copal cocoa info - alliance of cocoa producing …. 518.doc · web view0copal cocoa info a weekly...

INSIDE THIS ISSE: ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES

MARKET UPDATE NEW YORK (ICE) FUTURES

MARKET UPDATE FROM THE NEWS MEDIA

0COPAL COCOA0COPAL COCOA InfoInfo A Weekly Newsletter of Cocoa Producers' Alliance

Health and Nutrition Quality control helps Ghana's fine cocoa producers

go global

Production and Quality Expert warns cocoa producing states to expect

failure without reliable data Cocoa: West African countries produce 70 percent

of world Cocoa Four biggest cocoa producers are all in West

Africa Nigeria’s cocoa output seen falling 20% on

disease, flood

The Market Chocolate rush hits record as cocoa shortages loom Cocoa shortage boosts prices on record demand

Labour Issues

Environmental Issue Cocoa industry stakeholders asked to pay

attention to climate change

Research & Development Cargill's leading sustainable cocoa program

boosts profits for Ivorian cocoa farmers

Promotion & Consumption

Others Cocoa—a return to the throne?

Do your health a favour, drink Cocoa everyday

‘It’s nature’s miracle food’UP-COMING EVENTSUP-COMING EVENTS IN THISIN THIS

Issue No. 518 12th – 16th November 2012

Heavy rains, poor quality hit Cameroon cocoa price

NY cocoa to test resistance at $2,505

Processing and Manufacturing

Business & Economy

In the News (from Newspapers worldwide)

ICCO Daily Cocoa PricesICCO Daily Price

(SDR/tonne)ICCO Daily Price

($US/tonne)London futures

(£/tonne)New York futures

($US/tonne)

12th November 1583.74 2417.12 1546.67 2381.00

13h November 1585.77 2420.73 1551.33 2378.33

14th November 1634.69 2494.91 1595.3 2462.33

15th November 1649.55 2515.45 1607.33 2482.00

16th November 1601.19 2439.9 1559.33 2407.00

Average 1611.00 2458.00 1572.00 2422.00

International Financial Futures and Options Exchange (LIFFE)London Futures Market – Summary of Trading Activities

(£ per tone)

Monday 12th November 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1532 1545 5 1548S 1526S 3,695Mar 2013 1530 1545 7 1549 1523S 6,721May 2013 1536 1550 6 1552S 1528 970Jul 2013 1543 1557 5 1560S 1540 366

Sep 2013 1550 1564 6 1567S 1546 318Dec 2013 1540 1547 9 1550S 1537S 137Mar 2014 1530 1546 9 1543 1530 60May 2014 1550 9 0Jul 2014 1550 9 0

Sep 2014 1555 9 0Average/Totals 1551 12,267

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684

Email: [email protected] Website: www.copal-cpa.org2

http://www.nybot.com/reports/dmrs/etsDMRs/dmrFutures.asp?dmrMonth=04&dmrDay=11&dmrYear=2007&commodityID=1&commodityType=future

mailto:[email protected]


Tuesday 13th November 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1538 1553 8 1561S 1536S 2,425Mar 2013 1537 1549 4 1558S 1536 3,547May 2013 1542 1552 2 1564S 1540S 1,289Jul 2013 1549 1558 1 1569S 1549S 625

Sep 2013 1555 1564 0 1575S 1555S 420Dec 2013 1540 1547 0 1558S 1540 157Mar 2014 1550 1546 0 1555S 1550S 40May 2014 1548 -2 0Jul 2014 1551 1 0


Wednesday 14th November 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1551 1597 44 1610 1551S 6,184Mar 2013 1546 1592 43 1600 1546 13,215May 2013 1557 1597 45 1601S 1557S 2,881Jul 2013 1565 1602 44 1605 1563S 1,197

Sep 2013 1564 1608 44 1614S 1564 1,024Dec 2013 1551 1588 41 1591S 1551S 1,587Mar 2014 1552 1584 38 1590S 1552S 1,916May 2014 1577 1584 36 1587 1570S 313Jul 2014 1585 1591 40 1596 1585S 800

Sep 2014 1600 1596 40 1602S 1600 57Average/Totals 1594 29,174

Thursday 15th November 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1604 1604 7 1612S 1590 2,831Mar 2013 1592 1602 10 1610 1584S 8,040May 2013 1597 1607 10 1615S 1589S 3,096Jul 2013 1602 1613 11 1620S 1594S 1,106

Sep 2013 1608 1618 10 1623S 1599S 331Dec 2013 1584 1600 12 1602S 1584S 2,183Mar 2014 1585 1598 14 1602S 1579S 635May 2014 1596 12 0Jul 2014 1601 1606 15 1611S 1588S 127


Friday 16th November 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1598 1556 -48 1598 1550 4,893Mar 2013 1601 1553 -49 1601 1542 9,906May 2013 1601 1559 -48 1601S 1552 1,661Jul 2013 1611 1566 -47 1611 1561S 920

Sep 2013 1615 1573 -45 1617 1570 764Dec 2013 1581 1555 -45 1587S 1543 740Mar 2014 1587 1553 -45 1587S 1543S 633May 2014 1591 1556 -40 1591 1547S 13










