com-watch - issue 59 - april 2016 · cma cgm targets cashew nut season full story on page 4 africa...

CMA CGM TARGETS CASHEW NUT SEASONFull Story On Page 4

AFRICACOM-WATCH

Angola Focuses On Increasing Coffee Production

ISSUE 59 | APRIL 2016

Support Urged For Small-Scale African Cotton Farmers

Tanzania Seeks Sugar Curbs16 19 31

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AFRICACOM-WATCH

ISSUE 59 | APRIL 2016

Contents

03 | Corporate

05 | General

16 | Coffee

CMA CGM Senegal Offers New Solutions For Reefer Customers, Takes Delivery Of First ‘Stuffy’ Container / CMA CGM Launches Benin Cashew Nut Season

Morocco: EU Agricultural Agreements Still ValidSouth Africa: Retains US Duty-Free Access Through AGOA

Angola: Angola Focuses On Increasing Coffee ProductionCameroon: CICC Produces 2-Million Coffee PlantsEthiopia: 4th International Coffee ConferenceGhana: Ghana Sets Production Target At 100,000 MTKenya: Task Force Formed To Revive Coffee SectorTanzania: Crops’ Stabilization FundUganda: Government To Export 3.8 Million Bags Of Coffee

19 | Cotton & TextilesRegional: Support Urged For Small-Scale African Cotton Farmers / Cotton Prices Plummet / Textile & Apparel Firms Promote “Africa Advantage” At MAGICCameroon: SODECOTON Gets Syndicated Loan

07 | Cashew, Groundnut & SheaRegional: India Nearly Doubles Cashew Import Tax / Peanut Genome InitiativeBenin: Benin Sets Cashew Farmgate PriceBurkina Faso: Farm Gate Prices SkyrocketCote d’Ivoire: Low Cashew Stocks SeenGhana: Trade Ministry Withdraws Ban On Cashew Exportation / CIAG To Establish A Cashew Development Levy / GNPA To Unlock US$300 Million Cashew Industry / Cocoa Processing Company Resumes OperationsGuinea Bissau: 2016 Exports Expected To Reach 200,000 TonnesNigeria: Nigeria Launches Cashew Value Programme, Plants 3-Million SeedlingsSenegal: ITFC Supports Senegal Nut Industry

11 | CocoaRegional: ‘CHOCPEC’ An OPEC For Cocoa Could Be A Game Changer / Russia Attracting African CocoaCameroon: Exports Dropped In January To 21,564 Tons / Cocoa Exports Lead By TelcarCocoa / Australian Firm To Set Up Cocoa Processing Plant / CICC Hires 105 Farm Gate Quality InspectorsCote d’Ivoire: Exemption Of Droit Unique de Sortie [DUS] / Poor Bean Quality Reduces Purchases, Exports / Cote d’Ivoire Labels Its Cocoa ‘Chocolat Ivoire’ / Bean Exports Rose 6% In 2015 / Oct-Feb Cocoa Product Exports Down 7% / Cote d’Ivoire To Reserve More Cocoa For Local Grinders / Cote d’Ivoire Reviews Cocoa Tax, Commissions Study / Weather Lifts Prospects For Ivorian Mid-Crop / Farmer Price Unchanged For Cocoa Mid-CropGhana: Ghana On Course To Hit 850,000 Tons In 2016 / Ghana Imported 15,500T Of Cocoa From Cote d’Ivoire / Farmers To Receive 60 Million Seedlings

21 | FishAngola: Aquaculture Areas IdentifiedMauritania: AfDB Supports Fisheries Transparency InitiativeMauritius: Chinese Bank To Finance Fishing PortNamibia: Record Export Revenue For Fisheries

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Website: www.cma-cgm.comEmail: [email protected]: @CMA_CGM_Group

CMA CGM Marseille Head Offi ce4, Quai d’Arenc 13235 Marseille cedex 02 France

Tel : +33 (0)4 88 91 90 00

www.cma-cgm.com

Disclaimer of LiabilityThe CMA CGM Group make every effort to provide and maintain usable,

and timely information in this report. No responsibility is accepted for

the accuracy, completeness, or relevance to the user’s purpose, of the

information. Accordingly the CMA CGM Group denies any liability for any

direct, indirect or consequential loss or damage suffered by any person

as a result of relying on any published information. Conclusions drawn

from, or actions undertaken on the basis of, such data and information

are the sole responsibility of the reader.

THE AFRICAN COMMODITY REPORTBrought to you by CMA CGM Africa Marketing

Rachel Bennett Dominic Rawle

28 | Palm OilRegional: France’s Palm Oil Tax Moves CloserGhana: Sustainable Palm Oil Production Conference / Government Proposes Oil Palm Development Agency

29 | SugarKenya: Mumias Sugar Seeks US$19.7 Million Treasury BailoutRwanda: Production Drive Thwarted Over LandSouth Africa: South Africa To Introduce Sugar Tax / Sugar Harvest Smallest Since 1995Tanzania: Sh10 Billion For Plant Expansion / TPC Plans to Increase Sugar Production / Board Sets Maximum Sugar Price / Tanzania Seeks Sugar Curbs

32 | TeaRegional: Dubai Tea ForumBurundi: Output Rises 2.4% In 2016Kenya: Kenya To Promote Specialty Tea Varieties

33 | TimberRegional: EU Timber Regulation [EUTR] Undergoes First Review / Protecting West African RosewoodCentral/West Africa: Stable Demand For Timber / African & Malaysian Timbers Battle For Market Share / Stock ‘Top-Ups’ Dominate Buying TrendsCameroon: Success In North AmericaGabon: Accelerating Tertiary Processing In GabonGhana: EU Forest Governance Agreement / Sharp Drop In Sawnwood Contract Approvals / Plywood Dominates Exports To Regional MarketsMozambique: Portucel Increase Investment To US$3 Billion In Forestry Project

22 | Foodstuffs & BeveragesAngola/Nigeria: Clover Puts Plans For On HoldMorocco: Holmarcom Acquires 5-Agribusiness CompaniesSouth Africa: US Praises Trade Concessions On Meat ExportsTanzania: Poultry Producers Receive Boost

37 | TobaccoMalawi: Tobacco Marketing Season Opens April 11thZimbabwe: Tobacco Prices To Go Up / Tobacco Exports Reach US$208 Million Yet Farmers Abandon Crop / Tobacco Growers To Benefit From Levy

24 | Fruit & VegetablesAngola: Group Invests In Expansion Of Fruit Groves For Juice ProductionCameroon: Banana Exports Record FallGhana: World Bank Supports Vegetable ProductionMorocco: Already Exported 58% Of Tomato QuotaNigeria: Nigeria Invests In Tomato Processing / Dangote Opens Tomato FactorySouth Africa: Country Bird Group, Sovereign Foods Merger Dismissed / Challenging End To Stonefruit Season / Worst Drought To Cut Citrus Exports In 2016Zimbabwe: ZimTrade Undertake Banana Export Training / Zimbabwe To Fill Avocado Gap EU?

CMA CGM Senegal Offers New Solutions For Reefer Customers, Takes Delivery Of First ‘Stuffy’ Container CMA CGM Senegal has invested in its Reefer fleet by taking delivery of its first ‘stuffy’ container.

What is a stuffy container? A ‘stuffy’ container is a modified 40’ reefer container with openings on the roof, a door in the center and side openings to accommodate 4 reefer containers. It is usually used for tuna but can also be used for any type of bulk fish. Such sensitive goods have a flavour quality dependant on optimum freezing conditions.

How was reefer stuffing completed before the stuffy?Fishing boats unloaded frozen tuna with a crane [in a net] directly on a tarp spread on the ground. The stuffing of the reefer container was then done manually. This method could lead to thawing of the tuna in hot weather or rain.

What is the added value of the stuffy container? Thanks to the stuffy container [shown in orange], frozen tuna is directly loaded through the roof of the container [openings in black]. Tuna is then distributed in the 4 reefer containers adjacent to the stuffy [in orange] without loss of cold, nor having the risk of being thawed.

More reliable and faster than manual packing, stuffy packing allows to isolate goods from the outside elements, like extreme heat or rain. Locally units are positioned on the Dakar Fishing Wharf to enable quick loading of tuna without breaking the cold chain.

Did you know?CMA CGM offers an extensive range of Reefer containers ideal for transporting temperature sensitive cargo. Our classification for Reefer size type are as follows:

- 20RF: 20’ standard Reefer - 40RH: 40’ Reefer High Cube provides an extra foot in height compared with general-purpose containers. Ideal for

light, voluminous cargo or bulky cargo. - 40RP: 40’ Reefer High Cube Primeline offers energy efficiency while lowering emissions. - 40RA: 40’ Reefer High Cube Antilles grouping all our Starcool units providing low energy consumption while

maintaining accurate temperature control. - 40RC: 40’ Reefer High Cube Controlled Atmosphere. This type gathers all our Starcool Controlled Atmosphere units

also known as Starcare. These units are designed to slow down the respiration process of fresh commodities. - 40RZ: 40’ Reefer High Cube Superfreezer for ultra-low temperature transportation.

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COMMODITY NEWSCORPORATE

CMA CGM Targets Benin Cashew Nut SeasonOn March 10th Eric Neute, General Manager of CMA CGM Benin and his team gathered hundreds of CMA CGM customers to launch the local cashew nut campaign in Cotonou.

Accompanied by the Area Manager of Africa Lines at our Head Office in Marseilles, Antoine Grangier, took the opportunity to explain how CMA CGM can boost exports of cashew nuts thanks to a comprehensive range of services.

In 2015, the Group exported 4,800 TEUs of cashew nuts from Benin. Benin is the world’s 9th largest cashew nut producer and 3rd in Africa, with 8 of the 12 districts in the country growing this crop.

