com-watch - issue 64 - september 2016 - issue... · 2016. 12. 20. · the african commodity report...

CMA CGM Offers Reefer Insurance Solutions

Kenya: Coffee Sector Demands Reforms, New Association Formed

Senegal Takes Steps Towards Sustainable Fisheries Sector

03 14 22

AFRICACOM-WATCH

ISSUE 64 | SEPTEMBER 2016

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AFRICACOM-WATCH

ISSUE 64 | SEPTEMBER 2016

Contents

03 | Corporate

07 | Cassava

13 | Coffee

CMA CGM Offers Reefer Insurance Solutions

Nigeria: Investors Plan US$100 Million Cassava Production Company

Angola: Nestlé Considers Manufacturing Nescafé Products In AngolaKenya: Sector Demands Reforms - Peasant Coffee Farmers Association Formed / Crop Could Hurt On Cold WeatherRwanda: Increased Production To Boost Economic GrowthTanzania: Growers Want Exemption From Multiple ChargesUganda: UCDA Report - Coffee Exports Drop / Uganda To See Higher 2016-17 Output

17 | Cotton & TextilesRegional: Textiles Go Duty Free / East Africa Ban On Used ClothesBurkina Faso: Burkina Looks To Bayer After Monsanto BanEthiopia: Commissions Textile & Apparel Manufacturing Industrial ParkMali: Rains Could Help Cotton Production TargetMauritius: Brexit Set To Dent Textile Exports As Rupee GainsTanzania: 2017 Cotton Output To Double As Price Spurs Farming / President Tells Cotton Board To Relocate / Leather Product Market Attracts Turkish Exporters

04 | Cashew, Groundnut, Macadamia & SheaRegional: ComCashew Promotes African Cashew Value ChainGhana: Cashew Policy Forum / Local Processors Face Competition From Exporters / Regulatory Board To Be Established / World Groundnut Research MeetingKenya: Cashew Farmers Demand Lifting Of Export BanSenegal: Peanut Harvest To See IncreaseTanzania: Nanyumbu To Double Cashew Production / Company To Improve Processing

08 | CocoaCameroon: Production Rises 16% / Cameroon To Probe Cocoa-Export Disparity / Average Buying Price In 2015-2016 Season Higher Than FCFA1,200/KG / Producers Urged To Join CooperativesCote d’Ivoire: Port Arrivals At 1,440,000 Tonnes / Harvest Likely To Decline For Second Year / Barry Callebaut Opens Producer Access To Banks / Cocoa Falls Most In 2-Months On Ivorian Rains / Grind Output Slips On Bad BeansGhana: Olam Acquires ADM’s Cocoa Business / CPC Receives Major Boost / Ghana Increases Premium For FarmersNigeria: Afreximbank, ICCO, NEXIM Others Partner On Cocoa Sector Intervention

21 | FishAngola: Tômbwa To Launch Canned Fish IndustryBotswana: Hatchery Project On CourseGhana: New Legal Framework & Increased Investment Promotes AquacultureSenegal: Senegal Takes Steps Towards Sustainable & Better-Governed Fisheries Sector

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33 | Palm OilCameroon: Safacam Finalises Palm Kernel Oil Production Unit / Refineries Import 16,000 Tons Of Palm OilGabon: Gabon To Boost 2016 Palm Oil Harvest By 18,000 TonnesGhana: Ghana To Establish Oil Palm Regulatory BoardSierra Leone: Tomco Energy Reviews Funding For Palm Oil VentureTanzania: Sunflower Oil Processors JV With India

35 | SugarAngola: Biocom Plans To Produce 256,000T By 2020 / Mozambican Entrepreneurs Support Sugar ProductionCote d’Ivoire: BRVM To Sell 23% Of SucrivoireNigeria: Imports Hit US$227 Million In 7 MonthsRwanda: Sugar Processing Factory In To Be ConstructedSouth Africa: Coca-Cola To Rethink Spending PlansTanzania: 100% Output Target SetUganda: Raw Sugar Output By Top Processors Down 14% In H1

39 | TeaKenya: Exporter To Miss Output Target On Strike / State Firm Invests Sh300 Million In Tea FactoryRwanda: Tea Export Earnings Rise to US$70.7 Million

41 | TimberCentral/West Africa: Rates And Market Volatility On Everyone’s Mind / Buyers In No Hurry To Place OrdersGabon: Ozigo Harvesting Ban LiftedGhana: Ghana Encouraging May Export Figures / Forestry Master Plan And Plantation Strategy Released

23 | Foodstuffs, Livestock & BeveragesRegional: 4th Regional Cereal ExchangeBurkina Faso: Burkina Faso Bans Donkey Meat ExportsBurundi: Food Exports Banned Over Drought ConcernsGabon: Cameroon Foberd Group Inaugrates Agro ComplexMozambique: India Buys 375,000 Tonnes Of Pulses / Biscuit Maker Beloxxi Lures Private Equity InvestmentSouth Africa: Food Group Acquires UK Snack Maker / Wine Exports Predicted To Grow By 13% / Government To Increase Wheat Tariff

44 | TobaccoMalawi: Buyers On Leave As Leaf Regulators Bring In New Buyers

27 | Fruit, Vegetables & HorticultureCote d’Ivoire: China to Send Agricultural Experts to Cote d’IvoireEthiopia: US$275 Million From Horticultural Export RevenueGhana: Economic Partnership Agreement [EPA] Ratification / Mango Producers’ Association Acquire New Global G.A.P Certification For ExportKenya: Regulatory Potato Bill / Kenya Faces Cut In Agricultural Export RevenueMozambique: Agricultural Business Centres To OpenNamibia: New Board For Potato And Onion Producers AssociationNigeria: Mexican Collaboration On BananaSouth Africa: Citrus Could Benefit From Brexit / Blueberry Volumes Ramping UpZimbabwe: China To Open Its Markets To Farm Produce / Netherlands Offers A Market For Organic Fruit / Testing Laboratory For Agro-Processing Sector / Tea Company Invests In Avocado, Macadamia / Nhimbe Fresh Exports To Expand Berry Production

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3

COMMODITY NEWSCORPORATE

RegionalComCashew Promotes African Cashew Value ChainThe Competitive Cashew initiative [ComCashew] held the 2nd session of the 3rd edition of the Master Training Program for cashew value chain promotion 8-12th August in Sunyani. ComCashew is undertaking the program together with the African Cashew Alliance [ACA], with support from the Ministry of Food and Agriculture [MOFA] and the Cocoa Research Institute Ghana [CRIG]. The program provides a platform for about 70 cashew experts coming from Ghana, Benin, Burkina Faso, Chad, Côte d’Ivoire, Mozambique, Gambia, Sierra Leone, Senegal, Mali, Togo and Nigeria to share knowledge, discuss best practices and experiences as well as to build national and regional networks for future collaboration.

During knowledge sharing sessions of theories and their application, participants are taught about all aspects of the cashew value chain from production and processing of raw cashew nuts, to economics, cashew market dynamics, marketing and financing mechanisms.

[Joy 08/08/16]4

COMMODITY NEWSCASHEW, GROUNDNUT, MACADAMIA & SHEA

GhanaCashew Policy ForumThe Ghana Ministry of Trade and Industry, held a national cashew policy validation workshop, as a road map to regulate the industry. The forum was funded by the Cashew Industry Association of Ghana [CIAG]. Stakeholders deliberated on the rationale for a cashew policy; components of the policy; incentives and regulatory regimes as well as challenges in the sector. The discussion also considered the production, processing, and distribution of the raw cashew nuts. As well as the establishment of a regulatory Board for the cashew sub-sector to regulate and create a conducive environment for the growth and development of the cashew industry.