Jul 2014 1594 1561 -45 1594S 1594S 5Sep 2014 1565 -45 0

Average/Totals 1560 19,535

Average for the week 1560 3552 3552









New York Board of Trade(New York Futures Market – Summary of Trading Activities)

(US$ per tone)

Monday 12th November 2012 Month Open Price Change High Low Volume

Dec 2012 2358 2381 23 2414 2331 18,572Mar 2013 2359 2375 16 2380 2328 26,649May 2013 2364 2382 16 2386 2336 3,332Jul 2013 2365 2393 14 2396 2348 1,783

Sep 2013 2372 2402 16 2405 2355 1,133Dec 2013 2377 2408 18 2415 2360 961Mar 2014 2381 2413 19 2416 2364 166May 2014 2373 2420 18 2409 2373 89Jul 2014 0 2425 19 0 0 2

Sep 2014 0 2434 19 0 0 2Average/Totals 2403 52689

Tuesday 13th November 2012 Month Open Price Change High Low Volume

Dec 2012 2381 2395 14 2405 2370 9,029Mar 2013 2369 2387 12 2398 2356 18,348May 2013 2383 2392 10 2402 2364 3,821Jul 2013 2394 2402 9 2413 2384 1,418

Sep 2013 2412 2406 4 2419 2390 955Dec 2013 2416 2414 6 2426 2405 121Mar 2014 2423 2420 7 2423 2411 507May 2014 0 2427 7 0 0 0Jul 2014 0 2432 7 0 0 0


Wednesday 14th November 2012 Month Open Price Change High Low Volume

Dec 2012 2378 2468 73 2486 2378 15,327Mar 2013 2383 2457 70 2469 2371 27,805May 2013 2382 2462 70 2474 2377 4,918Jul 2013 2406 2469 67 2480 2406 1,650

Sep 2013 2437 2473 67 2484 2430 7,210Dec 2013 2440 2476 62 2485 2440 579Mar 2014 2426 2480 60 2489 2424 1,015May 2014 2464 2486 59 2486 2464 157Jul 2014 2483 2491 59 2485 2482 21


ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX, TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-

9814-1736; FAX: +234-1-290-4262 Email: [email protected] Website: www.copal-cpa.org

5

http://www.copal-cpa.org/








Thursday 15th November 2012 Month Open Price Change High Low Volume

Dec 2012 2468 2502 34 2521 2456 2,301Mar 2013 2450 2483 26 2488 2441 14,232May 2013 2450 2488 26 2493 2450 2,078Jul 2013 2462 2493 24 2497 2458 1,173

Sep 2013 2470 2496 23 2500 2464 1,130Dec 2013 2490 2496 20 2502 2467 508Mar 2014 2476 2503 23 2508 2473 1,339May 2014 2495 2507 21 2510 2483 18Jul 2014 2497 2510 19 2512 2479 127


Friday 16th November 2012 Month Open Price Change High Low Volume

Dec 2012 2510 2457 -45 2510 2446 259Mar 2013 2465 2398 -85 2480 2384 19,119May 2013 2471 2406 -82 2485 2391 3,576Jul 2013 2485 2412 -81 2485 2399 3,030

Sep 2013 2484 2415 -81 2484 2413 437Dec 2013 2471 2417 -79 2471 2405 396Mar 2014 2450 2423 -80 2450 2417 161May 2014 2425 2428 -79 2426 2425 71Jul 2014 0 2430 -80 0 0 0

Sep 2014 0 2436 -80 0 0 0Average/Totals 2422 27049

Average for the week 2422 4918 4918



6










News

Quality control helps Ghana's fine cocoa producers go globalThe GuardianFriday 16 November 2012

Ghana cocoa

The luxury chocolate industry is proving a potential life-changer for Ghanaian small-scale fine cocoa farmers. Photograph: PA

Fine chocolate is known for its delicate flavour notes, fancy packaging and a hefty price tag. It is less well known as a route out of poverty, yet the market for high quality, fine flavour cocoa has become a potential

life-changer for small-scale cocoa farmers in developing countries such as Ecuador, Papua New Guinea, Nicaragua and, most recently, Ghana.

For decades large-scale farms have dominated the demanding but lucrative market for fine cocoa. Larger plantations are more likely to have the systems and resources to maintain the genetic and physical integrity of the cocoa, thus fetching the highest prices on the world market and leaving it largely out of the reach of poorer small-scale producers.

Fine cocoa makes up just 5% of the world's cocoa production, but there has been a recent upsurge in interest in high quality chocolate from both consumers and the chocolate industry. This interest has reinvigorated efforts to research and breed cocoa varieties that offer a triple win: productivity, disease resistance and unique flavours.

Research within the New Business Models for Sustainable Trade project sought to position Ghana's smallholder farmers to benefit from this rapidly-growing high quality cocoa market and was a collaboration of the Sustainable Food Laboratory, Catholic Relief Services, Rainforest Alliance, IIED and The International Center for Tropical Agriculture. One of the four business models it proposed was connecting small farmers directly to chocolate manufacturers.