CMA CGM ServicesCMA CGM offers many years of experience and expertise in the shipment of cashew. With the opening of the season, our customers can benefit from comprehensive transport solutions as well as from our localized in-depth understanding of this market. As RCN is extremely sensitive to moisture we ensure shipments are protected at all times.

- Good availability of empty containers & food grade containers - Direct services with short transit times - Dressing material and dryer bags offered - Global network of experts with service providers that can manage the scale of RCN import shipments consistently

throughout the season.

For further information, rates and bookings please contact Antoine Grangier at [email protected]

Regional Production On The RiseThe main Raw Cashew Nuts [RCN] harvest started in mid-March in Central West Africa. In 2015 the region produced around 1,500,000 MT of Raw Cashew Nuts [RCN] or 45% of the global trade. Production is expected to increase by at least 200,000 MT this year 2016. This has placed cashew as the second main cash crop in West Africa in terms of export value behind cocoa and ahead of cotton, rubber, palm oil or banana.

Cashew cultivation is spread across the region, with 3 main producing areas: the Central area [Côte d’Ivoire, Ghana, Burkina Faso, Guinea, Mali and Togo], the Eastern Area [Nigeria and Benin], the Western area [Guinea Bissau, Senegal and The Gambia]. Regional RCN are mainly exported to India and Vietnam with some nuts destined for Brazil. With cashew kernel to North America/Canada, Europe, and the Middle East.

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MoroccoEU Agricultural Agreements Still ValidIt had been reported that Morocco was suspending contact with the EU following a ruling by the European Court of Justice on its agricultural agreement with the European bloc. However, the European Union’s Foreign Policy Chief has assured Morocco that its agricultural agreements with the bloc remain in force.

The EU Court ruled that the agricultural agreement which included the disputed territory of Western Sahara, was illegal. The former Spanish colony is controlled by Morocco but the separatist group Polisario has also laid claim to it. During a talks, the EU’s Foreign Policy Chief Federica Mogherini, indicated the EU would continue its dealings with the North African country in spite of the court’s ruling.

Outlining concerns, Morocco’s Foreign Affairs Minister, Salaheddine Mezouar reiterated that “the [EU] court’s decision is legally flawed and politically biased. It seriously affects the cooperation between Morocco and the European Union. It must be fixed.” Meanwhile Federica Mogherini, EU’s Foreign Policy Chief, in turn assured that: “The EU remains convinced that the agreements between Morocco and the European Union are not a violation of international law and as such an appeal has been filed, the agricultural agreement otherwise remains in force.”

[Africanews 07/03/16]

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COMMODITY NEWSGENERAL

South AfricaRetains US Duty-Free Access Through AGOASouth Africa will retain preferential access for its farming goods to the world’s biggest market after meeting benchmarks set by President Obama to allow the import and sale of US meat products.

Obama said in January the US would suspend South Africa’s preferential access for agricultural products under the African Growth and Opportunity Act if it failed to implement an agreement with the US on meat trade. The deal included that US bone-in chicken pieces can be sold in South Africa without anti-dumping duties.

South Africa has been under pressure to open its market to American meat in order to retain benefits under AGOA, as the act is known, which favours 39 African nations by eliminating import levies on more than 7,000 products ranging from textiles to manufactured items. The government published regulations in December allowing for an annual quota of 65,000 MT of poultry from the US. The first shipment arrived at the port of Durban on February 19, the USA Poultry & Egg Export Council said on February 29.

South Africa has met the benchmarks that we’ve set forth and they’ve taken the needed steps to make American poultry, pork and beef available to consumers in South Africa. The removal of these barriers could mean an additional US$160 million of exports from the US each year.

US Trade Representative Michael Froman

Shipments of farming goods worth US$154 million made up about 14% of South African exports to the US under AGOA in the first 9-months of 2015. The nation is the largest non-oil-exporting beneficiary under AGOA and the bulk of its shipments under the accord are vehicles and car parts. Losing AGOA access would have hurt the nation’s citrus, nut and wine industries.

[IOL 15/03/16]

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I have determined that suspending the application of duty-free treatment to certain goods is no longer necessary to promote compliance by South Africa with such requirements.

President Barack Obama

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RegionalIndia Nearly Doubles Cashew Import TaxIndian has increased its tax on imported cashew from 5% to 9.3%. The duty, which came into effect from 1 March, is the first time that raw cashews have been subjected to a duty tax. Many believe that the intention of the new duty is to eliminate small and medium processors who have started to make a mark in the cashew sector. The increase is expected to cripple their international export market where a majority of cashew is imported from Africa.

[Fresh Plaza 07/03/16]

Peanut Genome Initiative Scientists have cracked the genome of the protein and oil rich peanut, opening avenues for agriculture researchers to come out with better varieties. Led by the University of Georgia, America, a team at International Peanut Genome Initiative [IPGI] completed sequencing of the ancestral genomes of peanut/groundnut. The crop is grown in an extent of about 25.70 million ha, with an estimated production of 42 million tonnes. The move promises accelerated gene discovery and development of improved peanut with enhanced pod and oil yield, greater disease resistance, drought and heat tolerance and oil quality. The new peanut genome sequence will be available to researchers and plant breeders across the globe to aid in the breeding of more productive peanut varieties.

[Hindu Business Line 23/02/16]

BeninBenin Sets Cashew Farmgate PriceThe representatives of producers and processors met to protect local processors and a consensual farm gate price was set at 400 FCFA/kg [US$0.68/kg]. However, competition amongst exporters, as well as the delay in production, have pushed the prices far above this level and the farm gate prices are now between 650 and 750 FCFA/kg [US$1.1 -1.28/kg]. Although the crops have started to become more important, the fierce competition and high prices may continue during the month of April.

[Market Bulletin 29/03/16]

Burkina FasoFarm Gate Prices SkyrocketWhile crops are increasing, demand remains very strong and competition maintains extremely high prices.Farm gate prices have increased from between 300-400 FCFA/kg to 425-535 FCFA/kg [800 and 890 USD/MT]. Stakeholders are meeting to try to find ways to protect local processors of those high prices which threaten the local processing this year again.

[Cashew Market Bulletin 08/03/16]

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COMMODITY NEWSCASHEW, GROUNDNUT & SHEA

Cote d’IvoireLow Cashew Stocks Seen The cashew market is ongoing in the various production areas. However, the available stocks of RCN are still below the quantities needed by buyers. Some local and foreign buyers are concerned about not fulfilling their commitments this year with regards to the low stocks available and price volatility at this stage of the campaign. However, it should be noted that the level of loading arriving at the port this week is high compared to the previous week. Despite some rainfall in the production areas, the weather remains favourable for good drying of RCN. The quality of the nuts is still good and is around 48 lbs per bag.

The farm gate prices are between 500-525 FCFA/kg (US$0.85-0.9/kg). However, producers who organize grouped sales are able to negotiate up to 550 FCFA/kg (US$0.94/kg). The wholesale prices range between 525-575 FCFA/kg (900-980 USD/MT) according to zones and buyers. Port prices vary between 590 and 610 FCFA/kg (US$1,010-1,040MT) for pre-financed purchases and are between 615-625 FCFA/kg (US$1,050-1,070MT) for self-financed purchases.

[Cashew Market Bulletin 29/03/16]

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GhanaTrade Ministry Withdraws Ban On Cashew ExportationThe Ministry of Trade has withdrawn the ban on exportation of Raw Cashew Nut [RCN] in the country. This follows the massive public outcry that met an earlier directive.

It had stated that all traders and processors were allowed to purchase RCN during the main harvesting season from January to June but export of RCN was to be permitted only after 31st May onwards. Any RCN delivered to ports or borders of Ghana for export between 31st March and 31st May, 2016 would be confiscated by the State.

As much as 95% of Ghana’s total production of cashew nuts estimated at 68,000 MT is exported overseas in its raw form for processing. Processing of RCN into cashew kernels increased from 4,250MT in 2009 to 17,600MT but this has plummeted reaching a low 2,500MT in 2015. This implies that the industry is operating at just 5% of its installed processing capacity of 65,890MT.

Local processors are unable to obtain adequate supplies of raw materials for processing due to intensive competition with purchases from traders at the farm gate. This situation is stifling the Ministry’s objective of promoting value addition under the National Export Development Programme [NEDP] 2016-2020 which seeks to increase earnings from the Non-Traditional Export [NTE] sector.

[Ghanaweb 14/03/16 & Citifm 19/03/16]

CIAG To Establish A Cashew Development LevyThe Cashew Industry Association of Ghana [CIAG] has called on the Government to establish a cashew development levy to finance the industry and enable it to function effectively. The Association is of the view that the Government should allocate 2.5-5% of this new revenue to the cashew industry to be used to subsidize the production of seedlings in order to plant more and buy equipment for the processors. [Cashew Market Bulletin 08/03/16]

GNPA To Unlock US$300 Million Cashew IndustryThe GNPA Limited, formerly Ghana National Procurement Agency [GNPA], has requested regulatory powers to enable it to unlock the potentials in the cashew industry. The cashew business could bring in more than US$300 million in export revenues annually. GNPA as a cashew sector regulator would also help the business, raise production figures to appreciable levels and revive idling processing companies.

Annual output of cashew has stunted at 50,000T over the past 5-years, resulting in the collapse of 10 out of the 13 processors in the country within the period. The regulatory body should also be able to fix a price for cashew so that those buying will not be dictating prices to the farmers.

Recent estimates showed that 60 districts in the country are conducive for cashew production, although only districts in the Brong Ahafo Region are currently being utilised. In January, this year, stakeholders launched a policy initiative aimed at raising output from the current 50,000T to 150,000T over 10-years.

[Ghana Web 16/03/16]

Cocoa Processing Company Resumes OperationsThe Cocoa Processing Company [CPC] Limited is back in full operation after routine maintenance works on the 2-processing plants which were temporarily shut down in January this year.


