COPAL COCOA Info
A Weekly Newsletter of Cocoa Producers' Alliance
2nd – 6th May 2011
Cocoa Producers' Alliance
In-House Cocoa Newsletter
Issue No. 438
UP-COMING EVENTS
IN THIS ISSUE
INSIDE THIS ISSE:

ICCO DAILY COCOA PRICES

LONDON (LIFFE) FUTURES MARKET
UPDATE

NEW YORK (ICE) FUTURES MARKET
UPDATE

FROM THE NEWS MEDIA

TIT BITS
Do your health a favour, drink Cocoa everyday
‘It’s nature’s miracle food’
In the News (from Newspapers worldwide)
Health and Nutrition
 Forget About Sex And Have Some Chocolate
Instead – health
 Mayo Clinic Health Letter May 2011 Highlights:
10 Tips for Better Health; Cholesterol Particle Size
Indicates Risk of Stroke and Heart Disease;
Chocolate that is Good for You
 Hershey: Cocoa polyphenols show weight
management potential






Production and Quality
 Indonesian island saw slip in cocoa production last
month
The Market
 Indonesia Sulawesi Cocoa Bean Exports Slump on
Sales Delay
 Cocoa exports unlikely to resume this week,
Mintel
 Peru’s cocoa exports up 40.5%
 Mini 'Crashes' Hit Commodity Trade
 Peru cocoa exports up 40.5 percent
Processing & Manufacturing

Business & Economy
 Cargill given green light on KVB cocoa merger
 MarketsandMarkets: Global Chocolate Market
Worth $ 98.3 Billion by 2016
 Ghana cocoa purchases up 51.5 pct over last year

Should Ivory Coast nationalize its cocoa
industry?
Foreign traders see Davao as big global cocoa
exporter
Cadbury Nigeria announces 18% growth in Q1
Theo produces premium organic and Fair Trade
specialty chocolate.
Cocoa Supplies Will Outpace Usage by 200,000
Tons, Armajaro Says
Ivory Coast due to resume cocoa exports on
Saturday
Ivory Coast Restarts Cocoa Shipments from
Main Ports of Abidjan, San Pedro
Labour Issues

Environmental Issue

Research & Development
 Barry Callebaut Launches Research Project
Aimed At Sustainable Cocoa Cultivation
Promotion & Consumption
 Nestlé and The Cocoa Trees team up for
Smarties promotion
Others
 Solomon Islands quarantine
prevention against cocoa pest
officials
urge
ICCO Daily Cocoa Prices
ICCO Daily Price
(SDR/tonne)
ICCO Daily price
($US/tonne)
London futures
(£/tonne)
New York futures
($US/tonne)
2nd May
2036.58
3305.79
1997.05
3292.33
3rd May
2033.92
3289.05
1998.67
3283.00
4th May
1976.97
3204.32
1959.00
3181.00
5th May
1905.97
3092.09
1903.33
3067.00
6th May
1932.85
3108.06
1909.00
3091.00
Average
1977.00
3200.00
1954.00
3183.00
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: econs@copal-cpa.org
Website: www.copal-cpa.org
2
International Financial Futures and Options Exchange (LIFFE)
London Futures Market – Summary of Trading Activities
(£ per tone)
Monday
2nd May
Opening Trans
Month
2011
Settle
Change
Daily High
Daily Low
Volume
May 2011
Jul 2011
Sep 2011
Dec 2011
Mar 2012
May 2012
Jul-12
Sep-12
Dec 2012
Mar 2013
Average/Totals
#DIV/0!
Tuesday
3rd May
0
2011
Opening Trans
Settle
Change
High
Low
Volume
May 2011
1960
1971
-4
1978S
1942S
3,043
Jul 2011
1976
1984
3
1994S
1958
7,587
Sep 2011
1981
1996
3
2006S
1971S
2,316
Dec 2011
2003
2016
1
2026S
1987S
1,504
Mar 2012
2017
2032
2
2042S
2010S
767
May 2012
2036
2045
3
2043S
2021S
752
Jul-12
2051
2
0
Sep-12
2059
2
0
Dec 2012
2066
2
0
Mar 2013
2078
2
0
Month
Average/Totals
2030
Wednesday
Month
4th May
15,969
2011
Opening Trans
Settle
Change
High
Low
Volume
May 2011
1980
1937
-34
1997
1932S
1,346
Jul 2011
1992
1945
-39
2012
1940S
6,989
Sep 2011
2012
1956
-40
2023S
1954S
2,000
Dec 2011
2025
1976
-40
2043S
1975S
2,002
Mar 2012
2041
1994
-38
2059S
1990
575
May 2012
2059
2003
-42
2067
2043S
338
Jul-12
2062
2007
-44
2064S
2052S
39
Sep-12
2015
-44
0
Dec 2012
2022
-44
0
Mar 2013
2034
-44
Average/Totals
1989
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: econs@copal-cpa.org
Website: www.copal-cpa.org
0
13,289
3
Thursday
Month
5th May
2011
Opening Trans
Settle
Change
High
Low
May 2011
Volume
1913
1870
-67
1916S
1861
3,792
Jul 2011
1922
1885
-60
1924
1875
14,122
Sep 2011
1932
1901
-55
1943
1899S
4,638
Dec 2011
1955
1924
-52
1961
1915
2,141
Mar 2012
1952
1944
-50
1975S
1929
4,102
May 2012
1989
1958
-45
1989
1951S
2,482
Jul-12
1989
1968
-39
1989S
1968S
178
Sep-12
1997
1998
1976
69
1977
-38
Dec 2012
1987
-35
0
Mar 2013
1999
-35
0
Average/Totals
1941
Friday
6th May
Month
31,524
2011
Opening Trans
Settle
Change
High
Low
Volume
May 2011
1867
1866
-4
1872S
1840S
3,307
Jul 2011
1873
1890
5
1902
1860S
7,609
Sep 2011
1890
1907
6
1916
1878
3,647
Dec 2011
1918
1930
6
1939
1899S
2,678
Mar 2012
1940
1949
5
1958S
1920S
1,670
May 2012
1950
1961
3
1973S
1935S
962
Jul-12
1948
1969
1
1984S
1948S
217
Sep-12
1976
1978
1
1976S
1961S
185
Dec 2012
1967
1987
0
1970S
1967S
100
2000
1
Mar 2013
0
Average/Totals
1944
20,375
Average for the week
1944
16231
81,157
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: econs@copal-cpa.org
Website: www.copal-cpa.org
4
New York Board of Trade
(New York Futures Market – Summary of Trading Activities)
(US$ per tone)
Monday
2nd May
Month
2011
Open
Price
Change
High
Low
May 2011
3387
3353
-37
3387
3339
Volume
17
Jul 2011
3335
3291
-49
3339
3243
10,236
Sep 2011
3335
3298
-47
3345
3256
906
Dec 2011
3350
3314
-44
3350
3275
1,336
Mar 2012
3388
3357
-41
3388
3348
20
May 2012
0
3348
-39
0
0
0
Jul 2012
3339
3346
-39
3339
3339
2
Sep 2012
0
3343
-41
0
0
0
Dec 2012
0
3359
-41
0
0
0
Mar 2013
0
3382
-41
0
0
Average/Totals
3339
Tuesday
3rd May
Month
0
12517
2011
Open
Price
Change
High
Low
May 2011
3304
3271
-82
3307
3268
222
Jul 2011
3263
3271
-20
3290
3211
9,043
Sep 2011
3264
3277
-21
3289
3222
1,406
Dec 2011
3291
3293
-21
3302
3245
1,071
Mar 2012
3303
3327
-30
3332
3270
501
May 2012
3295
3317
-31
3314
3281
30
Jul 2012
3302
3314
-32
3310
3302
67
Sep 2012
3310
3314
-29
3315
3293
117
Dec 2012
3333
3330
-29
3333
3293
78
Mar 2013
3323
3353
-29
3323
3323
13
Average/Totals
3307
Wednesday
Month
4th May
Volume
12548
2011
Open
Price
Change
High
Low
Volume
May 2011
3287
3236
-35
3287
3271
8
Jul 2011
3270
3211
-60
3330
3158
18,922
Sep 2011
3275
3212
-65
3330
3161
3,191
Dec 2011
3296
3228
-65
3342
3168
3,564
Mar 2012
3331
3266
-61
3379
3217
531
May 2012
3319
3252
-65
3335
3213
96
Jul 2012
3333
3247
-67
3333
3333
66
Sep 2012
3337
3243
-71
3337
3337
98
Dec 2012
0
3259
-71
0
0
49
Mar 2013
0
3272
-81
0
0
Average/Totals
3243
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: econs@copal-cpa.org
Website: www.copal-cpa.org
24
26549
5
Thursday
Month
5th May
2011
Open
Price
Change
High
Low
May 2011
Volume
3150
3087
-149
3156
3105
7
Jul 2011
3176
3055
-156
3177
3050
19,331
Sep 2011
3160
3062
-150
3160
3059
2,994
Dec 2011
3164
3084
-144
3171
3079
1,318
Mar 2012
3197
3133
-133
3206
3124
722
May 2012
3185
3119
-133
3185
3160
185
Jul 2012
0
3115
-132
0
0
280
Sep 2012
0
3115
-128
0
0
470
Dec 2012
0
3128
-131
0
0
240
Mar 2013
0
3141
-131
0
0
41
Average/Totals
3104
Friday
6th May
25588
2011
Month
Open
Price
Change
High
Low
May 2011
3109
3137
50
3163
3100
Volume
9
Jul 2011
3055
3082
27
