Cocoa Shortage Seen to Be Higher Than Previously Estimated, ICCO Says

An employee prepares cocoa beans for roasting at a chocolate factory in Paris.

Photographer: Cyril Marcilhacy/Bloomberg
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Cocoa’s shortage this season will be bigger than previously expected as consumption holds up despite higher prices, according to the International Cocoa Organization.

Demand will exceed production by 439,000 tons, driven by higher cocoa grinding in consuming countries, the ICCO said in its second estimate for the current October-September year. That compares with a FebruaryBloomberg Terminal projection for a deficit of 374,000 tons.