A Temporary Withdrawal Of The Administrative Directive For The Exportation Of Raw Cashew Nut [RCN] “The Ministry of Trade and Industry wishes to temporarily withdraw the Administrative Directive for the Exportation of Raw Cashew Nut [RCN]. However, the Ministry is taking steps to ensure that the development of the cashew industry is accomplished through a comprehensive and inclusive process. The Ministry will widen its consultations with stakeholders in order to ensure that the cashew industry becomes competitive in a broad-based manner that would lead to job creation and the general well-being of all stakeholders.”

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COMMODITY NEWSCASHEW, GROUNDNUT & SHEA

Guinea Bissau2016 Exports Expected To Reach 200,000 TonnesGuinea Bissau’s GDP is expected to grow over 6% in 2016 on the prospects of a good campaign for export of cashew nuts – expected to export 200,000 tons this year. In 2015, over 170,000 tons of cashew nuts left Bissau port heading to India and China.

[Shanghai Daily 11/03/16]

NigeriaNigeria Launches Cashew Value Programme, Plants 3-Million Seedlings The National Cashew Association of Nigeria [NCAN], is to launch this year its Cashew Value Programme targeting the raise of the value of exports, promoting consumption both in the domestic and foreign markets and to build brands for the country’s cashew products. The scheme will run to 2020. It is aiming to produce 500,000T of the nuts. In another move, the Federal Ministry of Agriculture is to plant 3-million seedlings of improved cashew every year for the next 4-years. Chief Audu Ogbe disclosed this during the 2016 Cashew Festival and National Cashew Season in Ilorin,Kwara state as part of efforts to boost production as a foreign exchange earner.

[Leadership 02/03/16]

SenegalITFC Supports Senegal Nut IndustryThe International Islamic Trade Finance Corporation [ITFC] has signed a US$75 million financing agreement with the Government of Senegal, for the procurement and processing of peanuts. Under the terms Suneor, Senegal’s largest private peanut company, will act as executing agency, purchasing and processing over 150,000T of groundnut into oil and cake and exporting to international markets. This agreement will finance a significant part of the 2015/16 peanut campaign, with total output expected to reach 1 million tonnes following a good rainy season. ITFC previously provided US$30 million for the 2013/14 season.

[GTR 23/02/16]

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Regional‘CHOCPEC’ An OPEC For Cocoa Could Be A Game ChangerIn 2014 the global retail sales of chocolate confectionery was a staggering US$100 billion. Ivory Coast and Ghana are the world’s number one and two producers of cocoa beans, and together account for nearly 70% of the world’s cocoa production. But the two earned just over US$8 billion in cocoa exports. In the global value chain for chocolate, the value is skewed heavily in favour of processors, marketers and distributor: cocoa growers receive just 6% of the price that consumers pay for chocolate. And African-processed chocolate accounts for 2% of the global chocolate sales.

Ghanaian President Mahama, and his Ivorian counterpart President Ouattara, are proposing an “OPEC for chocolate”. The leaders are also looking to drive a rapid increase in investment of local processing of chocolate, so that their countries can reap a bigger chunk of the global chocolate trade.

Ghana currently processes 30% of its cocoa produce, mostly into cocoa butter, liquor and powder; it aims to raise this to least 50% by 2020. But the real game changer will be if Ghana and Cote d’Ivoire cooperate more seriously in manufacturing and processing chocolate.

Ghana and Côte d’Ivoire should become the chocolate hub of the world. We should have a joint development zone, and ensure that companies have the incentive to set up their processing operations here.

Ghanaian President Mahama

Last May, Cote d’Ivoire inaugurated the first industrial-scale chocolate factory, with an investment of US$6.7 million for a production capacity of 10,000T/yr.

The new factory will produce chocolate “made in Ivory Coast” for the first time on an industrial scale. ‘Brown gold’ accounts for 22% of its Gross Domestic Product [GDP] and more than half of its exports. In the long view, investing in cocoa and chocolate is expected to pay off handsomely as a global shortage looms by 2020.

[Mail Africa 23/03/16]

Russia Attracting African CocoaThe V Salon du Chocolat, an international exhibition recently held in Moscow focused exclusively on the cocoa industry. It was attended by more than 30 foreign countries including Cameroon, Cote d’Ivoire and Ghana. The event made a serious call on cocoa producing countries to increase export of cocoa and processed cocoa products to meet the growing demand in Russia.

[Ghanaweb 10/03/16]

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COMMODITY NEWSCOCOA

CameroonExports Dropped In January To 21,564 TonsThroughout January 2016, Cameroon exported 21,564Tof cocoa, according to statistics by the National Cocoa and Coffee Office [ONCC]. Exports have decreased by over 17,000T compared to December 2015, when the country’s exports peaked at 38,748T. This is the first time since October that monthly exports fell below 30,000T. The drop is because producers would rather build up stock whilst waiting for the price to pick up again. According to the Système d’information des filières [SIF], after skirting FCFA 1,600/kg during Q4 2015, the average farm gate price dropped to FCFA 1,300 since the beginning of 2016.

[Business in Cameroon 23/02/16]

Cocoa Exports Lead By TelcarCocoaAccording to the National Office of Cocoa and Coffee [ONCC] statistics TelcarCocoa, the trader for American Cargill, leads exporters of beans in the country. Telcar registered 47,851 MT of cocoa exported between October 2015 and January 2016, of which over 16,000 MT for the month of December alone. Telcar is followed by Singaporean Olam, which has exported 25,431 MT since October 2015, with a peak of 7,341 MT last December. With 14,445 MT exported to date, the company Ndongo Essomba, a Cameroonian operator, completes the trio of the largest exporters of beans since the start of the 2015-2016 cocoa season. The national production during this campaign is estimated at 210,000 MT, a decrease of around 20,000 MT compared to the 232,000 MT of the previous season. This decrease is due to a dormant period that occurs every 5-years.


Australian Firm To Set Up Cocoa Processing Plant The Australian Atlantic Group plans to build a cocoa bean processing unit in Kribi. A call for expression of interest was published March 14th inviting companies to bid for the implementation of this project initiated by Atlantic Cocoa Corporation [ACC], a local subsidiary of Atlantic Group. Setting up a processing unit is part of government objectives to process 50% of national production in the aim to retain a significant portion of added value. Average cocoa production is around 230,000T with 25% of its production processed, a volume Cameroon intends to double by 2020.

[APA 15/03/16]

CICC Hires 105 Farm Gate Quality InspectorsTo improve cocoa quality the Cocoa and Coffee Inter-professional Council [CICC] will train producers on farm gate quality control techniques, as part of its programme in Support of the Marketing Organisation [AOC]. Tan initial 105 inspectors from 8 producer cooperatives have been trained with 210 further inspectors to be trained during 2016, and 210 in following years. The goal is for every cooperative to have at least 2-inspectors to check the quality of the product in storage.


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Cote d’IvoireExemption Of Droit Unique de Sortie [DUS] The Ivorian government has made exempt the single exit fee [Droit Unique de Sortie [DUS]] on the export of coffee/cocoa processed or finished products. The move is by order of the Budget Minister under Article 16 of the 2016 Tax Annex.

[Ivorian Counseil 11/03/16]

Poor Bean Quality Reduces Purchases/ExportsPurchases and exports of Ivorian beans fell sharply as a lack of rain and strong winds continued to reduce the quality of the crop. Mills which process the beans reduced purchases by 70-80%, while traders said they bought up to 90% less, because the beans were too small and high in acidity. Last month the International Cocoa Organization [ICCO] noted Ivorian and Ghanaian cocoa mid-crops were expected to fall sharply this season due to dry weather and the impact of a severe Harmattan wind. Usually during the main October to March season there are between 90-105 beans/100g. At the moment it is more like 125, making export impossible. This month, the Coffee and Cocoa Council had a meeting with exporters about the degradation of beans but no solution has been found.

[Reuters 08/03/16]

Cote d’Ivoire Labels Its Cocoa ‘Chocolat Ivoire’European Union craftsmen working with Ivorian cocoa are to label their products ‘Chocolat Ivoire’. This initiative aims to enhance Ivorian cocoa whilst providing additional income to producers. The label is the result of a commitment made by the government and the French Syndicat du Chocolat.

[Ecofin 26/02/16]

Bean Exports Rose 6% In 2015Cote d’Ivoire’s 2015 bean exports reached 1,258,196 MT in 2015, up 6% from 1,190,626 MT the previous year. About 617,017 MT were shipped in 2015 from Abidjan, compared with 610,226 MT the previous year, while 2015 exports reached 641,179 MT from San Pedro port, compared with 580,400 MT in 2014. Cocoa product exports reached 427,835 last year up 1% on the previous year. About 247,715 MT of cocoa product were shipped in 2015 from Abidjan, compared with 261,125 MT in 2014, while exports reached 180,120 MT from San Pedro in 2015, compared with 162,886 MT the previous year.

[Reuters 02/03/16]

Oct-Feb Cocoa Product Exports Down 7%Exports of semi-finished cocoa products from Cote d’Ivoire dropped 7% to 179,998MT from October to February compared with the same period a year earlier. The cocoa season runs from October to September. Cote d’Ivoire has the capacity to process 706,000 MT/yr, up 50% since 2010, but in practice it only grinds 520,000 MT into finished and unfinished products.

[Business Recorder 24/03/16]

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COMMODITY NEWSCOCOA

Cote d’Ivoire To Reserve More Cocoa For Local GrindersPrime Minister, Daniel Kablan Duncan, announced Cote d’Ivoire will reserve a greater slice of its annual cocoa crop for grinding by local companies to increase the amount of cocoa they process to 50% by 2020 from around 33% now. The country is the world’s largest cocoa producer and its largest grinder with a capacity to process 706,000 MT p.a. up 50% since 2010, but in practice it only grinds 520,000 MT into finished and unfinished products. The plan would increase the value of Ivory Coast’s cocoa exports and in turn the revenue the government derives. The 12 grinders, of which the largest include Barry Callebaut, Cargill, Olam and ADM Cocoa, can process around a third of the country’s roughly 1.8 million MT in the 2014-2015 season. The government has decided to guarantee half of the mid-crop to grinders to cover 70% of their needs. As much as 60% of the crop may ultimately be accorded to grinders if they are able to transform half of the harvest.

