INSIDE THIS ISSE: ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES MARKET UPDATE NEW YORK (ICE) FUTURES MARKET UPDATE FROM THE NEWS MEDIA TIT BITS Course on products from cocoa by- products – 21 st February – 4 th March 2011, New Tafo-Akyem, Ghana Sub-committee of the COPAL 50 th Anniversary – 15 th March 2011 – ICCO Board Room, 1-19 New Oxford Street, London, United Kingdom. Selection Committee for the post of New Secretary General – 16 th March 2011 - ICCO Board Room, 1-19 New Oxford Street, COPAL COCOA COPAL COCOA Info Info A Weekly Newsletter of Cocoa Producers' Alliance Do your health a favour, drink Cocoa everyday UP-COMING EVENTS IN THIS Issue No. 431 14 th - 18 th March 2011
Transcript
INSIDE THIS ISSE:
ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES
MARKET UPDATE NEW YORK (ICE) FUTURES
MARKET UPDATE FROM THE NEWS MEDIA TIT BITS
Course on products from cocoa by-products – 21st February – 4th March 2011, New Tafo-Akyem, Ghana
Sub-committee of the COPAL 50th Anniversary – 15th March 2011 – ICCO Board Room, 1-19 New Oxford Street, London, United Kingdom.
Selection Committee for the post of New Secretary General – 16th March 2011 - ICCO Board Room, 1-19 New Oxford Street, London, United Kingdom.
Market Committee of Experts – 17th March 2011 - ICCO Board Room, 1-19 New Oxford Street, London, United Kingdom.
COPAL COCOACOPAL COCOA InfoInfo A Weekly Newsletter of Cocoa Producers' Alliance
Health and Nutrition A Comprehensive Look at Cocoa Handling and
Flavanol Antioxidants
Production and Quality Puratos Group Expands Chocolate Production in
Brazil Government committed to efficiency of Cocoa
Sector –Kwetey
The Market Ivorian Cocoa Producers Cry Foul Over Sanctions UPDATE 3-Lindt confident of shrugging off high
cocoa price Cocoa industry has 'increasing concern' over I.
Coast unrest Chocolate As Expensive As Caviar? That’s Absurd Japan disaster shakes commodities, prices fall
Business & Economy Industries Want 10 Percent Cocoa Duties
Labour Issues
Environmental Issue Patchy rains to improve Ivorian mid-crop cocoa
Research & Development
Promotion & Consumption
Others Mars to use green cocoa Cocoa Can Become Source of Employment for
Do your health a favour, drink Cocoa everyday
‘It’s nature’s miracle food’UP-COMING EVENTSUP-COMING EVENTS IN THISIN THIS
Issue No. 431 14th - 18th March 2011
Nigerian cocoa prices fall as main crop tails off Ivorian cocoa arrivals hit 1,037,181 T: BCC data Cocoa prices have increased dramatically
Processing & Manufacturing
Youths- COPAN Chocolate sweetened with ethics
In the News (from Newspapers worldwide)
ICCO Daily Cocoa PricesICCO Daily Price
(SDR/tonne)ICCO Daily price
($US/tonne)London futures
(£/tonne)New York futures
($US/tonne)
14th March 2166.84 3417.26 2166.67 3340.33
15th March 2102.06 2102.06 2110.67 3227.33
16th March 2080.32 3283.68 2095.67 3219.00
17th March 2114.34 3353.66 2122.67 2122.67
18th March 2005.81 3180.61 2009.67 3106.67
Average 2094.00 3309.00 2101.00 3237.00
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
A Comprehensive Look at Cocoa Handling and Flavanol AntioxidantsBiomed Middle East The Hershey CompanyBy: Nadia March 14, 2011 As evidence regarding the health benefits of consuming dark chocolate and cocoa mounts, there has been an increasing debate about which cocoa and chocolate products deliver the most beneficial compounds, known as flavanols, and if steps in cocoa and chocolate production diminish the levels of cocoa flavanols.
In a recently published paper, scientists reported on the effect of conventional production methods of cocoa beans on the levels of flavanols, natural antioxidants. The study, conducted by researchers at the Hershey Center for Health & Nutrition®, investigated cocoa beans and cocoa powders and described production steps that retain naturally occurring flavanols and reported that alkali processing causes a loss of up to 98% of one important flavanol, epicatechin, in the final product.
The study, published in the Journal of Agricultural and Food Chemistry, compared the effects of various common production methods on freshly harvested unfermented and naturally farm-fermented beans. Levels of epicatechin and catechin, a less active flavanol antioxidant, were compared in beans that were unfermented and in beans that underwent medium (about 5 days) and long fermentation (about 10 days). Long fermentation previously has been shown to impact the level of epicatechin in cocoa beans, and the authors reported loss of both flavanols as fermentation time increased. Beans were roasted to temperatures of 120oC and the researchers found that temperatures of 70°C or higher caused some loss (up to 88% at 120oC) of epicatechin. Catechin levels, however, increased as roasting temperature increased. Additionally, natural cocoa powders and powders that had been treated with different levels of alkali also were measured. The study found that by far the greatest flavanol losses occurred during alkali processing. The results also suggested that epicatechin may be converted to catechin by alkali processing.
