Jacques talks deficit and rising costs of chocolate with CNBC’s Katie Kramer on Sunday, Dec. 13th’s episode of Money Talk.
Jacques states, “We are producing today 3.5 million tons of cocoa around the world” each year. We need about 4.5 (million tons annually) in about six years, by 2020.”
Increased consumer demand is squeezing global cocoa production. The price of cocoa futures sits about 25 percent higher than a year ago. Predictions from experts say that the higher cost of ingredients will be passed on to chocolate lovers.
Approximately 80 to 90 percent of cocoa bean farming is done by small, family run operations, according the World Cocoa Foundation. That has made ratcheting up production an increasingly difficult conundrum. Jacques believes he has the solution, “Maybe the solution will be fair trade, because the farmers are not paid enough, and a lot of farmers are actually abandoning cocoa for more cash-effective crops.”
Luckily, for all his fans, Jacques’ prices wont be effected as drastically as other cocoa makers. He explain’s,”We already pay a premium for the chocolate—we pay a premium for the beans, so our price doesn’t go as high as fast as African chocolate when there is a rise in commodity prices.”