Swiss chocolate maker Barry Callebaut does not expect a repeat of the cocoa-market turmoil seen in 2023 and 2024, even if a strong El Niño weather pattern emerges in the coming months, its chief financial officer Peter Vanneste said on Thursday.
Cocoa Market Outlook
The United Nations weather agency raised its forecast for the rapid emergence of a strong El Niño, a meteorological phenomenon particularly risky for cocoa, in the coming months and warned that it is likely to drive global temperatures higher.
Vanneste noted that the firm, which supplies key chocolate players such as Nestle or Hershey, strengthened its resilience through origin diversification, increased sourcing flexibility, and enhanced cocoa bean blending capabilities, as well as several financial measures.
During the call, Vanneste added that his firm is closely watching the data on cocoa grind, a proxy for chocolate demand, for the second quarter of the year. The latest May data on cocoa grind rose 39.7% year on year in Ivory Coast, the world’s biggest cocoa producer.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
