Dive Summary:
- As chocolate demand hits record highs, cocoa producers increase output by the largest amount in almost two years.
- This comes at a troubling time for cocoa producers in West Africa where the supply is on a serious decline, causing shortages and rising prices.
- Chocolate manufacturers are bracing for the worst, however analysts don't foresee the increase being passed on to consumers.
From the article:
Cocoa grinders are increasing output by the most in two years to meet record demand for chocolate, at a time when declining West African supply means the first shortages of beans in three seasons.
Processing will jump 4.9 percent in the season that began Oct. 1, according to Bethlehem, Pennsylvania-based Commodities Risk Analysis LC, which has tracked the market for 17 years. Chocolate sales will climb 5.7 percent to $108 billion, London- based Euromonitor International Ltd. estimates. Prices will rise as much as 7.5 percent to 1,665 pounds ($2,645) a metric ton in the first half of 2013 in London, according to the mean of 17 analyst estimates compiled by Bloomberg.