“This study is meant to address the impact of processing on the level of beneficial flavanol antioxidants found in cocoa beans” said Dr. Mark Payne, lead author of the paper. “We found that the processing step which causes the most loss in the flavanol epicatechin is the alkali processing step. Here the epicatechin, which is thought to be most beneficial, appears to be converted to catechin which has been shown to be less active in the body.”
“Most of the world’s cocoa beans undergo a natural, field fermentation on the farm and then roasting,” said Dr. David A. Stuart, co-director of the Hershey Center. “Both steps are critical to the flavor development for chocolate and cocoa powder. It is important that we understand the balance in creating the wonderful flavor of chocolate with the health benefits of cocoa powder and dark chocolate. This study has gone a long way in furthering that understanding and is the first systematic study of the whole process, from bean to powder, that we are aware of.”
Puratos Group Expands Chocolate Production in BrazilFood Ingredients First (press release) 16 Mar 2011Following the acquisition of a majority shareholding stake in Floresta do Rio Doce Agroderivados (Linhares, Brazil), has Puratos entered into chocolate production in Brazil. Floresta do Rio Doce started in May 2010 as the first origin cocoa factory in Brazil. Located in Linhares, the third cocoa plantation region of Brazil, Floresta do Rio Doce marks a new era in the history of Brazilian cocoa plantations. Using processes and technology developed locally, the unit had an initial capacity to grinding 2,500 tons of cocoa beans per year.
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
With an initial investment of 4 million EURO, Floresta do Rio Doce built the first cocoa liquor production line in a building of 1.500 m² and a land of 40.000 m², close to more than 450 cocoa farms. The excellence of the cocoa liquor is guaranteed through all stages of the process, from the plantation of the fruit to the fermentation process on the farm and the industrialization of the final product. The expansion of the cocoa mass lines will continue in 2011, together with the construction of a new chocolate factory in Linhares in the province of Espiritu Santo. In March, Floresta do Rio Doce starts producing the Puratos chocolate Chocolanté and Carat, besides its traditional brands Vitto and Norcau. Eddy Van Belle, chairman of the Puratos Group, says: “Already during my visit in 2009, I was impressed by the potential and quality of the cocoa in the region of Linhares for the production of premium and origin chocolates. For Puratos, the acquisition of Floresta do Rio Doce marked the start of a new era of origin chocolate in Brazil. But Floresta do Rio Doce also represents a new value chain example for the chocolate and cocoa industry, where farmers, chocolatiers and end consumers are brought together to exchange ideas and know-how, in a genuine and innovative Puratos’ approach.”
Government committed to efficiency of Cocoa Sector –KweteyGhana News AgencyMarch 17, 2011Tema, GNA - Government has reiterated its commitment to continue pursuing policies that would make the cocoa industry more efficient, despite the discovery of oil in the country.
Mr Fiifi Kwetey, Deputy Minister of Finance and Economic Planning, who gave the assurance on Thursday, said even though Ghana has started oil production, government believed that Agriculture, especially the hold on the cocoa sub-sector, would remain key to the rural transformation of the economy.Mr Kwetey was commissioning a GH¢10.5 million additional plant and equipment, as well as a GH¢1.3 million rehabilitated and refurbished chocolate-making section of the Confectionary Factory at the Cocoa Processing Company (CPC) in Tema, on Thursday. The additional plant and equipment included hydraulic presses, cricket filter and a cake pulverization plant. Mr Kwetey indicated that cocoa still remained the mainstay of Ghana's economy, which accounted for 40 percent of Agricultural Export and 12 percent of the country's Gross Domestic Product (GDP).
Government, he said, would therefore pursue policies that would make the industry sustainable and profitable, such that current stakeholders could continue to invest in the sector, while new investors were being attracted.
The Deputy Finance Minister said, to arrive at a mutually beneficial arrangement, relating to the pricing of cocoa beans sold to the domestic processing factories, government would continue its on-going dialogue with those factories. He commended the CPC for undertaking the expansion and rehabilitation project, stating that, with the expansion, government expected the Company to embark on a vigorous campaign for the increased consumption of cocoa and its derivatives.
Dr Richard Amarh Tetteh, Managing Director of the company, said his outfit began the expansion project in 2003, in order to increase its processing capacity from 25,000 to 64,500 metric tones of cocoa per annum. Dr Tetteh said the expansion was also to help the factory to keep up with the changing trends of chocolate-manufacturing, which he said, was a dynamic enterprise.
Mr Jacob S. Arthur, Chairman of CPC's Board, said the expansion project was aimed at positioning the Company to respond appropriately to the unpredictable global demand pattern for semi-finished cocoa products with the right mix. Mr Arthur explained that CPC had to maximize all its product lines in order to attain some level of flexibility in its operations, in order to operate at the technically recommended throughput capacity of about 90 percent, compared to the 25 to 30 percent, it was utilizing. He further said with the expansion of the Cocoa Factory Two, which was originally set up to process beans into only liquor, it now had the capacity to generate the whole range of semi-finished cocoa products, such as liquor, butter, cake and powder.
The Board Chairman named access to working capital, ensuring constant supply of light crop beans to the Company, and the increasing cost of cocoa beans, as the major challenges threatening to erode the successes of the commissioned projects. Mr Kwetey was later conducted round the rehabilitated Plant by the MD, the Board Chairman, and other top Management members of the Company.
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
Ivorian Cocoa Producers Cry Foul Over SanctionsInter Press Service (press release) Mar 14, 2011ABIDJAN, (IPS) - The international community's efforts to deny embattled president Laurent Gbagbo access to funds from cocoa exports have resulted in hundreds of thousands of tonnes of Ivorian cocoa surfacing in neighbouring countries.
Producers say not only are they selling their perishable crop to black market buyers for a fraction of its market value, but they are being unfairly victimised by the political situation.
A key part of the struggle for power is control over state revenues. The European Union suspended imports of cocoa, Côte d'Ivoire's major export, as a means of depriving Gbagbo of funds. The country's cocoa producers say the sanctions have only resulted in their harvests going to neighbouring countries, even to non-producing countries.
By mid-February, according to the Bourse café-cocoa, (BCC, the country's cocoa and coffee exchange), 400,000 tonnes of cocoa were blocked at the country’s two ports – Abidjan and San Pedro – while waiting to be exported to European countries.
"Every day that goes by, this cocoa is more vulnerable to spoilage. This represents an enormous potential loss of earnings of close to 40 billion CFA francs (around 80 million dollars) looming on the horizon for our producers," says Adrien Kouamé, an exporter from the consolidated cooperatives from the west of the Côte d’Ivoire.
"As a simple producer from Duékoué (in the west of the country), what have I got to do with politics so that people refuse to buy my 35 tonnes?" said Blandine Gloudoueu. "I make only 25 million CFA francs (around 50,000 dollars) to support my family of 20. So how am I going to cope with this embargo?" In addition to bearing the brunt of the European sanctions, Ivorian cocoa producers are up in arms over the outflow of their products into adjacent countries, notably Mali, Burkina Faso and Togo.
"It’s hard for us to hear that countries like Mali have declared a production yield of 100,000 tonnes of cocoa, when in 2004, it was only 8,000 tonnes. That Mali reports a 100,000-tonne cocoa yield is staggering," said Joseph Kouamé Yao, president of the agricultural union of individual and cooperative growers of Côte d’Ivoire.
The BCC estimates that 170,000 tonnes of cocoa have left Ivorian soil illegally to be sold through adjacent countries, representing an estimated loss of about 34 million dollars. According to Yao, in the last few weeks, rogue traders have been scouring the cocoa-producing regions to buy stock at the lowest price before transporting it along back roads and selling it in the bordering countries.
But the situation is also benefiting Ghana, Côte d’Ivoire’s eastern neighbour and main competitor, with an annual cocoa yield of 800,000 tonnes, explains Yao. Ivorian producers maintain that some 29,000 tonnes of cocoa have been able to reach Ghana illegally.
"With the crisis, people are offering to buy cocoa for 500 FCA francs (about one dollar) or even 450 FCA francs, whereas the off-the-field price declared by the government for the current crop year is 1,100 CFA francs ($2.20)," Arouna Singo, a cocoa producer from Vavoua in the mid-west of the country, told IPS. "Some of us give in to the pressure, even though it’s practically less than half its real value."
Karim Soumahoro is a buyer from San Pedro, in the south-west of the country. "We are in a situation where we risk losing our investments. Those who dupe the producers claim that they cannot buy at the normal prices because their purchases may be stopped at customs as they are leaving the country, or they won't able to find other exporters."
Soumahoro adds that as long as the socio-political situation does not improve, the profiteering will continue, as producers need money desperately and will hand over their harvests to the first taker.
UPDATE 3-Lindt confident of shrugging off high cocoa priceReutersBy Silke KoltrowitzMar 15, 2011
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
ZURICH, March 15 (Reuters) - Swiss premium chocolate maker Lindt & Spruengli (LISP.S) said strong demand for its Lindor pralines and gold foil-wrapped Easter bunnies meant it was aiming for 2011 sales growth of 6-8 percent in local currencies.
