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GLOBALSOURCING&COCOA
BarryCallebaut
Annual Report2010/11
Additional information:
www.barry-callebaut.com/
cocoa-to-chocolate
www.barry-callebaut.com/csr
www.qualitypartnerprogram.com
Demand for cocoa powder remained strong, particularly in emerging markets
wheremany applications arepowder based.This demand pushed cocoa butter prices
downward, but still resulted in an overall favorable combined cocoa ratio.
Customer interest for certified products such as Rainforest Alliance,UTZ Certified
or Fairtrade continued to grow at arapid pace. Barry Callebaut’s origin sourcing
presence greatly facilitates the certification process and enhances its ability to meet
customers’ needs.
Combined cocoa ratio
Factor xterminal market price
6months forward
3.9
3.7
3.5
3.3
3.1
2.9
2.7
2.5
Sept.06 07 08 09 10 11
Cocoa price
London Terminal Market
6-month forwardprices
in GBP/tonne
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
Sept.06 07 08 09 10 11
Cocoa prices sharply increased during the year due to the conflict in Côte d’Ivoire,
reaching new record levels on high volatility. When the crisis came to an end in
early May, prices drifted downwards. Alarger-than-expected cocoa crop and a
sharp reduction in financial investors’ long positions also guided prices lower.
Despite the bumper crop of 2010/11, we see significant challenges ahead. If consumption
of cocoa and chocolate products continues to grow at 2–3% per annum,
the world’s cocoa crop will have to increase by 100,000 tonnes ayear.Which, in
turn, adds up to 1million tonnes over 10 years –afigure not far from the annual
cocoa harvest in Côte d’Ivoire, the world’s largest cocoa producing country.Since
it is not certain that existing cocoa origin countries can meet this additional demand,
cocoa prices will probably remain high and volatile during the coming years.
Sugar markets were confronted with atight supply situation. Thus, sugar prices
became more volatile and reached historically high levels. Milk powder prices
slightly increased on higher demand. Barry Callebaut expects that the global
supply of dairy products and sugar will struggle to meet growing emerging market
demand and thereforeprices will remain rather high.
Key figures for Global Sourcing &Cocoa
in local
currencies
Change % 2010/11 2009/10
in reporting
currency
Sales volume Tonnes 21.7% 258,982 212,886
Sales revenue CHFm 26.5% 15.6% 1,112.3 962.5
EBITDA CHF m 46.0% 30.3% 98.0 75.2
EBIT CHFm 57.2% 40.6% 76.6 54.5
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