Sept. 13 (Bloomberg) -- The chocolate market in Germany, the world's second-largest cocoa consumer, is ``saturated,'' spurring confectioners to try to sell more goods abroad, the head of the country's industry association said.

``We have to speak of a saturated market,'' Karsten Keunecke, managing director of the Bonn-based BDSI, said in an interview in London yesterday. Consumption ``has reached a level that can hardly be increased,'' he said.

Germans eat about 9 kilograms (19.8 pounds) of chocolate each a year, Keunecke said. The country produced about 925,000 tons of chocolate products last year worth some 4.4 billion euros ($6.1 billion), according to the BDSI.

Growing demand for higher-quality dark chocolate and rising exports will account for most of the growth in the German confectionery industry, which includes Barry Callebaut AG, the world's biggest maker of bulk chocolate.

``About a third of our production is exported,'' said Keunecke, adding that consumption in Asia will grow the fastest. ``We're seeing new major consumers entering the market, such as India and China.''

Germany grinds over 300,000 tons of cocoa annually, which represents about 11 percent of the global bean crop, according to the BDSI. The country imports more than 60 percent of its beans from Ivory Coast, the world's top producer. Cocoa prices have gained 11 percent in the past year as adverse weather cut harvests in the main producing countries, including Ivory Coast and Ghana.

Political Concern

``Volatility in the market causes far more concern to us'' than this year's price gain, Keunecke said. The political tensions in Ivory Coast ``could have been a real problem for us. And there are not that many other options out there'' for supply, he said.

Prices soared to their highest since 2003 on July 4 after an assassination attempt on Ivory Coast Prime Minister Guillaume Soro fueled speculation that civil war would resume in the west African country. The nation has been divided into a rebel-held north and a government-run south since a 2002 revolt.

``We are more or less dependent on West African cocoa, that is of course a problem,'' Keunecke said.

West Africa produces about 70 percent of the world's cocoa, and Ivory Coast accounts for about 40 percent. The U.S. was the biggest consumer in 2005-2006, followed by Germany and France, according to the London-based International Cocoa Organization.

To contact the reporter on this story: Marianne Stigset in London at mstigset@bloomberg.net.

Last Updated: September 13, 2007 12:27 EDT