ICCO cocoa figures reveal global supplies expected to drop 5% this year
Cocoa farming in West Africa (pic Ben Rotthoff/Koa)
The International Cocoa Organisation (ICCO) has unveiled its latest forecast for the 2021/22 global crop production year, which has revealed that bean supplies are expected to drop 5% to 4.955 million tonnes, reports Neill Barston.
Its latest data is published as part of its quarterly bulletin, and comes as global market segment demand is in fact projected to increase by 3% over the next year, amid high growth in confectionery product ranges including premium chocolate ranges.
However, the cocoa sector has faced continued notable pressures from the ongoing global pandemic, which has created price instability for key producing regions, impacting on core supplier communities in Ghana and Ivory Coast, with ‘farm gate’ prices being affected by turbulent conditions. The ICCO explained, the industry had been affected by supply chain bottlenecks, inflationary pressures, and added freight charges that threaten the hoped-for rebound of commodities including cocoa.
As recently reported by Confectionery Production, beyond conditions relating to coronavirus, Ghana and Ivory Coast have also been significantly hit in environmental terms, with a recent study from non-profit organisation Mighty Earth revealing that since 2019, sizeable amounts of forest equivalent to the size of a city such as Madrid, Seoul or Chicago are being lost due to cocoa farming, as well as illegal mining activity.
According to the ICCO, which represents over 50 nations’ cocoa sectors, noted, the current season witnessed a slow start and despite the mild Harmattan, severe dryness is being experienced in major producing countries within West Africa.
Furthermore, it added that while it is anticipated that the weather will turn around for the better to support the mid-crop, global production for the season under review will still be lower compared to the historic level recorded for the preceding crop year.
Global cocoa demand is projected to increase and register a jump of almost 3% from 4.959 million tonnes during 2020/21 to 5.086 million tonnes for the season under review.
The ICCO explained that owing to progress in vaccinations, economies have opened, which has in turn boosted demand for most commodities including cocoa, but it believed long-term uncertainties were still a factor. It noted COVID-19 remains a concern as for the past years, outbreaks of the virus variants led to restrictions on people’s movements and consequently demand.