Rachael Rowe spoke to two of Dorset’s artisan chocolatiers who are facing tough choices – but refusing to compromise their product
Chocoholics will no doubt be concerned at the recent news there’s a global shortage of cocoa. What will happen to Easter eggs, gift boxes of pralines and that bar that we all love to sneak into our shopping basket? Dorset has several artisan chocolatiers, and we asked two of them how they are affected by the cocoa shortage.
Why is there a shortage?
Cacao trees (Theobroma cacao) grow in a narrow tropical belt around the equator, approximately 20 degrees north and south of the (imaginary) line. Cocoa is only harvested once a year, and unlike familiar annual fruit crops such as olives, the trees don’t grow in intensely farmed groves – instead they are interspersed in the shade of larger trees.
West Africa accounts for 70 per cent of the world’s cocoa supply, and it suffered with poor harvests in 2024. Farms are being hit by the harshest Harmattan season in six years and extreme drought has led to failed and diseased crops and a short supply. At the same time, demand is rising: countries without a strong chocolate market, like China, are developing a taste for it.
John Baxter from Dorset Chocolate, based in Bagber, has worked in the food industry for a long time: ‘I was lucky enough to work with Michelin-starred pastry and dessert chefs. Then I moved to the Cognac region in France. Few places offer full apprenticeships in confectionery now – if you go to some of the larger companies, you are likely to end up in sales. But I made a lot of connections in the industry and that helps.
‘We source our cocoa from farms in South America and we have a long-standing relationship with them. However, it’s all getting very secretive. The big boys in the industry are buying up entire farms! The price of cocoa has been too low for a long time, and it hasn’t moved for a while. In West Africa, cocoa blight has been known about for some time, it’s currently being researched by the University of the West of England. When demand soared, city traders and futures markets began speculating on the price of cocoa and that drove up pricing further, causing more instability.’
Image © The Little House
The price of chocolate
Anna Racaza, from The Little House near Wimborne, started her business in lockdown in Cambridge, after working in patisserie in London for a decade. She and her partner Dan Crossman moved to Dorset and set up the now thriving business together. Anna sources her chocolate from a British ethical supplier. ‘To give you an idea of the rising cost of chocolate, a 10kg bag of 55% dark chocolate was £59 in October 2023. In January this year that same bag cost £111.
‘And of course, cream, butter and packaging have all increased too. There is very little margin for profit in the food industry, and we cater for a very narrow market as well.
‘We make our luxury chocolates by hand, and a box of 12 cost £17.50 three years ago. Today we have to sell it for £24.’
John Baxter sees a wider issue: ‘Bakeries are also struggling with higher energy and staffing costs. I think we will see lots more shops dependent on sugar and flour shut by May. Even the candle making companies are struggling, because they use cocoa butter. In supermarkets you are going to see compound cocoa products to reduce costs.’
Image © The Little House
Business innovation
With higher cocoa costs, businesses must innovate and diversify to survive. Dan Crossman outlined the plans at The Little House: ‘We will not compromise on quality, so we have looked at other ways of working. Luckily, we have very loyal customers who support us – they have been very understanding of the price increases.
‘However, we are increasing our business-to-business work, where we can create bespoke products with branding and colours: businesses often have budgets to pay for this service.’
John has also had to look at how to cut back – and is similarly uncompromising on quality:
‘We’ve just moved into a lovely new factory, so it’s exciting times for us. We will never compromise on quality. It’s the cornerstone of our business. We also use local produce, so I always know where my butter and cream comes from. We might look at adding a little more local honey or honeycomb into a solid bar and using a bit less chocolate. We are looking at reducing our margins, and we are looking at trying a few different products.’
Image: Folde Dorset foldedorset.com
Maintaining quality is one issue, but sustainability is not as simply tackled, John says. ‘Fair Trade is not everything. For example, the Ethiopian coffee producers didn’t want to join Fair Trade because they have quality coffee beans and knew they would have to give away seven per cent of their profit margins. Fair Trade is for bigger producers.
‘And is it fair that charity shops, which pay little or no business tax, can sell these products, when small businesses are taxed at a higher rate? I don’t think Fair Trade is fit for purpose for small businesses. What is needed is a fair trade concept for small producers.
‘Keeping our craft alive is the core of the business.’
When you are shopping for your Easter chocolate fix (or any chocolate shopping, for that matter), don’t forget to support Dorset’s local chocolatiers – your taste buds will thank you.
