Moscow. November 19. Manufacturers of chocolate products in Russia are running out of funds to purchase raw materials, primarily cocoa beans. They will be forced to use more substitutes, including palm oil.
According to a press release from the Center for research confectionery market (ZIKR) with reference to information of market participants, many regional producers are running out of funds to purchase raw materials. The stocks of these companies almost do not form, which means that in the near future they will be forced to use substitutes cocoa products, primarily palm oil, and significantly reduce the volume of production.
Imports of cocoa products to Russia continues to decrease. Thus, in January-September of the current year it decreased by 34% compared with the same period of 2014 and amounted 27,97 thousand tons. The imports of cocoa paste decreased by 6.6% to 26.2 thousand tons of cocoa butter – from 15% to 22.5 thousand tons.
“At the same time manufacturers of chocolate was faced with a substantial increase in international prices of cocoa raw material. On November 16 the cost of a ton of cocoa beans on the London exchange reached 2 320 pounds. It almost brought the world prices to the thirty-year highs observed in 2010, when the cost of a ton of cocoa beans amounted to 2 503 lbs”, – stated in a press release.
“Commodity prices likely will continue to remain at very high levels, and the consumption and sale of chocolate products to decline. So the increase in costs for domestic producers, is likely to continue,” said the Center’s Executive Director Elizabeth Nikitin.
According to her, the industry is in such circumstances, we urgently need measures of support, “while Russian chocolate became a thing of the past”.
Center for research on the confectionary market (of ZIKR) is an expert Association, specializing in the study and analysis of the confectionary market and its individual segments, peculiarities of development of the confectionery industry in Russia and its major partners.