Ghana is a leading producer of the standard bulk cocoa used in mass-market chocolate bars but it lacks the unique flavours associated with luxury brands. Although this market cannot support the vast number of small-scale cocoa farmers in Ghana it does allow a few to enter a higher value market that puts greater demands and risks on production but has the potential for much greater rewards.

The Ghana Fine Flavour Cocoa project builds on the national and international expertise of the Cocoa Research Institute of Ghana and others including The Hershey Company.

Hershey applied their expertise from countries such as Peru, Nicaragua and the Dominican Republic to evaluate product samples and provide strategic advice to farmer organisations in Ghana so that they could enter this new, higher value market. This is part of a trend in which chocolate companies are recognising that efforts to grow unique varieties and knowledge about quality can increase the overall quality of cocoa worldwide. Since then, other companies have joined the effort to form an industry research council including Mars, Guittard Chocolate and San-Francisco based Tcho Chocolate.

To fully take advantage of the opportunity that the New Business Model initiative offers, farmers must receive training on grafting, cultivation methods, post-harvest and trading. Quality control is essential for success; when



7

NEWS

Health and Nutrition



manufacturers purchase this type of bean they expect pristine and consistent flavour, aroma, and physical quality.

Companies often struggle to source consistent quality fine flavour cocoa from smallholders that lack a centralised quality control system. But fortunately, Ghana's competitive advantage lies in its best-in-class system of quality control, through Ghana's Cocoa Board, which grades and tracks cocoa from village level to the point of export.

Efforts to support sustainable farming for smallholders must consider various different routes for creating value for farms and reinvigorating rural youth to see agriculture as part of a promising future. Growing international acclaim for farmers who invest in quality is helping this effort, as seen in the Cocoa of Excellence annual event, held at the Salon du Chocolat in Paris every autumn. This event accepts entries of high quality cocoa from growing regions and farmers worldwide, grades them and presents awards to the winners.

Small-scale producers from Ghana can now compete on the global stage with the luxury chocolate heavyweights of Venezuela and Ecuador – which is quite something.

Stephanie Daniels is programme manager, agriculture and development, for the Sustainable Food Lab , and co-author of Fine Flavour cocoa in Ghana: Reaching high value markets

Expert warns cocoa producing states to expect failure without reliable dataBy Nkechi NaecheNovember 12, 2012

Cocoa pods and Cocoa beans

WorldStage Newsonline-- States regarded as cocoa producers have been warned that no meaningful cocoa business can be done without reliable statistics.

The Executive Director of Cocoa Research Institute of Nigeria (CRIN), Professor Malachy Akoroda, made the plea at the weekend in Ibadan, Oyo state during the Cocoa Transformation Agenda Implementation Plan in which the 2012 progress report was presented for deliberation and the 2013 implementation plan was designed.

Akoroda wondered how any meaningful cocoa business can be done without statistics as a basis. “Not every local government in every state will produce cocoa. We have information from Geographic Information System (GIS) telling us the local government areas that can produce cocoa in Nigeria. We are told that 22 states are potentially capable and can produce cocoa but 14 states have traditionally been producing,” he stressed.

"It is not just any fertiliser that is suitable for cocoa soil enrichment,” making clarification on cocoa fertiliser, the professor indicated that the NPK formula is 5-12-17, while Calcium and Magnesium are added at ratio of 4 to 2.

“If nutrient contents are used as basis of calculation, farmers will record gains after use,” saying, getting the equation right was very important.

The professor praised Ondo State that took an initiative on cocoa statistics, adding that, “without any reliable cocoa statistics, you can’t do anything.”

According to him, “states don’t have to wait for the Federal Government for everything. Your governments must help cocoa farmers in your states. What the Federal Government is doing should be a bonus, after doing your own.



8

Production & Quality



“If a farmer does not keep record, the Growth Enhancement Support (GES) will not profit him. If tree crop unit officers don’t understand the details of GES, it will be a failure. Farmers need to keep record if they want to take cocoa as a business. Once I see a farmer with no record, I don’t discuss further. There is nothing to discuss.”

According to Akoroda, the Federal Government “is working on rehabilitation of cocoa farms and has sent four Nigerians to train in Indonesia on rehabilitation of old cocoa farms. The trainees will in turn train Nigerians on best practices they have learnt. The training will be in CRIN on February 2013.”

He said there are early fruiting, early maturing varieties of cocoa that can be planted to replace the old, ageing cocoa trees.“What is the use of eight varieties of cocoa sitting in CRIN without getting to the farmers?” he asked.

“After research, there must be development, using the result; otherwise it will be a waste of time. States need to transfer the technology to farmers. States without reliable data should go back and get their figures right

“so we can make preparation to serve the farmers.”

He said emphatically that “any state that does not know the number of people they want to serve is not serious.” He drew attention to the need to plan for provision of pods and seedlings, stating, however, that, rather than wait for too long, the government officials should “turn (their) pods to seedlings to avoid wastage.”

He also alluded to the use of grafting, for old farms. The executive director warned farmers not to buy fake cocoa chemicals, stating that the process of selecting agrochemicals is scientific, rigorous and has standards. “Do not let anybody tell you that without a process of science we can go to any manufacturer and tell him that this chemical is good, we want to buy it.”

