Challenging growing conditions in West Africa have caused the price of cocoa to skyrocket over 200% from last year, leaving Kiwi chocolate makers bracing for impact as Easter continues.
Barron Hasselhoffs’ in Wellington uses fine cacao in its chocolate, giving their products an improved flavour.
Chief chocolate disciple Clayton McErlane said they source cacao from the Solomon Islands, Papua New Guinea and Vanuatu.
But the cost of beans has risen 200% from last year.
"At the beginning of the year it was about $4 a kilo, now its heading up to $9 which is pretty unprecedented," he said.
"We’ve talked to a few people who are really looped into the whole system, and people are pretty stunned by what has happened."
Around 60% of the world’s cacao is sourced from West African countries such as the Ivory Coast and Ghana.
Rabobank analyst Pia Piggott said those countries are seeing several challenges.
"Adverse weather conditions, ageing trees, and disease in crops are limiting supply."
Dusty seasonal winds from the Sahara were severe in recent months, blocking out the sunlight needed for bean pods to grow.
Months of rain are being blamed for black pod disease, a fungal infection that thrives in cooler, wet and cloudy weather, and causes pods to rot and harden.
The new deforestation regulations from the European Union are also expected to further increase the cost of cacao when it comes into effect.
It's designed to ensure that imported commodities such as cacao do not contribute to the destruction of forests.
SHARE ME