Trends and Developments on Asian Cocoa and Chocolates Market Gricha Safarian Managing Director Puratos Grand-Place Vietnam
Asian Cocoa A new producing region
Indonesia: 410,000 tons Papua New Guinea: 40,000 tons Others: 46,000 tons
Source: ICCO
India 9,000
Malaysia 28,000
Vietnam 4,000
Indonesia 410,000
Philippines 5,000
Asia Cocoa More as a Grinding than Producing region
496
872
Production Grinding
2013/2014 forecast
000 tons
Source: from ICCO
Grinders
• BT cocoa
• JB Cocoa
• Guangchong
• ADM
• Olam
• Barry Callebaut
• Cargill (new comers)
Indonesia: import tax forces local grinding activity
Asian Cocoa Effort for quality is limited
Asian beans (Indonesian) = cheap & low quality
Fermentation expertise: Pay more attention to fermentation process
Effort for quality: - Vietnam - Java (1% of Indo) - Papua New Guinea
Asian Cocoa Trends
Trend on Single origin in Asian mature markets (Japan,
Hongkong, Korea, Singapore)
Trend on Certification is not
really strong vs Europe or USA
Asian Cocoa Opportunity
Double Digit Growth in Chocolate
Consumption in Asia
Shortage is foreseen in
global supply
Land availability + labor resources +
household agriculture
Asia Cocoa Sustainability challenges
Yield improvement
Transfer of technology
Farmers income (same as
other agricultures)
Pest control (VSD, cocoa pod borer)
Vietnam Cocoa A unique case of new producing country
• Output - 4,000 tons (est. 2013/2014)
• A strong agricultural culture (world 2nd in coffee, 2nd in rice, strong in rubber, pepper, cashew)
• A potential replacement for Coffee and Rubber
• A perfect inter-cropping solution
• Small holder farmers
Vietnam Cocoa Road map
Quality
Price
London Stock 2700 usd
Unfermented Bulk cocoa
Fermented Bulk cocoa
Good Flavor cocoa
DISCOUNT
PREMIUM
INDONESIA
410,000 MT
GHANA 800,000
MT
IVORY COAST
1,475,000 MT
VIETNAM 4,000 MT
VIETNAM
50,000 MT
BRAZIL 200,000
MT
Ecuador
120,000 MT
SUPER PREMIUM
Fine Flavor cocoa
MADAGASCAR
10,000 MT
TRINIDAD
5,000 MT
VENEZUELA
30,000 MT
REP.DOM
20,000 MT
Vietnam Cocoa PGPV approach
Cocoa beans
Semi-finished products
Liquor Butter
Powder
B-B chocolate
Consumer products
Producing countries
Added value thru vertical integration in cocoa producing country
Processing countries
Ver
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l in
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Asia Chocolate Overview
Compound
• China
• Vietnam
• Thailand
• …..
Chocolate
• Japan
• Korea
• Hongkong
• ……
• Chocolate hasn’t traditionally a sweet of choice • A market of +/- 500,000 tons with double digit
growth
Asia Chocolate Trends
DECORATION TASTE
Vs
Compound is being replaced by Chocolate
Compound as key opener (thru industrial application); Chocolate (thru artisan for more taste, flavor)
Asia Chocolate Trend in distribution
Small scale convenient stores (7/11, Circle K, Shop&Go…) with retail chocolate products
In young markets, a booming for European
type Bakery chain
Asia Chocolate Trend in application
• Application is closer to Europe/USA with much lower consumption
Mature region (China/Korea/Japan)
• Application is mostly used in Ice Cream - Cookies (chips) - Enrobed snacks (Chocopie) - Candy Bars - Cakes (Bakeries)
Young region
(South East Asia)
Conclusion
Win for the
Farmer
Win for Chocolate industry
Win for Producing
country
Win for Consumer
+ + +
No future for Chocolate if Cocoa Farmers are deep root in poverty
• Pod
• Beans Farmers
• Liquor
• Butter
• Powder
Grinders • Chocolate
• Compound
Chocolate
manufacture
Chocolate confectionary
End consum
ers