3105
3016
10,615
Sep 2011
3062
3090
28
3109
3025
2,045
Dec 2011
3081
3112
28
3125
3050
993
Mar 2012
3130
3156
23
3172
3100
242
May 2012
3101
3146
27
3150
3083
66
Jul 2012
3096
3140
25
3144
3085
35
Sep 2012
3080
3141
26
3146
3080
119
Dec 2012
3149
3154
26
3149
3149
62
Mar 2013
3149
3166
25
3149
3149
102
Average/Totals
Average for the week
3132
3132
14288
2598
2598
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: econs@copal-cpa.org
Website: www.copal-cpa.org
6
News
NEWS
Health
Nutrit
Health and
and Nutrition
Forget About Sex And Have Some Chocolate Instead - health
Financial Mirror
May 04, 2011
We all know chocolate tastes good, but did you know it has
emotional and physical benefits as well?
Recently there have been many studies on the effects of chocolate
and it has been shown that by liberating endorphins, chocolate can
provide us with a sense of well being as well as energy and pleasure.
It's no wonder that some women surveyed stated that they preferred
chocolate to sex!
Now I'm not talking about the junky chocolate bars you find in the
candy counter. In order to get the benefits of chocolate you need to
eat the good stuff - the kind that has at least 71 percent real cocoa.
This is the gourmet chocolate that you probably never buy for yourself. But now that you know it's good for you
feel free to indulge, the extra money you spend will be well worth the health benefits and taste!
The rich texture and taste of this high quality chocolate acts as a pleasure for the senses. It can be an aphrodisiac
and also can help energize you as it contains caffeine as well as serotonin which can lift your mood.
Even better than that, though is that eating chocolate also can benefit your health!
Dark chocolate contains phenols which promotes cardiovascular health. According to the British Medical
Journal eating 100 grams of dark chocolate reduces blood pressure as well as cardiovascular incidents by 21
percent. And phenols are also loaded with antioxidants which help to battle free radicals that can cause disease.
The cocoa butter in chocolate has been used topically to heal scars and burns and chocolate is a good source of
magnesium which is a mineral many of us do not get enough of. With all these things going for it, it's no wonder
there is ongoing researching using chocolate in the development of medicines that can fight diseases like cancer
and osteoporosis.
But as well all know, chocolate is fattening. Your best bet is to eat the dark chocolate which has less sugar and
also more phenols. Of course, you should eat it in moderation - scarfing down 3 chocolate bars in one sitting
probably won't have 3 times the health benefits and the extra sugar and fat can have a detrimental effect on your
health.
It shouldn't be too hard to find the type of chocolate that is good for your, however you may not be able to just
pop down to the local grocery to pick it up. A trip to my local supermarket in search of chocolate with 71%
cocoa was a bust. The closest I could find was an organic bar that had 70% cocoa. You may need to take a trip
to an organic or chocolate specialty store. If you go with organic chocolate, you can be assured that they don't
contain organochlorine pesticides which are typically used in treating cocoa crops and are harmful to your
health.
So take a trip down to your local organic food stores and pick up some great dark chocolate - it will be worth the
trip and the expense to enjoy this healthy food guilt free!
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: econs@copal-cpa.org
Website: www.copal-cpa.org
7
Mayo Clinic Health Letter May 2011 Highlights: 10 Tips for Better Health; Cholesterol
Particle Size Indicates Risk of Stroke and Heart Disease; Chocolate that is Good for You
Business Wire (press release)
May 05, 2011
ROCHESTER, Minn.--(BUSINESS WIRE)--Here are highlights from the May issue of Mayo Clinic Health
Letter. You may cite this publication as often as you wish. Reprinting is allowed for a fee. Mayo Clinic Health
Letter attribution is required. Include the following subscription information as your editorial policies permit:
Visit www.HealthLetter.MayoClinic.com or call toll-free for subscription information, 1-800-333-9037,
extension 9771.
10 Tips for Better Health
ROCHESTER, Minn. -- With the wealth of information available, it can be hard to determine the most
straightforward ways to improve health. The May issue of Mayo Clinic Health Letter does just that, offering 10
simple tips to improve health and well-being.
Eat fruit daily: Fruit offers a great source of antioxidants, which may help prevent cancer, cardiovascular
disease, Alzheimer’s disease and macular degeneration. The berry family -- blueberries, blackberries,
raspberries, strawberries and cranberries -- are good sources of antioxidants. So are cherries, oranges, and
prunes.
Make high-fiber foods a staple: Whole grains, beans, fruits and vegetables are good sources, as is cereal with
psyllium, which may help reduce low-density lipoprotein (LDL), also known as "bad" cholesterol.
Take a brisk walk: Brisk walking improves cardiovascular and bone health. Try to walk at least 30 minutes a
day at a moderately intense level.
Make stretching and strength building a habit: Regular stretching and strengthening can enhance mobility and
help prevent falls.
Pursue yoga and tai chi: These gentle mind-body practices combine five important types of exercise -- aerobic,
strength training, core stability, flexibility and balance. Research suggests they help reduce blood pressure,
reduce stress and improve mood and sleep.
Be optimistic: Research indicates that positive thinkers are more likely to feel better and live longer.
Develop an attitude of gratitude: Be thankful for every experience -- good and bad -- and recognize each is an
opportunity to learn and grow.
Try volunteering: Research shows meaningful volunteer activities promote emotional and mental well-being.
Enjoy a pet: A small but growing body of research suggests pet ownership benefits health in several ways. One
study found that among those who had a heart attack, dog owners were significantly more likely to be alive a
year later than were those without a dog. Dog owners benefit from regularly walking Fido, too. They are less
likely to be obese than non-dog owners.
Improve relationships: Take conscious steps to forgive those closest to you -- and yourself. Forgiveness is
associated with improved mood and lower stress.
A New Way to Measure Cholesterol: Particle Size Indicates Risk
ROCHESTER, Minn. -- There’s a new way to measure the risk of heart disease and stroke: the size of lowdensity lipoprotein, also known as LDL or “bad” cholesterol, particles. The May issue of Mayo Clinic Health
Letter explains how smaller particles may increase the risk of heart problems and what can be done about it.
