HB Ingredients Newsletter No 15 May 2009

 
 
 
New Products
 
 


Creme Patisserie

Glaze Aerosol

Pippets

La Perruche Brown Sugar Rough Cut Lumps

La Perruche White Sugar Rough Cut Lumps

La Perruche Easy Pour Brown Sugar

La Perruche Easy Pour White Sugar

Natural Rose Oil Flavouring

 
     
 
Special Offers
 
 


Mays Special Offers

 
     
 
Supplier of the Month
 
 
Our Supplier of the Month is the French chocolate manufacturer Valrhona

Full Article-------->

 
     
 
Recipes of the Month
 
 
This month's recipes are a selection taken from our "Supplier of the Month" Valrhona's website.

View Recipes---->


 
     
 
"The Doctors"
 
 
"The Doctors"

Don't forget to ask"The Chocolate Doctor" or the "Ingredients Doctor" to answer your questions.

 
     
 
Chocolate Courses
 
 
Barry Callebaut offer a range of courses at their Chocolate Academy, ideal for the novice or the professional.
Click here to access details of these and other Chocolate Courses.

 
     


 
Editorial

 
 


Prices 2nd Half 2009

Price increases for Chocolate Products for the second half of 2009 have now been announced by both the Barry-Callebaut Group and also Belcolade. If you have been a regular reader of the Newsletter, then you will be ‘up to speed' with the key factors that impact on pricing – ie the Cocoa Market, Currency and Milk Powders.

The weak state of Sterling against both the Euro and the US$ has already impacted on prices of Organic and Conventional Sugars, Syrups, Mallows and other ingredients, the main drop in value occurred in November and December but as Barry Callebaut and Belcolade set their prices in half year chunks, the full effect of currency is finally being seen in the latter half 2009 prices. It must be said that the Barry Callebaut method of calculation did include more of the element of the weakening pound, so first half 2009 prices were higher than Belcolades', but this has been ironed out in the new prices where the price premium for Barry Callebaut prices has closed.

As you can see from the Cocoa Market graph in the Commodity section, the market has been high in recent months, hitting 20+ year highs. The impact of these higher prices comes through in the increases.

On a positive front, Milk Powder prices are easier which combined with the lower prices for Cocoa Butter means that the price changes for both Milk and White Chocolate is less than the higher Cocoa Solids, Plain or Bitter Chocolate types.

We will have the complete New Price Lists available within a week or so, in the meantime, the broad brush changes are as follows:-

Conventional
Barry Callebaut
Cacao Barry
Belcolade
Extra Bitter
+11%
+11%
+17%
Plain
+7%
+11%
+14.7%
Milk
+8%
+7%
+11.7%
White
+7%
+7%
+9.8%

On Organic and Fair Trade Belcolade Chocolate prices, the levels of increase are around 15% for Plain/Bitter, and 11% on Milk and White. Due to pressure from the market, Barry-Callebaut have managed to bring their range in line at very similar levels.

The big draw back is the level of increases for Truffle Shells supplied under the Callebaut brand, where the level of increase is over +23%. This is very substantial and we are looking to see if we can source good quality Truffle shells elsewhere at a more competitive price.

We are anticipating that as we did last year, we hope to hold current prices through July to delay the increase until 1st August 2009.

Tony Mycock
05.05.09



 
     
 
Commodity and Currency News

 
 

 

Cocoa Market
Following the highs reached again at the end of March, April saw an overall drop in cocoa prices. The main reason for this is that the first quarter Cocoa Grindings (ie usage in processing) figures have now been published and this shows a drop against 1st Quarter 2008 of 11% in the EU + Switzerland and over 12% in North America, leading to a substantial drop in consumption. Arrivals of beans at ports in Ivory Coast are down by 14% and in Malaysia Cocoa Butter stocks have reached the highest levels in 7 years, so Cocoa Powder and Cocoa Butter producers have also reduced production. The trend of reduced demand has negated the forecasts of deficits and therefore market forces are easing, which supports the current downward trend in the market.
As can be seen from the chart, today's level is a 4 month low, and there is no reason that the downward trend should not continue going forward.

Currency
The recent drop in Sterling corrected during April back to the 1.10-1.14 range, despite the Budget and other negative news about the economy. The media continue to confuse with mixed messages about the economy – one minute there are green shoots everywhere then the next minute the end is nigh!, very confusing.
In the real world though, there is a strengthening feeling that the Euro is overvalued and that towards the end of 2009 there could be a correction which would benefit Sterling... we will see.....

General
We first wrote about this in the December Newsletter, but to reiterate, the weakness of Sterling has an upside and as the Tourist season starts to build, UK manufacturers are enjoying better times with relatively buoyant demand for good quality Artisanal products, these include Chocolates and Confectionery, Baked products and Ice Cream. Large numbers of UK holidaymakers are staying at home, caravan sales are reported at 20% up on last year and UK holiday bookings at Campsites, B&B's and Hotels are reportedly way ahead of last year. Foreign tourists are expected to be ‘flocking in' over the coming weeks with the UK being a relatively cheap destination with plenty to see and experience.
A long hot(tish) summer will be a real boon.

Tony Mycock 05.05.09

 
     

 

 
     
     
 

HB Ingredients
Cocoa House, 22 Bell Lane,Bellbrook Industrial Estate, Uckfield East Sussex. TN22 1QL.
Tel:+44(0)845 88 00 799 Fax:+44(0)845 88 00 833