FREE Guide - 5 Chart Patterns You Need to Know!

Where is Cocoa produced and how is it used?


Where is Cocoa Produced?
While cocoa is an important cash crop that is supplied by relatively few countries in the world, its demand is truly global and is growing rapidly. 

Emerging markets dominate cocoa production. Cote d’Ivoire, Indonesia, and Ghana are the world’s top most producers. In 2010, the Ivory Coast produced 1511 thousand tons alone, followed by Ghana at 1025 thousand tons. Total worldwide cocoa production has increased by 13%, from 4.3 million metric tons in 2008 to 4.8 million metric tons in 2012.

The Ivory Coast, which produces nearly double the cocoa as compared to Indonesia, is alone responsible for around 33% of the world’s cocoa production.

Nearly 70% of the cocoa market supply comes from small farmers in Africa, operating on family-run farms. There are five to six million cocoa farmers worldwide, with varying yields. Brazil, Ecuador, and Columbia also contribute around 15% of the world’s cocoa supply. Asia is responsible for 17% of the world’s cocoa. 

How is Cocoa Used?
After cocoa has been harvested and dried, it is processed into several different products. The Netherlands is the largest processor of cocoa, handling around 13% of the global processing and Europe as a whole grinds around 40% of the world’s cocoa.

Developed countries are the biggest consumers of cocoa. The U.S., Germany, France, United Kingdom and Russia consume the most cocoa.

Europe consumes nearly 50% of all chocolate produced in the world. According to Euromonitor, the United Kingdom consumes the highest amount of chocolate per person. North America is the second biggest consumer of chocolates.

Demand for cocoa has been growing annually at 3% since 2008, with increasing demand coming from the growing middle class in China, India and Brazil. Europe and the West are more mature, saturated markets.

 The demand for cocoa products such as butter and powder are tracked and measured not in terms of cocoa beans used, but in terms of nominal dollar value of imports.

In 2011, the nominal value (in $1000s) of Cocoa Butter imports saw Germany (464,280) leading, followed by the United States (453,387) and Netherlands (414,183).The United States led imports of cocoa powder at $781,154,000 in 2011.

Get This FREE Technical Analysis Guide!
Timing is everything, and with this guide, you'll learn how technical analysis can help find the right time to enter and exit your futures trades. Nearly 30 explanations and examples of the most popular technical analysis tools are all in this one handy guide. It's like having a futures trading mentor at your side!