Elevated LDL cholesterol is a major risk in narrowing, hardening or clogging of arteries, which can lead to heart
attack, stroke or other forms of heart disease. LDL does its damage by penetrating the inner lining of artery
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: econs@copal-cpa.org
Website: www.copal-cpa.org
8
cells. Smaller LDL particles appear to do more damage. When LDL particles are small, heightened risk remains
even when overall LDL counts are at ideal levels.
The size of LDL particles can be measured indirectly, by a count of the number of LDL particles in the
bloodstream. Higher counts indicate smaller particles. The number can be measured with a test called nuclear
magnetic resonance. This test, a follow-up to the standard cholesterol blood test, isn’t widely available.
Even without this test, there are several strong indicators of higher risk of heart attack or stroke. High
triglyceride levels (150 mg/dL or higher) and low high-density lipoprotein (HDL or “good”) cholesterol are
associated with large numbers of LDL particles in the blood. So are high blood sugar levels, diabetes and being
inactive, overweight or obese and eating a diet high in saturated fat and cholesterol.
The best way to reduce the amount of small-particle LDL is by improving diet, becoming active and
maintaining a healthy weight. In addition, medications can help reduce small-particle LDL. Options are
prescription niacin (Niaspan) and a class of medications called fibrates. These include fenofibrate (Lofibra,
Tricor, others) and gemfibrozil (Lopid).
Chocolate that’s Good for You (in Small Amounts)
ROCHESTER, Minn. -- Chocolate has been linked with improved blood pressure and cholesterol levels and
other heart benefits. The May issue of Mayo Clinic Health Letter covers which types are beneficial and how
they help.
The raw cacao beans used to make chocolate products are a rich source of flavonoids -- antioxidants found in
plants. Flavonoid compounds, especially flavanols, are concentrated in raw cacao beans. They appear to play a
protective role in heart health.
But raw beans are so bitter they are virtually inedible. Sugar and processing make chocolate products tasty. But
some of that processing removes the beneficial flavanols.
As a general rule, flavanol content mirrors the level of fat-free cocoa solids in a chocolate product. Milk
chocolate, with its creamy texture and mild flavor, is low on flavanols with just 6 percent fat-free cocoa solids.
Dark chocolate is better, at 23 percent fat-free cocoa solids. Unsweetened cocoa tops the list at 82 percent.
Usually, the best options for high flavanol content are dark chocolate that doesn’t list sugar as the first
ingredient and unsweetened 100 percent cocoa powder that hasn’t been alkalized (in other words, Dutch
processed). If a chocolate or cocoa has been Dutch processed, the ingredient list will say that it’s been processed
with alkali.
The bottom line is the darker the chocolate, the better for heart health. But flavanols don’t cancel out high
calories. Check labels for calorie counts and serving sizes.
Mayo Clinic Health Letter is an eight-page monthly newsletter of reliable, accurate and practical information on
today’s health and medical news. To subscribe, please call 1-800-333-9037 (toll-free), extension 9771, or visit
www.HealthLetter.MayoClinic.com.
Hershey: Cocoa polyphenols show weight management potential
NutraIngredients-usa.com
By Stephen Daniells,
05-May-2011
The 1st report that cocoa polyphenols may aid weight management
Extracts from cocoa may block carbohydrate and lipid breakdown in the gut, and
aid weight management, says a new study from Hershey.
Scientists from the Hershey Center for Health and Nutrition and the Pennsylvania
State University report that polyphenols from cocoa inhibited various digestive
enzymes in a dose-dependent manner, meaning the more consumed, the greater
the effect. “The present study provides the first evidence that cocoa extracts and
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: econs@copal-cpa.org
Website: www.copal-cpa.org
9
cocoa procyanidins are potent inhibitors of key enzymes in the digestion of carbohydrates and lipids in vitro,
and these inhibitory activities are related to polyphenol content in cocoa extracts,” wrote the authors in the
Journal of Agricultural and Food Chemistry.
If supported by additional research, the findings suggest that cocoa polyphenols may find a role in the
burgeoning weight management market, already estimated to be worth $7bn (€5.2bn) worldwide.
With 50 per cent of Europeans and 62 per cent of Americans classed as overweight, the food industry is waking
up to the potential of products for weight loss and management.
Market breakdown
The slimming ingredients market can be divided into six groups based on the mechanisms of action - boosting
fat burning/ thermogenesis, inhibiting protein breakdown, suppressing appetite/ boosting satiety (feeling of
fullness), blocking fat absorption, carbohydrate blocking, and regulating mood (linked to food consumption).
Cocoa’s benefits
The health benefits of polyphenols from cocoa have been gathering increasing column inches in the national
media. To date studies have reported potential benefits for cardiovascular health, skin health, and even brain
health.
The majority of science into the potential benefits of cocoa have revolved around cardiovascular benefits of the
flavanols (also known as flavan-3-ols or catechins), and particularly the monomeric flavanol (-)epicatechin.
Study details
Led by Penn State’s Joshua Lambert, the researchers tested how cocoa extracts could affect the activity of
enzymes associated with the digestion of fat and carbohydrates, including pancreatic lipase, secreted
phospholipase A2, and pancreatic alpha-amylase.
Three types of cocoa were tested: A cocoa extract that underwent regular processing; an extract that underwent
minimal processing (also called Lavado) that is high in flavanols; and an extract that underwent minimal
processing (also called Dutch-processed) that is low in flavanols.
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“Among three cocoa extracts, lavado (meaning ‘washed’ in Spanish) cocoa undergoes the least processing
(without fermentation or Dutch-processing), and this extract exerted the highest inhibitory activity against all
three digestive enzymes,” report the researchers.
“By contrast, the Dutch-processed or alkali-treated cocoa, which is the most highly processed, showed the least
inhibitory effect against the enzymes tested.
“Because it is expected that the lavado cocoa extract is the highest in polyphenols and flavanols, followed by the
regular cocoa extract, and the least would be found in the Dutch-processed cocoa extract, these results suggest
that the inhibitory effects of cocoa extracts are related to their polyphenol content,” they added.
The researchers said that additional in vitro studies would examine if enzyme inhibition activity of the
polyphenol-rich cocoa extracts would be related to other metabolic effects and whether such effects would be
achievable at doses observed from the diet.
Cocoa is not chocolate
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: econs@copal-cpa.org
Website: www.copal-cpa.org
10
In a recent review led by Gary Williamson from the University of Leeds but with the Nestlé Research Center at
the time of the review, it was explained that: “Chocolate and cocoa are two different terms and are not
interchangeable.
“Cocoa is the non-fat component of cocoa liquor (finely ground cocoa beans) which is used in chocolate making
or as cocoa powder (commonly 12 per cent fat) for cooking and drinks.
“Cocoa liquor contains approximately 55 per cent cocoa butter and together this comprises cocoa solids, often
referred to on chocolate packaging. Chocolate refers to the combination of cocoa, cocoa butter, sugar, etc. into a
solid food product,” added the reviewers.
Production & Quality
Indonesian island saw slip in cocoa production last month
Daniels Trading
May 02, 2011
The main growing province of Indonesia saw an 86 percent export reduction of cocoa beans during the month of
April, Bloomberg reports.
The decrease of exports from the island of Sulawesi was attributable to a reduction of supplies because of
inclement weather and exporters capitalizing on lower taxes by delaying sales. Provinces in Central and
Southern Sulawesi declined to 1,570 metric tons in April as compared to 5,715 metric tons in March, the
Indonesian Cocoa Association stated on Monday. In April 2010, sales of the soft commodity totaled 5,715
metric tons.
