In recent times, cocoa prices have soared to unprecedented heights, with today's global rate hitting an astounding USD $11,300 per metric ton. This surge is largely due to a significant supply shortage, particularly from Africa, which is responsible for more than 50% of the world's cocoa production. Cameroon, ranking as the fourth-largest cocoa producer, has been notably impacted.
EMKAO Foods, a prominent importer, manufacturer, and supplier of cocoa beans, sources its cocoa from Kotou Farm, a family-owned establishment in the Central Region of Mefou-Afamba, Cameroon. This year, like many others, we have faced a dramatic reduction in harvest volumes. The main culprits? High temperatures and prolonged droughts, which have severely hampered the ability of farmers to produce cocoa at levels seen in previous years.
Environmental Impact and the Cocoa Industry
The repercussions of environmental degradation, including deforestation in cocoa farming communities, are glaring and largely attributed to climate change. During the twice-yearly harvest seasons in Cameroon, Kotou Farm—where EMKAO Foods obtains its cocoa—reported a yield decrease to 25%, with income falling by 60%. Despite increasing the price of our beans by 58% at the farm gate, the farm's financial losses have been considerable, and not all clients will be adequately supplied due to this shortage.
As a company dedicated to social impact, EMKAO Foods not only pays premium prices to farmers but also actively contributes to environmental sustainability. Last year alone, we planted 1,000 trees, recognizing the critical role of reforestation in mitigating carbon emissions and combating the ongoing cycle of climate change.
The Path Forward
The current inflation in cocoa prices necessitates an increase in our product prices—a decision made out of necessity rather than choice. The uncertainty surrounding these price increases and their duration compels us to prepare for various outcomes. However, at EMKAO Foods, we remain hopeful for a turnaround and are more committed than ever to supporting our farming communities and enhancing our impact.
The challenges we face are not just about adjusting to price fluctuations; they are about ensuring the sustainability of the cocoa industry and the livelihoods of the farmers who depend on it. By supporting initiatives that promote environmental health and fair farmer compensation, we can help create a more resilient and equitable cocoa market.
At EMKAO Foods, we believe in the power of community and environmental stewardship to overcome the challenges ahead. We continue to stand with our farmers and consumers, striving to deliver not just quality products but also a vision of a better future for all involved in the journey from bean to bar.