International Cocoa Organisation reports downturn in global production volumes
Cocoa farming in Ghana. Pic: Shutterstock
The International Cocoa Organisation has released its latest revised estimates for the last two years of world production, grindings, and stocks of cocoa beans, revealing that volume supply has dropped 13% to 4.38 million tonnes globally in the past twelve months, reports Neill Barston.
As Confectionery Production has previously reported, the sector has remained under significant pressure from a combination of factors, including crop yields being negatively affected by adverse weather in Ivory Coast and Ghana, as well as the impact of diseases including swollen shoot virus that has further diminished available stocks considerably, along with farmers being unable to afford sufficient agricultural inputs such as vital fertilisers.
In its latest bulletin, the ICCO points out that both the 2022/23 and 2023/24 seasons were affected by supply challenges and ended with a supply deficit. World production of cocoa beans for the 2023/24 season ended with a significant reduction as unconducive weather conditions, diseases and pests took a toll on the major producing countries in West Africa.
The organisation’s global figure of 4.382 million tonnes, global production of cocoa beans is now estimated to be 50,400 tonnes higher than the Secretariat’s earlier projection in the previous Bulletin. Cocoa grindings were also down 4.8% for this year, standing at 4.8 million tonnes, despite consumer demand for premium chocolate in particular, remaining especially buoyant.
Global grindings fared better than estimated in the previous Bulletin by 65,000 tonnes from 4.751 million tonnes to 4.816 million tonnes. Though, for the 2023/24 season, cocoa bean shortage and high cocoa prices slowed down processing activities, cocoa demand still outstripped supply.
As we reported this week from the Choco Tec event, Euromonitor offered a presentation on major market trends which projected that cocoa prices for the next year at least were anticipated to remain high int he wake of the major rises witnessed earlier this year. This was supported by a subsequent appearance from the Barry Callebaut group at the event, which similarly warned that prices were likely to remain challenged as the available supply remains tight.