Cashew contributes 54% of export revenues of the sub-sector as the leading agricultural non-traditional export product in Ghana. The estimated value of the cashew sector [raw cashew nuts] and kernels is estimated at US$276 million.

Meanwhile the Cashew Policy Draft said the industry is confronted with several challenges. It includes the absence of an apex body to administer activities in the industry, no targeted regulation for the industry, no approved standards in cashew trading, fluctuation and uncontrolled raw cashew nuts as well as lack of financial/credit assistance.

[Citi 97.3 10/08/16]

Local Processors Face Competition From ExportersLocal cashew processors are unable to obtain adequate supplies of raw materials for processing due to intensive competition with purchases by exporters of raw cashew nuts at the farm gate, resulting in the closure of nine primary processing units out of thirteen with total installed processing capacity of 65,890 MT. The cashew sector value chain is also faced with some major challenges including production, trade and marketing, access to finance, research and development, legal, institutional and regulatory framework, and environmental impact of production and processing.

[Ghanaweb 15/08/16]

Regulatory Board To Be EstablishedAccording to the Ministry of Food and Agriculture plans are very much advanced in respect of the establishment of a regulatory board for the cashew sub-sector and soon approval will be given for the commencement of its activities to regulate and create a conducive environment for the growth and development.

[Ghanaweb 15/08/16]

World Groundnut Research MeetingScientists from Africa, the United States and Haiti will gathered in Tamale to share information about the latest developments in groundnut research. The gathering is the annual meeting for the Peanut & Mycotoxin Innovation Lab, which is made up of scientists and student researchers working through the U.S. Agency for International Development and the Feed the Future program to improve food security and profits for producers, processors and marketers of groundnut.

[GBN 19/08/16]

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COMMODITY NEWSCASHEW, GROUNDNUT, MACADAMIA & SHEA

KenyaCashew Farmers Demand Lifting Of Export BanFarmers want an 8-year ban on the export of Raw Cashew Nuts [RCN] lifted. When the ban was imposed in 2009 by then Agriculture minister William Ruto, it was hoped farmers would earn better prices and create jobs through value addition of the nuts. But farmers say instead they are being exploited by processors who manipulate prices to their advantage. Previously a kilogramme fetched Sh80 but after the ban that plummeted to less than Sh30.

Cashew nut production has dropped from 14,000 MT 10 years ago to 7,000 MT in 2014. Local firms have the capacity to handle 20,000 MT annually.

[Daily Nation 02/08/16]

SenegalPeanut Harvest To See IncreaseThe Senegalese peanut harvest could be higher than initially thought as the US Department of Agriculture has estimated 2016/2017 production to increase primarily due to good rainfall as well a 38% increase in the area planted. But despite this performance the harvest will be less than the 70,000 tonnes expected during this campaign.

[Ecofin 23/08/16]

TanzaniaNanyumbu To Double Cashew ProductionNanyumbu District Council is working out strategies to boost cashew production, with the views of doubling yields from the current 8,500 MT to at least 16,000 MT, annually. The Council is seeking enough extension officers so that farmers can be directed on the proper way of growing and maintaining cashew nut trees. [Daily News 03/08/16]

Company To Improve ProcessingA baseline study to identify challenges inhibiting the cultivation of cashew nuts is currently being undertaken. The baseline study under a cashew nut development project, named “Re-engineering the cashew value chain through farmer integration” has been implemented by a private company, Out Growers Tanzania Ltd in collaboration with Mkinga District Council.

[Citizen 08/08/16]

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NigeriaInvestors Plan US$100 Million Cassava Production CompanyTwo American based investors, Ecotech-rab and Tranfeed Group along with their Nigerian partner, Satco Global Group are in the next 18 months to establish a US$100 million cassava production and processing factories in Edidi community, Kwara State. The project is expected to be completed over 18 months over 5,000 ha.