Robust demand, especially in the United States and Britain, has so far helped Lindt offset higher costs as it grapples with record-high cocoa prices driven up by speculation and post-election violence in top grower Ivory Coast.
The group, which traces its origins to a Zurich confectionery shop in the 1840s, could increases prices to consumers in the second half of the year to offset cost pressures, it said on Tuesday.
"The unstable commodity market situation, especially for cocoa, is likely to persist because of political unrest in the Ivory Coast," Lindt said, adding the price trends for milk, sugar and nuts were also hard to predict.
Lindt will buy back up to 5 percent of its shares, worth 310 million Swiss francs ($335.4 million) at Monday's close, until the end of 2012 and raise its dividend to 45 Swiss francs per participation certificate for 2011.
Lindt's participation certificates were down 0.2 percent at 0927 GMT, outperforming a 2.3 percent drop in the STOXX Europe 600 Food & Beverages index .SX3P.
Cocoa industry has 'increasing concern' over I. Coast unrestAFP March 15, 2011LONDON — Leading organisations in the global cocoa industry on Tuesday expressed their "increasing concern" over the violence in Ivory Coast, the biggest producer of the commodity used to make chocolate.
The European Cocoa Association and confectionery grouping Caobisco, both based in Brussels, and the Federation of Cocoa Commerce in Britain said that they "deeply regret" that a solution to the unrest had not been reached.
"Caobisco, ECA and FCC members witness with increasing concern further deterioration of the situation in Cote d'Ivoire (Ivory Coast), and fully share in the despair of the Ivorian population," they said in a joint statement.
"We deeply regret that a political solution has not been found yet, and we continue to commend efforts for a speedy restoration of peace."
The trio said: "As previously reported, our members' operations in Cote d'Ivoire in terms of procurement and processing of cocoa are severely hindered, while exports of cocoa have come to a standstill."
And they added: "Despite these difficult circumstances, the members of Caobisco, ECA & FCC remain committed to the millions of people in cocoa farming communities whose livelihoods depend on cocoa."
Violence has escalated in Abidjan in the once booming west African country where at least 400 have been killed since the disputed election, according to the United Nations.
Ivory Coast is the world's biggest producer of cocoa and exported about 1.2 million tonnes in the 2009/2010 crop year, according to data from the International Cocoa Organisation.The second-biggest cocoa producer is neighbouring Ghana, followed by Indonesia.
The statement came as troops loyal to Ivory Coast strongman Laurent Gbagbo were holding key positions in Abidjan after repulsing forces of his rival for the presidency in a key battle for control of the country's economic capital.
Pro-Gbagbo forces held on to strategic military barracks in the northern suburb of Adjame on Tuesday after the heaviest day of fighting since a disputed November election plunged the country into violence.
Forces backing internationally recognised president Alassane Ouattara met fierce resistance as they attempted to move south through the city from their powerbase in the northern suburbs in the direction of central Abidjan.
Gbagbo is refusing to cede power to Ouattara, and mediation efforts have so far failed to budge the outgoing president who last week rejected an African Union endorsement of his rival's presidency.
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
Ouattara's appeal for a halt to cocoa exports -- which was extended until March 31 on Monday -- has mainly been respected by major dealers and chocolate makers. The move has been accompanied by a European Union embargo on Ivorian ports.
However, Gbagbo ordered the resumption of cocoa exports last week and warned of financial penalties for multinationals that do not follow his ruling by March 31.
And the head of the country's cocoa-coffee management board, Gilbert Ano N'Guessan, also warned they might seize cocoa stocks if export taxes are not paid.
At the start of the month, cocoa prices had rocketed to the highest levels in more than 30 years on the back of simmering unrest in Ivory Coast. But the market has since pulled lower on profit-taking.
"Cocoa futures prices seem to have declined in part with the sentiment in a number of other commodities," said Sucden analyst Brenda Sullivan on Tuesday.
"The political risks in Ivory Coast may continue to provide a background of uncertainty about supplies."
Chocolate As Expensive As Caviar? That’s Absurd24/7 Wall St. (blog) By Jonathan BerrMarch 16, 2011 Chocolate lovers, who are facing price hikes in the wake of record cocoa prices, can take solace in one thing: the cost of their deliciousness likely will never reach the level of caviar.
That prediction was made last year by the Nature Conservation Research Council and was carried on NPR, the U.K.’s Independent newspaper and a host of other media outlets. The group’s head, John Mason, is quoted by the Independent as saying “In 20 years chocolate will be like caviar. It will become so rare and so expensive that the average Joe just won’t be able to afford it.”