Reduced duties on exports can cause an "increase [of] shipments in May," association secretary general Dakhri
Sanusi told the news service. But "there's a concern that output may decline due to bad weather and reducing
supplies of beans."
At 2 p.m. on Monday, cocoa futures clipped 1.47 percent, a $49 reduction to $3,291 per metric ton.
Sulawesi accounts for approximately 75 percent of sales and production in Indonesia. Thus far this year,
shipments from the island have sunk 47 percent during the first third of 2011.
The Market
Indonesia Sulawesi Cocoa Bean Exports Slump on Sales Delay
Bloomberg
By Eko Listiyorini and Yoga Rusmana
May 2, 2011
Cocoa-bean shipments from Indonesia’s main growing provinces on Sulawesi island slumped 86 percent in
April from a month earlier as exporters delayed sales to benefit from lower tax and as bad weather reduced
supplies.
Exports from Central and South Sulawesi provinces fell to 1,570 metric tons last month from 10,957 tons in
March, according to data from the Indonesian Cocoa Association released today. Sales were 5,715 tons in April
last year.
Lower export duties may help “increase shipments in May,” Dakhri Sanusi, secretary general of the group,
known as Askindo, said in a telephone interview today from Makassar, South Sulawesi. Still, “there’s a concern
that output may decline due to bad weather and reducing supplies of beans.”
Falling supplies from the world’s third-largest grower of the chocolate ingredient, which harvests most of its
crop from April to July, may help to sustain gains in prices, which have risen about 10 percent this year amid a
political crisis in Ivory Coast, the world’s top producer.
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11
The Indonesian government cut the tax on exports of the commodity to 10 percent in May from 15 percent last
month following a decline in prices, Deddy Saleh, director general of foreign trade at the Trade Ministry, said
on April 21.
Shipments from Sulawesi, which accounts for about three- quarters of Indonesia’s sales and output, dropped 47
percent in the first four months of the year to 34,033 tons, the association said.
Cocoa for July delivery rose 1.8 percent to close at $3,340 a ton on the ICE Futures U.S. in New York on April
29.
Cocoa exports unlikely to resume this week, Mintel
FoodNavigator.com
By Helen Glaberson,
02-May-2011
Ivory Coast cocoa exports are unlikely to resume by this week, said Mintel, in response to reports that the
country will start shipping the commodity from the beginning of May.
There has been a halt on cocoa exports for nearly three months in the Ivory Coast after Ouattara called for a
suspension of cocoa exports at the end of January this year following on from disputed elections in November,
in a move aimed at cutting off funding from his rival Laurent Gbagbo.
In mid-April, after the capture of Gbagbo, Ouattara said cocoa exports would resume once he had taken his seat
as leader of the country.
But Marcia Mogelonsky, Mintel’s global food analyst told ConfectioneryNews.com that getting the countries
cocoa industry up and running again is not like turning on and off a switch.
Banks and ports have to be reopened and they have to go through various regulations for shipments such as
paying export tax, which takes a while to get set up again, she added.
Problems facing Ivory Coast cocoa
According to Steven Haws, manager of commodities risk analyst LLC in the US, the most severe problem
facing the Ouattara government is ensuring that reconstruction funds sent from Europe and other regions do not
end of being mis-used.
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Haws told this publication that if the funds do not get directed to the appropriate agencies, “farmers will see
very little improvement [and] cocoa production will deteriorate further.”
Cocoa production in the Ivory Coast has suffered severe problems over the past ten years, such as disease, aging
trees and lack of agricultural extension services, he said.
Investment in other countries
Meanwhile, Mogelonsky notes that a lot of effort is being made to ramp up production in other cocoa producing
countries such as Indonesia, Malaysia and Ghana.
Ingredients giants such as ADM and Cargill are looking for other sources for their beans, “They can’t put all
their cocoa beans in the same basket,” she said.
She reports that there is a lot of hope for Indonesia as a growing cocoa producer, but work is needed to improve
the quality of the crops.
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12
Peru’s cocoa exports up 40.5%
Fresh Fruit Portal
May 3rd, 2011
Peruvian customs statistics show the country’s cocoa bean sales were
40.5% higher in the first three months of 2011 compared to the same
period last year, website Agraria.pe reported.
The exports had a total value of US$6.2 million with the U.S.
purchasing one third of shipments, followed by the Netherlands
(28%), Belgium (21%), Italy (9.6%) and Canada (2.6%).
Shipment figures did not grow as rapidly as sales, with a growth rate
of 26.3% compared to the same period in 2010 and total volumes of 1,700 metric tons (MT), Agraria reported.
Company Sumaqao SAC accounted for one quarter of the shipments, followed by Cooperativa Agraria
Industrial Naranjillo (16%), Cooperativa Agraria Cacaotera Acopagro (15%) and Amazonas Trading Peru SAC
(9.7%), the story reported.
Mini 'Crashes' Hit Commodity Trade
Wall Street Journal
By CAROLYN CUI And TOM LAURICELLA
May 5, 2011
A boom in computerized, high-speed trading in commodities and currencies has coincided with a series of "flash
crashes" in those markets, even though the stock market hasn't seen a repeat of the harrowing plunge of a year
ago.
The U.S. dollar sank 5% against the Japanese yen within minutes on March 16, one of its biggest moves ever.
Also that month, cocoa-futures prices dropped 13% in just seconds on the IntercontinentalExchange Inc. before
rebounding almost as quickly. In February, the sugar market took a dive of 6% in just one second. Like the stock
market "flash crash," which occurred a year ago on Friday, these big moves are the unintended consequences of
an influx of high-frequency and algorithmic traders into markets that aren't equipped to deal with them.
High-frequency and algorithmic traders use computer programs to buy and sell assets, taking advantage of small
gaps in prices to generate profits.
In both the commodities and currency markets, the growth of computerized and high-frequency trading has led
to the exit of key human market makers, whose jobs are to match buyers and sellers and provide liquidity to the
market. Now, as in the stock market, that role is increasingly being played by computer programs. If the traders
using those programs pull back from the market, then big "buy" or "sell" orders are effectively placed into a
vacuum, leading to sudden, big swings.
"As we saw with the equity markets, it increases the probability of surprise distortions," said Jonathan Lewis,
chairman of the investment committee at Samson Capital Advisors. "This is something that investors, policy
makers and central banks should all be concerned about."
The stock market's 10-minute, 600-point decline reverberated through the investment world. It took two months
for stocks to regain their pre-flash-crash levels, as investors last summer bought on their conviction the Federal
Reserve would take action to boost the economy. The more recent flash crashes had smaller impacts but affected
companies that need to hedge exposures to commodities and currencies.
High-frequency traders now account for 28% of the total volume in the futures markets, which include
currencies and commodities, up from 22% in 2009, according to data from Aite Group, a Boston-based research
firm. These traders now account for 53% of stock-market trading volume, down from 61% in 2009, according to
data from Tabb Group.
The sudden tumbles have forced commodities-markets operator ICE to implement trading rules to prevent big
swings. ICE is also considering expanding the use of "circuit breakers" in markets like cocoa, a spokesman said.
A circuit breaker halts trading when a market or asset is sharply up or down.
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13
As was the case in stocks, many in the industry feel high-frequency trading is benefiting both markets, providing
another kind of liquidity and a real-time reading of these otherwise opaque markets. "We think high-frequency
traders play a necessary and beneficial role by providing liquidity, and that they mitigate volatility" in the
markets, a spokesman for ICE said.
Chip Lowry, chief operating officer for State Street Corp.'s electronic trading platform Currenex, says he doesn't
think the emergence of computerized and high-speed trading "is an issue."
The timing of some of these mini crashes shows the impact of computerized trading. The dollar tumbled against
the yen at 5 p.m. in New York on March 16, right as several major banks had shut down their electronic-trading
programs as part of a routine handoff to colleagues in Asia, when a barrage of buy orders for the currency
stormed the market. With few traders around, the orders, combined with forced buying linked to options, were
set loose into a void.
