Chocolate sector strongly affected by weather conditions

Increase in volume but a drop in sector turnover

For the 90 or so industrial manufacturers of chocolate and chocolate products in Germany, 2006 was simply too hot. Domestic turnover was severely affected by the long, hot summer and the high autumn temperatures, and only the growth in the export business secured an increase in the production volume during the year overall. According to estimates of the Association of the German Confectionery Industry (BDSI), domestic sales of chocolate decreased in volume by approximately 2 to 3% in 2006 compared to the previous year. The value of domestic turnover is expected to have remained roughly at the prior-year level. The best results were posted for confectionery bars (especially chilled bars) and surprise items.

Exports of chocolate goods climbed significantly in 2006. According to BDSI estimates, the export volume rose by 15.4% to 372,000 tonnes. The value of exports is expected to have risen by 15.2% to reach €1.44 billion. Despite the strength of the euro, non-EU exports also increased considerably, up by 14% to 40,500 tonnes and with a value of €211 million. The BDSI reports that this good foreign trade result led to a climb of around 4.7% in the total production volume of chocolate goods, to 900,000 tonnes. Production value of €4.375 billion was slightly lower (-1%) than the previous year’s figure of €4.4 billion.

A clear increase was posted in the production of semi-finished cocoa and chocolate items. In this segment, production was up by 19% to 430,000 tonnes, while value rose by 9% to €760 million. These increases were also affected by double-digit growth in the volume and value of exports. Export volume climbed to 240,000 tonnes while the overall value reached €390 million. This corresponds to an export quota of over 50% in this segment.

The manufacturers of chocolate and chocolate products are extremely concerned by the rising prices for raw materials and energy. The price of glucose has climbed by over 30% in the last year, compounded by the sugar suppliers’ efforts to raise their prices as a result of higher energy costs and the use of sugar for producing ethanol. What’s more, the sector is facing a volatile situation on the raw cocoa markets, which are currently extremely unstable due to the ongoing tension in the Ivory Coast — the main producer of cocoa.

In view of the increasingly positive outlook regarding the economy in Germany, the chocolate segment is hoping to benefit from an upswing this year.

A total of 1,609 suppliers from 72 countries will be taking part in the 37th ISM in Cologne (28th to 31st January 2007). The fair will occupy 115,000 m² of gross exhibition space in Halls 2, 3, 4, 10 and 11 at the Cologne exhibition centre. Only specialist buyers from the wholesale and retail trades are admitted to ISM.

The organisers of ISM are Koelnmesse and the International Sweets and Biscuits Fair Working Group (AISM), which is the conceptual sponsor.

Following its successful premiere in 2006, ProSweets Cologne, the international supplier fair for the confectionery industry, will be held this year for the second time. This event (29th January to 1st February 2007) will overlap with ISM on three days.