FDBusiness.com

Cocoa market awaits impact of ADM Cocoa sale

 Breaking News
  • Ardgowan Unveils Plans For Inverclyde Distillery Ardgowan Distillery has revealed ambitious designs for its new £12 million distillery which is being built on the Ardgowan Estate near Inverkip, 30 miles west of Glasgow. The plans showcase the flagship building which has just secured revised planning consent from Inverclyde Council. The striking new design, by Michael Laird Architects, brings a number of improvements [...]...
  • HKScan Launches Exports of Finnish Poultry Products to Sweden HKScan, the Nordic food and meat group, has started exporting Finnish poultry products to Sweden. They will initially be sold through the largest retailer ICA’s outlets under the Karinäs®(Kariniemen®) brand. The launch gives Swedish consumers access to a new innovation: high welfare farm-born poultry that is hatched on the farm where it is raised. This new concept is [...]...
  • Almonds Retain Top Spot For Nut Introductions in Europe According to Innova Market Research’s latest Global New Product Introductions Report, almonds retain the number one spot for nut introductions in Europe. With a 47% share of global almond product introductions, the region leads globally for the eleventh year running. Europe as a whole saw a total of 5,017 new introductions with almonds – a [...]...
  • Arla Foods UK Launches New Standards Model to Bring Sustainable Change to Dairy Farming With ongoing volatility in the global milk markets, increasing consumer misunderstanding of the sector, polarised levels of support for UK dairy farmers and a new post-Brexit Agriculture Bill the challenges for dairy farmers are mounting. Farmer-owned co-operative Arla Foods has launched ‘Arla UK 360’ – a new standard in UK dairy farming. The Arla UK 360 [...]...
  • €172 Million to Promote EU Agri-food Products In and Outside the EU The European Commission will provide funding of €172.5 million from the EU agricultural budget to promote EU agri-food products in Europe and across the world. 79 campaigns, covering a wide range of products such as dairy products, olives and olive oil, and fruit and vegetables, will be rolled out over the next three years. Agriculture and [...]...

Cocoa market awaits impact of ADM Cocoa sale

July 02
09:15 2013

The Archer Daniels Midland Company is in discussions to sell its cocoa processing operations. We find out how potential industry consolidation could affect the cocoa supply.

The world’s third largest cocoa grinder ADM announced last month that it was in talks to sell its cocoa ingredients division – a business unit that saw profits nosedive 24% on last year.

Market well-covered, says ICCO

Laurent Pipitone, director of the economics and statistics division at the International Cocoa Organization (ICCO), said: “The concern is that cocoa processing is consolidated in just a few players.”

Barry Callebaut today finalized an $860m deal to acquire Singapore-based Petra Foods’ ingredients division, helping it overtake Cargill as the world’s largest cocoa grinder.

Asked how the potential sale of ADM Cocoa was affecting the cocoa market, Pipitone said: “So far the market is well covered. There is no problem with the capacity. There is enough for all demand.”

He said that even if a buyer came in for ADM Cocoa and cut cocoa processing operations, a small reduction would not impact the supply and demand balance as there has been a lot of investment in cocoa processing in recent years and demand for chocolate has stalled.

ADM has an annually grinding capacity of around 60,000 metric tons (MT) and accounts for 15% of global cocoa processing – third behind Barry Callebaut and Cargill.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
  • October 31, 2018Int'l exhibition for food products and equipment (Indagra Food)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements