0COPAL COCOA Info
Cocoa Producers' Alliance
In-House Cocoa Newsletter
A Weekly Newsletter of Cocoa Producers' Alliance
Issue No. 523
17th – 21st December 2012
UP-COMING EVENTS
IN THIS ISSUE

ICCO INSIDE
DAILY COCOA
THISPRICES
ISSE:

LONDON (LIFFE) FUTURES MARKET
UPDATE

NEW YORK (ICE) FUTURES MARKET
UPDATE

FROM THE NEWS MEDIA
Do your health a favour, drink Cocoa everyday
‘It’s nature’s miracle food’
In the News (from Newspapers worldwide)
Health and Nutrition
 CocoaJoe introduces premium brewing cocoa
rich in health benefits
Production and Quality
 Ivorian cocoa arrivals drop 15%
 COCOBOD on course to attain fully-certified
cocoa
The Market
 Cameroonian cocoa prices down by up to 10%
 West Africa forward sales push cocoa futures to
six-week low
 Cameroon cocoa exports down 5 pct through
November
 Asia Cocoa-Butter stays at 3-year high; powder
slow
 Confusion hits falling cocoa market as rumours of
misreporting emerge
Labour Issues

Environmental Issue

Research & Development

Promotion & Consumption
 Hershey’s Bliss line now made with 100%
certified cocoa
Others

Processing and Manufacturing
 Processing capacity grinds cocoa industry
 Cameroon cocoa grinder buy 20,031 T by end-Nov
Business & Economy
 Afreximbank signs loans for three West African
cocoa processors
ICCO Daily Cocoa Prices
ICCO Daily Price
(SDR/tonne)
ICCO Daily Price
($US/tonne)
London futures
(£/tonne)
New York futures
($US/tonne)
17th December
1595.01
2457.41
1538.67
2423.33
18th December
1579.04
2434.29
1518.33
2401.67
19th December
1553.13
2400.43
1491.67
2374.67
20th December
1543.49
2385.06
1480.00
2364.00
21st December
1526.88
2355.12
1477.67
2323.00
1560.00
2406.00
1501.00
2377.00
Average
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: 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
Month
Mar 2013
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
17th December
Opening Trans
1538
1543
1549
1554
1533
1542
1532
Jul 2014
Sep 2014
Dec 2014
Average/Totals
Tuesday
Month
Mar 2013
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
18th December
Opening Trans
1528
1535
1542
1546
1535
1530
1530
Jul 2014
Sep 2014
1540
Dec 2014
Average/Totals
Wednesday
Month
Mar 2013
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
19th December
Opening Trans
1512
1520
1525
1529
1525
1520
1525
Jul 2014
Sep 2014
Dec 2014
Average/Totals
1533
1525
2012
Settle
1532
1539
1545
1549
1540
1534
1539
1543
1548
1548
1542
Change
-13
-12
-11
-11
-11
-10
-8
-8
7
7
High
1543
1549S
1555S
1554S
1547S
1547
1532
Low
1522
1530
1535S
1539S
1531S
1525
1532
Volume
5,264
2,589
2,002
1,182
412
258
3
0
0
0
11,710
Change
-21
-20
-20
-19
-15
-13
-13
-13
-13
-13
High
1529
1536S
1542
1546
1536
1530
1530
Low
1510
1518S
1525
1529S
1525S
1520
1530
1540
1535
Volume
5,805
2,189
1,896
1,689
855
2,370
32
0
20
0
14,856
Change
-27
-27
-26
-25
-22
-26
-26
-26
-20
-10
High
1514
1520
1525
1529
1527S
1522S
1525
Low
1481
1490
1498S
1502
1500
1490S
1500
1533
1525
1515
1525
2012
Settle
1511
1519
1525
1530
1525
1521
1526
1530
1535
1535
1526
2012
Settle
1484
1492
1499
1505
1503
1495
1500
1504
1515
1525
1502
Volume
12,323
5,141
2,794
2,063
2,372
2,747
235
0
80
20
27,775
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: econs@copal-cpa.org Website: www.copal-cpa.org
3
Thursday
Month
Mar 2013
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
Jul 2014
Sep 2014
Dec 2014
20th December
Opening Trans
1483
1490
1499
1507
1501
1499
1501
1500
1510
1525
Average/Totals
Friday
21st December
Month
Settle
1471
1480
1489
1496
1494
1488
1493
1498
1505
1514
1493
Average/Totals
Average for the week
1491
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
Jul 2014
Sep 2014
Dec 2014
1500
Change
-13
-12
-10
-9
-9
-7
-7
-6
-10
-11
High
1485
1493
1499
1507
1502S
1499
1501S
1501S
1511
1525
Low
1457
1466S
1475
1481S
1481
1476S
1485S
1488S
1500
1510
Volume
13,537
2,790
6,297
3,576
1,974
3,077
213
122
106
193
31,885
Change
-2
-3
-2
-2
-6
-5
-5
-5
-5
-4
High
1489S
1496S
1505S
1510S
1502S
1503
1494S
Low
1456
1465S
1474
1480
1478S
1476S
1494S
1500
1500
Volume
6,437
2,541
2,299
1,727
524
656
10
0
1
0
7,758
2012
Settle
1469
1477
1487
1494
1488
1483
1488
1493
1500
1510
1491
Mar 2013
Opening Trans
1467
1474
1480
1492
1486
1479
1494
2012
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: econs@copal-cpa.org Website: www.copal-cpa.org
1552
1552
4
New York Board of Trade
(New York Futures Market – Summary of Trading Activities)
(US$ per tone)
Monday
Month
17th December
2012
Dec 2014
Price
1532
1539
1545
1549
1540
1534
1539
1543
1548
1548
Average/Totals
1542
Mar 2013
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
Open
1538
1543
1549
1554
1533
1542
1532
Jul 2014
Sep 2014
Tuesday
Month
18th December
Dec 2014
Average/Totals
1526
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
Open
1528
1535
1542
1546
1535
1530
1530
Jul 2014
Sep 2014
Wednesday
Month
Mar 2013
May 2013
Jul 2013
Sep 2013
Dec 2013
Mar 2014
May 2014
1540
19th December
Open
1512
1520
1525
1529
1525
1520
1525
Jul 2014
Sep 2014
Dec 2014
Average/Totals
1533
1525
High
1543
1549S
1555S
1554S
1547S
1547
1532
Low
1522
1530
1535S
1539S
1531S
1525
1532
Volume
5,264
2,589
2,002
1,182
412
258
3
0
0
0
11710
2012
Price
1511
1519
1525
1530
1525
1521
1526
1530
1535
1535
Mar 2013
Change
-13
-12
-11
-11
-11
-10
-8
-8
7
7
Change
-21
-20
-20
-19
-15
-13
-13
-13
-13
-13
High
1529
1536S
1542
1546
1536
1530
1530
Low
1510
1518S
1525
1529S
1525S
1520
1530
1540
1535
Volume
5,805
2,189
1,896
1,689
855
2,370
32
0
20
0
14856
2012
Price
1484
1492
1499
1505
1503
1495
1500
1504
1515
1525
1502
Change
-27
-27
-26
-25
-22
-26
-26
-26
-20
-10
High
1514
1520
1525
1529
1527S
1522S
1525
Low
1481
1490
1498S
1502
1500
1490S
1500
1533
1525
1515
1525
Volume
12,323
5,141
2,794
2,063
2,372
2,747
235
0
80
20
27775
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: econs@copal-cpa.org Website: www.copal-cpa.org
5
Thursday
20th December
2012
Month
Open
Price
Change
High
Low
Volume
Mar 2013
2359
2328
2371
2311
16,508
May 2013
2361
2336
2377
2320
3,530
Jul 2013
2376
2345
2380
2328
1,588
Sep 2013
2382
2352
2382
2336
745
Dec 2013
2375
2361
2375
2347
475
Mar 2014
2380
2366
2400
2349
164
May 2014
2376
2371
2380
2358
30
Jul 2014
0
2374
0
0
0
Sep 2014
0
2377
-30
-31
-29
-28
-25
-25
-26
-26
-26
0
0
0
Average/Totals
Friday
2357
21st December
23040
2012
Month
Open
Price
Change
High
Low
Volume
Mar 2013
2328
2312
2357
2305
10,703
May 2013
2337
2321
2364
2314
2,049
Jul 2013
2343
2329
2372
2324
773
Sep 2013
2342
2339
2368
2335
527
Dec 2013
2347
2346
2377
2347
356
Mar 2014
2350
2351
2361
2347
163
May 2014
0
2357
0
0
29
Jul 2014
0
2360
0
0
24
Sep 2014
0
2363
-16
-15
-16
-13
-15
-15
-14
-14
-14
0
0
0
Average/Totals
2342
14624
Average for the week
2342
2925
2925
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: econs@copal-cpa.org Website: www.copal-cpa.org
6
News
NEWS
Health and Nutrition
CocoaJoe introduces premium brewing cocoa rich in health benefits
San Francisco Chronicle (press release)
December 17, 2012
CocoaJoe, LLC, located in Denver, Colorado, introduces premium Brewing Cocoa. Brewing Cocoa contains
many health benefits, including improved blood pressure, cardiovascular health, and cognitive functioning as
well as reduced fatigue, risk of diabetes and cancer. Receive free, 2-ounce samples for a limited time ($3.00
shipping charge) at http://www.drinkcocoajoe.com.
CocoaJoe, LLC, based in Denver, Colorado is a new company established in January, that produces and sells
100% natural, organic, premium Brewing Cocoa. The company sells minimally processed cocoa which retains
the natural flavanols in cocoa beans, which has been found to provide numerous health benefits.
The health benefits of consuming cocoa primarily come from flavanols, a form of flavonoids naturally present in
cocoa beans. In addition to antioxidant qualities, flavanols have positive effects on vascular health, such as
lowering blood pressure, improving blood flow to the brain and heart, and making blood platelets less sticky and
able to clot.
Researchers have found cocoa high in antioxidants helps adults to quickly and accurately meet the demands of
complex cognitive tasks due to the increased blood flow and oxygen to the brain. Antioxidants are also believed
to help the body's cells resist damage caused by free radicals formed by normal bodily processes. A lack of
sufficient antioxidants can result in an increase in low-density lipoprotein (LDL), also known as “bad”
cholesterol.
One study, conducted by Ian A. Macdonald, PhD, from the University of Nottingham Medical School in the
United Kingdom, found that the consumption of cocoa rich in natural flavanols suggests cocoa flavanols may
help improve brain functioning. "Our study showed that acute consumption of [a] flavanol-rich cocoa beverage
was associated with increased blood flow to gray matter [brain] for two to three hours," reports Ian A.
Macdonald of the University of Nottingham Medical School. "This raises the possibility that certain food
components like cocoa flavanols may be beneficial in increasing brain blood flow and enhancing brain function
among older adults or those who are cognitively impaired from fatigue or sleep deprivation."
According to Dr. Olayiwola Olubamiwa, a cocoa expert at Cocoa Research Institute of Nigeria (CRIN), Ibadan,
most cocoa beverages contain less than 10 percent of the cocoa powder rich in flavanols, which provide the
most health benefits. Many people are unaware that similar to an apple, a cup of natural, flavanol rich cocoa can
equally help keep the doctor away. In addition to the heart and cognitive benefits, antioxidant flavanols in cocoa
have been shown to produce more active insulin which helps aide in the prevention of diabetes. Other studies
show that drinking minimally processed cocoa can also help improve lean muscle mass and reduce weight.
These research findings emphasize the importance in retaining the cocoa beans original flavanols to receive
maximum health benefits. The amount of flavanols retained in cocoa is a direct result of how the cocoa beans
are processed. The more the beans are processed through alkalizing (also known as Dutch processing), the more
flavanols are lost. Most commercial cocoas and chocolates are highly processed. To obtain the maximum health
benefits purchase cocoa or chocolate that is minimally processed and has not undergone Dutch processing, also
avoid cocoa and chocolate that are loaded with saturated fats and sugars.
CocoaJoe produces and sells 100% natural, organic, minimally processed drinking cocoa. This is not "hot
chocolate" which is loaded with sugar, dairy and calories.
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: econs@copal-cpa.org Website: www.copal-cpa.org
7
"Our brewing cocoa is made from 100% naturally grown cocoa beans. We only roast and grind the beans, this is
as natural as you can get without eating the bean right off the tree," stated Thomas Schumacher, the CEO and
Founder of CocoaJoe, LLC. "With all the tremendous health benefits and great taste of brewing cocoa, it is just
a matter of time until more people discover this great new way to stay healthy while enjoying your morning cup
of 'Joe'."
To introduce more people to Brewing Cocoa, CocoaJoe is offering free, 2-ounce samples for a nominal $3.00
shipping and handling charge. Visit their website at http://www.drinkcocoajoe.com to take advantage of this
offer.
About CocoaJoe, LLC
CocoaJoe is a Denver-based company that produces hand-crafted, artisanal batches of 100% natural and organic
premium brewing cocoa. The company is dedicated to educating the world on the health benefits and great taste
of this new, yet ancient, beverage. CocoaJoe endeavors to improve the world one cup at a time. The company is
committed to purchasing organic cocoa beans from Fair Trade and ethically traded and sustained farmers. To
learn more about CocoaJoe or to order their premium, organic brewing cocoa visit
http://www.drinkcocoajoe.com
Production & Quality
Ivorian cocoa arrivals drop 15%
BDlive
By Ange Aboa,
Dcember 17, 2012,
ABIDJAN — Cocoa arrivals at ports in top grower Ivory Coast since the start of the season in October were
down 15% at around 488,000 tons by December 16, exporters estimated on Monday.
This compared with 578,368 tons in the same period of the previous season.
Exporters estimated about 63,000 tons of beans were delivered to the West African state’s ports of Abidjan and
San Pedro between December 10 and 16, down from 68,515 tons in the same week a year earlier.
Exporters were concerned weekly cocoa arrivals were not meeting expectations that they would steadily
increase as main crop harvesting moved towards its traditional peak period.
The bulk of Ivory Coast’s main crop harvest, or about 700,000 tons of beans, was delivered to port last month
and this month.
"There is growing anxiety because we have not been able to close the gap in arrivals. We thought we would be
able to do that fairly quickly with large volumes this month, but obviously this will not be possible," a director
of an Abidjan-based cocoa export firm said.
"The only logical explanation for this situation is that (cocoa) production is lower than expected, otherwise I see
no other logical explanation for this gap of 90,000 tons, which has lasted for a few weeks now," the manager
said, requesting not to be named.
Another director of a cocoa export firm in San Pedro said the shortfall had spurred the aggressive buying of
cocoa beans, the main ingredient in chocolate.
"Everyone is paying a bonus of 10 to 30 CFA francs ($0.06) per kilogram to the middlemen in order to have as
much cocoa as possible, but the volumes are still below expectation," the director said.
Exporters have said they would be in a position to know if there would be a production deficit this year after the
pre-Christmas bump in harvesting.
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: econs@copal-cpa.org Website: www.copal-cpa.org
8
COCOBOD on course to attain fully-certified cocoa
GhanaWeb
Source: B&FT
Dec. 19. 2012
Ghana is on course to achieve the 2015 cocoa production certification standards stipulated by the World Cocoa
Foundation, Noah Amenyah, Public Relations Manager of Cocobod, has told the B&FT. “Certification issues
will not be a problem for country’s cocoa sector, by the stipulated year, all our cocoa will be certified,” he said.
Cocoa buyers and consumers of chocolate around the world are increasingly demanding traceable cocoa that is
certified as grown in a sustainable manner.
As a result, a lot of cocoa producing countries are grabbing the opportunities therein.
Cocoa certification demands that cocoa farmer’s social, environmental and economic activities fall in line with
best labour practices, in exchange for receiving a premium price on the produce.
The standards will also push farmers to develop better drying and fermentation practices.
Mr. Amenyah disclosed that a number of organizations, including Fairtrade and the German Development Cooperation (GTZ) are working with Cocobod to effectively train farmers to meet the certification standards. “The
cocoa Livelihoods Programme, for example, is helping, is helping to bring about new technologies to help
reduce the cost of farmer training and improve productivity and yields”.
The Kuapa Kokoo Farmers’ Union has been urging Cocobod to take a critical look at cocoa certification
directives as a key factor in modern cocoa production.
This year, Divine Chocolate Limited is contributing US$178,000 in Fairtrade cocoa purchased from Kuapa
Kokoo, which owns a part of the UK-based chocolate maker.
Managing Director of Divine Chocolate, Sophi Tranchell, said: “the certification is very useful for consumers in
places like England and America to know that beans have been checked”.
Cocoa certification consultant, Rita Owusu Amankwah, said the country stands to benefit from the cocoa
certification process, as the global chocolate and cocoa industry rapidly moves towards certified and sustainable
cocoa marketing. She observed however that challenges, like increase labour cost and untimely supply of farm
inputs, could be discouraging for farmers who want to join certification programmes.
Nevertheless, she said cocoa farmers would be better off in the long run, as findings from a research conducted
in cocoa-growing communities in Ashanti and Western regions have shown. “the certified farmers that I talked
to, within a period of one and half year, most of them have increased their yield by 10-55% after adopting good
agricultural practices, integrated pest and crop management, and adhering to other environmentally-friendly
standards,” she revealed.
Bill Guyton, president of the World Cocoa Foundation, said his organization is empowering communities by
training farmers, enhancing education, investing in families, and improving community health and welfare.
“We were formed in 2000 to help improve cocoa sustainability in all three cocoa regions of the world; but
because of the importance of West Africa a lot of our programmes focus on that region. We’re currently
working on three major regional programme.
“The first one is called the Cocoa Livelihoods Programme, which is funded by the Bill and Melinda Gates
Foundation and 16 of our company members as well as the German Development Agency.
“The programme aims to reach over 200,000 cocoa farmers over the next few years with the intent of doubling
incomes. So it’s also making some very good progress,” he said.
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: econs@copal-cpa.org Website: www.copal-cpa.org
9
Nigeria, Cote d’Ivorie, Ghana and Cameroon together produce 70 per cent of the World’s cocoa, generation
about $13 billion annually, while the end-product of cocoa, chocolate, has a turnover of US$105 billion.
The Market
Cameroonian cocoa prices down by up to 10%
AgraNet (subscription)
December 19 2012
COCOA farmgate prices in most parts of Cameroon fell between 5 and 10% on average by mid-December from
a month before as dry conditions allowed more beans to reach the market.
Cocoa prices fell in Emana, a key trading post in the Centre Region of the country to CFAfrancs930 ($1.87) per
kg in December from CFAfr980 the previous month.
West Africa forward sales push cocoa futures to six-week low
Wall Street Journal
By Alexandra Wexler at alexandra.wexler@dowjones.com
December 19, 2012
NEW YORK--Cocoa prices slumped Wednesday as West African supplies and forward selling weighed on the
futures market. "The near-term supplies are abundant," said Boyd Cruel, a senior analyst at Vision Financial
Markets in Chicago. "And sellers in Ivory Coast and Ghana are forward selling their 2013-2014 crop."
Cocoa for March delivery on the ICE Futures U.S. exchange settled 1.6% lower at $2,358 a ton, the lowest
settlement since Nov. 8.
The market is under pressure as processors and other end-users buy the cocoa that is being forward sold by
origin countries, and hedging their purchases in the futures market, traders said.
In addition, "there are no delays in movements of beans through the Ivory Coast" to the ports, Mr. Cruel said,
which has led speculative investors, such as funds, to liquidate their long positions. "There's no real bullish news
out there," said Joe Ricupero, a vice president at R.J. O'Brien Futures in Chicago.
Cameroon cocoa exports down 5 pct through November
Yahoo! News (blog)
December 19, 2012-12-20
YAOUNDE (Reuters) - Cameroon cocoa exports reached 93,995 tonnes by the end of November since the start
of the season in August, down 5 percent from the same period last season, National Cocoa and Coffee Board
(NCCB) statistics showed on Wednesday.
The world's fifth-largest cocoa grower, Cameroon exported 36,373 tonnes of beans in the month of November,
compared with 34,511 tonnes in the same month last year.
Month on month, exports increased nearly 33 percent from 27,374 October.
The number of exporters rose to 27 from 26 in October.
Cargill's joint venture partner Telcar Cocoa Ltd topped the monthly export chart with 8,226 tonnes from 6,221
tonnes in October, followed by Olam Cam, a subsidiary of Singapore commodities firm Olam, with 4,878
tonnes.
The Central African country exported 180,000 tonnes of cocoa during the 2011/12 season, down from the
200,083 tonnes the previous year, due to a prolonged dry season and attacks by pests and diseases.
