Global cocoa deficit of roughly 100,000 tonnes in 2012 could send prices higher in next six months, industry insider says; global cocoa demand could increase 2%-3% due to larger demand from emerging markets
March 15, 2012
– On March 15, Malaysian cocoa processor Guan Chong Berhad’s Managing Director Brandon Tay Hoe Lian said that a global cocoa deficit of roughly 100,000 tonnes in 2012 could lead to price increase during next six months, Market Watch reported the same day.
In February, the International Cocoa Organization predicted that the cocoa crop deficit for the year ending on Sept. 30 would be 71,000 tonnes.
Tay said that global demand for cocoa could potentially increase 2%-3%, primarily due to demand from emerging markets like Brazil, China, India and Indonesia. In the wake of a weakening economic outlook, cocoa demand in Europe and the U.S. is not expected to increase.
The Ivory Coast’s introduction of forward sales for cocoa beans from the 2012-2013 crop year could potentially limit gains in cocoa production, Tay added.
This year, Guan Chong is planning to boost its cocoa grindings 20% to roughly 150,000 tonnes. By the second quarter of 2012, the company intends to increase its annual cocoa grinding capacity from 140,000 tonnes to 200,000 tonnes, said Tay.
The primary source of this article is Market Watch, New York, New York, on March 15, 2012.