COPAL COCOA Info



0COPAL COCOA Info [pic]

A Weekly Newsletter of Cocoa Producers' Alliance

| Health and Nutrition |Labour Issues |

|CocoaJoe introduces premium brewing cocoa rich in health benefits | |

| | |

|Production and Quality |Environmental Issue |

|Ivorian cocoa arrivals drop 15% | |

|COCOBOD on course to attain fully-certified cocoa | |

| |Research & Development |

|The Market | |

|Cameroonian cocoa prices down by up to 10% | |

|West Africa forward sales push cocoa futures to six-week low |Promotion & Consumption |

|Cameroon cocoa exports down 5 pct through November |Hershey’s Bliss line now made with 100% certified cocoa |

|Asia Cocoa-Butter stays at 3-year high; powder slow | |

|Confusion hits falling cocoa market as rumours of misreporting emerge|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 | |

In the News (from Newspapers worldwide)

ICCO Daily Cocoa Prices

| | | | | |

| |ICCO Daily Price |ICCO Daily Price |London futures |New York futures |

| |(SDR/tonne) |($US/tonne) |(£/tonne) |($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 |

| | | | | |

|Average |1560.00 |2406.00 |1501.00 |2377.00 |

| | | | |

| | | | |

| | | | |

International Financial Futures and Options Exchange (LIFFE)

London Futures Market – Summary of Trading Activities

(£ per tone)