That’s a pretty bold statement to make. Forecasting cocoa or any commodities markets for 20 weeks is pretty difficult. Predicting what the world will be like in 20 years is at best an educated guess and at worse like throwing a dart at a target blindfolded. It also is a tough metaphor to prove since these products are sold in vastly different quantities. One product is plentiful and the other rare.
Prices for chocolate’s main ingredient at a 30-year high of about $3,340 a ton on the New York Mercantile Exchange. Caviar, one the other hand, sells between $90 and $150 an ounce. There are 35,273 ounces in a metric ton. So theoretically, a ton of caviar would cost about $3.5 million.
To be sure, chocolate prices are headed higher which will squeeze the profit margins of Hershey Co. (NYSE: HSY), Campbell Soup Co. (NYSE: CPB), maker of Pepperidge Farm cookies, General Mills Inc. (NYSE: GIS), whose brands include Betty Crocker, Haagen Daas and Pillsbury, and other food companies, grocery chains and retailers. The situation is especially bad in the Ivory Coast where there is a political stand-off over who should be the president of the world’s largest cocoa exporter.
Bloomberg Businessweek reported that some are predicting that prices may rise another 14% should an export ban be continued through may. As the news organization notes, it’s a dicey situation.
Exports, accounting for 34 percent of global supply, were banned Jan. 24 by Alassane Ouattara, the internationally recognized winner of disputed presidential elections. The decree, combined with a lack of financing and trade restrictions imposed by the European Union in January, meant a 99 percent slump in the registration of beans for shipment in the two weeks ended March 3, the latest port data show.
Cocoa has risen 18 percent since the November elections, adding pressure to world food prices the United Nations says reached a record last month. Ouattara this week extended the ban until the end of the month. Another extension may take it into the mid-crop, the smaller of two annual harvests that starts in April.
The political stand-off will get resolved because there is too much money at stake. Chocolate sales are pretty recession resistant too. Market researcher Mintel says that US seasonal chocolate sales rose 16.3% between 2005 and 2010.
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
Of course as long as supply doesn’t meet demand, prices will remain high. Maybe chocolate lovers will have to start munching on something affordable like carrots.
Japan disaster shakes commodities, prices fallEconomic Times 17 Mar, 2011, KOLKATA/PUNE/AHMEDABAD/KOCHI: Commodity prices in India have dropped in line with global markets which fell for the fifth successive day on concern that Japanese demand will take a while to pick up after the strongest earthquake in its history damaged northern parts of the country. Jittery traders moved out of agricommodities to safe haven bullion which edged up in Asia on Wednesday.
The softening in commodity prices comes as a welcome relief to Indian manufacturers who have been grappling with high raw material prices for several months now. Sectors that will immediately benefit include tyres, food and beverage, cooking oil, meat and livestock. Car companies too will benefit as the prices of two precious metals - palladium and platinum used in catalytic converters - have dropped.
Gold and silver both edged up in Asia on Wednesday as equity markets stabilised, eliminating the margin-related selling that depressed precious metals on Tuesday. The most-active gold for April delivery on the Multi Commodity Exchange was trading 0.33% higher at Rs 20,672 per 10 gram, after hitting a high of Rs 20,690. The contract recovered from a one-month low of Rs 20,469 struck in the previous session, a level last seen on February 16.
Platinum group metals fell because potential radiation disasters weakened expectations of demand from the Japanese automotive industry. Japan's leading carmakers, including Toyota , Nissan , and Honda, have decided to stop production. Automakers are the largest consumer of platinum and palladium. Spot platinum on Wednesday was off $14 at $1,687/oz, after dropping 3% Tuesday, while spot palladium was at $710/oz, up $5 after plunging 5% in the previous session. "A drop in platinum and palladium prices augurs well for the automobile industry. Both these precious metals are used in catalytic converters to check emission," said P Balendran, VP, General Motors India.
The agricommodity sector has been hit the most, with sugar leading the pack. Despite the falling global sugar prices, the sugar industry is desperate to export as the domestic prices are hovering between Rs 2,550 per quintal and Rs 2,800 per quintal. "The falling global prices mean that the premium on sugar that we could get over the domestic price has reduced substantially. It is still viable for India to export sugar, provided the decision is taken very quickly before the global prices fall further," said Abinash Verma, managing director, Indian Sugar Mills Association.
Maharashtra Cooperative Sugar Mills Federation MD Prakash Naiknavare feels that the Japan crisis has not been the lone contributor to this drastic price fall. "International sugar price has fallen from the all-time high of $857 f.o.b. on February 2 to $ 667 f.o.b. today largely due to the opening up of the futures trading of Brazilian sugar than due to the crisis in Japan." The average ex-mill without duty sugar price in Maharashtra on Wednesday hovered around Rs 2,550/quintal. A sliding sugar price will help food and beverage-base companies.
