KUALA LUMPUR: The global cocoa market is poised to face a supply shortfall for the first time in three years as a strengthening El Niño threatens production across key growing regions, according to Asia’s top processor.
A deficit of 300,000 to 400,000 tonnes is expected in the 2026-27 season, said Brandon Tay Hoe Lian, the chief executive officer of Guan Chong Bhd
.
That compares with a surplus of about 100,000 tonnes a year earlier, with the weather risks to crops set to coincide with steadying demand, he said in an interview on the sidelines of the CAA International Cocoa Conference in Singapore.
The outlook comes during a volatile stretch for the cocoa market, which is set to cap a second annual surplus. That follows three straight deficits triggered by poor harvests in West Africa, where much of the world’s beans are grown. That shortfall sent New York futures to an all-time high above US$11,000 a tonne in late 2024. — Bloomberg