|Monday |17th December |2012 |  |  |  |  |

|Month |Opening Trans |Settle |Change |High |Low |Volume |

|Mar  2013 |1538 |1532 |-13 |1543 |1522 |5,264 |

|May  2013 |1543 |1539 |-12 |1549S |1530 |2,589 |

|Jul  2013 |1549 |1545 |-11 |1555S |1535S |2,002 |

|Sep  2013 |1554 |1549 |-11 |1554S |1539S |1,182 |

|Dec  2013 |1533 |1540 |-11 |1547S |1531S |412 |

|Mar  2014 |1542 |1534 |-10 |1547 |1525 |258 |

|May  2014 |1532 |1539 |-8 |1532 |1532 |3 |

|Jul  2014 |  |1543 |-8 |  |  |0 |

|Sep  2014 |  |1548 |7 |  |  |0 |

|Dec  2014 |  |1548 |7 |  |  |0 |

|Average/Totals |  |1542 |  |  |  |11,710 |

|Tuesday |18th December |2012 |  |  |  |  |

|Month |Opening Trans |Settle |Change |High |Low |Volume |

|Mar  2013 |1528 |1511 |-21 |1529 |1510 |5,805 |

|May  2013 |1535 |1519 |-20 |1536S |1518S |2,189 |

|Jul  2013 |1542 |1525 |-20 |1542 |1525 |1,896 |

|Sep  2013 |1546 |1530 |-19 |1546 |1529S |1,689 |

|Dec  2013 |1535 |1525 |-15 |1536 |1525S |855 |

|Mar  2014 |1530 |1521 |-13 |1530 |1520 |2,370 |

|May  2014 |1530 |1526 |-13 |1530 |1530 |32 |

|Jul  2014 |  |1530 |-13 |  |  |0 |

|Sep  2014 |1540 |1535 |-13 |1540 |1535 |20 |

|Dec  2014 |  |1535 |-13 |  |  |0 |

|Average/Totals |  |1526 |  |  |  |14,856 |

|Wednesday |19th December |2012 |  |  |  |  |

|Month |Opening Trans |Settle |Change |High |Low |Volume |

|Mar  2013 |1512 |1484 |-27 |1514 |1481 |12,323 |

|May  2013 |1520 |1492 |-27 |1520 |1490 |5,141 |

|Jul  2013 |1525 |1499 |-26 |1525 |1498S |2,794 |

|Sep  2013 |1529 |1505 |-25 |1529 |1502 |2,063 |

|Dec  2013 |1525 |1503 |-22 |1527S |1500 |2,372 |

|Mar  2014 |1520 |1495 |-26 |1522S |1490S |2,747 |

|May  2014 |1525 |1500 |-26 |1525 |1500 |235 |

|Jul  2014 |  |1504 |-26 |  |  |0 |

|Sep  2014 |1533 |1515 |-20 |1533 |1515 |80 |

|Dec  2014 |1525 |1525 |-10 |1525 |1525 |20 |

|Average/Totals |  |1502 |  |  |  |27,775 |

|Thursday |20th December |2012 |  |  |  |  |

|Month |Opening Trans |Settle |Change |High |Low |Volume |

|Mar  2013 |1483 |1471 |-13 |1485 |1457 |13,537 |

|May  2013 |1490 |1480 |-12 |1493 |1466S |2,790 |

|Jul  2013 |1499 |1489 |-10 |1499 |1475 |6,297 |

|Sep  2013 |1507 |1496 |-9 |1507 |1481S |3,576 |

|Dec  2013 |1501 |1494 |-9 |1502S |1481 |1,974 |

|Mar  2014 |1499 |1488 |-7 |1499 |1476S |3,077 |

|May  2014 |1501 |1493 |-7 |1501S |1485S |213 |

|Jul  2014 |1500 |1498 |-6 |1501S |1488S |122 |

|Sep  2014 |1510 |1505 |-10 |1511 |1500 |106 |

|Dec  2014 |1525 |1514 |-11 |1525 |1510 |193 |

|Average/Totals |  |1493 |  |  |  |31,885 |

|Month |Opening Trans |Settle |Change |High |Low |Volume |

|Mar  2013 |1467 |1469 |-2 |1489S |1456 |6,437 |

|May  2013 |1474 |1477 |-3 |1496S |1465S |2,541 |

|Jul  2013 |1480 |1487 |-2 |1505S |1474 |2,299 |

|Sep  2013 |1492 |1494 |-2 |1510S |1480 |1,727 |

|Dec  2013 |1486 |1488 |-6 |1502S |1478S |524 |

|Mar  2014 |1479 |1483 |-5 |1503 |1476S |656 |

|May  2014 |1494 |1488 |-5 |1494S |1494S |10 |

|Jul  2014 |  |1493 |-5 |  |  |0 |

|Sep  2014 |1500 |1500 |-5 |1500 |1500 |1 |

|Dec  2014 |  |1510 |-4 |  |  |0 |

|Average/Totals |  |1491 |  |  |  |

|  |  |  |  |  |1552 |

New York Board of Trade

(New York Futures Market – Summary of Trading Activities)

(US$ per tone)

