What's Happening with Cocoa
As we enter 2025, we wish you health, happiness, and prosperity. This year brings exciting developments for VAICACAO, and we're excited to share them with you!
We are introducing 🎉 NEW SIZES for our Ceremonial Cacao, launching new natural, nutritious and healthy products and updating our pricing to reflect the current realities of cocoa cultivation, the supply chain and our artisanal production.
We believe in transparency and want to share with you why this change is necessary and how it aligns with our mission of building a fair and sustainable cocoa ecosystem.
The Global Cocoa Crisis: Understanding the Context
We have entered the sixth consecutive year of global cocoa production deficit , with a direct impact on prices.
Due to this, the global cocoa market has undergone significant changes in recent years. Bulk cocoa prices have soared, reaching record levels of $12,646 per metric ton in December 2024 ( editor's note: prices for bulk cocoa were so low on the market that they were quite embarrassing ).
This increase is the result of years of underinvestment in sustainable cocoa cultivation in Côte d'Ivoire and Ghana —which together produce about 65% of global cocoa—compounded by the effects of climate change. Aging and unrenovated plantations, unpredictable weather conditions, persistently low prices, and intensive pesticide use, combined with monoculture practices and deforestation, have contributed to severe crop failures. Further complicating the situation is the devastating swollen shoot virus. It destroyed thousands of hectares of plantations in that region, leading to an unprecedented production deficit. The overall context is still very complex, and we don't want to oversimplify it. But it's important to understand the broad outlines.
Despite rising prices due to lower cocoa production, many farmers do not benefit directly, as much of the value is absorbed by intermediaries and logistics facilities.
(The chart below shows the price trend over the years of CC Coca -Cola Futures in USD.)
Our Commitment to Sustainability and Equity
In addition to this crisis, climate change is also having a strong impact in Central America , directly impacting our supply chain for VAICACAO.
2023 and 2024 were particularly difficult years for us in El Salvador too.
Since our inception in 2015, we have been committed to paying premium FARM-GATE prices, meaning the price paid directly to farmers on their farms, without intermediaries, guaranteeing them a fair income before additional costs such as transportation or export taxes. We apply this model with our colleagues in cocoa cultivation in El Salvador, ensuring decent prices for their work by purchasing their crops.
Our approach has always been independent: we have never followed the global mass cocoa market , which has allowed us to support fellow farmers and our own family Finca with higher and more dignified price levels.
As a result, the recent increase in global market prices has not affected us as drastically as it has other companies that have historically underpaid their suppliers.
We don't claim to have the magic formula for making cocoa farming sustainable .
Many variables, such as low production yields, continue to create uncertainty for us as well.
Even when farmers receive excellent prices, they often struggle to cover their annual fixed costs due to low cocoa availability resulting from under-performing crops.
Our supplier network in Central America (which includes El Salvador, Guatemala, Honduras, and Costa Rica), but also Mexico, has faced a slow production cycle due to the effects of climate change. Intense heat , aggravated by a prolonged El Niñ weather pattern or dry season, dehydrated the flower cushions of cocoa trees, causing the flowers to wither . Subsequently, strong tropical storms swept away the surviving flowers and pods, causing severe damage due to flooding, strong winds, and excessive water accumulation, resulting in reduced plant productivity.
Rainy and drought seasons are changing rapidly, becoming more extreme, and nature is struggling to adapt at the same speed.
Price Evolution: Transparency at a Glance
Here is how our purchase prices have evolved compared to global bulk cocoa prices and the reference price of self-named Fair-Trade certifications:
| Period | Farmgate price paid by Vaicacao (El Salvador) | Global Market Price (Bulk Cocoa) | Fair Trade Minimum Price |
|---|---|---|---|
| October 2020 | $6.23/kg | $2.76/kg | $2.40/kg |
| October 2021 | $6.23/kg | $2.81/kg | $2.40/kg |
| December 2022 | ↑ $7.50/kg | ↓ $2.60/kg | $2.40/kg |
| October 2023 | ↑ $8.00/kg | ↑ $4.46/kg | $2.40/kg |
| October 2024 | ↑ $12.00/kg | ↑ $7.72/kg | $2.40/kg |
This comparison highlights the difference in our approach: ensuring growers receive a transparent, sustainable, premium price for their hard work, without hidden costs and deductions that obscure their true earnings in conventional, high-volume business models.
