The Wall Street Journal warns that cheaper cocoa stocks don't necessarily translate into less expensive chocolate, since candy makers still have the price of sugar and milk to contend with. The United Nations reports that food prices are still trending upwards, with sugar prices rising about 6.7% in March and milk powders up 2.6%, making milk 23.6% more expensive than it was in March of 2021.
Still, the stable cocoa supplies seen for 2022 gives premium chocolatiers like Barry Callebaut reason to cheer. During the company's recent earnings call, which was held earlier in April, the company reported strong profits on the back of volume growth. The company's chief innovation officer, Peter Boone, said the firm saw "Global Cocoa volume was back to positive growth of 4%." Additionally, the company President of Barry Callebaut Asia Pacific, Ben De Schryver, reports that "the ripple effects of COVID-19 led to an imbalance cocoa market, which, however, seems to have bottomed out, reflected in a stable combined ratio of 3.4 times," per Seeking Alpha. Normal volume means fewer supply chain issues for companies like Barry Callebaut, so we can count on a stable chocolate supply — at least for the months ahead.
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