Cocoa's flash crash came at about 10:30 a.m. New York time on March 1, after orders to sell hundreds of cocoa
contracts flooded the market. Too few buy orders were there to soak up the sale. Cocoa plunged $450 in one
minute, to a low of $3,217 a metric ton. The sell orders were unusually large for the cocoa futures market, which
typically handles about 20,000 contracts a day.
"The electronic platform is too fast; it doesn't slow things down" like humans would, said Nick Gentile, a former
cocoa floor trader. "It's very frustrating" to go through these flash crashes, he said.
Cocoa's flash crash had been years in the making, according to Mr. Gentile. The tiny market—it has contracts
outstanding of just $6 billion, compared with the $16.6 trillion market capitalization of U.S. stocks—was taken
over by ICE and converted to an electronic market in 2007.
Gradually, market makers left the business, leaving fewer people to match orders.
The same is happening in the sugar market, provoking outrage within the industry. In a February letter to ICE,
the World Sugar Committee, which represents large sugar users and producers, called algorithmic and highspeed traders "parasitic." "Their presence only serves to enrich themselves at the expense of the traditional
market users," the letter said.
Still, the exchanges are caught in a tough balancing act: attracting new market participants while keeping their
core constituents happy—the producers and users of the commodities, which rely on the markets to buy and sell
and hedge their risk. "Unfortunately, we are always going to be at risk of these types of flash crashes," said Paul
Zubulake, a senior analyst at Aite Group.
Peru cocoa exports up 40.5 percent
Living in Peru
May 6, 2011
Export of cocoa beans in Peru is on the rise.
Peruvian customs statistics show the country’s cocoa bean sales were
40.5 percent higher in the first three months of 2011 compared to the
same period last year, website Agraria.pe reported.
The exports had a total value of $6.2 million with the U.S. purchasing
one third of shipments, followed by the Netherlands (28 percent),
Belgium (21 percent), Italy (9.6 percent) and Canada (2.6 percent).
Shipment figures did not grow as rapidly as sales, with a growth rate of 26.3 percent compared to the same
period in 2010 and total volumes of 1,700 metric tons (MT), Agraria reported.
Company Sumaqao SAC accounted for one quarter of the shipments, followed by Cooperativa Agraria
Industrial Naranjillo (16 percent), Cooperativa Agraria Cacaotera Acopagro (15 percent) and Amazonas Trading
Peru SAC (9.7 percent).
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14
Another Peruvian group, the Cooperativa Divisoria was named in 2010 as one of the best producers of organic
chocolate in the world, according to Agraria. The co-op exports 60 percent of its annual production to the
United States and another sizable amount of its beans to Switzerland.
Business & Economy
Cargill given green light on KVB cocoa merger
FoodNavigator.com
By Jane Byrne ,
02-May-2011
Cargill’s takeover of Schwartauer KVB has been cleared by the European Commission, giving the US giant the
green light to phase in the operations of the German semi-finished cocoa supplier.
The EU competition watchdog found the deal would not raise competition concerns, saying the merged entity
would continue to face pressure from a number of other strong industrial chocolate suppliers.
And cocoa product buyers, added the Commission, would still be able to access “sufficient alternative suppliers”
serving the European market.
Cargill’s Cocoa and Chocolate unit announced in January this year that it was acquiring Schwartauer KVB, in a
bid to strengthen its position in Germany, the largest chocolate market in Europe.
KVB produces, sells and distributes cocoa liquor, cocoa powder ,cocoa butter and industrial chocolate. Its two
production sites in Berlin have a total annual capacity of over 75,000 tonnes of chocolate and employees
totalling 180.
Jos de Loor, head of Cargill’s cocoa and chocolate business, said earlier this year that the KVB sites will
complement its own German cocoa and chocolate facilities in Klein Schierstedt and Hamburg.
Cargill, he continued, plans “to invest significantly in KVB’s facilities to create a superior chocolate house that
will enable us to offer customers greater choice, higher quality and extended market reach.”
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ADM expansion
The German market is proving fertile ground for semi-finished cocoa processors, with this month seeing ADM
Cocoa opening a new chocolate technical centre in Mannheim to complement similar operations in London and
Singapore.
A spokesperson for the division told sister site FoodNavigator recently: “We are investing in ‘advantage centres’
in Europe and beyond, and want our cocoa and chocolate solutions to be industry leaders.”
ADM is actively expanding its “global presence” in cocoa and chocolate manufacturing. This was signalled in
2009 on a European level by the acquisition of top German industrial chocolate and cocoa powder manufacturer,
ADM Schokinaeg.
In September last year, ADM Cocoa bolstered its European sales force with several new appointments including
a new cocoa technologist and sales manager at its Szamotuly office in Poland, to leverage, it said, the predicted
growth in the chocolate market there and in other Eastern European markets.
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15
MarketsandMarkets: Global Chocolate Market Worth $ 98.3 Billion by 2016
PR Newswire (press release)
May 3, 2011
DALLAS, Texas, /PRNewswire/ -- The report 'Global Chocolate, Cocoa Beans, Lecithin, Sugar and Vanilla
Market By Market Share, Trade, Prices, Geography Trend and Forecast (2011-2016)' analyzes the chocolate
market by products, sales category, and geography and studies the major market drivers, restraints, and
opportunities for the chocolate market in North America, Europe, and Asia. The global chocolate market is
expected to grow from $83.2 billion in 2010.to $98.3 billion in 2016 at an estimated CAGR of 2.7% from 2011
to 2016.
Browse 139 market data tables over 380 pages and in-depth TOC on 'Global chocolate, cocoa beans, lecithin,
sugar and vanilla market by market share, trade prices, geography trends and forecast (2011-2016)'
http://www.marketsandmarkets.com/Market-Reports/global-chocolate-market-164.h tml Early buyers will
receive 10% customization on reports.
Some of the major drivers of the industry identified in this report are health benefits, large variety of
applications, and seasonal and festive sales. The major restraints identified in this report are raw material prices
and the dependency of the industry on unstable economies for cocoa supply. Major threats the industry is facing
are the rising counterfeit market and changing consumer preferences. Opportunities that can change the
dynamics of this industry are lower penetration in developing economies, organic and fair trade chocolate, and
the use of chocolate as functional food.
The market in Asia is driving sales and is expected to hold a 20% share of the global market in 2016. The
market in Asia is expected to have a high CAGR of 4.7% due to lower penetration, and sales in the Asian region
are expected to boost their share from $15 billion in 2010 to $19.7 billion in 2016. The U.S. leads the chocolate
market in North America with a market share of around 86.3%, while Japan leads the Asian market with a
39.7% market share. In Europe, the UK has the largest demand with a market share of 16.4%, followed by
Germany with 15.9%.
The report basically focuses on three segments: by products, by sales category, and by geography. The product
segmentation covers different chocolate types: dark chocolate, milk chocolate, and white chocolate. The second
segmentation discusses about the major category of sale of premium chocolate, everyday chocolate, and
seasonal chocolate. The report also analyzes major raw materials such as cocoa beans, sugar, emulsifiers such as
lecithin, and flavors such as vanilla. The report discusses the major chocolate markets in the above-mentioned
geographies along with key industry events such as new product launches, mergers and acquisitions, and
agreements. The objective of report is to highlight key market trends which can be strategically useful and
actionable for the stakeholders; i.e. chocolate manufacturers, confectionery retailers and distributors, raw
material producers and distributors, and research and consulting firms in the chocolate industry. The entire
report is supported with lots of facts and figures about market size, market revenues, and prices per capita
consumptions. The total number of tables and figures is about 139 in the report. The report also forecasts the
chocolate market till 2016.