Domestic soyameal prices have seen a fall by 5% in line with global commodity markets. "Soyameal prices have come down to $390-$395 FAS (free alongside ship) per tonne from $402 to $405 FAS per tonne in the past few days," said Atul Chaturvedi, CEO of Adani Wilmar. Incidentally, on National Commodity and Derivatives Exchange (NCDEX), April soyoil futures were down by 0.15% at Rs 605.85 per 10 kg. The Soya bean April contract on NCDEX was trading at Rs 2,265 per quintal, which was down by 0.57%. Similarly, the April contract of rapeseed was down by 0.26% at Rs 2,695 per quintal. The consumers of edible oil may heave a sigh of relief if price fall for a few days.
A slump in the global cocoa prices is viewed by Indian chocolate manufacturers as a temporary phenomenon, which is unlikely to have a long-term effect. International cocoa prices fell 4% to $3,255 on ICE. "This drop is due to the crisis in Japan and may not last long. It will not reflect on the Indian cocoa prices," AS Bhat, managing director of Campco, said. The Indian dry cocoa bean prices have been hovering at around Rs 160 per kg for some time now.
The global cocoa prices have been on the decline during this month due to a ban on exports in Ivory Coast, the largest producer. "The slide in the coffee price may help in raising the demand for Indian coffee globally," said Ramesh Rajah, president, Coffee Exporters Association of India. Indian coffee exports are heading for an all-time high for the current fiscal. It touched 2,87,396 tonnes, a 47% increase, on March 9.
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
Global coffee prices had been climbing on concerns of a short supply with principal producer Brazil reporting a lower production. But on Wednesday both Robusta and Arabica prices have declined. "The current slide is linked to Japanese crisis and not connected to demand and supply per se," said Jawaid Akthar, chairman of Coffee Board.
Nigerian cocoa prices fall as main crop tails offReuters AfricaBy Tume AhembaMar 17, 2011 LAGOS (Reuters) - The farmgate price of Nigerian cocoa fell 4 percent on average in the past month after the historic high of 550,000 naira a tonne reached in February discouraged buyers, dealers said on Thursday.
Dealers said even with the dip, the price of Nigerian cocoa beans was higher than the international price, making the local market uncompetitive. Cocoa futures for May, by comparison, fell $6 to $3,209 a tonne on Thursday.Many exporters and local processors have shunned the market in the past month due to the high cost of beans, dealers said. Also the October to March main crop is nearing its end in the world's number 4 grower.
The farmgate price dropped to 530,000 naira from 560,000 naira a tonne in the main south-western region, and to 525,000 from 540,000 naira in the south-eastern region, estimates by growers and buyers showed.
"The market has slowed down ... crop production has reduced drastically, but the price has remained very strong," Abang Neji, secretary of the Cocoa Association of Nigeria (CAN), told Reuters by telephone from Ikom in the state of Cross River, Nigeria's second-biggest cocoa grower.
Despite the fall, the average farmgate price was 22 percent higher than the year-ago level of 430,000 naira a tonne.
The price of graded cocoa -- beans certified fit for export by government produce inspectors -- dropped 4.42 percent to 540,000 naira on average per tonne in the month to March 17 from 565,000 naira the previous month for beans delivered in the port city of Lagos or Calabar in Cross River state.
The transition from the main crop to the April-September mid crop, also known as the light crop, usually slows down business, industry experts say.
"The prices have started coming down, but there is very little activity in the market and the trend should continue in the coming months," said a dealer who buys beans for a commodity company in Akure, capital of Nigeria's main cocoa-growing state Ondo.
Dealers said the high cost of transporting beans from farms to grading centres due to the shambolic state of infrastructure and the cost of gasoline, which climbed 33 percent to 150 naira a litre in the last three months, helped push up cocoa prices.
Analysts say the weakness of the naira against the U.S. dollar was also a factor that triggered the high cost of beans.
The local currency eased to its lowest level against the greenback in 18-1/2 months on Tuesday.
Earlier this month, the Cocoa Processors Association of Nigeria said the high cost of raw beans and crippling power shortages might force its members to relocate to neighbouring countries with an easier business climate.
Ivorian cocoa arrivals hit 1,037,181 T: BCC dataReuters Africa Mar 18, 2011 ABIDJAN (Reuters) - Cocoa arrivals at ports in top grower Ivory Coast reached 1,037,181 tonnes by March 13, up from 870,155 tonnes in the same period a year ago, Bourse du Cafe et Cacao (BCC) data obtained by Reuters on Friday showed.The figures showed 13,638 tonnes of beans were declared at the ports of Abidjan and San Pedro from March 7 to March 13, up from 4,352 tonnes in the same week of the 2009/2010 season. A further 3,050 tonnes were declared late. The Ivory Coast cocoa season starts in October.
