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Can COVID-19 Melt the Craft Chocolate Industry?
1Department of Global Agricultural Sciences, Graduate School of Agricultural and Life Sciences, The University of Tokyo, 1-1-1, Yayoi, Bunkyo Ward, Tokyo, 113-8657 Japan.
Abstract:
The craft chocolate and specialty cacao industry has been driving the global chocolate industry towards more sustainable farming and ethical and transparent sourcing practices by prioritizing farmer welfare, environmental resource conservation, and consumer education. However, the craft chocolate and specialty cacao industries are also uniquely vulnerable to the immediate and long term impacts of the COVID-19 pandemic, and many cacao producers are expected to be disproportionately affected. Craft chocolate businesses have been especially hard hit by losses in revenue and specialty cacao producers are facing unique challenges compared to their industrial counterparts. Factors that influence the future of these businesses include: labor intensity, regional politics, risk tolerance, and accessibility. Immediate impacts include loss of revenue and access to markets, which are directly influenced by travel restrictions, access to petrol, global trade networks, and operational limitations. Long term impacts include changes in business strategies, including the use of e-commerce, elevating consumer education to sustain sales and providing access to transparent pricing. The global crisis reveals that there is an ethical imperative to provide investments in the specialty cacao and craft chocolate industry to deliver farmer relief, improve access to technology for business needs, and support farmer empowerment in negotiations to mitigate risks.
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