The price hike is attributed to a significant supply shortfall in West Africa and South America in 2024, largely due to climate change. Meanwhile, global demand for cocoa-based products continues to grow.
Farmers have benefited significantly from these market changes.
Chu Van Coon, a farmer with 1.6 hectares of cocoa in Phu Hoa commune, Dinh Quan district, the southern province of Dong Nai, said: "We are very excited that cocoa prices have multiplied. Income from cocoa is now far higher than many fruit crops that once topped the profitability charts."
However, it poses challenges for cocoa processing businesses. Dang Tuong Khanh, General Director of Trong Duc Cocoa Company, said that the rapid rise in raw material costs creates more difficulties than advantages for processors.
Although input prices have spiked, selling prices cannot rise as dramatically or quickly. Additionally, the market is experiencing unfair competition in cocoa procurement due to the raw material shortage.
"This price increase has been a boon for farmers, but processors and consumers are facing difficulties. We're striving to balance costs to offer the best prices to consumers," Khanh said.
Amid a global raw material shortage for chocolate production, many manufacturers in the world are seeking to source cocoa from Vietnam. Several large chocolate brands have set up factories in the country, prioritising local cocoa processing for export.
Director General of the Malaysian Cocoa Board, Datuk Dr. Ramle Kasin, praised Vietnam's cocoa for its rich, authentic flavour, which is free from the hybrid characteristics found in some other countries' products.
With global demand for cocoa-based products, particularly chocolate, steadily increasing, the market potential for cocoa remains vast. Vietnam has the potential to become a major player in meeting market demands. However, to fully capitalise on this opportunity, the country needs to increase its cocoa production.
The ASEAN Cocoa Club, which includes leading industry experts, researchers and cocoa businesses from ASEAN nations, selected Vietnam to host its 24th conference. The goal is to connect global producers and traders with Vietnam’s businesses, fostering cooperation and expanding the reach of Vietnamese cocoa products, especially to high-demand markets.