[Reuters 25/02/16]

Cote d’Ivoire Reviews Cocoa Tax / Commissions StudyThe government has commissioned a study with industry to determine the best tax levels to guarantee competitiveness and it is set to report within 3-months. An initial study on the fiscal issues was not intensive enough to enable the government to make a decision.

A joint commission consisting of grinders’ representatives and the government will make recommendations. Already, the government has planned to reform taxes for grinders, which had previously benefited from a tax break of up to 100 CFA francs/kg [US$0.1682]. That tax break, which sellers had deemed too generous, was cancelled in 2011/12, and is believed to have made local grinders less competitive compared to rivals in Asia and Europe.

[Reuters 25/02/16]

Weather Lifts Prospects For Ivorian Mid-Crop Abundant rains and sunny spells helped growth in most of Ivory Coast’s main cocoa-growing regions, triggering new foliage that is expected to continue into next month and lead to increased output from June. The weather offers some relief after a long and fierce dry season, which has shrunk the April-to-September mid-crop.

[Reuters 21/03/16]

Farmer Price Unchanged For Cocoa Mid-CropCote d’Ivoire will keep the minimum price it sets for farmers unchanged at 1,000 CFA francs/kg [US$1.71] for the mid-crop harvest, which will open on April 1, government spokesman Bruno Kone announced. The price was applied from the start of the 2015/16 season on Oct. 1. The government has in some seasons reduced the price for the April-to-September mid-crop to reflect the lower value of its smaller beans.

[Agweek 23/03/16]

14

GhanaGhana On Course To Hit 850,000 Tons In 2016 Ghana is on course to achieve its production target of 850,000 MT of cocoa in 2016, the Ghana Cocoa Board [COCOBOD] has said. COCOBOD has put in place all necessary measures to ensure that the targeted production figures were achieved. The drop in production for the 2014/2015 crop year was as a result of a low tree production cycle which saw levels drop to 740,000 MT from a 900,000 MT in the previous year. The board has put in place soil fertility improvement methods through the distribution of free fertilizers to farmers, in addition to pesticide spray and other hi-tech agronomic practices last year.

[Coastweek 07/03/16]

Ghana Imported 15,500T Of Cocoa From Cote d’Ivoire According to Seth Terpker, Finance Minister, Ghana imported 15,500 MT of light crop cocoa beans from Cote d’Ivoire in the 2014/2015 crop year due to a shortfall due to smuggling, seasonal weather and pests. It is not the first time government has imported cocoa from Côte d’Ivoire – occurring both in 2005 and 2008. As such the Cocoa Processing Company [CPC] Limited temporally shut down 2-of its processing plants over lack of beans.


Farmers To Receive 60 Million SeedlingsGhanaian cocoa farmers are to benefit from 60 million cocoa free hybrid cocoa seedlings as part of measures to shore up the country’s cocoa production. Last year, COCOBOD distributed 50 million cocoa seedlings to farmers nationwide. Also under the Cocoa Health and Extension Division [CHED], free fertilizers will be distributed to farmers to increase yields.

[Business Day 15/03/16]

Daily Spot Price [ICCO]These are the average of the quotations of the nearest three active futures trading months on NYSE Liffe Futures and Options and ICE Futures US at the time of London close.

Date ICCO daily price (SDRs/tonne)

ICCO daily price (US$/tonne)

London futures (£ sterling/tonne)

New York futures (US$/tonne)

1 Mar 16 2160.92 2986.65 2183.67 2925.33

2 Mar 16 2175.63 3003.01 2179.33 2941.00

3 Mar 16 2177.88 3010.75 2169.33 2947.33

4 Mar 16 2201.34 3055.51 2196.33 2983.00

7 Mar 16 2209.10 3063.73 2197.00 2993.00

8 Mar 16 2177.08 3028.04 2177.67 2958.67

9 Mar 16 2215.44 3078.49 2205.67 3015.33

10 Mar 16 2246.10 3118.55 2221.67 3054.67

11 Mar 16 2236.89 3120.08 2208.33 3049.00

14 Mar 16 2251.40 3141.83 2238.33 3074.67

15 Mar 16 2231.98 3110.80 2242.33 3045.33

16 Mar 16 2226.60 3099.83 2244.00 3030.00

17 Mar 16 2259.94 3181.54 2241.67 3113.00

18 Mar 16 2260.28 3178.27 2238.00 3112.67

21 Mar 16 2227.34 3129.70 2220.33 3064.67

22 Mar 16 2207.28 3093.64 2218.67 3031.67

23 Mar 16 2166.00 3028.40 2199.00 2954.67

24 Mar 16 2174.50 3035.18 2190.00 2969.00

29 Mar 16 2175.19 3042.64 2177.33 2973.00

30 Mar 16 2165.38 3045.82 2163.67 2974.33

31 Mar 16 2146.01 3023.34 2152.67 2948.67

15

COMMODITY NEWSCOCOA

AngolaAngola Focuses On Increasing Coffee ProductionThe Angolan National Coffee Institute [INCA] has launched a programme to increase coffee production and exports, aiming to triple exports to 30,000T within 2-years. The programme, which is designed more to support existing producers than to promote the crop, includes the delivery of 250 million coffee seedlings and 1.5 billion palm seedlings. Coffee is currently produced in 10 of Angola’s 18 provinces, namely Cabinda, Bengo, Kwanza Norte, Kwanza Sul, Uíge, Benguela, Huambo, Bie, Malanje and Huíla, in an area of 18,000 ha, compared to 120,000 ha in the period before independence in 1975. In 2015 the coffee production structure comprised about 50,000 registered producers, of which 2% represented corporate farms in the provinces of Bengo, Kwanza Sul and Uíge.

In addition to increasing production, INCA is supporting sales programmes through direct purchase of coffee by private commercial agents and through rural markets in cooperation with the authorities. INCA’s medium-term plan includes programmes that cover the re-launch of coffee production in Angola, through the increase in cultivation areas, production of coffee seedlings, improving productivity and quality, as well as the participation of more producers. INCA expects to set up coffee husking units and washing factories in the production regions, as well as promoting the industrialisation and export of coffee with the installation of roasting and milling industries.

[Macauhub/AO 14/03/16]

16

COMMODITY NEWSCOFFEE

CameroonCICC Produces 2-Million Coffee Plants Confronted with the continued decrease in coffee production, the Conseil Interprofessionnel du Cacao et du Café [CICC - Cocoa and Coffee Board] is to revitalise the industry. Starting from 2016 its Emergency Stimulus Programme will target coffee production [Purc-café]. This new boost for Purc-café will help in providing the producers with a record cargo of 2 million coffee seedlings in 2017

Ethiopia4th International Coffee ConferenceThe 4th International Coffee Conference took place in Addis Ababa, Ethiopia, this month under the theme “Nurturing Coffee and Diversity.” The Conference attracted more than 1,000 international coffee producers, buyers, decision makers, private sector representatives and international agencies. In his opening remark, Prime Minister Hailemariam Desalegn, said Ethiopia will focus on coffee development and enhancing the marketing system. Coffee currently accounts for 25% of the total export earnings. Ethiopia has set a target of becoming the second largest coffee producing country over the next 5-7 years.

[APA 09/03/16]

GhanaGhana Sets Production Target At 100,000 MTIn a move to diversify Ghana’s sources of revenue, government intends to increase coffee production from the level of about 6,000 MT to 100,000 MT in the medium term. President Mahama noted his administration is promoting coffee cultivation in areas considered as marginal for cocoa production. Parts of the Volta, Eastern, Central and the transitional areas of Ashanti and Brong Ahafo Regions such as Techiman, Wenchi, Bechem, Nkoranza, Atebubu, Kwame Danso, Drobo, Akomadan, Offinso, Jamasi, Mampong-Ashanti, Kete Krachi, Dambai are being targeted for aggressive promotion of the cultivation of coffee.

In addition, he said the Cocoa Research Institute of Ghana has developed high-yield varieties of coffee that, under good management, start bearing in 2-3 years after planting, with average yields of 2- 3 MT/ha. With a projected planted area of 100,000 hectares over the next six years, it is estimated that from 2021, about 100,000 MT can be produced annually which will subsequently increase to about 200,000 MT over the next decade.

[Pulse 07/03/16]

17

COMMODITY NEWSCOFFEE

Kenya Task Force Formed To Revive Coffee Sector

President Kenyatta has set up a task force to investigate the continued losses in Kenya’s coffee industry. A 19-member National Task Force on Coffee Sub-Sector Reforms is to identify areas of production intervention in both the processing and marketing of coffee.

Exports earnings have declined from Sh50 billion in the 90s to Sh15 billion in 2015. This is attributed to low productivity and of 2kg per tree against a potential of 30kg. It will provide institutional, legislative and administrative systems and has been asked to review the financing of the coffee industry and payment to farmers, by reviewing the market position of Kenyan coffee both locally and globally. The task force will review the entire coffee value chain and identify areas requiring interventions such as production, processing, and marketing of coffee in order to enhance for famers.

The committee was formed after wrangles, theft and low prices. The committee is expected to come up with recommendations on how to make the cash crop profitable again. The task force consists of members from government and private sectors, as well as the Attorney General’s Office.

Meanwhile the government is yet to release Sh700 million to clear the Sh1.2 billion a debt waiver for farmers it pledged few years ago which Principal Secretary State Department of Cooperatives Ali Noor Ismail has assured farmers that it will be factored in the 2016/2017 financial year.