Scope of the report
This research report categorizes the global market for chocolate on the basis of product, sales, category,
geography and raw materials; forecasting revenues and analyzing trends in each of the following submarkets:
On the basis of products: Dark chocolate, milk chocolate, white chocolate
On the basis of sales category: Everyday chocolate, premium chocolate, seasonal chocolate
On the basis of geography: North America, Europe, Asia, RoW (Rest of the World)
About MarketsandMarkets
MarketsandMarkets (M&M) is a global market research and consulting company based in the U.S. We publish
strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500
companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases,
and custom research services.
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16
M&M covers thirteen industry verticals; including advanced materials, automotives and transportation, banking
and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages,
industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and
telecommunications and IT.
We at MarketsandMarkets are inspired to help our clients grow by providing apt business insight with our huge
market intelligence repository. To know more about us and our reports, please visit our website
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Ghana cocoa purchases up 51.5 pct over last year
Reuters Africa
May 3, 2011
ACCRA (Reuters) - Cocoa purchases declared by private buyers to Ghana's industry regulator Cocobod hit
797,847 tonnes by April 21 since the start of the season in October, according to official data on Tuesday.
That is up 51.5 percent from the same period a year ago, according to the data, and brings the world's No. 2
cocoa grower closer to its 850,000-tonne record target for the 2010-2011 season.
Should Ivory Coast nationalize its cocoa industry?
Christian Science Monitor
By G. Pascal Zachary, Guest blogger
May 3, 2011
Nationalizing Ivory Coast's cocoa industry – as neighboring Ghana did – would bring 'sanity and equity'
to the country.
Now that Ivory Coast has rid itself of its criminal former president Laurent Gbagbo, Alassane Ouattara — the
country’s new president — can get on with the task of governing this west African country, long known as an
economic powerhouse. Ivory Coast’s world-class agricultural endowment is cocoa, and its farmers have
historically produced the largest annual crop in the world.
Ten years of civil war, and electoral frustrations cost Ivory Coast its preeminent global position, which is now
likely held by neighboring Ghana. In a well-reported article on the problems of Ivory Coast’s cocoa farmers,
James North in The Nation argues that large European and American cocoa buyers, notably Cargill, ADM and
the big Swiss firm, Barry Callebaut, are terribly “exploiting” Ivorian farmers. North, while admirably cataloging
the abuses by brokers and dishonest middlemen in the cocoa value chain, proposes no solution to the problem,
other than suggesting that Western consumers of chocolate ought to refuse to tolerate “this injustice,” implying
that perhaps a consumer boycott would help.
Strangely, given North’s long history of reporting for left-wing and progressive journals, he makes no mention
of a potential solution open to Ivory Coast’s government: the well-established practice, in Ghana, of having the
state serve as the sole buyer and broker of Ghanaian cocoa. As the sole buyer, the Ghana Cocoa Board, an arm
of the government, sets terms and prices for cocoa, and serves as a supplier of inputs and expertise for Ghana’s
many cocoa farmers. Undoubtedly, the cocoa board penalizes some farmers because it pays prices well below
the level of the world market. The Ghana government pockets the difference on the grounds that the nation
should benefit as a whole from cocoa — and that farmers are receiving some benefits from a system that frees
them from the Darwinian competition — dog eat dog — that James North insists undercuts and immiserates
cocoa farmers in neighboring Ivory Coast.
There’s a long and tangled history to the political economy of cocoa in West Africa — too long and tangled to
go into here. The relevant point is that Ghana’s form of state socialism once delivered poorer results than Ivory
Coast’s liberal, free market approach, where farmers sold to whomever they wished and pocketed all of their
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17
winnings. With cocoa prices at record high levels, the market-oriented approach is failing Ivorian farmers, while
rewarding those in Ghana, where the government posssesses enormous leverage over the global cartel of cocoa
buyers because of a shortage in this essential bean.
For Ouattara, the case for emulating Ghana is clear. Nationalizing cocoa could also be an instrument for
bringing some sanity and equity to rural Ivory Coast. Ghanaian technocrats could assist in this process, and the
two countries, working in concert, would amass even stronger market power over cocoa, perhaps leading to
price increases. Exploitation of producers — virtually all of whom are farmers who work their own small plots
of land — would decline. And the shattered Ivorian state would demonstrate a new avenue for delivering public
goods to its strife-weary citizens. Networks of cocoa farmers would require direct assistance from the Ivorian
state — in the form of fertilizers, storage services and other inputs. These networks could then be used to
“piggyback” other social goods, such as education for women and children, health services, and even lessons in
conflict resolution techniques.
The failure to imagine new possibilities in African politics often bedevils reformers who appear stuck in a rut,
powerless to transcend old patterns of failure. Yet in the case of cocoa, alternatives are not idealistic but are
working — right across the border.
Foreign traders see Davao as big global cocoa exporter
Sun.Star
May 4, 2011
FOREIGN cocoa buyers and traders are optimistic that the port city of Davao will soon become one of the
world's key suppliers of cacao beans. "The Philippines has a huge potential to expand its production of cacao
beans especially in the Davao region, which has the best areas and ideal conditions for cacao farms to thrive,"
said Dr. Smilja Lambert, a Norwegian consultant with Mars Cocoa Inc., one of the world's biggest buyers of
cocoa.
Post your prayers and condolences for Cebu Vice Governor Greg Sanchez's family.
Among Asian countries, the Philippines has the smallest production of cacao beans at 5,000 metric tons of cacao
beans last year. Its highest production was in 1980 with 20,000 tons and 1990 with 35,000 tons, declining over
the years as farmers abandoned cacao farming for other more profitable crops.
Lambert said Asia has a large cocoa processing industry but only a small volume of fermented cacao beans are
being produced by countries in the region. "There are so many cocoa processing centers in Asia but hardly
enough cacao beans are available to process," she said.
Indonesia has the biggest cocoa production at 600,000 tons last year followed by Papua new Guinea at 50,000
tons and Malaysia at 17,000 tons. Trailing behind, according to Lambert, were India at 7,000 tons, the
Philippines at 5,000 tons and Vietnam at 1,000 tons.
Japan, China, Malaysia, and Indonesia, which have big cocoa processing centers, imported a total of 220,000
metric tons of raw cacao fermented beans last year from Ivory Coast, West Africa, the world's biggest producer
of cacao beans.
The Philippines, according to the Marsman consultant, has the capability and the best conditions to become a
major cocoa producer, supplying 100,000 metric tons to the world market by the year 2020. "That's the reason
why we're here in Davao to help as many farmers as possible to plant as many cacao trees now to hit our
production target ten years from now," Lambert said.
Mars Cocoa want to see the Philippines, starting in Davao, develop cacao farm areas with a target total of 50
million cacao trees ten years from now, enough to produce 100,000 tons of cacao beans, according to Lambert.
Cadbury Nigeria announces 18% growth in Q1
By Austin Imhonlele
04 May 2011
As global cocoa industry, which is a major raw material for Cadbury’s products, is forecast to reach 4.8 million
metric tons by 2015, the arm of the company in Nigeria has announced the filing of its first quarter (Q1) results
for 2011 with the regulatory authorities.
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18
For the three months ending March 31, the unaudited results show a turnover of N7.59 billion, indicating an 18
percent growth against the corresponding period in 2010. The company also reported a gross profit of N2.4
billion in the same period (a 55% growth on the Q1, 2010 figure of N1.5bn).
In a statement to announce the filing, Kufre Ekanem, Cadbury Nigeria’s corporate affairs manager, said “we are
pleased with the performance in first quarter of 2011, especially the sustained growth in our gross sales
numbers. However, as a result of a higher phasing of marketing expenditure to Q1 this year, we had a drop in
operating profit compared to last year coupled with a one-off exceptional charge taken in the reporting period.”
