ICCO sees global cocoa deficit of 80,000 tonnes in 2019/20

• In its latest quarterly update, the inter-governmental body, cut its forecast for global production by 74,000 tonnes to 4.75 million.
• Grindings, a proxy for the demand of cocoa beans, have not yet been seen to be severely affected by the (novel coronavirus) pandemic.

LONDON: The International Cocoa Organization (ICCO) on Friday forecast a global cocoa deficit of 80,000 tonnes in the 2019/20 season, which runs from October to September, slightly below its previous projection of 85,000 tonnes.

In its latest quarterly update, the inter-governmental body, cut its forecast for global production by 74,000 tonnes to 4.75 million, although the impact was more than offset by a 78,000 tonne cut in its global grindings outlook to 4.78 million.

"Grindings, a proxy for the demand of cocoa beans, have not yet been seen to be severely affected by the (novel coronavirus) pandemic. Nevertheless, with most companies prioritising the health of staff over profits, there is the likelihood of disruptions to cocoa processing," the ICCO said.

The international body said crops had not yet been affected by the pandemic "but the possibility of the expected global economic recession affecting exports cannot be dismissed".

Production in Ivory Coast, the world's biggest producer, was forecast to reach 2.15 million tonnes in 2019/20, down from a previous projection of 2.18 million, with below average rainfall lowering expectations for the smaller mid-crop.

In the number two producer Ghana, a harvest of 800,000 tonnes was seen, down from a previous forecast of 850,000 tonnes with swollen shoot virus among the main challenges for growers.