[Standard Digital 15/03/16 & Star 04/03/16]

TanzaniaCrops’ Stabilization Fund The government is finalising plans to establish a Crops’ Stabilization Fund [CSF]. Tanzania produces an average of 1- million bags of coffee per year and accounts for 20% of Tanzania’s foreign exchange earnings. Production is presently low because of lack of motivation to invest in inputs and improved crop husbandry.

[Daily News 18/03/16]

UgandaGovernment To Export 3.8 Million Bags Of CoffeeUganda expects to export more than 3-million bags of coffee this year despite the challenge of unpredictable weather pattern. It would be the highest volume of coffee from Uganda on the international market. The Uganda Coffee Development Authority [UCDA] noted last year, Uganda exported 3.3 million bags of coffee but this year it targets 3.8 million bags through good agronomic practices among others.

In the national coffee strategy, the plan for 2015/2016-2019/2020 indicates the potential to increase production. In 5-years, production could even go up to 6-million bags if the strategy is fully implemented. But in order to meet the target, the role of extension services and farmers’ organisations are pivotal.

[Monitor 02/03/16]

18

RegionalSupport Urged For Small-Scale African Cotton FarmersWest African governments, the EU and G7 countries are being urged to step up their policies in support of more sustainable textile supply chains, particularly in relation to cotton. In a position paper released earlier this month at the Paris Cotton Forum the Fair Trade Advocacy Office [FTAO] in cooperation with the Association of African Cotton Producers, pointed out that 10 million cotton farmers in West and Central Africa face an “unfair trading system” and “serious imbalances of power” in cotton supply chains.

Although state control has reduced and farmers participate more in the governance of the sector, the power of small farmers remains weak. Bottlenecks and gatekeepers between local actors and the market constitute a key obstacle to ensure a living income. At the same time, West Africa farmers are also negatively impacted by unfair trading distorting subsidies in various cotton-producing countries [e.g. US, EU, China] that result in abnormally-low prices paid to West African farmers.

Meanwhile the French NGO Max Havelaar France and the Association of African Cotton Producers [AProCa] organised the Cotton Forum in a bid to foster new opportunities for economic and institutional partnerships between Fair Trade cotton farmers, textile companies, financial organisations, as well as West African and European institutions.

[Just Style 21/03/16]

“

”RESOURCES - Fair Trade Advocacy Office [FTAO] - www.fairtrade-advocacy.org - Association of African Cotton Producers [AProCa] - www.aproca.net - Max Havelaar France - www.maxhavelaarfrance.org19

COMMODITY NEWSCOTTON & TEXTILES

Cotton Prices Plummet2016 is likely to be the worst cotton marketing season since the global financial crisis in 2008 in light of the subdued global prices of cotton lint. The cotton Number 2 contract is currently trading at 57,42c per pound of lint on the New York Futures market, down from 66c per pound a year ago. The sharpest reduction was experienced in the period between December 2015 and March this year, which saw the prices declining sharply from 64c/lb to 57,42c/lb or 13%. The lowest price was experienced in 2008 at the height of global financial crisis at 44c/lb.

In 2011, the cotton price was at its highest level in 25-years. Demand in the developing world was growing while bad weather devastated the cotton fields of China [#1] and Pakistan [#4]. The recent price collapse has largely been driven by weakening demand from China, the largest market for cotton. Weak import demand has led to China reducing its strategic stock reserve and actually exporting into the world market, thereby depressing prices.

What does all of this mean for the cotton farmer? The minimum price of cotton for the lowest grade has generally averaged about 30c/kg of seed. Farmers in major cotton producing countries such as the US, China and India all enjoy some price protection in the form of either guaranteed prices or lifeboat subsidies which kick in when world cotton pricing dips below agreed levels. The effect of these global subsidies is to artificially reduce world price of cotton by as much as 30% as a result of inefficient production occurring due to price subsidies.

The Doha round of WTO talks on agricultural subsidies has failed to resolve the issue of agricultural subsidies and it is likely that producers from developing nations, which do not get subsidies, will continue to suffer at the hands of richer nations. However, the effects of a price drop are likely to be alleviated as the Reserve Bank provided free inputs.

[The Herald 16/03/16]

Textile & Apparel Firms Promote “Africa Advantage” At MAGIC From 15-18th February dozens of African apparel manufacturers explained the multiple advantages of buying from Africa at the world’s largest apparel trade show. Sourcing at MAGIC in Las Vegas focused on the global supply chain, giving a platform for thousands of brands and retailers to source production directly from factories around the globe. This fair is a focal meeting point for more than 1100 companies coming from over 40 countries.

This year, the Africa Pavilion, supported by USAID, featured 40 companies from East, Southern and West Africa who produce a broad range of apparel and accessories, from standard knits and wovens to high-end fashion and specialty items. Under the Africa Advantage banner, these companies also offer duty-free savings of up to 35% under the U.S. African Growth and Opportunity Act [AGOA]. The tagline, “The Africa Advantage”, was woven through all materials created for the show as part of the unified marketing and outreach strategy developed by the USAID MSTAS project and the 3-Trade Hubs.

[WA Trade Hub 12/02/16]

CameroonSODECOTON Gets Syndicated LoanThe Cameroonian Cotton Development Firm [SODECOTON] has acquired for the 6th consecutive year a syndicated loan of CFA 30 billion from 5-local banks. This amount was out of an estimated CFA 75 billion required to cover the 2015-16 farming season. The loan, which could be increased to CFA 40 billion, now makes it compulsory for the company to apply other strategies to meet its obligations, not only with an estimated 225,000 producers, but also impact suppliers and others in the production chain.

Since 2010, SODECOTON, which was abandoned by its traditional donors, has been using other funding facilities to sort out liquidity problems usually attributed to export delays in its shipments.

SODECOTON, whose 2014-2015 production reached 295,000 tons, signifying an increase of 74,000 MT compared to the previous year, has for the past three years been conducting studies for the introduction of genetically modified seeds in the north of Cameroon, where it employs 11,000 people, with the ambition of increasing the production of fibre and seeds.

[Star Africa 28/02/16]

20

AngolaAquaculture Areas Identified The Institute of Artisanal Fisheries [IPA] notes that freshwater fish breeding pilots are underway in Mbanza Congo, Nzeto, Cuimba and Nóqui municipalities under the guidance of the National Aquaculture Directorate. Furthermore Soyo and Tomboco will follow. Initially 52 tanks have been prepared.

[Angop 24/02/16]

MauritaniaAfDB Supports Fisheries Transparency Initiative The African Development Bank [AfDB] played a key role in the First International Conference on the Fisheries Transparency Initiative [FiTI] in Nouakchott, Mauritania, on February 3rd on the invitation of the country’s President, Mohamed Ould Abdel Aziz. The event focused on 4-sessions devoted to global efforts for responsible fisheries, responsible fisheries through transparency and participation [multi-stakeholder panel], the way forward, and adoption of the conference’s declaration.

[AfDB 23/02/16]

MauritiusChinese Bank To Finance Fishing PortA high level delegation from the China Development Bank has made a trip to Mauritius as part of a financial assessment mission planned for the construction of a fishing port at Bain des Dames, near the Port-Louis.harbour. The proposal aims to establish a fully equipped port infrastructure, with the key to building a 700m quay. The port will have facilities for processing and storage of seafood.

[Shanghai Daily 01/03/16]

NamibiaRecord Export Revenue For FisheriesDespite a lower Total Allowable Catch [TAC], environmental conditions and strikes, Namibia’s fishing sector brought in a record N$10 billion in export revenue during the 2015/2016 financial year compared to N$7 billion in the previous year - amounting to an astonishing increase of 42%. The increase was attributed to improved catches with regard to sizes, favourable [US dollar and Euro] exchange rates [to the Namibia dollar], increased value addition, and better prices in some markets.

The TAC for various fish species was about 529,000T compared to 605,000T in the previous year a decrease of nearly 13%. As for the status of fish stocks, Esau said that most of Namibia’s commercially important fish stocks were showing signs of healthy recovery. Total investment stood at N$174 million including the acquisition of vessels and the construction of processing plants.

[Namibian 01/03/16]

21

COMMODITY NEWSFISH

Angola/NigeriaClover Puts Plans For On HoldDairy products and beverages group Clover is to shelve its US$6.43 million Nigerian expansion plans due to stringent import-regulation and foreign exchange controls that have made operating in Africa’s largest economy difficult. Plans to invest in Angola would also be put on hold until the situation in the African economies improved. Clover’s products are sold in 16 countries outside its base in South Africa, but it only owns distribution centres in Botswana, Lesotho, Swaziland and Namibia.

[BDLive 03/03/16]

22

COMMODITY NEWSFOODSTUFFS & BEVERAGES

MoroccoHolmarcom Acquires 5-Agribusiness CompaniesThe holding company owned by the Bensalah family and led by Mohamed Hassan Bensalah took control of 5-companies formerly owned by the investment company PGS Invest. All are to be combined under a holding company known as Dénia. These companies produce a wide range of snack products [chips and dried fruit] and ingredients for the food industry [fruit and dried vegetables, spices, herbs and essential oils], distributed in bulk or packaged under the brand Dénia, both on local and international markets.

[Telquel 02/03/16]

South AfricaUS Praises Trade Concessions On Meat Exports

The Office of the U.S. Trade Representative announced 2nd March that the South African government had lifted trade barriers on U.S. meat exports, and it indicated President Barack Obama was considering withdrawing a threat to take retaliatory measures over the former restrictions.

U.S. Trade Representative Michael Froman joined senators from the two top poultry producing states and the president of the National Chicken Council to announce that after 15-years of unwarranted trade barriers, U.S. poultry has arrived in South Africa. The group estimated U.S. poultry exports - which account for between 15-20% of the poultry produced in the U.S. could reach US$100 million annually as a result of South Africa’s new trade policy.

