Chocolate companies outside the top six need to up their games on sustainable cocoa to help bring millions of cocoa farmers in West Africa out of poverty and secure the crop’s future, says Cadbury’s former head of cocoa sourcing.
A lower combined cocoa ratio has caused a decline in cocoa processing in Europe and Asia in Q3, but North America has bucked the trend and could mean consumers in the region have accepted chocolate price hikes.
Manufacturers can increase the price of chocolate without fear of putting off consumers thus ensuring cocoa farmers are fairly paid, according to executive director of the International Cocoa Organization (ICCO).
Dispatches from State of the Industry Conference in Miami
Chocolate makers are well prepared for current cocoa deficit forecasts and will only be forced to raise prices if other inputs such transportation become costlier along with cocoa, according to the National Confectioners Association (NCA).
Spanish chocolate and cocoa processor Natra has more than doubled its operating profit in its ninth-month results helped by relaxing cocoa prices, North American expansion and a shift to value added products.
As demand continues to outstrip supply, the world price of cocoa was more than 12 per cent higher at the end of last week compared with a year ago, according to the International Cocoa Organization (ICCO).
North American cocoa bean grindings revealed a double-digit growth in the first quarter of 2010, the first gain since 2008, according to the latest statistics released from the National Confectioners Association (NCA).