Pricing Agribusiness Risk

Our expertise and experience in pricing risk in agribusiness enterprises is central to our ability to advise on capital markets funding strategies.

Cocoa – The Midas Commodity

For investors the cocoa value chain has provided some outstanding investment opportunities and as the demand for chocolate confectionery continues to grow in new markets, and to mould to shifting consumer tastes in the developed markets, further opportunities for wealth creation can be expected.

Hardman Agribusiness (HAB) estimates that the global cocoa derived consumer goods sector has a brand value of some $300bn, equal to 0.41% of global GDP. A review of the spread of this wealth effect suggests that there is scope for further significant growth in brand value, especially in the big emerging market economies.

We detail in this report the outstanding examples of Hotel Chocolat and Royce. Additionally, a growing group of developers of modern upstream cocoa production assets is assuming that tightening supply / demand tension will allow their projects to develop profitable and valuable production businesses, hoping that the ‘Midas Commodity’ effect will flow upstream as well as downstream.

Click for our report: Cocoa – The Midas Commodity

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