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: econs@copal-cpa.org Website: www.copal-cpa.org
10
Asia Cocoa-Butter stays at 3-year high; powder slow
Business Recorder (blog)
Posted by Asad Naeem
December 20, 2012
SINGAPORE: Cocoa butter, a key ingredient of chocolate, hovered at its highest ratios in three years in Asia on
tight supply in Europe, but some grinders held on to stocks in a bid to persuade consumers to also buy powder,
dealers said on Thursday.
When cocoa beans are processed they produce roughly equal parts butter and powder, which is also used in
chocolate, beverages and ice cream. Butter gives chocolate its melt-in-the-mouth texture.
Cocoa butter ratios were unchanged at 1.90 times London futures, still lower than the European ratios, which
stood at 2.03 for January/March delivery. "Some expect the ratios to remain at this level until January next year.
But it's pretty quiet now because most people are already on holiday. There were bids for butter at 1.88 times,"
said a dealer in Malaysia. "But we are not willing to sell because we want to get rid of the powder first. We are
trying to sell 'combo' because the market is not balanced."
Sales Paired To Prevent Stocks Build-Up
In "combo" or combination deals, grinders pair the sales of butter and powder to prevent a build-up in stocks.
Grinders will then sell butter at a fixed, but smaller, ratio on condition the buyer also takes some powder.
Powder was offered at $3,000 to $3,300 a tonne, unchanged from two weeks ago, with no reports of deals, while
butter still attracted inquiries ahead of Christmas and New Year holidays.
Butter ratios in Asia have risen as much as 90 percent this year after the economic crisis in Europe cut grindings
there by 16.2 percent in the third quarter from the same period last year, to 316,676 tonnes.
Worries that a decision by Ivory Coast, the world's largest producer, to remove a subsidy to local grinders could
hurt output also helped push up ratios.
Ivory Coast has abolished the 20-year-old subsidy by which grinders benefited from a reduced export tax, a
move that could jeopardise future investment.
May cocoa futures on Liffe closed down 27 pounds, or 1.8 percent, at 1,492 pounds a tonne on Wednesday,
after touching 1,490 pounds, the lowest for the second month since mid-July, on origin selling and speculative
long liquidation.
Confusion hits falling cocoa market as rumours of misreporting emerge
AgraNet (subscription)
December 20 2012
COCOA prices slid to a six-month low this week amid strong producer selling and as speculators liquidated
their long positions, while it emerged that some exporters may be misreporting bean arrivals at ports.
Benchmark March cocoa on NYSE Liffe closed at £1,479 ($2,407) per tonne on Wednesday, the lowest price
for the contract since June 26.
Processing & Manufacturing
Processing capacity grinds cocoa industry
Financial Times
By Emiko Terazono in London
December 17, 2012
In Indonesia, processing capacity grew by 2.4 times in the past 7 years, and almost 40 per cent in Malaysia in
the past 6 years, according to the International Cocoa Organization.
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In Africa, grinding capacity has risen more than 50 per cent in Ivory Coast – the world’s top cocoa exporter – in
the past 5 years. Ghana, the second-largest exporter, has seen a 2.5 times jump in processing capacity in the last
7 years.
The extra capacity and, thus, the over production of cocoa products – referred by the industry as butter and
powder – pushed grinding margins into negative territory in 2012. “There was a large build up of stock in
products as there was too much output compared to demand,” says a top cocoa processor.
For most of the year, margins, or the “combined cocoa ratio”, which measures the combined sales price for
cocoa butter and cocoa powder relative to the cocoa bean price, have been below the level it is profitable to
grind the beans.
Leading processors have been affected: the cocoa ingredients division of Petra Foods, which has just been
bought by Barry Callebaut, reported a 29 per cent plunge in earnings before interest tax and amortisation for the
first 9 months of the year. Archer Daniels Midland, a top processor and cocoa trader itself, noted “weaker cocoa
press margins” in its latest results release.
Processing margins have come back thanks to a recent rebound in cocoa butter prices, “but overcapacity remains
and there are risks of negative margins again in 2013”, notes Rabobank, one of the top lenders to the industry.
Tax incentives and subsidies, particularly in Africa, will help the industry to weather the problem.
However, there is a lot of uncertainty surrounding the situation in Ivory Coast, which recently announced an
export tax on semi-finished cocoa products. With the Ivorian issue coupled with a sluggish economy in Europe,
many of the processors will be braced for what could be another tough year.