Understanding Numbers: A Transparent Comparison
Looking at the data shown above, in 2020 the farmgate price of VAICACAO—the actual net income received by farmers from our Salvadoran company, including local taxes—was $ 6.23/kg . In contrast, the global cocoa market price was significantly lower, at $ 2.76/kg .
It's important to clarify that this figure refers to the commodity reference price for contracts involving multiple containers full of cocoa beans, delivered to the port of destination in the United States (Cocoa Futures CC). This reference price includes the cost of shipping and the margins for all intermediary structures, such as traders, freight forwarders, collection centers and post-harvest services, local transportation, and brokers, leaving an incredibly low price level for the farmer when the cocoa arrives at its final destination.
For clarity, let's reiterate what constitutes the price levels of commodities such as US/EU cocoa futures : these refer to the cost of dried and fermented cocoa beans loaded onto the ship and delivered to the port of destination. The price includes farmgate acquisition by a local transporter or broker, intermediary commissions, export costs, and cooperative management fees. Therefore, to determine how much farmers actually earn, all these costs must be deducted from the price level of $ 2.76/kg , making it difficult to understand farmers' true net income.
In 2020, the minimum price for Fair Trade certification was $ 2.40/kg delivered to the port. Since this does not reflect a farmgate value, it is unclear how much farmers were actually paid after all deductions. As you can see, this price is still very low compared to what we received by purchasing locally at the farmgate level. It is remarkable to note that Fair Trade price levels have remained lower than the global bulk cocoa market and have not changed for many years.
As we move into 2024, the numbers tell a remarkable story. When we closed our purchase in early October, we managed to achieve $12.00/kg farmgate , compared to $7.72/kg on the commodity market, passing a premium price directly to growers without intermediaries.
Please note that this farmgate price represents only the first element of our cost structure, to which additional operating expenses and taxes are added for any business established in El Salvador and Italy. These costs include significant logistics expenses, covering sea and land transportation to Olbia, as well as additional import costs with Italian customs duties, in addition to labor and product processing costs, along with unexpected expenses that a small family business faces.
Meanwhile, the global market price rose from $ 2.76/kg in 2020 to better levels, fluctuating at $7.72/kg in October 2024. Prices continued to rise, peaking at $12.65/kg in late December, for containerized contracts to port destinations in early 2025. These changes reflect a substantial increase. However, the so-called Fair Trade price has remained unchanged at $ 2.40/kg for many years, demonstrating a lack of adaptation to the real challenges and rising costs faced by growers.
This comparison clearly highlights the difference in our approach: ensuring growers receive a premium, transparent, and sustainable price for their hard work, without the hidden costs and deductions that obscure their true earnings in conventional, high-volume trading models.
Below is a comparison of our cocoa prices at Vaicacao, with commodity cocoa and fair-trade prices:
Why Price Updates Are Necessary
Even with record cocoa prices, many farmers are still struggling to cover their annual operating costs due to low yields. You might think the price issue has been resolved, but that's not the case.
By updating our prices, we can continue to:
🌱 Support regenerative agricultural practices that nourish the earth and mitigate climate change
💰 Guarantee farmers a premium price above the market so they can continue to invest in their farms and in their training
🍫 Creating high-quality, traceable and ethical cocoa products, reflecting our artisanal style
🧘 Continue to invest in creating healthy and nourishing cocoa products for the mind, body, and soul.
Together towards the Future
One of the pillars of our family project has been to create accessible products to share with the world, without ever compromising quality or ethical and sustainable practices, bridging the gap between producers and consumers.
We are aware ə of the rising cost of living that affects our customers. For this reason, we always strive to offer competitive and accessible prices, so that everyone can afford to nourish their body and mind with the nutritional and therapeutic benefits of our functional products made from pure and authentic cocoa, each with its own unique story and essence.
We sincerely thank you for being part of our journey to rediscover cacao as a medicinal plant and an extraordinary food.
Here are the price updates that will come into effect from February 1, 2025 :
- VAICACAO functional artisanal chocolate 33g: €7.00
- VAICACAO Ceremonial Cocoa 180g: €16.00
- VAICACAO Ceremonial Cocoa 400g: €33.00
- VAICACAO nibs: €10.90
This update allows us to maintain our values while addressing the challenges of cocoa production.
Thank you for your support from the heart, really 💚 We are grateful ə for all the trust you place in us every day, and we hope it continues.
As we embark on this new chapter, we are more committed than ever to bringing you authentic, high-quality cocoa products that nourish your body and soul.
🫶🏻
Cocoa Hugs
Elisa & Juanra
Founder, VAICACAO
🌱🌍