You’ve probably noticed that egg and cocoa prices have experienced increases recently and have been wondering what is going on. The price increases for these key ingredients are due to supply chain issues. But what led to these supply chain issues? Let’s take a deeper dive into why egg and cocoa prices are soaring and what that means for bakers. We’ll also explore some cost-saving alternatives that can help mitigate the impact on your business.
What to Know About Rising Egg Prices
Egg prices have been rising significantly for the past few years. The primary driver of the spike in price is Avian Influenza, also known as Bird Flu. The outbreak is widespread, and according to the American Farm Bureau Federation, the virus has killed 108 million birds since January 2022, 75 million of which were egg-laying birds, which has impacted 8% of the nationwide supply.
What makes this even more complicated is that it takes approximately six months for new chicks to mature and start laying eggs. This means that even once the avian flu is under control, high egg prices are likely to persist for at least another half-year, creating long-term challenges for businesses that rely on eggs as a core ingredient.
What Can I Substitute for Eggs to Help Keep My Costs Down?
If you’re running a bakery, high egg prices can cut deeply into your margins. Thankfully, there are alternatives. At Valley, we offer egg substitutes designed specifically for the baking industry. These substitutes can replace up to 100% of eggs in bread recipes and a portion of eggs in cakes, muffins, and cookies. Not only do these substitutes help keep your recipes intact, but they also provide a way to save on costs during this period of high egg prices.
If you’re a current customer of Valley, we encourage you to reach out to your sales representative for more information. If you’re new to Valley and would like to explore egg substitute options, click here to learn more.
What to Know About Rising Cocoa Prices
In addition to the surge in egg prices, another key ingredient facing a steep price increase is cocoa. The price of cocoa has more than doubled since the beginning of 2024. The vast majority of the world’s cocoa supply comes out of West Africa which has been experiencing poor crop yields for three years in a row due to too much rain and root rot followed by a drought.
Ecuador also provides a significant portion of the world’s cocoa. Harvesting cocoa leads to deforestation and new trees have not been planted fast enough which has also had a direct impact on cocoa supply and led to a worldwide shortage.
It takes 5 years for a new cocoa tree to bear fruit so sadly this shortage that is leading to increased prices won’t end soon.
What Can I Substitute for Cocoa to Help Keep My Costs Down?
For those in the baking industry, particularly those who use cocoa for chocolate products, this rise in price can have a significant impact on production costs. However, like eggs, there are substitutes available that can help keep your costs in check. At Valley, we’ve partnered with our vendors to offer a cocoa powder substitute that allows you to use up to half the amount of cocoa powder you would normally use without compromising on flavor or quality.
Existing Valley customers can reach out to their sales reps for more information and even sample these cocoa substitutes. New customers interested in exploring cost-effective cocoa substitutes can click here to inquire and learn more about purchasing from Valley.
Takeaway
Supply chain issues that are largely out of anyone’s control are the main drivers of increased egg and cocoa prices and sadly there is no immediate end in sight. Fortunately, there are substitutes you can purchase directly from Valley that can help you keep your costs down without affecting taste.
Current customers and members should talk with their sales representative to learn more and for samples.
New to Valley? Click here to inquire about purchasing egg and cocoa substitutes that will help your business navigate these challenging times.