He stressed that CRIN is mandated to decide on the choice of chemicals. The professor explained that there are three varieties of improved cocoa seedlings: F1 Amazon, TC 1 – 8, WACRI and all are good depending on agro-ecology. He said CRIN took a contract to distribute 1,200,000 pods (divided into yearly phases), starting this year with 95,000 pods to be delivered. “We have a table on how to deliver those pods. We should be working with numbers: when, where, what, who, why, the number of cocoa pods to be given to Mr. Blue Shirt on, so and so date, and so forth,” he explained.

He concluded that “CRIN is a government institution. You don’t need permit to come to CRIN. The Federal Government is ready to pay us when they see evidence of supply.”

Cocoa: West African countries produce 70 percent of world CocoaAfrique en Ligue-Nov 15, 2012Economy - International Cocoa Council (ICCO), on Wednesday said that four West African countries, Nigeria, Cote d'Ivoire, Ghana and Cameroon, produce more than 70 per cent of cocoa used in the world. This is contained in the IICO Press Guide made available to the News Agency of Nigeria (NAN) in Abidjan,

It stated that the sector generates about 13 billion dollars annually, while the end product of cocoa, chocolate attracts a turnover of 105 billion dollars.

According to the press guide, Ghana and Cote d'Ivoire constitute 60 per cent world production of cocoa, out of the 50 countries that cultivate the commodity.

The IICO said that Cote d'Ivoire will be hosting the first World Cocoa Conference from Nov. 19 to 23. It said that the conference would focus on providing solutions to some of the challenges of the world trade in cocoa.

It said that President Alassane Ouattara was scheduled to open the ceremony on Nov. 20, after an exhibition on Nov. 19. The conference, tagged: "Unifying for a Durable World Cocoa Economy" will be held at Hotel Ivoire in Abidjan.



9



NAN reports that Cote d'Ivoire is proposing hosting the international headquarters of cocoa producers following its position as the largest world producer. Cocoa is the mainstay of Cote d'Ivoire, contributing more than 40 per cent to its GDP.

Some expected participants in the conference include Thierry Tanoh, the Director General of the Ecobank Group and Richard Houghton, the President of the International Cocoa Council.

Four biggest cocoa producers are all in West AfricaCitifmonlineNov 17, 2012 Nigeria, Cote d’Ivorie, Ghana and Cameroon together produce 70 percent of the world’s cocoa product generating about $13 billion annually, while the end product of cocoa, chocolate, has a turnover of $105 billion.

The biggest two producers in West Africa are Ghana and Cote d’Ivoire, who are accountable for 60 percent of the world production of cocoa out of a total of 50 countries which grow it.The London-based International Cocoa Council has revealed the statistics.

The council was established in 1973 and put into the effect the first International Cocoa Agreement which was negotiated in Geneva at a United National International Cocoa Conference. Since then there have been seven agreements.

Latest price figures for cocoa as recorded by the ICCO in September show the daily price averaged at US$ 2,620 per tonne, up by US $108 compared to the average price recorded in the previous month.

A sharp rise in cocoa prices initiated at the end of the previous month continued during the latter part of the first week of September with quotations hitting an eleven month high in London at £1,730 per tonne and a ten-month record in New York at US$2,686 per tonne.

IICO president Alassane Quattara is to officially open the conference called Unifying For A Durable World Cocoa Economy at the Hotel Ivoire in Abidjan on November 20.

Cote d'Ivoire is proposing hosting the international headquarters of cocoa producers following its position as the largest world producer. Cocoa is the mainstay of Cote d'Ivoire, contributing more than 40 per cent to its GDP.Some expected participants in the conference include Thierry Tanoh, the Director General of the Ecobank Group and Richard Houghton, the President of the International Cocoa Council.

Nigeria’s cocoa output seen falling 20% on disease, floodBloombergBy Vincent Nwanma2012-11-16Cocoa output in Nigeria, the world’s fourth-biggest producer, is forecast to fall at least 20 percent due to disease and floods stemming from heavy rains this year, the country’s main industry group said.

“The weather changes caused considerable damage to our projected production,” Sayina Riman, president of the Cocoa Association of Nigeria, said by phone yesterday from the southwestern cocoa-trading town of Akure. There is a “high incidence of black pod disease,” he said, adding some farms were lost to landslide in Cross River state, the country’s second-biggest cocoa producing region. Black pod is a fungal disease that thrives in wet conditions.

Cocoa production is expected to be 200,000 metric tons in 2012-13. That compares with 250,000 tons the year earlier and a September forecast of 300,000 tons, according to the association, which represents farmers, traders and processors.

Nigeria, Africa’s most populous country of more than 160 million, faced its worst flooding in decades this year after its two biggest rivers, the Niger and the Benue, overflowed their banks as dams let out water following a



10



year of heavy rains. Farms, homes and roads were washed away and at least 363 people were killed and about 2 million people were displaced by floods from July to October, according to the country’s emergency agency.The cocoa association is distributing pods of new cocoa varieties to farmers to help replant affected farms, Riman said. Nigeria introduced eight varieties of cocoa last year, which can produce 1 to 2 tons of cocoa from each hectare (2.47 acres), compared with the current yield of 0.45 ton a hectare, according to the Cocoa Research Institute of Nigeria based in the southwest city of Ibadan.Main Producers

Nigeria lags behind Ivory Coast, Ghana and Indonesia as a cocoa producer, according to the London-based International Cocoa Organization’s website.

