Cracking the Cocoa Crisis: Taste Solutions for the Food and Beverage Industry
KerryDigest Fast Facts:
- The world faces an 11% shortfall in cocoa supplies by 2024, driving price increases of approximately 300% in the past year, according to the International Cocoa Organization’s (ICCO) February 2024 report.
- Swollen shoot virus, soil degradation and illegal gold mining are among major concerns for the resilience of cocoa supplies.
- Learn how working with Kerry and adopting innovative solutions can help your company to mitigate the impacts of the cocoa supply crisis.
KerryDigest Full Scoop:
The world is facing a significant challenge in cocoa production, with predictions indicating a substantial shortfall of 374,000 tonnes (11%) by 2024 per the ICCO. This impending supply crunch is primed to reshape the landscape of cocoa sourcing for the global food and beverage industry, particularly impacting key player countries like Côte d’Ivoire and Ghana, which together produce approximately 54% of the world's cocoa. According to the ICCO’s March 2024 report, these countries are facing predictions of extreme shortfalls with a decrease of 467,000 and 448,000 tonnes in stocks, respectively.
This is not just a blow to quantities but also a hit to the quality of cocoa, given Ghana's beans are prized for their unique aromatic profile – a critical component that cannot easily be replaced without affecting product quality.
Supply Constraints and Price Surge
The ripple effect of these shortages is a staggering approximate 300% increase in cocoa prices over the past year, placing immense pressure on manufacturers and suppliers. The heart of this price surge lies in the fact that 54% of global production is impacted by these challenges, constraining supplies and elevating demand for the already highest quality and most sought-after African cocoa.
Forecasts suggest a potential softening of cocoa prices for Q3 – 2024, but relatively low-mid crop yield could limit the softening. However, a return to the pricing levels of 2023 is not anticipated for at least another three to four years due to enduring stock shortages. This projection underscores the urgency for manufacturers to proactively adapt their strategies.
Sustainability at the Heart of the Crisis
Among the underlying causes of this extreme supply situation are climate change, soil degradation due to overuse and deforestation, and diseases such as the swollen shoot virus, for which there is no cure. These factors, compounded by illegal gold mining activities, are not only immediate threats but also indications of a longer, more complex road to recovery for the cocoa industry.
This crisis presents not just challenges but also a pivotal moment for innovation and change for cocoa sourcing strategies. At the core of potential solutions is the critical need for sustainability—a factor that, if addressed effectively, can transform the landscape of cocoa production for the better.
How Partnering with Kerry Can Bring Value for You
Delivering Authentic Cocoa Taste
Our knowledge in cocoa extraction combined with our range of taste solutions enable us to deliver versatile and innovative cocoa taste solutions for the food and beverage industry, offering an alternative to traditional cocoa bean derivative products. These products deliver indulgent, authentic cocoa and chocolate taste experiences which help brands navigate through price and supply challenges without compromising on the authentic cocoa experience consumers seek.
Reduce Costs and Mitigate Supply Challenges
Rebalancing the cocoa mass of your products with our cocoa taste solutions enables food and beverage manufacturers to reduce their exposure to the volatile cocoa commodity market. Our solutions enable cost savings across a wide range of applications which can help alleviate the current external pressures facing the industry.
Leveraging Our Expert Guidance
Use the expertise of our food scientists and flavourists to navigate the complexities of product recipe adjustments. Their insights can help maintain, or even enhance, the sensory qualities of products despite cocoa constraints.
Contact us to learn more about how Kerry’s cocoa portfolio can help positively impact the long-term success of your products containing chocolate and cocoa-related ingredients.
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