South Africa has also agreed to remove barriers to exports of U.S. pork and beef. The Office of the U.S. Trade Representative estimates pork exports to South Africa could reach US$40 million a year and beef US$17 million.

[Law360 02/03/16]

TanzaniaPoultry Producers Receive BoostThe Tanzanian poultry sector is the latest to get financial support from the United States, after a visit from the chairman of the United States Grains Council at the end of 2015. Poultry producers across Africa are looking for cost-effective ways of cutting their feed-stock prices, with experts and other consultants working in partnership with farmers in Tanzania. A feed-testing lab has been set-up and a poultry growers association developed.

[African Farming 24/02/16]

1. Fruideli - production of nuts and dried fruit, snacks.

2. Cosseco - fruit processing unit and pulses.

3. Taromed - essential oils, dried herbs.

4. CFS - industrial processing of cashew nuts.

5. SFM - industrial production, distribution of potato chips.

23

COMMODITY NEWSFOODSTUFFS & BEVERAGES

AngolaGroup Invests In Expansion Of Fruit Groves For Juice ProductionAngolan group Giasop this year plans to invest US$30 million in agro-farming projects and in the expansion of fruit groves to provide the raw material for its fruit juice production plant. Funds will be applied to the expansion of Fazenda Boa Fruta, a farm with 46ha in Porto Amboim, Kwanza Sul province. The factory has a daily production of 20,000 litres of juice.

[Macauhub/AO 11/03/16]

CameroonBanana Exports Record Fall The export of Cameroon’s dessert banana fell by 341T in January 2016, compared to the 26,366T January 2015, according to the country’s banana association Association Bananière du Cameroun [ASSOBACAM - www.assobacam.com]. The downward trend is expected to continue throughout 2016, according to the Cameroonian Development Corporation [CDC], one of the three largest local exporters having announced the shelving of its activity on the off-standard banana, generally intended for the local market and which could affect its total production.

Apart from CDC, ASSOBACAM consists of the Société des Plantations du Haut Penja [PHP] and the Société des Plantations de Mbanga’ [SPM], which together produced 267,502T of bananas in 2014, over half of which is intended for export. According to Ministry of Finance figures, bananas were the 9th export product or 1.5% of total exports in 2014. Production also increased by 7.3%.

[APA 08/03/16]

GhanaWorld Bank Supports Vegetable ProductionA West Africa Agriculture Productivity Programme [WAAPP], is being implemented through the Ministry of Food and Agriculture [MOFA] to support vegetable production. Beneficiaries would be provided with GHc 38,000 set up kits but would procure high yielding seedlings and fertilizers themselves. All would be trained in drip irrigation, soil treatment and farm management.

[Ghanaweb 07/03/16]

24

COMMODITY NEWSFRUIT & VEGETABLES

MoroccoAlready Exported 58% Of Tomato QuotaMorocco has already exported 58% of the tomatoes which it is authorised to ship this 2015/2016 season, according to the Horticultural Campaign Monitoring Bulletin, prepared by the Andalusian Council of Agriculture,. To date it has shipped 160,711T of tomatoes to the European Union [EU].

[fhalmeria.com]

NigeriaNigeria Invests In Tomato ProcessingNigeria is the world’s 13th largest producer of tomatoes and second in Africa, yet the country continues to spend over US$300 million annually on importing tomato concentrate. The domestic demand for tomatoes is 2.3 million tons whilst production is 1.8 million tons a year. Meanwhile the absence of a proper agricultural value chain system means that most of the tomatoes produced in the country are wasted due to post harvest loss, poor handling system, poor distribution channels and lack of easy access to markets.

To solve the situation, investors in Nigeria are now building new tomato plants that will process raw tomatoes into paste while some are taking over moribund plants. One such moribund plant is the Ikara Food Processing Plant in Kaduna which had been closed down for over 2-decades. It has now been resuscitated through a Public-Private Partnership [PPP] between the state government and Springfield Agro Ltd. Springfield has invested over N200 million and has sealed a pact with Growth and Employment in States: Wholesale and Retail sector [GEMS4] development programme to address production challenges and inefficiencies in the wholesale and retail market system.

GEMS4 links farmers and processing companies in a £17 million market development project funded by the World Bank and the U.K’s Department for International Development. Springfield has a production target of 2,500MT monthly.

[Fresh Plaza 17/03/16]

Dangote Opens Tomato Factory The Dangote Group, owned by Aliko Dangote, has opened a tomato-processing factory near Nigeria’s northern city of Kano aimed at vying for the local market with imports from China. The plant, that will produce 1,200MT/dy, was built following a 2011 Central Bank of Nigeria study that showed it was cheaper to process tomato paste locally than import from China, the source of about 300,000 MT a year worth US$360 million. Yet the country produces 1.5 million MT of tomatoes annually of which about 900,000 MT rot.

Dangote’s facility will produce more than 400,000 MT of paste annually, with most of its raw material coming from farmers in the Kadawa Valley in Kano state. Farmers will receive a guaranteed price of about US$700/T compared to an average of less than US$350 now.

[This Day 16/03/16]

25


South AfricaCountry Bird Group/Sovereign Foods Merger DismissedThe Competition Tribunal dismissed an application by Sovereign Foods regarding what it alleged to constitute a merger by its competitor Country Bird Group. Sovereign Foods is a producer of fresh and frozen chicken portions. Country Bird is a competitor and a direct and indirect shareholder of Sovereign. Country Bird has software specialist company Synapp as a majority shareholder.

[Engineering News 24/03/16]

Challenging End To Stonefruit SeasonThe South African plum season has been a challenging one due to the heat and drought, but prices have been above average with a solid demand for fruit throughout. Sizing has been smaller and harvesting earlier than previous years, a similar trend to grapes. A lot of South American fruit has been entering the market, especially Europe, in the last 2-weeks bringing prices down. The current heat and drought will have an influence on the coming citrus season with some areas more affected than others. Meanwhile lemons will start harvesting in week 7 and Star Ruby grapefruit in week 11.

[Fruitplaza 07/03/16]

Worst Drought To Cut Citrus Exports In 2016South Africa’s worst drought in a century will reduce the citrus harvest this year and result in smaller-sized oranges. Production of navel oranges and soft-citrus fruits have been impacted. A reduction in export volumes is expected. South Africa exported 1.77 million MT of citrus fruits last year. South Africa has applied to the U.S. Department of Agriculture to allow the sale of citrus products from all regions, not just the Northern and Western Cape provinces currently. Because of the impasse of African Growth and Opportunity Act [AGOA] the process has been pending for the past 10 months.

[Bloomberg 11/03/16]

Valencia Oranges Growers estimate the Valencia orange crop to be down by 12% from the record 52.7m cartons in 2015, to 46.4m in 2016. The areas of Letsitele, Senwes and Hoedspruit, which jointly produce almost 50% of all Valencia oranges from Southern Africa, have all highlighted the drought and hail damage as the major contributing factors to the reduction in volume. However, at the time of publishing, late rain has arrived in most of the Northern growing areas, which will have a positive effect on the crop, especially in regard to fruit size.

Navel Oranges The Navel orange crop is estimated to be up by just over 2% to 25.1m cartons. Although Senwes was badly affected by the drought and hail and expected to be down 14%, the Eastern Cape growing regions of Sundays River Valley and Patensie will be up by 7-9% respectively, with the Western Cape also expected to be up by as much as 14%.

Grapefruit Grapefruit exports are expected to reach 12.4m cartons [15kg], down by twenty-three percent from 2015’s record export. Drought in the Letsitele and Onderberg areas and severe hail damage in Hoedspruit are the major factors behind the drop in volume, exacerbated by the fact that 2016 was to be an “off” year anyway in terms of the production cycle. Although fruit size distribution will favour the smaller counts, Grapefruit growers have indicated that they will continue to support initiatives which aim to respect the demands of each of their markets in terms of timing, volume and specification.

Lemons Lemon exports from Southern Africa are expected to continue its growth trend, with an increase of seven percent estimated for 2016, translating into a total volume of 16.1m cartons. Most of the growth can be ascribed to new plantings coming into production, particularly in the Sundays River Valley and Senwes areas.

Soft Citrus With many new orchards coming into production in 2016 soft citrus growers are expecting their total exports to grow by twelve percent to 11.2m cartons. The season is predicted to offer good availability on the bigger sizes and excellent eating quality from all regions.

26

ZimbabweZimTrade Undertake Banana Export TrainingZimbabwe’s export promotion body ZimTrade, has conducted export awareness training to producers in Honde Valley to develop and enhance export skills, to unpack trade agreements and to explain regulations which govern the exportation of bananas. USAID research in 2014 established that Honde Valley has the capacity to produce 15,000 T of bananas per annum, worth US$4.5 million.

[News Day 26/02/16]

Zimbabwe To Fill Avocado Gap EU?Demand for avocados in the European Union [EU] market increased by 45% from US$760 million in 2011 to US$1.1 billion in 2014. The EU market accounts for a 33% of global imports of avocados, a market Zimbabwe is yet to fully explore. Zimbabwe’s exports of avocado have increased by 400% from US$177,000 in 2012 to US$710,000 in 2014, driven mainly by large scale avocado producers.

[AllAfrica 3/4/16]

27


RegionalFrance’s Palm Oil Tax Moves CloserFrance’s plans to impose an additional tax on palm oil used in food from 2017 moved a step closer as the National Assembly approved the levy. The levy will be introduced gradually with the tax starting at €30 in 2017 and rising by €20 per year to €90 euros in 2020, rather than start at a flat rate of €90. The new levy, which would add to an existing tax of €104/T, would be well below the upper house’s original proposal that started at €300. The levy, part of a wider biodiversity bill, still needs to be reviewed in the upper house, likely in May or June.

