Climate Change and Cacao Plant Crisis: Why Chocolate Prices Are Rising

Cacao bean growers have been forced to adapt to a changing climate to keep prices in check. Yet, despite the efforts to avoid passing the increase onto consumers, many Easter shoppers were met with noticeably higher prices on chocolate this year. Here is a look at how climate change is contributing to the crisis facing cacao bean growers.

Climate Change Puts Cacao Crops in Danger

The impacts of climate change continue to threaten the production of cacao. This threat is the greatest in West Africa, a corner of the globe that generates approximately 70% of the world's cacao supply. Regularly changing rainfall patterns and rising temperatures have been impacting cacao crops in recent years. Not only is global warming impacting both the quality and quantity of cacao beans, but it is also sending prices of chocolate soaring.

According to the United Nations Conference on Trade and Development (UNCTAD) commodities price monitoring service, cocoa prices increased 136% between July 2022 and February 2024. These prices peaked in late 2024 before beginning to come down again. While the prices have since stabilized, the impacts of climate change continue to make the cost of chocolate a volatile index.

An analysis by researchers at the nonprofit Climate Central group detailed how climate change is sending the mercury above the optimal range for the growth of cultivation of cacao trees in West Africa. The scientists involved in the study noted that this is the first analysis that specifically tried to put a precise number on how much humans and the effects of climate change are driving cacao production in this region.

Countries in West Africa have historically led the way in cacao production. The region generated about 3.48 million metric tons of cacao beans during the 2022 - 2023 season. This production is important to the world's chocolate industry, as well as a vital part of the economy in this part of Africa.

For example, the cacao industry in Ghana employs roughly 3.2 million farmers and workers. For context, this is over 10% of the nation's total population. Climate change is now threatening the livelihoods of these cacao farmers.

Cacao trees thrive in areas located within 10 degrees north and south of the equator. This part of the planet is where the climate has historically provided the most ideal conditions for these crops to take root and thrive.