Nigeria’s cocoa year is divided into two harvests, with the main one beginning in October and ending in January, while the smaller crop usually begins in March and ends in June.

Cocoa for March delivery fell 1.1 percent to 1,584 pounds ($2,513) a ton on NYSE Liffe by 12:30 p.m. in London. Cocoa for March delivery was down 1.2 percent at $2,455 a ton on ICE futures in New York.

Chocolate rush hits record as cocoa shortages loomBusinessweekBy Isis Almeida on November 13, 2012

Cocoa grinders are increasing output by the most in two years to meet record demand for chocolate, at a time when declining West African supply means the first shortages of beans in three seasons.

Processing will jump 4.9 percent in the season that began Oct. 1, according to Bethlehem, Pennsylvania-based Commodities Risk Analysis LC, which has tracked the market for 17 years. Chocolate sales will climb 5.7 percent to $108 billion, London- based Euromonitor International Ltd. estimates.

Prices will rise as much as 7.5 percent to 1,665 pounds ($2,645) a metric ton in the first half of 2013 in London, according to the mean of 17 analyst estimates compiled by Bloomberg.

Beans yield powder, used in cookies and ice cream, and butter, which accounts for about 20 percent of a chocolate bar. Grinders curbed output this year after powder demand fell and they used stockpiled butter to supply candy makers. Reserves are running out just as chocolate buying accelerates and as harvests in the biggest cocoa growers are crimped by dry weather. Processing will likely expand, according to Barry Callebaut AG, which supplies chocolate to Nestle SA and Hershey Co. (HSY)

“Cocoa is a good buy at the moment,” said Shawn Hackett, the president of Hackett Financial Advisors Inc. in Boynton Beach, Florida, whose prediction in February for a rally was followed by a 15 percent rebound in three months. “When cocoa powder demand comes back in the first half of next year, the upside rebound in cocoa bean demand will be much greater than it has been in the past.”Oilseed Prices

While futures have climbed 12 percent to 1,549 pounds a ton on NYSE Liffe since the start of January, they are poised for the lowest annual average in four years. Hackett expects a gain of as much as 40 percent in the first half of 2013 from now, he said on Nov. 7. The last time prices rose more than 40 percent in the first half was in 2008.

The Standard & Poor’s GSCI Agricultural Index of eight commodities advanced 8.3 percent this year as drought from the U.S. to Europe to Australia drove grain and oilseed prices higher. The MSCI All-Country World Index of equities climbed 7.9 percent and Treasuries returned 2.7 percent, a Bank of America Corp. index shows.



11

The Market



Rising chocolate demand will boost profit for Barry Callebaut, which also supplies Unilever, the maker of Magnum ice cream. Zurich-based Barry Callebaut predicted average sales volume growth of 6 percent to 8 percent in the next four years, Juergen Steinemann, chief executive officer, said in a media presentation on Nov. 7. That’s above the long-term average growth of 2 percent to 3 percent for global chocolate sales.

Combined Ratio

Grinders’ profitability is determined by the prices of powder and butter divided by the cost of beans, the so-called combined ratio. That rose to 3.13 on Nov. 9, from as low as 2.76 in May, Commodities Risk Analysis data show.

Cocoa demand will exceed production by 101,000 tons this season, Macquarie Group Ltd. estimated in September. Rabobank International predicts a 122,000-ton shortfall. Global output will drop 2.9 percent to 3.85 million tons, led by smaller harvests in Ivory Coast, Ghana, Indonesia and Nigeria, Macquarie says. The four nations produce 74 percent of the world’s beans.

The shortages will be among the topics analyzed by the International Cocoa Organization at its first-ever summit in Abidjan, Ivory Coast, on Nov. 19. The London-based ICCO, which has 41 consuming and producing member nations, is expecting 1,000 people to attend, according to Jean-Marc Anga, the executive director of the ICCO and a native Ivorian.

Emerging Markets

The supply deficit may worsen as accelerating growth in emerging markets spurs demand. Advanced economies will grow 1.5 percent next year as developing nations expand 5.6 percent, the International Monetary Fund predicts. That’s reflected in Euromonitor’s forecasts for a 5.2 percent gain in Asia-Pacific chocolate demand by volume, 4.6 percent in Latin America, 1.3 percent in Western Europe and little change in North America.

Economies are also the biggest threat to the predicted gain in prices. Grindings fell 6.5 percent in 2008-2009, the biggest decline since at least 1960, as the global economy endured its worst recession since World War II, ICCO data show. Retail sales of chocolate contracted 1.3 percent, led by a 5.6 percent drop in North America, according to Euromonitor. Western Europe accounts for 32 percent of global chocolate demand, followed by North America at 20 percent, according to adviser KPMG LLP.

Cocoa shortage boosts prices on record demandAdvisorOneBy Marlene Y. SatterNovember 13, 2012

West African supply down for first time in three years as grinders increase output

Chocolate lovers, beware–there’s a shortage afoot, the first in three years. And although cocoa grinders are boosting their output, when lack of supply meets inexorable demand, the only thing that’s going to give is price.

