Cocoa prices lower the activity of chocolate manufacturers to the lowest level since 2020

Cocoa -sharp operations in Europe and Asia dropped to their lowest levels in four years during the last quarter of 2024, reflecting the standard prices and reduced supplies on chocolate manufacturers. According to the data released on Thursday, cocoa grinding operations in Europe fell 5.4% and 0.5% in Asia compared to the previous year. The grinding rates in the fourth quarter in both regions have the lowest level since 2020, when the closing operations have recorded the corona and world trade holy sanctuary on the chocolate industry. Cocoa shortage increases prices. Kakao’s prices have risen three times over the past year, making it the best exported commodity among basic merchandise. This height is due to the constant shortage of supply in Ivory Coast and Ghana, the largest cocoa producer in the world, with the largest supply shortage ever registered. These conditions have urged chocolate manufacturers to reduce the use of cocoa in their products, while trusting more in stock to meet the constant demand for candy. The recent data showed that cocoa grinding rates throughout the year in Europe, the largest market consuming cocoa worldwide, was a decline for the second year in a row. Although this data is an important indication of market demand expectations, it has become difficult to evaluate the extent of the expression of real demand, amid the fear that the lack of supplies may distort these numbers. The most active contract on the New York Stock Exchange saw serious fluctuations on Wednesday, where traders were waiting for the grinding process data, in which cocoa was converted into butter and powder used in candy and ice panels to obtain evidence of the market moral.