Commodities
Uplift in Germany’s cocoa grindings – but rest of Europe struggles for beans
The 10 bean-based member companies in Germany that participate in the reporting process with their production facilities ground a total of 105,900.3 tonnes of cocoa in the first quarter of 2024. This represents an increase of 3.9% compared to the corresponding quarter of the previous year.
Still, the downward trend in grinding continues throughout Europe, with The European Cocoa Organisation (ECA) reporting for the first quarter of 2024 that 367,287 tones of raw cocoa were ground. This corresponds to a decrease of 2.2% compared to the same quarter of the previous year.
Concerns for Swiss and German chocolatiers
The German confectionery industry is the fourth largest sector of the German food industry, accounting for around 10% of sales. Still, severe weather, plant diseases, and poor farming conditions are concerns for German and Swiss companies.
Earlier this year, Bloomberg reported that German confectioner Hussel GmbH filed for bankruptcy again because of surging raw materials and labour costs. The Austrian maker of Mozartkugel sweets went broke in 2021 and was later acquired.
According to the Caobisco trade group, which represents more than 13,000 companies across the European Union and Switzerland, the chocolate, biscuit, and confectionery industry employed more than 250,000 people in 2020 and created about €14 billion ($15 billion) worth of exports.
Approximately 99% of Caobisco members are small—and medium-sized enterprises that lack the resources of larger suppliers and manufacturers to absorb the wild commodity price swings.
As ConfectioneryNews reported, Barry Callebaut, the world’s largest bulk chocolate supplier, is struggling with rising cocoa prices and supply issues.
“This cocoa price increase will further accelerate the concentration of the confectionery industry because not everyone will be able to pass on the price rise,” Hermann Bühlbecker, owner of Aachener Printen-und Schokoladenfabrik Henry Lambertz GmbH & Co. KG, told Bloomberg.
