Cacao beans sourced from Venezuela to be used by Kommunarka and Spartak in candy-making endeavors
In the confectionery industry of Belarus, a shift is underway as producers seek new sources for cocoa beans in response to rising global prices. According to Oleg Zhidkov, the head of "Belgospichteprom", the Belarusian confectionery industry is heavily dependent on imports, and the current price situation has led them to explore alternatives, such as Venezuela.
Recent fluctuations in the global cocoa market have been marked by volatility. Cocoa prices plunged sharply due to increased production forecasts, particularly from Ghana, which projects an 8.3% increase in cocoa output for 2025/26. However, the International Cocoa Organization has forecasted a global surplus for 2024/25, reflecting market shifts and potential downward pressure on prices in the near term. Contrarily, there was a recent surge in prices due to short covering and global demand dynamics, indicating the market's reactivity to short-term factors.
Despite these fluctuations, there are no indications that the price of cocoa beans will decrease significantly due to lower expected harvest volumes compared to demand on the world market. This has led Belarusian confectionery factories to experiment with new sources, such as Venezuelan cocoa.
Venezuelan cocoa is a premium variety, known for its fine flavor profiles, but it may come at a higher cost. Using Venezuelan beans might increase input costs due to premium pricing and possibly lower volume availability compared to conventional sources like Côte d'Ivoire or Ghana. However, if Belarusian manufacturers successfully incorporate Venezuelan cocoa to produce specialty or premium chocolates, this could justify higher retail prices or target niche markets willing to pay for unique flavor profiles.
This week, "Kommunarka" and "Spartak" confectionery factories in Belarus will begin processing 100 tons of good quality cocoa beans each from Venezuela as trial batches. These factories have received these trial batches after Belarus started seeking new suppliers in Latin America due to the current price situation. According to "Belgospichteprom" forecasts, Venezuelan raw material could be 15-20% cheaper than that from African producers.
Enterprises in Belarus have been trying to manage the rising production costs by keeping the prices of their finished products steady. Oleg Zhidkov reported that the Belarusian confectionery industry is operating within an economy that allows them to contain the rapid increase in production costs. Despite hopes, the price of cocoa beans is not changing significantly in 2024 and 2025, according to Zhidkov. He also noted that the price of cocoa beans is primarily influenced by yield.
Cocoa beans are harvested twice a year, in May and October-November. The October-November yield can predict the price for the rest of the year and the beginning of 2026. Given this, the introduction of Venezuelan cocoa beans, which are likely costlier than bulk African beans, would tend to increase the cost of raw materials for Belarusian chocolate makers. Unless offset by efficiencies, other cost savings, or positioned as premium products, Belarusian chocolate prices are likely to rise or at least face upward pressure due to Venezuelan bean sourcing amid a complex global price environment.
In summary, the introduction of Venezuelan cocoa beans into Belarusian chocolate production is expected to lead to higher chocolate prices, reflecting the premium nature of the beans and ongoing volatility in global cocoa prices. The Belarusian confectionery industry is operating within an economy that allows them to adapt to new circumstances, but the rise in raw material costs could lead to an increase in the prices of finished products.
- Due to the current global cocoa price situation, Belarusian confectionery manufacturers are exploring alternative sources, such as Venezuela, for premium variety cocoa beans, which might come at a higher cost compared to conventional sources like Côte d'Ivoire or Ghana.
- In an attempt to manage rising production costs, enterprises in Belarus, including "Kommunarka" and "Spartak" confectionery factories, are experimenting with Venezuelan cocoa, but the likely costlier raw materials could lead to an increase in the prices of finished products, reflecting the ongoing volatility in the global cocoa market.