Cocoa prices have increased dramatically
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
14WFIE.com By Kelsey Wheatcroft Mar 20, 2011 A standoff over the presidency in the ivory coast, has increased cocoa prices by as much as $800 a ton since November.
On her first trip to a north Miami Beach chocolate shop and factory, everything seemed to catch Teresa Powierza eye. On her next trip, she could see something else. That something else, was a spike in prices.
Owner of Le Chocolateir Joseph Marmor says, "Chocolate companies, the major chocolate companies can only absorb this up to a point and then they'll start passing it on to us, the manufacturers, the small manufacturers."
Small manufacturers like Marmor. His shop makes sweets from about 2,500 pounds of chocolate a month. While he won't reveal what he pays for chocolate, he will talk percentages on cocoa beans.
"There's been a 30-percent jump in four months. Everything is made from cocoa beans: milk chocolate, dark chocolate, even white chocolate, which is cocoa butter which comes out of the bean." Marmor says his store has to consider raising their prices, if the price hike comes to him.
Industries Want 10 Percent Cocoa DutiesTempo InteraktifBy EKA UTAMI APRILIA17 March, 2011 TEMPO Interactive, Jakarta:Businessmen in the cocoa processing industry say they will settle for a 10 percent cocoa tax. Therefore, according to the Indonesian Cocoa Industry Association chairman Pieter Jasman, cocoa duties will be the same as the VAT paid by the industry.
At present, cocoa duties range from zero to five percent. Earlier, the association wanted cocoa duties to be Rp500 per kilogram. However, Pieter said that if duties were Rp500 per kilogram and the international cocoa price was high, it would be difficult for the local industry to get raw materials.
Patchy rains to improve Ivorian mid-crop cocoaReuters AfricaMon Mar 14, 2011 ABIDJAN (Reuters) - Patchy rains mixed with hot weather last week in Ivory Coast's cocoa regions provided good condition for better quality and abundant mid-crop growth compared with last season, farmers and analysts said on Monday.
The main crop has almost tailed off and the focus is now the April-September mid-crop. Farmers said the weather was encouraging as plenty cocoa pods were well-developed on trees.
Farmers said the bulk of the harvest for the mid-crop would be concentrated between May and July.
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
In the western region of Soubre, at the heart of the cocoa belt, analysts reported about 34 millimetres of rains mixed with sunny spells. The weather is expected to strengthen the quality of beans inside pods and help the crop to be longer than the previous season.
"We have had rains for the second week in a row. The pods have grown well and the mid-crop is on track to be long compared with the last season," said Salam Kone, a farmer in the outskirts Soubre.
In the southern region of Aboisso, analysts reported 17 millimetres of rainfall in the spell and farmers said that there were more average and small pods on trees compared with the same period last year.
In the centre-west region of Daloa, which produced a quarter of Ivory Coast's national output, farmers reported abundant downpours, mixed with long sunny spells.
Farmers said there were no concerns about the good size of the mid-crop as the rainy season would start in April.
"Farmers are happy with the state of their plantations few weeks of the start of the harvest," said Attoungbre Kouame, a farmer, who added that pods have reached a good stage of development and the rains will increase the quality of beans.
No rain was reported in eastern region of Abengourou and coastal region of Sassandra. "It did not rain but the cocoa has no problem," said Lassen Traore, agronomist in the coastal region of Sassandra.
Mars to use green cocoaBallarat Courie14 Mar, 2011 MARS is going green on cocoa, announcing a new partnership with international environment organisation Rainforest Alliance.
From June, the cocoa used to produce the iconic chocolate bar will be sourced from Rainforest Alliance certified farms in Western Africa, with other products to follow in the next three years. The move follows continued international pressure for Mars to source its cocoa beans from certified producers.
Mars Chocolate Australia general manager Michael Ryan said the company had been implementing sustainability measures for a number of years. “Mars has been active in looking at cocoa sustainability for a long time, but in recent years it’s significantly ramped up its action on boosting sustainable activities and investing about $10 million globally each year,” Mr Ryan said. “Now we’re taking it to a new level and that’s why we’ve announced a new partnership with Rainforest Alliance.”
Mr Ryan said Mars was working with 300,000 farmers in the Ivory Coast as well as farmers in Ghana, Vietnam, Indonesia and Papua New Guinea. “When Mars made the announcement less than two per cent of cocoa was certified, but now we’re working directly with a whole range of farmers to bring that up rapidly.”
Rainforest Alliance certification is a sustainable farming program aimed at helping farmers negotiate more effectively in the global market place, reduce environmental impact and ensure workers’ rights are protected. Mars will buy 1150 tonnes of Rainforest Alliance certified cocoa beans in 2011.
Cocoa Can Become Source of Employment for Youths- COPANTHISDAY Live -By Taiwo Akintunde17 Mar 2011
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
For a country known for its love for Crude Oil and basically adores it as her major source of national survival, stakeholders in the Cocoa Processing Industry in Nigeria have called on the Federal Government to revive the ailing industry or see it perish.
