profit margins in order to stay operational. Ms Kahrod highlighted that making even more chocolates becomes necessary because her kitchen space is limited and all products must be fresh.

Ms Kahrod also pointed out that climate change issues have impacted cocoa supplies, noting how they once sourced a special chocolate from Ecuador with unique flavors but could no longer obtain it. Similarly, single-origin chocolates are increasingly difficult to acquire.

Acknowledging the broader impact on all parties involved in the supply chain, Ms Kahrod expressed sympathy for cocoa farmers who face severe challenges earning a living amidst these changes. Despite these obstacles, she remains committed to maintaining her business and offering fresh, high-quality chocolate products in Birmingham.