Impact of COVID-19 on the Global Organic Cocoa Market
The advent of the global pandemic, COVID-19, has resulted in creating a global crisis across the world. Impacting over 213 countries, the pandemic has already created economic backdrop worldwide. The global pandemic is deemed to create a chaotic environment, thereby resulting in the advent of global rescission. Few impacts of the outbreak of COVID-19 on the global organic cocoa market have been discussed below:
To produce organic cocoa, farmers harvest the cocoa in an organic environment without the use of chemicals or GMO seeds at the stage of germination and growth. As the world is under lockdown, the harvesting of raw materials is difficult because of the urgent measures to fight surge ability, such as physical distancing and limitation on transportation. The availability of labor is also a crucial factor, and the overall organic cocoa manufacturing is facing a shortage of adequate labors. Manpower is required for sourcing the raw material, processing raw material into the final product until the packaging and transporting the final product to the end-use industries. The migration of laborers to hometowns due to lack of availability of work is one of the major issues that every country is facing during the pandemic situation.
The COVID-19 pandemic has disrupted the global supply chain and interrupted the entire value chain from raw material procurement to manufacturing, packaging, and distribution. With several manufacturers having the required raw material and end-product stock, the impact does not seem to be high for a short duration of time. However, if the pandemic prolongs and trade restrictions are extended, the impact is expected to rise.
Organic cocoa applications include food & beverages, bakery & confectionery, pharmaceuticals, and personal care. The demand from the beverage industry has fallen sharply this year as bars, restaurants, cinemas, and theatres are not operating and sporting events and festivals are not being held. However, the demand for bakery & confectionery products is increasing owing to consumer needs and changing eating habits. Additionally, the increasing demand for convenience food is likely to drive the demand for organic sugar in bakery & confectionery applications. Some of the bakery products manufacturers are hiring to keep up the demand for the products as consumers are stockpiling comfort foods to get them through the pandemic. For instance, according to the American Bakers Association (ABA), the North American bakery industry is scaling up the workforce to answer the demand for fresh and frozen bakery products.
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