Cocoa price soaring as Asia discovers the taste

IF YOU have been wondering why the price of your favorite chocolate bar keeps climbing,you need look no further the rapid growth in demand for chocolate in Asia, which has led to projections for a deficit of one million metric tons globally in 2020

The growth in demand for chocolate in Asia has made the future price of cocoa soar on the international market, which on July 3 reached $3,097 a tonne on the ICE futures market, the highest level since August 2011.

The growth in demand from Asia, including China and India could lead to a shortage of grain that could extend into the next decade, with a projected 1 million metric tons deficit by 2020 estimated by the British firm Hardman & Hardman, according to an article on Bloomberg.com.

Juergen Steinemann, president of Barry Callebaut, one of the largest firms producing chocolate in the world, told Bloomberg.com that “… ‘ In the longer term, the shortage of quality cocoa is a serious concern for our entire industry.'”

Bloomberg.com adds that “…Asia, with 3,700 million people, or over half of the world’s population, will be the “mainstay” of the consumption of cocoa and chocolate, said Gerard Manley, CEO of Olam International Ltd. based in Singapore, which supplies ten percent of cocoa beans. The shortage will drive up prices by ten percent at least until the end of 2014.”