Bloomberg reported Tuesday that cocoa beans yield both powder and butter, the former used in such products as cookies and ice cream and the latter in those tempting chocolate bars. As global economic woes led to a fall in demand for the luscious product’s powder earlier in the year, grinders cut back output and used reserves of butter to fill supply orders for candy makers.

Now, however, a perfect storm of lower yields among cocoa bean growers in West Africa thanks to dry weather and rising demand, and depleted reserves, prices are on the rise even as grinders seek to up their output. Barry Callebaut AG, which supplies chocolate to Nestle and Hershey Co., said in the report that processing was likely to increase.



12



“Cocoa is a good buy at the moment,” said Shawn Hackett in the report. Hackett, president of Hackett Financial Advisors Inc. in Boynton Beach, Fla., had predicted back in February that there would be a rally; over the next three months there was a 15% increase. “When cocoa powder demand comes back in the first half of next year,” Hackett continued, “the upside rebound in cocoa bean demand will be much greater than it has been in the past.”

Cocoa futures have risen 11% on NYSE Liffe since the start of January, but are still expected to return the lowest annual average in four years. The report cited Hackett saying last week that he expects a gain of as much as 40% over present prices in the first half of 2013. Prices haven’t risen more than 40% in the first half of the year since 2008.

In September, Macquarie Group Ltd. predicted that cocoa demand would exceed production by 101,000 tons this season. According to Rabobank, the ratio is even larger, with demand coming in at 122,000 tons more than production. Global output, says Macquarie, will fall 2.9% to 3.85 million tons, with smaller yields from the four countries that produce 74% of the world’s supply of cocoa beans: Ghana, Indonesia, Ivory Coast and Nigeria.

Heavy rains, poor quality hit Cameroon cocoa priceChicago TribuneBy Tansa Musa November 15, 2012YAOUNDE (Reuters) - Cocoa farmgate prices in Cameroon's main growing regions slipped by as much as 19 percent in November as heavy rains lowered bean quality and damaged roads hindering access to trading centers, buyers said on Thursday.

Weeks of showers in the world's fifth largest grower also provoked an outbreak of fungal black pod disease, creating further woes for farmers after 2011/12 output reached 220,000 tonnes, falling well short of a projected 250,000 tonnes.

In the main trading centre of Kumba, in the South West Region of the country, prices dropped to 950 CFA francs ($1.84)per kg, from 1,150-1,160 CFA the previous month.

"Buyers are no longer coming from the economic capital because the quantity of beans on the market has been reduced," said Joseph Nde, manager of the Cameroon Marketing Commodities (CAMACO), a major exporting firm based in Kumba.

"Moreover, persistent heavy rainfall has further deteriorated the bad state of most of the earth roads in this region," he said.

Similar poor weather was seen in the South, Centre, and East Regions, where regular heavy showers and a lack of sunshine had hindered the proper drying of cocoa beans.

"As there are few beans on the market now, the number of buyers has therefore gone down with the few who show up dictating the prices," said Moise Edou, a farmer from Sangmelima in the South Region.

South-West and Centre regions are the main cocoa growing regions in Cameroon, with each accounting for 40 percent of national output, while the South and East regions account for the remaining 15 and 5 percent respectively.

The cocoa season in the Central African country runs from August 1 to July 31, with main crop harvest from October to January/February and the mid crop from April to June/July.

NY cocoa to test resistance at $2,505Business Recorder (blogBy Asad Naeem15 November 2012

cocoa beans



13



SINGAPORE: New York December cocoa is expected to test a resistance at $2,505 per tonne, a break above which will lead to a further gain to $2,577.

The resistance is at the 100 percent Fibonacci projection level of an upward wave c, which is the third wave of an irregular flat. This wave may eventually travel to $2,621, its 161.8 percent projection level.

Retracement from the current level will be limited to $2,430, a support provided by the trendline descending from the Sept. 6 high of $2,707.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Cocoa industry stakeholders asked to pay attention to climate changeGhana News Agency12th November 2012

Accra, Nov. 6, GNA – Stakeholders in the cocoa industry have been asked to pay attention to climate change, which is leading to high temperature, to ensure the sustainability of industry and livelihoods.

Professor Kwadwo Asenso-Okyere, former Vice Chancellor of the University of Ghana, who made the call, said climatic changes might impact negatively on morphological, physiological and biochemical properties of cocoa plants and beans.

For instance, in cocoa regions of Ghana temperature is predicted to rise by 2.4 degrees Celsius by 2050 with changes in precipitation being trivial. “It is predicted that suitability of cocoa production within current cocoa growing areas will decrease by 2050, while it may increase at higher elevations,” he told the opening session of the National Cocoa Stakeholders Conference in Accra on Tuesday.

The two-day stakeholders’ conference will discuss the issue of sustainable cocoa economy, cocoa certification and its benefits and environmental governance.

Prof Asenso-Okyere said it is important that Ghana develop crop simulation models to estimate crop sensitivities to current and future trends in growing regions. He said to counteract the effects of climate variability and extreme weather events, farmers should embrace adaptations strategies, such as screening,



14

Business & Economy

Labour Issues

Processing & Manufacturing

Environmental Issues



breeding and evaluation of drought tolerant genotypes and introduction of irrigation in Ghanaian cocoa production.

