ICCO forecasted dip in global cocoa supplies poses confectionery sector tests

Among the many highly unwelcome global news developments of the past week has been the International Cocoa Organisation’s latest forecast for latest crop figures anticipating supplies dropping globally by a total of 5%.

The news will be notably concerning to major confectionery brands around the world, which have largely benefitted from the pandemic of the past two years with an increase in chocolate and snacks sales bolstered by consumers seeking a greater level of personal treats in challenging times.

As we reported, the ICCO’s latest data has shown that 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, there have been a number of other troubling developments faced by cocoa producers, not least of which the ongoing Covid-19 crisis, which despite now entering a less prominent phase in many nations, is still a key consideration. The instability that this one issue alone has created has impacted on core supplier communities in Ghana and Ivory Coast, with ‘farm gate’ prices being affected by turbulent conditions.

Furthermore, the ICCO also noted that the industry had been affected by supply chain bottlenecks, inflationary pressures, and added freight charges that it believed also threaten the hoped-for rebound of commodities including cocoa.

This complex and troubling set of circumstances is certainly bad news for the chocolate sector, which is reliant on a stable supply of cocoa from core West African markets in Ghana and Ivory Coast, which are now under renewed pressure with crop forecasts painting a picture of challenging times ahead in 2022. Despite the best efforts of industry, core issues of child labour and environmental concerns surrounding deforestation and wider sustainability remain ever-present at the forefront of the sector.

Neill Barston, Confectionery Production editor.

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