CocoaKaroliina Lehtonen
Lily-Ann Chen
What is cocoa?
• Cocoa is the dried and fully fermented fatty seed of the cocoa tree.
• The worlds smallest soft commodity market (grown not mined)
• Seeds from the pod of a Theobroma tree
Where is cocoa produced?• Country Amount produced
Côte d’Ivoire 1.3 million tonnes
Ghana 720 thousand tonnes
Indonesia 440 thousand tonnes
Cameroon 175 thousand tonnes
Nigeria 160 thousand tonnes
Brazil 155 thousand tonnes
Ecuador 118 thousand tonnes
Malaysia 30 thousand tonnes
Where is cocoa traded?• Cocoa is traded on two world exchanges:
London and New York; both are traded electronically.
• The main exporters; are also the main producers of cocoa beans.
• Trading hours for the cocoa market are from 7:00 AM Central Time to 10:50 AM Central Time. The market is traded in 10 metric ton contracts, with a minimum price fluctuation of $1 per ton indicating a change in value of $10 per contract.
What goods are made from cocoa?
• Chocolate• Cocoa butter,
used in beauty products
• Cocoa powder, also known as the hot chocolate powder
• Cocoa liquor (no alcohol)
Price History• Price has fluctuated over
the years• Back in the 1970s, cocoa
prices skyrocketed due to worldwide drought, hitting $4,000, even $5,000/ton.
• Cocoa prices will keep going up in 2008. "There will be strong demand for cocoa and chocolate,”
• Increase in dairy prices.
• Price has fluctuated over the years
• Back in the 1970s, cocoa prices skyrocketed due to worldwide drought, hitting $4,000, even $5,000/ton.
• Cocoa prices will keep going up in 2008. "There will be strong demand for cocoa and chocolate,”
• Increase in dairy prices.
Unit: US Dollars per Metric Ton
Industry groupsCompany Total sales in 2005
(in US$ Millions)
Mars, Inc. 9,546
Cadbury Schweppes PLC (CSW) 8,126
Nestlé SA 7,973
Ferrero SpA 5,580
Hershey Foods Corp. (HSY) 4,881
Kraft Foods Inc. (KFT) 2,250
Meiji Seika Kaisha Ltd. 1,693
Lindt & Sprüngli 1,673
Barry Callebaut AG 1,427
Ezaki Glico Co. 1,239
•Top Ten Confectionaries Worldwide, ranked by 2005 sales Source: Candy Industry, January 2006-via ICCO
•High cocoa prices have mostly been bad news for chocolate makers, who must adjust to the rising dairy prices.
•Top Ten Confectionaries Worldwide, ranked by 2005 sales Source: Candy Industry, January 2006-via ICCO
•High cocoa prices have mostly been bad news for chocolate makers, who must adjust to the rising dairy prices.
Other Information
• Today, the cocoa industry tops $1.4 billion worldwide. The International Cocoa Organization [ICCO] predicts yields for the 2007-08 year could be as high as 3.78 million metric tons.
• It takes about 300-600 cocoa beans to produce one kilo of chocolate
Interesting Facts
• Cocoa beans were used as currency by the Mayan and Aztec civilizations over 1400 years ago.
• Rumor has it, that Napoleon carried chocolate with him on all his military campaigns for a quick energy snack.
• The world chocolate comes from the Aztec word “xocolatl”, which means bitter water.
• Chocolate syrup was used for blood in famous movies; like Alfred Hitchcock’s Psycho.
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