Asia’s cocoa butter exports are expected to jump this year as higher grinding, lower freight costs and easing of supply chain restrictions help to boost sales.
The region’s cocoa butter exports are projected to increase by 13% in 2022 from 196,000 tonnes shipped in 2021. “2022 pace is on course for 13% higher cocoa butter exports, partly influenced by cheaper freight rates and backlogs being cleared,” said Alvin Lee, Chairman of Cocoa Association of Asia (CAA), during the International Cocoa Conference held from 1-2 September in Singapore.
Asia which consumes more cocoa powder, exports butter to buyers mainly in the US and Europe. Elie Fouche, Vice President for Asia Pacific at Barry Callebaut said, “In Asia, cocoa butter market is mainly Japan and Australia. A large portion of cocoa butter produced in Asia is exported to Europe and North America.”
The good news is freight rates to ship cocoa from Asia to the US have declined substantially from US$22,000-23,000 per container in 2021 to only around US$10,000-$12,000 currently.
Asia’s 2nd quarter cocoa grinding production rose by 3.6% year-on-year to 228,895 tonnes, according to the data from the CAA.
Cocoa demand is expected to rebound in 2022, led by growth in Asia and higher processing in Europe as travel and tourism resume, according to industry officials said.
