Asia’s cocoa grind dropped 17.2% in the fourth quarter after an economic slowdown in China, adding another cocoa processing decline to the world jigsaw.
Cocoa powder demand for use in compound confectionery coatings is rising rapidly in Asia and Eastern Europe as rising cocoa butter prices up the cost of chocolate manufacturing.
The Indonesian deputy trade minister has said that after successfully increasing domestic cocoa grinding capacity the country should lower cocoa bean import duties to prevent shortages in the future.
Indonesia is the focus of an extension of Nestlé’s sustainable Cocoa Plan initiative, with the Swiss food group aiming to pump $4m (€2.7m) into bean production in that country.