[Reuters 18/03/16]

GhanaSustainable Palm Oil Production ConferenceA 3-day Africa regional conference to discuss and agree on a shared framework for the responsible production of palm oil was held in Accra this month. Organised by Proforest, which is leading the Initiative on behalf of Tropical Forest Alliance [TFA] 2020, the workshop was held in collaboration with the Government through the Ministry of Food and Agriculture. The workshop, the first of its kind helped plan the regional initiative process leading towards signing a regional Accord at the Ministerial level on responsible palm oil production later in 2016. Six leading palm oil producing countries in Africa - Cameroon, Cote D’Ivoire, Gabon, Liberia, Nigeria and Ghana - are engaged in the Initiative.

[Business News 04/03/16]

Government Proposes Oil Palm Development AgencyThe Ghanaian Government has proposed the setting-up of an Oil Palm Development Agency to enable the country realise the needed investment and grow the oil palm sector. Development has slowed over the years; research shows that Africa presents a new opportunity for large-scale palm oil production and that a number of companies have established plantations; new investors are looking for the opportunity to expand their operations into this region to meet growing demand for the commodity.

[Ghanaweb 09/03/16]

28

COMMODITY NEWSPALM OIL

KenyaMumias Sugar Seeks US$19.7 Million Treasury BailoutKenyan sugar manufacturer Mumias Sugar is pursuing a government bailout of US$19.7 million as the company falls further into the red, after posting a pre-tax loss of US$22.23 million for H1 of its fiscal year. The heavily-indebted firm has been struggling with cash flow problems in recent years, forcing the government to step in with bailout funds and has hired a new chief executive, Errol Johnston, to drive its turnaround.

[The Star 23/02/16]

RwandaProduction Drive Thwarted Over LandLimited land for sugarcane growing, coupled with floods could hamper Rwanda’s sole sugar manufacturer’s drive to double production by 2018, making the country to continue spending on imported sugar. The Kabuye Sugar Works notes the factory needs at least 7,000 ha additional land to produce enough cane to boost production from the current 12,000 to 20,000 MT/p.a. According to Rwanda Development Board, 70% of Rwanda’s sugar is still imported, a supply mismatch that is projected to widen to 150,000 MT of sugar annually by 2020.

[The East African 12/03/16]

South AfricaSouth Africa To Introduce Sugar TaxFinance Minister Pravin Gordhan has revealed plans in his 2016 Budget to introduce a tax on sugar-sweetened beverages, similar to the taxes on alcohol and tobacco. The state intends to introduce the tax on 1 April 2017 in a bid to “help reduce excessive sugar intake”. No figures have been released.

[Mail & Guardian 24/02/16]

Sugar Harvest Smallest Since 1995South Africa is expected to harvest 1.63 million tonnes of sugar in the 2015/2016 season, the lowest since 1995 and down 22% on the previous period as a severe drought hits production.

The worst drought in a century has hurt sugar and maize producing regions, piling pressure on sugar producers who are also grappling with cheap imports, forcing some mills to remain closed and reducing jobs in the sector. In the 2014/15 season farmers reaped about 2.12 million tonnes of sugar.

The impact of the drought was already evident in results published in November by southern Africa’s top sugar producers Illovo Sugar and Tongaat Hulett, whose earnings were hit by weather conditions as well as low sugar prices. Tongaat estimated production for the current season to be as much as 23% lower than the prior year while Illovo forecast a 10% drop. There was enough sugar in the market to supply the home market, but sugar producers were reducing exports to avoid possible shortages.

[Eyewitness 25/02/16]

29

COMMODITY NEWSSUGAR

TanzaniaSh10 Billion For Plant ExpansionTPC Limited, the oldest sugar plant in the country, will spend Sh10 billion as part of its expansion plan. The move will meet local market demands and is in response to the recent government ban on uncontrolled importation of sugar. Currently, the plant located near Moshi municipality, produces 95,000 MT of sugar a year. After the expansion, annual production is expected to increase by 11% to 110,000 MT. The combined sugar production by all local factories stands at 320,000 MT while the demand is 420,000 MT.

[Citizen 06/03/16]

TPC Plans to Increase Sugar ProductionThe Tanganyika Planting Company [TPC] plans to expand its sugar production factory from 95,000T per season to 110,000T. The firm is set to spend more than 11bn/- on investment in machinery and expansion of farms by the end of May with production to start in July.

[Daily News 03/03/16]

Board Sets Maximum Sugar Price The government directed that sugar be sold at a fixed retail price of Sh1,800/kg countrywide. The Sugar Board of Tanzania [SBT] confirmed that the government had intervened and set a ceiling price a few weeks after President Magufuli imposed tight restrictions on sugar imports to protect local industries. SBT confirmed that there was adequate sugar stocks and warned traders against hoarding the commodity and creating an artificial shortage. Currently there is 12,000T of sugar in stock - enough to meet local demand up to June, this year.

The sugar industry has been mired in controversy in recent years, with local producers accusing importers and big suppliers of profiteering through cartels who were behind the spike in sugar prices that followed President Magufuli’s ban on imports.

Tanzania’s four main sugar factories, namely Mtibwa, Kilombero, Kagera and Tanganyika Planting Company, produce about 300,000 metric tonnes annually against the country’s demand of 420,000 tonnes. The shortfall of 120,000 tonnes is bridged by imports.

[Citizen 09/03/16]

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Tanzania Seeks Sugar CurbsTanzania wants to opt out of a Southern African Development Community [SADC] provision allowing for open access to member states’ sugar market. According to Henry Semwaza, Director General at Sugar Board of Tanzania many of the SADC countries, including Swaziland, Zambia and Malawi are surplus producers, and in the European market the concession has now ceased so they are looking to supply their sugar in our market.

The government is seeking an extended derogation from a SADC law permitting duty-free access of sugar markets among member countries in a bid raise domestic competitiveness and prevent dumping by larger producers after African export quotas to EU end in September 2017. Tanzania currently has derogation for 6-months but is looking for a 3-5 year extension to revamp production to compete.

Tanzania is a net importer of sugar sourcing as much as 290,000 tonnes of both domestic and industrial sugar annually from outside. An annual local output of 304,007 tonnes in 2014/15 is expected to increase to 328,416 tonnes in 2015/16 and hit 470,000 tonnes in 2019/20. Tanzania is expanding available capacity, encouraging medium processing plants of about 10,000T/yr and improving the business environment for investors. The government will likely slash withholding tax on agriculture to 10% from 30% this year as it seeks attract investment in the sugar sector. Cultivation currently occupies 60,000 ha with at least 18 new sugar projects are earmarked for commissioning in the next 5 years. Tanzania is trying to end illegal imports which distort the market and scare investors over the last 3-years.

[EA Business Week 12/03/16]

3% 24,000 2ndAverage demand for sugar in East African

region

Registered sugar growers

Tanzania second-largest consumer after Kenya

31

COMMODITY NEWSSUGAR

RegionalDubai Tea ForumThe 6th edition of the Global Dubai Tea Forum, hosted by Dubai Multi Commodities Centre [DMCC], will take place from 5-7th April 2016. The forum is expected to draw more than 300 delegates from over 30 tea producing and consuming countries, bringing together producers, merchant exporters, buyers, blenders, machine manufacturers, raw material suppliers and government entities to discuss opportunities and challenges in the industry.

[Gulf Today 14/03/16]

BurundiOutput Rises 2.4% In 2016Burundi tea output is expected to rise 2.4% in 2016 due to increasing use of fertilisers and expanding areas under production. The state-run tea board [OTB] said production of dry tea would reach 11,211 tonnes up from 10,952 tonnes in 2015. In 2015, revenue from the commodity jumped 52% to US$32.4 million compared with the previous year, boosted by a fall in output of regional rival Kenya. Burundi exports 80% of its tea through a regional weekly auction held in Mombasa, Kenya.

[Reuters 10/03/16]

KenyaKenya To Promote Specialty Tea VarietiesAs part of the Manufacturing Priority Agenda 2016 the Tea Directorate wants to increase industry earnings by encouraging farmers to embrace specialty tea varieties such as white, purple and orthodox tea which have a high value [an additional $1/kg]. Kenya will launch the Specialty Tea Manufacturing Guidelines in the next 2-months.

[News Ghana 07/03/16]

32

COMMODITY NEWSTEA

RegionalEU Timber Regulation [EUTR] Undergoes First ReviewThe European Commission released the results of the first review of the EU Timber Regulation [EUTR] on 19th February. The review covers the period from March 2013 to March 2015 and is based on Member States’ reports on the application of the EUTR, an open public consultation, targeted stakeholder surveys and an evaluation report produced by an external consultant. It analyses the EUTR for relevance, effectiveness, efficiency, coherence and EU added value. The overall conclusion of the analysis was that the EUTR “has the potential to achieve its objectives”. However, various shortcomings were identified as well, especially the slow pace of implementation in many member states and the unequal levels of enforcement and penalties.

[ITTO 16-29/02/16]

Protecting West African RosewoodThe Secretariat of the Convention on Trade in Endangered Species [CITES] officially has announced the listing of the West African rosewood species Pterocarpus erinaceus in Appendix III of the Convention, meaning that all international trade in the species will be subject to regulation. See: https://cites.org/sites/default/files/notif/E-Notif-2016-008.pdf

[ITTO 1-15/03/16]

EUTR Contributes To Raising Awareness Of Illegal LoggingOne of the primary achievements of the EUTR, according to the review, was its raising awareness of the problem of illegal logging and also creating an incentive for producer countries to develop systems to demonstrate compliance with EUTR requirements. Six producer countries have started implementing a bilateral agreement [Voluntary Partnership Agreement] with the EU in this context and nine other countries are negotiating similar agreements. Moreover, the EUTR is encouraging non-EU consumer countries – such as Australia, Japan and Korea - to adopt or consider similar regulatory measures. And other non-EU European countries, such as Norway, Iceland, and Lichtenstein, are currently implementing the EUTR as well. Within the EU, there is evidence that the EUTR “has encouraged more responsible sourcing policies and, therefore, demonstrated its potential to change operators’ market behaviour”. Communication campaigns carried out by both the Commission and member states played an important role in this context.