As it were before, Nigeria is known as one of the largest producers of cocoa producers worldwide. Ever since the discovery of oil wells in major areas of the country, the nation’s economy has shifted attention to the much ‘lucrative’ natural resource.
However today, several cases of unemployment have generated from this situation Nigerians have called a ‘mono-economy’ system the government have adopted. The Cocoa industry has seen itself relegated and several processing industries have closed down as a result of this.
This is a threat to the development of a nation that have many goals one of which is to become fully developed and rub shoulders with ‘super power’ nations of the world by the year 2020. This however, is also a threat to the Millennium Development Goals (MDGs) the government has sketched to move the nation forward and develop rural communities in the country.
In a bid to restore value and life to the Cocoa industry, the FTN Cocoa Processors Nigeria Plc in conjunction with Cocoa Processors Association of Nigeria and other stakeholders in the industry have call on the federal government to restore stability and put more focus on the dying sector of the economy. The call was made recently at an FTN office, Magodo GRA, Lagos.
While addressing pressmen, Chairman of COPAN Mr. Akin Olusuyi on behalf of the association, disclosed the deteriorating situation of the industry. With the way the Nigerian economy is going, especially the Cocoa industry, I fear that this country will run into problems which are not good for the development plans of the government.
For example, one of the major setbacks the industry is facing is energy. The price of diesel has gone up because of some crisis in northern Africa. This has greatly increased the cost of production. We are calling on the federal government to do something because we are in a delicate situation as far as energy is concerned.
Some of the factories processing cocoa have shut down because of this crisis. They should come up with some sort of subsidy or provide power for the industry.”
COPAN also welcomed the idea of the marketing board and hoped that the marketing board will start as soon as possible. The association is ready to partner with the federal government on the modalities of the marketing board. The association is also concerned about the crisis in Cote De’ Voire.
For a country being the largest producer of Cocoa beans in the world, this threat is affecting Nigeria because the nation’s Cocoa economy is heavily deregulated. Local prices in Nigeria are higher than international prices. Exporters have invaded the country and this is a threat to the Cocoa industry.
Rather than developing the industry, exporters take away the cocoa and with the ACP agreement crisis, right now the ratios are not favourable to the processors in Nigeria. Many Cocoa Processing companies in Nigeria are at the risk of closure due to bank debts.
This is happening because many investors have pumped in money and not getting anything in return. The association said that the government should set up a marshal plan to increase Nigerian crops. Nigeria has enough land mark to be able to grow Cocoa.
“We are calling on the government of the South-West and other regions in the country whose climates are favourable to the growth of Cocoa to act now. We are also calling on the government to enable entrepreneurs and encourage them to go into Cocoa farming.” This can be achieved through borrowing cost of money.
The government can also intervene by providing sources of financial and human capital for these farmers who have the interest of growing Cocoa. “I am sure people will be encouraged to go into Cocoa farming and in the next four years, we are likely to increase the output of Cocoa and make it a major source of revenue generation for the growth and development of the country.”
COPAN is pleading with the federal government to prevail on the Nigeria Exports Promotion Council and with the ministry of finance to urgently pay outstanding export expansion grants from 2007 to 2009.
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
The association is also calling for immediate adoption and implementation of blue print report on the presidential committee on Cocoa processing in Nigeria set up by the Presidency last year July.“We take note that even though President Goodluck Jonathan promised that the committee will come out with a productive report, we are yet to see or hear from them formally or otherwise.”
Chocolate sweetened with ethicsSydney Morning HeraldMarch 20, 2011SALES of ethically sourced chocolate, where local suppliers buy only produce that does not exploit workers, have leapt by more than 1500 per cent in the past two years.
Last year Australians spent $87 million on Fairtrade chocolate compared with $50 million on Fairtrade coffee. It was the first time that ethically sourced chocolate had overtaken coffee produced under the same conditions.
The increase was due to a number of large confectionary companies, including Cadbury, Nestle, Arnotts and Mars, starting to use ethically sourced cocoa in the past 12 months.Advertisement: Story continues below
World Vision Australia chief executive the Reverend Tim Costello urged consumers to buy ethically produced confectionery for Easter. "When I visited West Africa in 2008 I saw first-hand the terrible working conditions for children in the cocoa fields,'' he said. ''It became apparent to me that we in the Western world were eating cheap chocolate on the backs of trafficked and exploited children and something had to be done.''
Fairtrade and other ethical harvesting schemes are under threat in the world's largest cocoa producer, the Ivory Coast. The country has been beset by deadly civil unrest.
World Vision Australia says ethically sourced cocoa beans make up only a tiny proportion of global sales.
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