Prof Asenso-Okyere said because of scarcity of water, the irrigation system should incorporate water conservation practices that allow water harvesting and ground water recharge. “Drought contingency planning, drought preparedness and impact assistance policies should be put in place as part of public policy facilitated by an early warning system,” he said. He stressed that index-based weather insurance could help in assessing crop failures and provide disaster payments to farmers.

Besides, as part of climate change mitigation, research and extension should identify and develop eco-friendly technologies for reduced Green House Gas emissions during the cocoa chain period from production to consumption. Prof Asenso-Okyere said Ghanaian farmers should also enjoy the benefit from the Clean Development Mechanism by providing monetary returns to farmers for the eco-services rendered by cocoa cropping through the sale of certified emission reduction credits.

Cargill's leading sustainable cocoa program boosts profits for Ivorian cocoa farmersSacramento BeeBy CargillNov. 13, 2012

26,500 Ivorian farmers across 43 certified cooperatives receive Cargill's sustainable cocoa premium totaling U.S. $7.6 million, - Over 60,000 Ivorian farmers are now part of Cargill's sustainable cocoa program, - Cocoa communities benefit through enhanc

ABIDJAN, Cote d'Ivoire, Nov. 13, 2012/PRNewswire/ -- Cargill's sustainable cocoa program has helped Ivorian farmers have another profitable year by increasing yields, improving bean quality and boosting their incomes. During the 2011/12 crop year, approximately 26,500 Ivorian farmers across 43 UTZ and Rainforest Alliance certified cooperatives have received Cargill's sustainable cocoa premiums payments totaling U.S. $7.6 million – the highest ever pay-out for farmers in the region.

Cargill's annual premium payments recognize farmers for their efforts to increase yields and improve the quality of the beans, such as decreasing moisture and mold content – this helps to continue to raise the quality of Ivorian cocoa beans. This year's premium has raised farmers' direct revenues by 17 percent on average. Cargill's customers who buy certified cocoa and chocolate ingredients contribute directly to these premium payments. As such, over the last three years, Cargill's premium payments to Ivorian farmers have totaled more than U.S. $12.2 million.

These premiums were presented to farmers and cooperatives at an event in Cote d'Ivoire on 24th October. The ceremony was attended by the President of the Conseil Cafe Cacao and over 500 farmers from all of the cooperatives that are participating in Cargill's sustainability program – making this one of the largest gatherings for the Ivorian cocoa farming community this year.

Speaking on behalf of the ECASO cooperative, farmer Yao N'Dri Pascal explains what benefits he and his cooperative have seen since participating in Cargill's sustainable cocoa program: "By participating in Cargill's farmer training, I was given the unique opportunity to learn how to best manage and maintain my cocoa farm. Thanks to this training, I have been able to reduce the number of incidences of black pod disease while using fewer pesticides – creating high quality cocoa beans and a healthier rejuvenated farm."

Pascal continues, "Certification premiums have helped boost my income and also supported community projects led by the cooperative. Thanks to the payments, ECASO's management has financed the building of a new school with three classrooms, the renovation of another three schools in our communities, and the construction of a shop in Soubre that offers farm equipment and materials."



15

Research & Development



Since the introduction of Cargill's sustainable cocoa program in Cote d'Ivoire, the company has continued to scale up the amount of certified cocoa it has available to the market and is now sourcing nearly 20 percent of its annual cocoa supply as certified sustainable cocoa.

Cargill is continuing to invest over U.S. $3 million a year in financing, training and support to the Ivorian cocoa community to maintain and strengthen the sustainable cocoa supply chain. Its sustainable cocoa program also supports communities with education and health programs. As result of Cargill's sustainability program 87 cooperatives have been certified and another 25 are starting the program, which is now reaching over 60,000 Ivorian farmers. Cargill is on target to source over 100,000 tonnes of certified sustainable cocoa beans from Cote d'Ivoire by 2015 – making its program the largest of its kind in the country.

Jos De Loor, President for Cargill Cocoa and Chocolate says; "We are proud to recognize the efforts made by the Ivorian cooperatives, farmers and the cocoa growing communities towards creating this sustainable supply chain for cocoa. As the 60,000 farmers complete their training, we expect that all the participating cooperatives will achieve independent certification by the end of 2013. As a result of this, volumes of certified cocoa available to our customers will continue to increase, enabling Cargill to help our customers meet the demand for sustainable cocoa products."

Due to the success of Cargill's sustainable cocoa program in Cote d'Ivoire, Cargill has expanded its farmer training activities to Ghana, Cameroon, Brazil, Vietnam and recently Indonesia.

Notes for editors: Cargill Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, the privately held company employs 142,000 people in 65 countries. Cargill helps customers succeed through collaboration and innovation, and is committed to sharing its global knowledge and experience to help meet economic, environmental and social challenges wherever it does business.

For more information, visit http://www.cargill.com.