[Leadership 14/08/16]7

COMMODITY NEWSCASSAVA

CameroonProduction Rises 16%Cameroon’s cocoa production rose nearly 16% y-o-y to 269,495 MT in the 2015/16 season according to National Cocoa and Coffee Board [NCCB] data released on 4th August. Africa’s 4th-largest producer has targeted annual production of 600,000 MT by 2020. The 2015/16 figure surpassed the country’s previous record of 240,000 MT during the 2010/11 season. Output since then has fluctuated due to pests, crop diseases and a prolonged dry season.

Last year, Cameroon announced plans to double its cocoa processing capacity to about 30% of its total production, by adding 10 new processing units. The 2016/17 season opened on 3rd August and runs to 1st July. The main harvest is from October to January/February, followed by a light crop harvest period from April/May to June/July.

[Reuters 04/08/16]

Cameroon To Probe Cocoa-Export DisparityCameroon is to probe allegations that shippers are reporting lower bean exports to avoid paying taxes. The nation has set up a committee to investigate the allegations with officials from both the National Cocoa and Coffee Board and Finance Ministry participating.

Twenty-four companies exported cocoa in the marketing year that ended in July shipping 239,717 MT of beans in the year 21% more than 12 months earlier. The Netherlands was the biggest buyer, purchasing 76%. Other major importers included Belgium, Germany, Italy and Spain.

Cameroon almost tripled export levies on cocoa to 150 CFA francs/kg [US$0.25] in the 2014-15 season to raise revenue for a US$1 billion program to double cocoa and coffee production. The country produced 269,498 tons of the chocolate ingredient in the 2015-16 season, 16% more than a year earlier. Three exporters - Telcar Cocoa Ltd., Olam International Ltd.’s local unit and Cameroon Marketing Commodities, known as Camaco - sold 68% of beans shipped in the last marketing year.

[Bloomberg 18/08/16]

Average Buying Price In 2015-2016 Season Higher Than FCFA1,200/KGApparently Cameroon producers are among the best paid worldwide. Throughout the 2015-2016 cocoa season, which officially ended on 15th July, the average buying price per kilogram exceeded FCfa 1,200. According to statistics from the National Cocoa and Coffee Office [ONCC] the minimum price of FCfa 975/kg was registered in Man, in the South. Whilst the maximum price was FCfa 1,660/kg in Ebebda, Central region. This maximum price represents more than 80% of the average FOB price.

[Business in Cameroon 12/08/16]

Producers Urged To Join CooperativesTrade Minister, Luc Magloire Mbarga Atangana, has called on farmers and their cooperative unions to constantly improve on the quality of their cocoa produce and keep watch over fraudulent buyers of especially illegal cross-border buyers from neighbouring countries. Cocoa prices rose to FCFA 1,650/kg this year for a total production of 269,497,766 MT.

[Tribune 04/08/16]

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COMMODITY NEWSCOCOA

Cote d’IvoirePort Arrivals At 1,440,000 Tonnes Cocoa arrivals at Ivorian ports reached 1,440,000 MT by August 7 since the start of the season on October 1, down 14% from 1,670,000 MT in the same period of the previous season. Exporters estimated around 5,000 MT of beans were delivered to Abidjan and San Pedro between 1-7th August, down from 13,000 MT during the same period last year.

Scattered rain and lots of sun in most cocoa growing regions brightened hopes for the cocoa main crop, although some eastern plantations still needed more rain. There’s a good mix of small and medium-sized pods on the trees.

[Reuters 09/08/16]

Harvest Likely To Decline For Second YearThe 2016-17 cocoa harvest in Cote d’Ivoire will probably decline for a second year producing an anticipated 1.65 million MT of beans in the season that starts Oct. 1. The main crop, which runs from October to March, is estimated at 1.2 million MT while the mid-crop reaped from April to September is seen at 450,000 MT. The nation produced about 1.7 million MT in the 2016 season compared with a record 1.8 million MT in the preceding 12 months.

