The recession is still taking its toll on chocolate consumption. Second quarter reports from around the world indicate that cocoa grindings, a key indicator of chocolate production, continue to decline.
Chocolate Apparently Not Recession-Proof After All
Quite a few reports recently claimed that chocolate is recession-proof. It made sense, sort of. When everything else is going down the tube, there’s always chocolate–a little treat in hard times and not too expensive. But it it turned out to be just hearsay.
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Established Cocoa Markets also Fall
I mentioned earlier that the emerging chocolate markets didn’t quite live up to their predicted potential. But the traditioal markets aren’t doing so well either. The German Candy Manufacturers Association (Bundesverband der Deutschen Süßwarenindustrie) released first quarter grindings numbers that showed a 17.2 percent decline to 87,576 tons compared to the first quarter of the previous year.
Cocoa Processing Accelerates in Ghana
The Cocoa Processing Company (CPC) of Ghana posted a large increase in revenue. According to an article in the UK’s Guardian, the CPC will increase its revenue fivefold from $42.5 million to $208 million. CPC’s director Richard Amarh Tetteh indicated that total tonnage processed will amount to 64,500 tons for the current cocoa year.
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ICCO Predicts Cocoa Shortfall
The executive director of the International Cocoa Organization (ICCO) indicated on Monday that the 2008/09 cocoa season will yield less cocoa than previously thought. Despite a predicted decline in demand as a result of the global economic crisis, Jan Vingerhoets told Reuters that he expects a shortfall of about 45,000 tonnes.
It seems that the economic mess has not yet halted demand for chocolate. Fourth quarter grindings in Europe and the U.S. were up compared to last year albeit by small amounts, 0.1 percent and 1.85 percent respectively.
