Cargill has been our trusted cocoa and chocolate Supplier Partner since 2004.
The global cocoa bean market is experiencing historical supply constraints and high pricing. As a customer, we understand that pricing increases impact your business. To better understand the current market situation, here are some facts to help explain today’s cocoa bean market.
Supply & Demand imbalances have caused cocoa bean prices to surge to 46 year highs:
-A third consecutive year of global cocoa bean supply deficit is materializing for 2023 & 2024.
-So far, the deficit has been larger than the previous two years’ deficits combined.
-There is potential for the tightest global carryout since the late 1970s.
What is causing the global cocoa deficit?
-Lack of crop inputs availability and application in West Africa.
-Reduced yields due to lack of fertilizer and increased disease/pests and El Nino.
-Global demand has remained resilient amidst the price increases.
How does this affect our customers?
-Cocoa futures, differentials, and butter ratios have appreciated.
-Cocoa bean futures have doubled in price in the last 12 months.
-Cocoa powder, cocoa butter, and chocolate products are at historic price highs, and market pricing is fluctuating daily.
What is Gillco doing to navigate the market?
-Communicating frequently with Cargill’s trading experts, product line managers, and cocoa & chocolate specialists to understand the ever-changing dynamics of market conditions.
-Increased cross-departmental collaboration to ensure seamless order processing as we face pricing fluctuations.
-Educating our sales team and customers on market volatility and taking a proactive approach to get orders in early while over-communicating pricing updates.
Gillco’s commitment to our customers remains strong.
We will communicate market information and pricing updates to you as often as possible. We will continue to provide excellent customer service as we navigate these unpredictable market conditions together!
Reach out to us today with any questions you may have.