PureCacaoDream is a transparent cacao provider that supports native Indigenous people, their traditions, and their land. However, many factors compromise our mission and this article will help you to understand our challenges.
As you all know, climate change is impacting our world drastically.
Unfortunately, the reality of cocoa isn’t an exemption.
Before 2022 prices were flat while, since then, there has been an increase of around 220%.
We already have seen an increase in price in the last year and, this price increase will continue for the rest of 2025. In 2023, the cost of cocoa rose by 25% and, this year prices will go up due to supply shortage, underinvestment, and investor speculation.
These are the main reasons for the price increase:
Supply shortage - Climate change
El Niño is a climate phenomenon characterized by the abnormal warming of surface ocean waters that has impacted West Africa. Ghana and Ivory Coast are the 2 biggest producers representing 80% of the cocoa output and, the disruption of the weather around the world has affected the cocoa industry dramatically. These facts influence Latin America, especially countries such as Mexico and the Dominican Republic, where production is compromised by the climate crisis and its financial costs. Typical effects of El Niño include:
• Shifted precipitation patterns such as drought conditions.
• Temperature anomalies leading to a warmer temperature.
• Extreme weather events such as heatwaves or hurricanes
Underinvestment in cocoa farms – Social Impact
Most cocoa farms are smallholder farmers who have difficulties making a decent income, so they don’t have the resources to reinvest money in their activities such as planting or planting materials and lack of infrastructure. In other words, they cannot replant and the cocoa trees they own are ageing. Thus, in the long run, they will have less cocoa to trade.
Today, unfortunately, these problems bring social and environmental concerns such as child labour or deforestation.
Younger Mexicans have been victims of this social impact as they lost interest in the cacao industry due to the scarcity of resources, especially the lack of money. Thus, this phenomenon influences the supply of cacao, and it will affect it even more in the future.
The cacao market in Mexico has decreased by 90% due to underproduction and deforestation. In addition, lands to grow cacao trees were abandoned as there was no money to sustain the cost.
Speculation
A new record in the New York market is influencing the cocoa price as non-commercial investors hold over 60% of cocoa futures and options. These speculators try capitalising on the price fluctuations caused by supply and demand dynamics, geopolitical events and weather conditions.
In Latin America, more than 70% are small businesses and the majority get less than 7% of the final product.
In other words, what is happening right now is that cocoa prices are increasing due to a supply shortage caused by the low monetary resources of farmholders.
As they do not have enough money, they cannot invest in new trees, planting materials or grow their land. On top of that, investors use their financial products to get profits and, due to this market movement, they influence the price of cocoa.
When people buy from big companies, they harm the cacao land, the Amazonian Forest and its communities.
PureCacaoDream has been created to sustain the cacao farmers and their land! Moreover, PureCacaoDream directly imports cacao from Mexico and Guatemala by providing:
- Direct Trading
- Ancient Variety of Beans - NO GMO
- No use of chemicals or pesticides
- Wild-harvested
You might wonder… what does it mean?
It means that when you use PureCacaoDream products you get:
Ancient varieties aren’t being modified to produce higher yields.
Directly supporting Indigenous farmers by guaranteeing their own compensation price.
Helping indigenous communities to continue their traditional farming practices sustainably.
Cacao is an ancestral Amazonian plant and a deep part of the tradition of Central and South America. Our mission is to keep it real and pure for us and future generations!
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