About Cargill Cocoa & Chocolate Cargill Cocoa & Chocolate offers the food industry a wide range of both standard and customized cocoa and chocolate ingredients to be used in delicious bakery, confectionery, and dairy applications all over the world. Our product range includes high quality Gerkens® cocoa powders, chocolate including Wilbur®, Peter's® and Veliche®, coatings, fillings, cocoa liquors and cocoa butters. With years of experience in technical food expertise Cargill supports its customers in new recipes and new product development.

Our facilities in Belgium, Brazil, Canada, Cote d'Ivoire, France, Germany, Ghana, the Netherlands, UK and the USA are fully dedicated to produce in accordance with the highest food safety standards.

To secure a good quality and sustainable supply of cocoa beans we have our own cocoa bean sourcing operations for buying, handling and/or exporting of cocoa beans in Brazil, Cameroon, Cote d'Ivoire, Indonesia and Vietnam. Presence in all the leading producing countries allows Cargill to oversee the supply chain from beans at origin to cocoa and chocolate products on our customers' doorstep. In addition, extensive market research and analysis proves to be a source of valuable information to our customers.http://www.cargill.com/news

Cocoa—a return to the throne?Trinidad Guardian



16

Promotion & Consumption

Others



By: Wesley GibbingsNovember 15, 2012

Some of the varieties of local cocoa on show at Fete de la Cocoa. PHOTOS: WESLEY GIBBINGS

The late and legendary American cartoonist, Charles M Shultz, is famously quoted as saying: “All you need is love. But a little chocolate now and then doesn’t hurt.” Today, cocoa industry stakeholders—from researchers to farmers to

entrepreneurs—all suggest that more than a little love is required to stage a comeback on behalf of one of the greatest agricultural, but now endangered, assets the country has ever possessed. Back in the 1940s and 50s, Trinidad and Tobago produced upwards of 35,000 tonnes of cocoa annually. In 2012, total yields may struggle to reach 800 tonnes of prime Trinitario beans. The world’s largest producer, Ivory Coast, has already sold 1.1 million tonnes this year. According to cocoa breeder/researcher, Michel Bocarra, the high-priced commodity offers an opportunity to diversify agricultural output both at the level of primary production and value-added outputs. At the recent Fete De La Cocoa event staged by the Cocoa Research Unit (CRU) of the University of the West Indies, Bocarra, as if to prove the point, peddled 70 per cent grade chocolate bars at $50 a pop.

Industry players both applaud and lament the fact that anyone producing cocoa in this country is assured of 100 per cent sales at premier world prices. For example, the daily average price for cocoa beans on world futures markets is in the vicinity of just under US$2,500 per tonne. The applause comes because climate and topography have combined to produce ideal growing conditions for production of high-grade cocoa while there is the pervasive complaint that, even at the best prices in the world, farming costs often greatly exceed what the market is offering for the commodity. Labour costs prove to be the greatest contributory factor. Though the International Cocoa Organisation has been recording climate-related price volatility this year, people like Bocarra contend that the rise of the middle class in a non-traditional chocolate-consuming nation such as China and the softer Indian market will soon witness a dramatic dominance in demand pressures over supply. Small, cottage industries such as Trinidad-based West Indian Skincare Company, through its Noka’oi Caribbean skincare lines, have recognised the potential of different markets. CEO Leigh Lopez says cocoa butter has proven to be among the more important inputs into a product line that does not require much explanation when it comes to purported benefits. Anthea’s Treasure Trove, which carries a similar tagline of better health and appearance, also exhibited at the CRU event. Founder/General Manager, Anola De Freitas, has her facility operating out of the Store Bay Beach Facility in Tobago. She uses a Facebook page and a network of direct salespersons in Trinidad, St Lucia, St Vincent and Barbados to promote sales of her products, including cocoa-based soaps and scents. The cocoa industry has also found space under the umbrella of the country’s tourism product via Grand Agro Tourism Ltd, run by Alison Godwin, who supervises tours of a traditional cocoa estate in Sangre Grande. For the price of one of Boccara’s chocolates, visitors are guided through a cocoa trail, visit a traditional cocoa house and may even bring a tent for an overnight visit or take a one-hour course on cultivating an organic kitchen garden using small spaces.



17



Like the researchers and commodity experts, Godwin is an advocate of the multi-dimensional nature of the “cocoa experience.” The venture has been successful enough to recruit her a full-time tour guide in the person of Abeyola Olbano who was actually introduced to the facility through the Youth Training Employment and Partnership Programme (YTEPP). According to Boccara, nothing short of a transformation, maximising value added opportunities, would turn the industry around. The picture is somewhat dismal. Local cocoa estates currently produce and average of 250 kilos per hectare. In Ecuador, productivity per hectare is between two and five tonnes. Bocarra said issues such as planting methods, development of new varieties and other improvements in the value chain can help the country take advantage of a potentially lucrative market. Fete De La Cocoa was an event that told the cocoa story graphically and in plain, accessible language through well-informed experts and exhibitors and activities that included story-telling and competitions. It may not signify the return of cocoa to the throne after 200 years, but the exhibition perhaps demands an encore at other locations throughout the country.



18



copal cocoa info - alliance of cocoa producing …. 518.doc · web view0copal cocoa info a weekly...

Documents