Analysts have observed that the global cocoa industry that is a major raw material for Cadbury’s products is
forecast to reach 4.8 million metric tons by 2015. Its supply and demand dynamics have changed rapidly
following recovery from the 2007 to 2009 market trend. The market dominance of Europe and North America is
being challenged by Pacific Asia, but West Africa, the source of over 70 percent of the world’s cocoa, is ever
more critical to this change.
The end of post-election crisis in Ivory Coast with 40 percent of the commodity calls for reassessment of
speculative and future market outlook. The industry has also recovered from the impact of the 2008-2009 global
recession, and drop in demand for the product, especially in the US and Europe.
Today, the Asia-Pacific region is projected as the fastest growing regional market for cocoa, with Malaysia
leading the pack. The key drivers of change are increasing global awareness about the benefits of eating
chocolates (major global players & the Bill and Melinda Foundation introduced more scientifically backed
nutritive and cancer-fighting capabilities of cocoa-rich chocolates), and surging consumption of cocoa-rich
chocolates, particularly in developing countries.
As cocoa-based products manufacturers reduced the size of their products due to increased cocoa prices (from
$2,954.33 in January to $3,137.33/per ton in April, New York futures), demand slowed, significantly doming
major actors such as Archer Daniels Midland Company, Barry Callebaut AG, Belcolade NV, Cargill Cocoa &
Chocolate, Dagoba Organic Chocolate, Mars UK, Aarhus Oliefabrik, etc.
Increased purchases of less-quality chocolates by the consumers also reduced demand for cocoa, hurting market
leaders (Hershey, Ferrero, Mars, Cadbury, Schweppes, and Nestle).
The decline in the West is being offset by the growth in demand for cocoa in India, Thailand and China. How
their cocoa manufacturers have continued to capture a considerable chunk of the market compared with their
western counterparts is a lesson in process innovation. Their growing appetite for chocolates is perhaps the most
important driver of future growth for cocoa.
Yet, the cocoa market, especially in West Africa, faces supply constraints, because of inability of farmers to
produce enough to cater for the growing demand, lack of investment especially in Nigeria and Ivory Coast,
aging of trees, absence of replanting programmes, and administrative bottlenecks and corruption among the
cocoa authorities (heightening the risk of black pod diseases).
Production is however growing in Cameroon, Indonesia, Nigeria, but declined in Ghana and Brazil. The
imbalance should ease as Ivorian cocoa comes back to the market given President Allassane Ouattara’s lifting
the cocoa export ban he imposed early in 2011, and as Fair Trade and Ethical Trade labels expand. The
speculative behaviour of a hedge funds forecasting global supply deficit or production surplus to 2016, thus
needs re-assessment.
Theo produces premium organic and Fair Trade specialty chocolate.
IBTimes
04 May 2011,
Theonista (n.) - Leaders of the chocolate revolution. The revolutionaries can often be heard chanting "Viva
Cacao Organico!, Viva Cacao Calidad!" Considered a peace loving sect of the global food industry, the
Theonistas are prone to Theobromine induced fits of laughter and hugging. Theo comes from. Anyone who has
been on our deliciously fascinating tour can tell you it comes from the Greek name of the Cacao tree -
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Theobroma Cacao, Food of the Gods. In another sense, Theo is all of us, the self-proclaimed Theonistas who put
a little piece of our heart into the work we do here in the factor
The founder, Joseph Whinney, pioneered the supply of organic cocoa beans into the United States in 1994. Joe
always dreamt of building the first organic chocolate factory in the US, as prior to Theo’s inaugural chocolate
run in March of 2006, all organic chocolate was manufactured in Europe and imported into the US market. As
the first and only organic and Fair Trade chocolate factory in the country, all of our ingredients are carefully
screened to ensure they meet our standards for social and environmental responsibility. Theo’s standards and
practices include: Using only pure ingredients that are grown sustainably. We source our ingredients locally
whenever possible.
Partnering with our growers by ensuring they earn a living wage and have access to education for their families.
Honoring and respecting our employees and suppliers. This is possible due to the unique fact that we control
every step of our own manufacturing process.
Using green energy sources to power our factory.
Using sustainable packaging and printing methods.
Educating about social and environmental accountability 7 days a week through public tours of our artisan
factory.
PLACE: The meaning of Origin
The heart of Theo resides in the cocoa growing regions of the world, which we lovingly refer to as “origin.” We
buy our cacao direct from farmers and grower cooperatives. Building long –term business partnerships benefits
farmers financially and technologically as we work together to perfect the art of growing quality cocoa beans.
Economic stability keeps children in school, improves nutrition, and allows farmers to invest in equipment and
land.
PEOPLE: The meaning of Fair Trade
Our founding principle is that the finest artisan chocolate in the world can (and should) be produced in an
entirely ethical, sustainable fashion. We believe that every gold medal we win is a testament to both our
commitment to excellence and to the people and families who grow and harvest our cacao. The social benefits
of Fair Trade are far reaching. The child who gets adequate nutrition and access to healthcare and education
today also gains access to a world of opportunities. Fair Trade enables farmers to take their livelihoods to the
next level in sophistication, blending the benefits of modern techniques with artisanal practices, while
participating in greater social change through the democratic Fair Trade cooperative organization.
PLANET: The meaning of Organic
Focus on sustainable growing practices benefits both our fragile environmental ecosystem and all of the people
inhabiting our planet. Integrated pest management protects farmers and the environment from damaging
pesticides. Shade grown cacao allows for biodiversity and much needed forest habitat for many species such as
migratory birds. Reforestation helps offset worldwide air pollution and has a positive impact on global warming.
THEO: The meaning of Bean-to-Bar
Theo’s small batch chocolate production is truly an art form. We take great time and care to steward our cocoa
beans through the entire manufacturing process, add only the finest, sustainably produced ingredients, and are
proud to offer chocolate we can guarantee is equal parts ethical and delicious!
Cocoa Supplies Will Outpace Usage by 200,000 Tons, Armajaro Says
Bloomberg
By Isis Almeida at ialmeida3@bloomberg.net
May 5, 2011
Cocoa supplies will outpace demand by 200,000 metric tons in the current crop year, according to Armajaro
Trading Ltd., the agricultural-commodities trading arm of Armajaro Holdings Ltd. “The mid-crop will be pretty
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good in West Africa,” William Venables, head of cocoa trading at the London-based company, said in an
interview yesterday at its Mayfair offices, referring to the smaller of two annual harvests.
It is still too early to forecast supply and demand for the next crop, he added. Harvesting of the main crop starts
in October. Rabobank International has estimated a deficit of 30,000 tons for the 2011-12 season, while ABN
Amro NV and VM Group have said demand will outpace supply by 94,000 tons in the period.
Armajaro Trading, founded in 1998, specializes in sourcing cocoa, coffee and sugar and employs more than
2,000 people globally, according to its website. Richard Ryan is chief executive officer of Armajaro Trading.
Ivory Coast due to resume cocoa exports on Saturday
Reuters Africa
May 6, 2011
ABIJDAN (Reuters) - Ivory Coast will resume cocoa beans exports on Saturday, more than three months after
they were halted by the West African country's post-election political crisis, industry officials said on Friday.
Last week exporters resolved a row with the new government of Alassane Ouattara over how to make customs
payments, paving the way for exports to resume.
The CGFCC cocoa sector management committee had previously said it expected exports to resume today,
helping ease ICE cocoa futures.
But a CGFCC official, an official at the port and a cocoa exporter said the first boat to pick up the beans was
now due to arrive on Saturday. All requested anonymity. "The first boat due to load the beans arrives tomorrow
and another one will come on Sunday," the port official said. An exporter from a multinational company
confirmed that his boat was the one expected to arrive on Sunday.
However, it was not yet clear when exports of semi-finished products would resume.
