North American 2015 cocoa grind takes record hit after weak Q4

(Reuters) – Cocoa processing in North America took its biggest annual tumble in 2015 after falling below expectations in the fourth quarter, National Confectioners Association data showed on Thursday, after chocolate makers raised prices.

Cocoa processors in the United States, Mexico and Canada reported grinding 118,896 tonnes in the last three months of 2015, down 3.25 percent from the same quarter a year earlier.

This was below expectations of 1 percent lower to 5 percent higher, with most traders who spoke to Reuters forecasting a 1 percent rise.

For the 2015 calendar year, the region’s grind totaled 484,992 tonnes, the lowest volume since 2012 and down 7 percent from a record high in 2014. Cocoa grindings are a traditional gauge of demand for chocolate’s key ingredient and the annual drop is the biggest since the NCA began combining data from all three countries in 2009.

It was the fifth straight weak quarter following two years of quarterly increases after chocolate makers responded to soaring commodity costs by raising prices while weak processing margins deterred grinders from building up inventories.

This quarter was the first for the 2015/16 crop year and came after data showed Europe’s grind for the same period rose 6 percent to 342,442 tonnes.

The weak data came as ADM Cocoa, which has since been sold to Olam International, and World’s Finest Chocolate Inc, did not participate in the survey as they had a year prior.

The nine companies that took part in the North American survey are: Barry Callebaut, Blommer Chocolate Co, Cargill Cocoa & Chocolate Co, ECOM, Ghirardelli Chocolate Co, Guittard Chocolate Co, Hershey Co, Mars Chocolate North America, Nestle Chocolate & Confections.