European 4Q Cocoa Grindings Rise 1.8% On Year

European cocoa grindings increased 1.8% on the year during the fourth quarter 2011, to 349,355 metric tons, figures from the European Cocoa Association showed Friday.

However, the International Cocoa Organization said Thursday that grindings were likely to show a significant year-on-year increase, while Commerzbank said Wednesday a survey of dealers showed expectations of a 7.5% rise, which would have confirmed robust demand.

Indeed, the new data reveals that fourth quarter grindings fell on the previous three months for the first time since 2007.

The ECA also said it had upwardly revised its estimate for the fourth quarter 2010, by 816 tons to 343,243 tons, following corrected figures submitted by one or more reportees.

Cocoa grindings in Europe--a key measure of demand for the chocolate ingredient--had ran sharply ahead of the previous year throughout 2011, after a slump during 2010.

In the third quarter, grindings rose by 14% compared with the same period of 2010, hitting 377,388 tons. Grindings increased 8.3% on the year during the second quarter and by 3.7% in the first three months of 2011, which marked the first rise in six months.

The ECA accounts for around two-thirds of European cocoa grindings. ECA grinding members are ADM Cocoa, a unit of Archer Daniels Midland Co. (ADM); Barry Callebaut AG (BARN.EB); Delfi Cocoa Europe, a division of Petra Foods Ltd. (P34.SG); ECOM/Dutch Cocoa; Gerkens Cacao, a unit of Cargill Inc; and Nederland.

Bean processors are Cioccolato Peyrano, Euromar, Ferrero SPA, Fuchs & Hoffmann, Hachez, Herza, Icam, Kessko, Kraft Foods Inc. (KFT), Ludwig, Majani, Natra, Nestle SA (NESN.VX), Schokinag, Schwartauer Werke, Storck, Weinrich and Toms.

-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289; michael.haddon@dowjones.com

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