Nearly half a million tonnes of cocoa has been held up at the West Africa country's ports by a conflict that has
lasted more than four months and only eased this month with the arrest of former president Laurent Gbagbo.
Gbagbo had refused to step down after he was judged to have lost a November election to his rival Ouattara,
sparking a power struggle that killed thousands of people and wrought havoc on the economy.
Exporters said early last week that a demand by customs authorities that duty be paid in cash instead of by
cheque was delaying the resumption of cocoa exports, but the dispute was later resolved.
Ivory Coast Restarts Cocoa Shipments from Main Ports of Abidjan, San Pedro
Bloomberg
By Pauline Bax and Baudelaire Mieu
May 6, 2011
Ivory Coast restarted shipments of cocoa beans from its port at Abidjan, 3 1/2 months after President Alassane
Ouattara issued a ban to halt exports of the chocolate ingredient during the country’s political crisis.
The world’s biggest cocoa producer began exports from the commercial capital’s port yesterday, said Eric Koffi,
interim operations director at the National Coffee and Cocoa Management Committee.
“We are expecting quite a lot of shipments in the coming days,” he said by phone today. The western port at San
Pedro will begin raw-bean exports tomorrow, and both harbors will export at least 5,000 metric tons of semifinished cocoa products between May 8 and May 12, Koffi said.
Ouattara’s export ban, issued two months after disputed a November election, was meant to starve his rival,
Laurent Gbagbo, of funds. Gbagbo, who ruled the West African nation for a decade, refused to cede power and
sparked a violent four-month impasse that ended when he was captured in Abidjan April 11.
Most cocoa exporters heeded Ouattara’s ban and halted their shipments. About 400,000 tons of cocoa beans,
nearly a third of the country’s annual crop, have been stuck in warehouses at the two ports since January.
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Exporters warned a majority of the stocks have been affected by humidity, Gnamien Konan, interim Agriculture
Minister, said today. They have been given until June 30 to ship the beans, according to a statement from the
agriculture and finance ministries.
Konan said the administration is discussing a request by exporters “to take facilitating measures regarding taxes
and levies,” without providing further details.
Cocoa for June delivery climbed for the first day in five, adding $23, or 0.7 percent, to $3,078 per ton by 12:09
p.m. on ICE Futures U.S. in New York.
Labour Issues
Environmental Issue
Research & Development
Barry Callebaut Launches Research Project Aimed At Sustainable Cocoa Cultivation
By Barry Callebaut
May 2, 2011
Zurich/Switzerland – Barry Callebaut, the world’s leading manufacturer of high-quality cocoa and chocolate
products, has launched an extensive agronomic research program in Malaysia aimed at developing new,
sustainable cocoa cultivation techniques. The program hopes to yield new insights into practical measures for
boosting the sustainability, productivity and quality of cocoa production – and hence profitability for local
farmers in a responsible and sustainable manner. Covering a total area of 10ha of an existing cocoa plantation,
the program constitutes a large scale experiment testing a wide variety of pragmatic variables relevant to the
Asian region.
The research program is being conducted in collaboration with the Malaysian company Kuala Lumpur Kepong
Berhad. The trials will be conducted under a variety of conditions in both new and existing plantations. Several
agricultural techniques and good agriculture practices (GAP) will be tested, including new pruning and grafting
techniques, the use of organic fertilizers, other organic cultivation techniques and agro-forestry principles. A
further area of focus will be improved post-harvest cocoa treatment techniques to improve Malaysian cocoa
bean quality to achieve “zero-defect” status.
Hans Vriens, Chief Innovation Officer at Barry Callebaut: “Securing the future of the cocoa industry demands
that we find more sustainable cultivation methods now. This important program is proving key to our
overarching goal of boosting the viability of cocoa production by improving both quality and productivity and,
by doing so, increasing incomes for local farmers and their communities.”
Preparations are already underway for the rehabilitation and planting of the experimental plots. The first
preliminary results are expected in a year’s time, around June 2012. Barry Callebaut is excited about the
prospects of adding even more innovative techniques to its portfolio, aimed at fostering a more sustainable
industry for local growers, producers and consumers throughout the globe.
Barry Callebaut (www.barry-callebaut.com):
With annual sales of about CHF 5.2 billion / EUR 3.6 billion / USD 4.9 billion for fiscal year 2009/10, Zurichbased Barry Callebaut is the world’s leading manufacturer of high-quality cocoa and chocolate – from the
cocoa bean to the finest finished product. Barry Callebaut is present in 26 countries, operates more than 40
production facilities and employs about 7,500 people. The company serves the entire food industry, from food
manufacturers to professional users of chocolate (such as chocolatiers, pastry chefs or bakers), to global
retailers. Barry Callebaut is the global leader in cocoa and chocolate innovations and provides a
comprehensive range of services in the fields of product development, processing, training and marketing. The
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company is actively engaged in initiatives and projects that contribute to a more sustainable cocoa supply
chain.
Promotion & Consumption
Nestlé and The Cocoa Trees team up for Smarties promotion
MoodieReport
By Melody Ng, Asia Bureau Chief
04/05/11
SINGAPORE. Nestlé International Travel Retail (NITR) has partnered Focus
Network Agencies (FNA) to launch a promotional campaign at the latter’s
The Cocoa Trees stores in Changi Airport.
Conceived under the umbrella of NITR’s Perfect Store initiative, the
interactive ‘Fly Around The World with Smarties’ promotion concept aims to
deliver category solutions to boost passenger penetration and shopper
conversion.
The event launched as a world premiere in The Cocoa Trees store in Changi Airport Terminal 3 on 25 April and
will be customised for other airports worldwide during the remainder of 2011.
The focus of the initiative centres on innovation and creativity to engage passengers in the departure lounge. For
NITR and FNA there was a clear opportunity to engage passengers and encourage them to enter the store to
make an unplanned purchase. To generate real passenger interest and excitement, the concept includes an
interactive game and leverages the vibrant colours of Smarties.
Exclusive to travel retail, the promotion invites passengers to stand on a board and use their bodies to steer a
virtual plane across the world. The challenge was designed to awaken the competitive nature of those who play
it, NITR explained.
NITR Brand Manager Emmanuelle Chavarot said: “Apart from driving more traffic into the store, it fits the
Smarties brand perfectly, because playing the game requires a degree of physical exercise which is in line with
the company’s global commitment to health and wellness. It is a unique family experience.”
When the interactive plane has landed, participants find themselves in a shopping environment that entices them
to buy into a 3+1 deal for Smarties tubes with a Disney figurine. They can also discover other exclusive travel
retail products from Smarties such as the newly launched Smarties Mickey & Friends gift box.
NITR Customer Marketing Manager Alan Brennan, who leads the company’s Perfect Store initiative, believes
that such an interactive event will capture passengers’ imagination, create a lot of fun, and give a great airport
retail experience. At the same time, it delivers real value to all stakeholders of the Trinity by converting more
passengers into active shoppers.
Others
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Solomon Islands quarantine officials urge prevention against cocoa pest
Radio New Zealand International
04 May, 2011
Quarantine officials in Solomon Islands say more border control is needed to
prevent a potentially harmful cocoa pest from entering its borders.
A group of quarantine officers have completed a pest surveillance operation in
Choiseul Province and the Shortland Islands to look at potential threats on
cocoa crops there.
Dr John Konam from the AusAid funded Cocoa Livelihood Improvement
Project, says while the team did not discover any existing pests, more effort is
needed to guard against a pod borer moth, which is destroying cocoa pods in the autonomous Papua New
Guinea province of Bougainville.
“Quarantine has been publishing awareness materials and has been distributing that to quarantine officers in
the Shortlands. Some awareness activity has been going on. We just need to intensify that and intensify the
activity around the border now.”
Dr John Konam says cocoa production in Solomon Islands has potential to grow and generate good income for
the country.
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