The cocoa market predicts a supply deficit due to global uncertainty

Published 2023년 3월 18일

Tridge summary

The International Cocoa Organization (ICCO) forecasts a limited cocoa supply shortfall for the 2022-2023 season due to global uncertainties, as reported in their statistical bulletin. Despite an expected increase in world cocoa supply by 4% to 5,017 million tons, demand is predicted to decrease by less than 1% to 5,027 million tons, resulting in a deficit of approximately 10,000 tons. High operating costs and energy prices have slowed cocoa processing activities in major consumer regions. The average daily price in the European cocoa market increased by 9% in 2022, leading to higher production costs and impacting consumers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The increasing number of global uncertainties, including the macroeconomic outlook, the effect of climate change and diseases, will result in the limited cocoa supply shortfall for the 2022-2023 cocoa season, which began last October and ends next September. This is stated in the latest statistical bulletin published by the International Cocoa Organization (ICCO), which contains the first forecasts for the current campaign and abounds that in regards to demand, it is expected to be moderate. SUPPLY AND DEMAND FORECASTS Compared to the 2021-2022 campaign, the ICCO expects the world supply of cocoa to increase by 4% this year, to 5,017 million tons, while it expects demand to decrease by less than 1%, to 5,027 million tons. tons, generating a deficit of about 10,000 tons. In the world's largest producer of cocoa beans, Côte d'Ivoire, production has fallen by 0.5% since the start of the campaign, standing at 1.6 million tons in mid-February. However, as the main harvest is still ...

Source: PEefeagro