33

COMMODITY NEWSTIMBER

Central/West AfricaStable Demand For TimberLog and lumber prices are unchanged and this must be one of the longest periods of stable prices over the past 12-months. Modest purchases of logs for China continue and there is still ongoing business in sawnwood of selected, high value speciality species for the high end market. Current demand is however, far from the market recovery that producers anticipated late last year but the level of business is sufficient for producers to hold prices stable in hope of improved sales volumes in the second half of the year.

There are no signs of an improvement in demand for the Chinese market but neither has there been a sharp decline in orders. Analysts point out that the reality is that while financial markets are unstable the housing and construction sectors in many countries continue to advance. While the housing market in China remains under pressure homes continue to be built and this drives demand for wood products. The sheer size of the housing market in China and the importance of the construction sector for the economy suggests the current steady demand will continue.

Apart from China the Indian government has ambitious plans for its housing sector which will create opportunities for timber exports. For producers in West and Central Africa the overall market situation has not deteriorated and with firm demand in Europe prices are holding firm.

[ITTO 1-15/03/16]

African & Malaysian Timbers Battle For Market ShareWest and Central African producers say they will continue to hold down production to match the low global demand and will concentrate on the steady business with importers in the EU. The main battle for market share is in the Middle East countries where African producers face tough competition from Malaysian exporters who are making an all-out effort to win a larger share of the market in the region. The other market where the battle rages is South Africa. Importers there tend to favour meranti over okoume but, in the current economic climate in South Africa, price is an all deciding factor.

[ITTO 16-29/02/16]

Stock ‘Top-Ups’ Dominate Buying TrendsAs previously reported, there is some demand from buyers for the Chinese market for logs of specific species such as belli and okan however, the volumes being sought are small. Interest in okoume has not revived and prices are still under downward pressure. For the period reported there have been some minor price increases for logs and sawnwood. Business with China remains quiet as importers and merchants are more concerned with reducing existing log and sawnwood stocks to levels proportionate to the level of trade anticipated for the first half of the year. For the time being most buying is for small volumes for stock ‘top up’ of selected species with no signs of mainstream bulk purchases.

[ITTO 16-29/02/16]

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CameroonSuccess In North AmericaCameroon has been successful in building regular trade for sawnwood with the USA and at least one other producer in the region has begun marketing some high priced specialty species into US. Exporters say the US import regulations and procedures are possibly more stringent than the EUTR but the market potential is very large. Canada imports very little tropical timber but the market in Canada offers potential.

[ITTO 16-29/02/16]

GabonAccelerating Tertiary Processing In GabonMarkets in the Middle East countries continue to be active and very price conscious. There is a steady demand for the lower grades of sawnwood but good business for high quality panel products and joinery quality and decorative species. It has been learnt that proposals to accelerate tertiary level processing, kiln drying and eventual manufacture of components and furniture parts are being discussed in Gabon. Also mentioned are ideas on stimulating greater regional trade in wood products. Such a major step forward in processing could be underpinned by incentives such as tax relief on advanced processing equipment and it would be necessary to raise the level of training to create a more highly skilled workforce. This will take time and but could be implemented in cooperation with industry.

[15/03/16]

35

COMMODITY NEWSTIMBER

GhanaEU Forest Governance AgreementFLEGT is part of efforts by the EU to fight illegal logging and associated trade on its markets by timber supplying countries, including Ghana. It is also forms part of the Voluntary Partnership Agreement [VPA] signed between Ghana and the EU in 2009 to address the problem of illegal logging and trade in associated timber products.

A 1-day seminar aimed at journalists was held on the enforcement and governance for sustainable forest management [CiSoPFLEG] initiated by the Friends of the Earth-Ghana [FOE], an environmental NGO. The long-term objective of the 3-year CiSoPFLEG program is to improve forest governance for sustainable forest management in West and Central Africa through collaboration.

[Xinhua 04/03/16]

Sharp Drop In Sawnwood Contract ApprovalsIn Q4 2015 the Timber Industry Development Division [TIDD] processed and approved export shipment contracts covering 120,642 cu.m. This was an almost 30% decline on the 172,124 cu.m approved for shipment in Q3. Secondary wood products [mainly sawnwood] topped the list of approved contracts in Q4 followed by primary products and tertiary products.

Primary product shipment comprised mainly teak roundwood and Q4 shipments at 13,525 cu.m were 93% higher than in Q3 2015. In Q4 there was a sharp drop in shipments of secondary products. This fall in approved contract volumes was mainly due to a big drop in contracts for sawnwood. However, export contracts for sliced veneer improved [+42%] to 5,090 cu.m compared to Q3. Export contract volume approvals for shipment of tertiary products fell by 33% in Q4 and this was put down to the difficulty mills had in securing sawnwood for further processing rather than weak demand.

[ITTO 16-29/02/16]

Plywood Dominates Exports To Regional MarketsWest African regional markets continued to be the major outlet for Ghana’s plywood. Out of the total volume of 19, 563 cu.m of plywood contracts approved, 98% in terms of volume were for exports to regional markets. Most contracts for tertiary products, including sliced veneer and kiln dried sawnwood, were for European markets while shipments of air dry sawnwood, especially sawn rosewood and sawnwood of other high density species such as apa, ekki and denya, were for the Chinese market.

The United States market continued as the major destination for mahogany and cedrella sawnwood as well as for rotary veneer. Markets in the Middle East and Egypt emerged as a major destinations for backing grade veneer. India continued to be the sole market for teak and gmelina roundwood and sawnwood.

[ITTO 16-29/02/16]

MozambiquePortucel Increase Investment To US$3 Billion In Forestry ProjectPortugal’s pulp and paper company Portucel has increased its forecast investment in a major forestry project in Mozambique to US$3 billion from US$2.5 billion. The firm hopes to plant 40,000 ha of eucalyptus in the central provinces of Manica and Zambezia. This revision in investment, has been made due to the technological advances in production equipment since the project was first designed. The progress has allowed an increase in the potential output and the company is expected to take advantage of the same. Production capacity could be increase by 50%.

[African Farming 04/02/16]

36

MalawiTobacco Marketing Season Opens April 11th The Malawi tobacco marketing season will be officially opened on April 11, starting with Lilongwe Auction Floors, Tobacco Control Commission [TCC], the country’s tobacco regulator has announced. Preparations are at an advanced stage in all 3-major markets of the country. Bales of tobacco leaf have started arriving from different parts of the country waiting to be auctioned in these markets. The opening of Lilongwe floors will be followed by Limbe Auction Floors in the commercial city of Blantyre scheduled to open on April 13 while the Mzuzu Auction Floors will open on April 18. Meanwhile, first round of tobacco estimates shows that the country has produced 211 million kilograms of the leaf against a buyer’s requirement of 151 million kilogram.

[APA 15/03/16]37

COMMODITY NEWSTOBACCO

ZimbabweTobacco Prices To Go UpGlobal tobacco production is expected to drop by around 100 million kg, a development that will result in local prices going up during this marketing season. The 2016 tobacco marketing season will open on March 30, while contract sales will start the following day. Commercial tobacco crops are facing production challenges including shortening of growing periods caused by late rains, unpredictable rainfall patterns, mid-season drought and premature ends of rains.

[Herald 05/03/16]

Tobacco Exports Reach US$208 Million Yet Farmers Abandon CropZimbabwe has earned US$208 million from 32 million kilogrammes of flue-cured tobacco exported in the past 2-months, the Tobacco Industry and Marketing Board [TIMB] has said. TIMB statistics show that exports increased by 9% from US$203 million in the corresponding period last year to US$209 million this season. The country exported 29 million kg last year. China has remained the major buyer of Zimbabwean tobacco while South Africa has topped the buyers’ list in Africa.

China 20 million kg $163 million

South Africa 4.1 million kg $13 million

Belgium 1.6 million kg $8 million

Indonesia 1.3 million kg $7.4 million

Russia 1.1 million kg $3.5 million

United Arab Emirates 1 million kg $2.7 million

About 18,000 farmers abandoned tobacco growing this season due to drought and unfavourable prices offered at the auction floors last season. Tobacco registrations have dropped 20% this season with 71,510 growers registering this year compared to 89 581 during the corresponding period last year.

The 2015/16 season has been characterised by drought which affected the dry land crop. The season started late and most farmers delayed planting. Some of the crop was also affected by dry weather conditions and yields are expected to be low. Stakeholders in the tobacco industry are optimistic that prices will be firm this season due to the decline in production. TIMB notes there may be higher demand for the crop considering that some of the competing countries did not have a big crop this season.

TIMB will this season switch from the conventional auction system to the new automated system to reduce issues of side marketing and illegal sales.

[Herald 07/03/16]

Tobacco Growers To Benefit From LevyGrowers are expected to start accessing the US$7 million levy that was collected by the Tobacco Industry and Marketing Board [TIMB] last season. The 1.5% levy which had been scrapped in 2005, to encourage farmers to grow the crop was re-introduced by Government last year, since production of the crop had increased and was threatening the environment. The money will be used to assist tobacco farmers in growing gum trees and accessing alternatives to firewood. Farmers have been waiting for the fund since the close of the selling season last year. TIMB is finalising on a detailed proposal that would be sent to the Ministry of Finance and Economic Development. This season TIMB will continue with the collection of the levy at the reduced rate of 0.75%.

[The Herald 14/03/16]

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com-watch - issue 59 - april 2016 · cma cgm targets cashew nut season full story on page 4 africa...

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