The Commodities Note is a daily online commentary on the industry from the Financial Times.
Cameroon cocoa grinder buy 20,031 T by end-Nov
Reuters
Dec 20, 2012
(Reuters) - Sic-Cacaos, Cameroon's main local cocoa grinder, bought 20,031 tonnes of beans by the end of
November since the start of the season on Aug. 1, according to statistics from the National Cocoa and Coffee
Board (NCCB) that were confirmed by the company.
The figures show purchases for the year so far are up 10.77 percent compared with the same stage last year.
Data showed that the firm, a subsidiary of Swiss-based chocolate manufacturer Barry Callebaut AG, bought
4,891 tonnes of beans during the month, down from 6,860 tonnes at the same stage last year.
A second grinder, Chocolaterie Confisserie du Cameroun (CHOCOCAM), which bought 39 tonnes in the month
of November last year, did not buy any for same month this year.
Meanwhile, robusta coffee exports for the 2011/12 season totalled 29,498 tonnes, some 0.20 percent down from
the previous year, according to provisional statistics provided by the NCCB.
NCCB data also showed that Cameroon had exported 526 tonnes of arabica coffee by the end of November
since the 2012/13 season began in early October. (Reporting by Tansa Musa; Editing by David Lewis and
Alison Birrane)
Business & Economy
Afreximbank signs loans for three West African cocoa processors
Trade Finance (subscription)
17 December 2012
Afreximbank has signed loans for three West African cocoa processors to enable them to purchase equipment.
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Read more: The African Export-Import Bank Afreximbank West Africa cocoa Societe d’Usinage et de
Conditionnement du Sud-Ouest SUCSO Cote d'Ivoire Societe Nouvelle de Commerce Guinee SONOCO
The African Export-Import Bank (Afreximbank) has signed loan facility agreements with three West African
cocoa producers to enable them to expand their production capacity and purchase needed equipment.
In total the loans signed amount to Eu55 million ($72 million). The loans form part of Afreximbank’s
programme to support value-additive activities to move Africa away from remaining as an exporter of raw
produce. The loans were undertaken as entirely separate agreements.
In the first transaction, Afreximbank signed a Eu10 million loan facility with Societe d’Usinage et de
Conditionnement du Sud-Ouest (SUCSO) of Cote d'Ivoire on 13 December 2012.
Labour Issues
Environmental Issues
Research & Development
Promotion & Consumption
Hershey’s Bliss line now made with 100% certified cocoa
Candy Industry
By Crystal Lindell
December 19, 2012
Chocolate maker says decision was a response to consumer demand
Hershey's bliss
Hershey has a truly Bliss-ful announcement for sustainable cocoa
advocates — its entire Hershey’s Bliss line is now made with 100%
certified cocoa.
The chocolate maker had announced plans in the beginning of 2012
to make the brand entirely from certified cocoa, and the certified
Bliss products began rolling out this fall and continue to arrive at
retailers across the country.
Certified cocoa is sourced from farms that have met comprehensive sustainability standards that strive to protect
the environment and the safety and well-being of workers, their families and communities.
The decision to launch the Bliss line with 100% certified chocolate comes after Hershey was the target of the
“Raise the Bar, Hershey Coalition,” which attempted to highlight allegedly poor working conditions for cocoa
farmers that supply Hershey.
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Kristin Harper, director for Hershey’s Kisses and Bliss Brands, says the changes to the Bliss line were a result of
Hershey listening to consumers and responding “by giving them an easy and delicious way to enjoy 100%
certified chocolate.”
“Hershey’s Bliss chocolates have always been about using distinct, high-quality ingredients to craft rich
chocolate with an exceptional creaminess,” she says. “Now consumers can enjoy the smooth taste of Hershey’s
Bliss chocolates and know that they are helping to protect the environment and supporting safe and healthy
conditions for family cocoa farmers.”
Consumers can identify certified Hershey’s Bliss products by the distinctive Rainforest Alliance green frog seal
on the exterior bag packaging. Bliss brand chocolates are available in milk chocolate, dark chocolate, white
chocolate melt away, dark chocolate with caramel and crème de menthe melt away.
Hershey also has announced plans to use certified cocoa in 100% of its products by 2020 as well as accelerate
its sustainability programs in Ghana and the Ivory Coast.
Others
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