Global demand for chocolate has collapsed despite lower cocoa prices, according to Azernews.
Production rates at factories worldwide are declining, signaling that the aftermath of last year's sharp price surge continues to impact processors’ profits.
The cost of sweet treats is unlikely to drop significantly in the near future, as chocolate manufacturers are still working with costly raw materials purchased earlier at higher prices.
“The demand for cocoa butter is low, and unlike last year, concerns about its supply have eased,”said Jonathan Parkman, head of agricultural sales at Marex Group, noting that processors have locked in elevated prices for the next six months.
Author's summary: Global chocolate demand drops despite lower cocoa prices.