|Monday |17th December |2012 |  |  |  |  |

|Month |Open |Price |Change |High |Low |Volume |

|Mar  2013 |1538 |1532 |-13 |1543 |1522 |5,264 |

|May  2013 |1543 |1539 |-12 |1549S |1530 |2,589 |

|Jul  2013 |1549 |1545 |-11 |1555S |1535S |2,002 |

|Sep  2013 |1554 |1549 |-11 |1554S |1539S |1,182 |

|Dec  2013 |1533 |1540 |-11 |1547S |1531S |412 |

|Mar  2014 |1542 |1534 |-10 |1547 |1525 |258 |

|May  2014 |1532 |1539 |-8 |1532 |1532 |3 |

|Jul  2014 |  |1543 |-8 |  |  |0 |

|Sep  2014 |  |1548 |7 |  |  |0 |

|Dec  2014 |  |1548 |7 |  |  |0 |

|Average/Totals |  |1542 |  |  |  |11710 |

|Tuesday |18th December |2012 |  |  |  |  |

|Month |Open |Price |Change |High |Low |Volume |

|Mar  2013 |1528 |1511 |-21 |1529 |1510 |5,805 |

|May  2013 |1535 |1519 |-20 |1536S |1518S |2,189 |

|Jul  2013 |1542 |1525 |-20 |1542 |1525 |1,896 |

|Sep  2013 |1546 |1530 |-19 |1546 |1529S |1,689 |

|Dec  2013 |1535 |1525 |-15 |1536 |1525S |855 |

|Mar  2014 |1530 |1521 |-13 |1530 |1520 |2,370 |

|May  2014 |1530 |1526 |-13 |1530 |1530 |32 |

|Jul  2014 |  |1530 |-13 |  |  |0 |

|Sep  2014 |1540 |1535 |-13 |1540 |1535 |20 |

|Dec  2014 |  |1535 |-13 |  |  |0 |

|Average/Totals |  |1526 |  |  |  |14856 |

|Wednesday |19th December |2012 |  |  |  |  |

|Month |Open |Price |Change |High |Low |Volume |

|Mar  2013 |1512 |1484 |-27 |1514 |1481 |12,323 |

|May  2013 |1520 |1492 |-27 |1520 |1490 |5,141 |

|Jul  2013 |1525 |1499 |-26 |1525 |1498S |2,794 |

|Sep  2013 |1529 |1505 |-25 |1529 |1502 |2,063 |

|Dec  2013 |1525 |1503 |-22 |1527S |1500 |2,372 |

|Mar  2014 |1520 |1495 |-26 |1522S |1490S |2,747 |

|May  2014 |1525 |1500 |-26 |1525 |1500 |235 |

|Jul  2014 |  |1504 |-26 |  |  |0 |

|Sep  2014 |1533 |1515 |-20 |1533 |1515 |80 |

|Dec  2014 |1525 |1525 |-10 |1525 |1525 |20 |

|Average/Totals |  |1502 |  |  |  |27775 |

|Thursday |20th December |2012 |  |  |  |  |

|Month |Open |Price |Change |High |Low |Volume |

|Mar  2013 |2359 |2328 |-30 |2371 |2311 |16,508 |

|May  2013 |2361 |2336 |-31 |2377 |2320 |3,530 |

|Jul  2013 |2376 |2345 |-29 |2380 |2328 |1,588 |

|Sep  2013 |2382 |2352 |-28 |2382 |2336 |745 |

|Dec  2013 |2375 |2361 |-25 |2375 |2347 |475 |

|Mar  2014 |2380 |2366 |-25 |2400 |2349 |164 |

|May  2014 |2376 |2371 |-26 |2380 |2358 |30 |

|Jul  2014 |0 |2374 |-26 |0 |0 |0 |

|Sep  2014 |0 |2377 |-26 |0 |0 |0 |

|Average/Totals |  |2357 |  |  |  |23040 |

|Friday |21st December |2012 |  |  |  |  |

|Month |Open |Price |Change |High |Low |Volume |

|Mar  2013 |2328 |2312 |-16 |2357 |2305 |10,703 |

|May  2013 |2337 |2321 |-15 |2364 |2314 |2,049 |

|Jul  2013 |2343 |2329 |-16 |2372 |2324 |773 |

|Sep  2013 |2342 |2339 |-13 |2368 |2335 |527 |

|Dec  2013 |2347 |2346 |-15 |2377 |2347 |356 |

|Mar  2014 |2350 |2351 |-15 |2361 |2347 |163 |

|May  2014 |0 |2357 |-14 |0 |0 |29 |

|Jul  2014 |0 |2360 |-14 |0 |0 |24 |

|Sep  2014 |0 |2363 |-14 |0 |0 |0 |

|Average/Totals |  |2342 |  |  |  |14624 |

|Average for the week  |2342 |  |  |  |2925 |

|  |  |  |  |  |2925 |

News

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 .

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.

"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 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

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.

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 Co-operation (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.

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.

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@

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.

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 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.

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)

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.

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.

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.

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.

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ISSUE NO. 523 17TH – 21ST DECEMBER 2012

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