London’s cocoa market blighted by ‘poisoned pill’

A cocoa shortage has caused a price divergence between the UK and US markets, with New York cocoa futures rising while London prices fell.

London’s stockpile includes older, lower-quality beans, particularly from Cameroon, which chocolate manufacturers avoid. The shortage is driving demand for high-grade cocoa, with US inventories at a 15-year low.

New EU deforestation rules for 2025 complicate matters, though older stocks are still tradeable. Chocolate companies may mix lower-quality beans or shrink products to cope with soaring raw material costs, impacting taste, especially in milk chocolate.