This season’s Harmattan was the worst in 3-decades, damaging crop quality. That led traders including Cargill Inc., Olam International Ltd., Sucres et Denrees SA and Armajaro to forecast large shortages in the year ending in September. Bean deliveries to ports in the last 3-months of the year are expected to be about 750,000 MT, 13% less than in 2015.

The state-run regulator Coffee-Cocoa Council plans to auction 1.1 million MT via a forward-selling system in the 2017 season. The regulator has sold 1.7 million MT forward in 2016.


Barry Callebaut Opens Producer Access To BanksSome 103,000 small Ivorian cocoa farmers will have access to bank financing by 2020, through a joint initiative of Swiss Barry Callebaut, the International Finance Corporation (IFC) and the non-governmental organization Sustainable Trade Initiative. The 3-parties agreed on the establishment of a partnership to share US$9 million of. This funding will cover seed and other farm services to allow farmers to increase their income by 23%, making them de facto eligible for bank financing.

[Ecofin 18/08/16]

Cocoa Falls Most In 2-Months On Ivorian RainsCocoa futures suffered their largest single-session losses in nearly 2-months, extending a retreat from 1-month highs, on rains in top-producer Cote d’Ivoire and profit-taking after a string of strong gains. The move came after rains fell in the heart of the Ivorian cocoa belt, which farmers said was welcome news for the coming main crop, which runs from October to March.

[Business Recorder 23/08/16]

9

COMMODITY NEWSCOCOA

Cote d’Ivoire

Grind Output Slips On Bad BeansOutput from cocoa grinders has dropped nearly 9% so far this season as increasingly poor bean quality forced companies to slow or halt operations. Some 338,000 MT had been processed by the end of June since the 2015/16 season began on Oct. 1, down from 370,000 MT during the same period of the previous season, according to figures from the GEPEX exporters’ association. In June alone processing plummeted nearly 21% to 31,000 MT compared to 39,000 MT during the same month last year. According to GEPEX the nation domestically processed 490,000 MT of cocoa last season.

The 4-biggest grinders - Barry Callebaut, Cargill, Olam International, and Cemoi - are operating at around 40% of their capacity compared to 60-70% at the start of the season. Several smaller grinders have suspended operations entirely. Mid-crop beans are typically too small to meet export standards and so are mostly bought by grinders to be made into semi-refined products such as cocoa butter and powder. The bean count has risen to 155 or 160.

Grinders said they expected the supply crunch for factories to continue into the October-to-March main crop. Poor weather could lead to a slow start to the harvest and processors will be competing with bean exporters for supplies.

[Reuters 28/07/16]10

GhanaOlam Acquires ADM’s Cocoa Business Olam International, one of Ghana’s largest agri-commodity companies, has acquired Archer Daniels Midland [ADM] Company’s worldwide cocoa business. With the acquisition, all former ADM employees in Ghana, including the major processing plant at Kumasi, now come under Olam Cocoa which has become one of the top 3-global processors of cocoa products, as well as one of the world’s leading buyers of cocoa beans.

Ghana is strategically significant to the future success of Olam Cocoa. Through this acquisition we have not only increased our farmer buying networks but we now have our first processing facility in Ghana which, thanks to the skill of the Kumasi team, produces cocoa liquor to exceptionally high standards.

Amit Agrawal, Olam’s Country Head for Ghana

The acquisition of ADM Cocoa adds to Olam’s continuing investment in Ghana. Olam began operations in 1994, supporting cashew and cocoa farmers and investing in infrastructure for the manufacture and distribution of low-cost essentials, including tomato paste, biscuits and wheat flour. Olam has offices in Accra, Tema, Kumasi, Takoradi, Tamale and Sampa.

[Graphic 26/07/16]

CPC Receives Major BoostThe Cocoa Processing Company Limited [CPC] is on its way to recovery, following the successful signing of a new agreement with Cocoa Touton Processing Company Limited [CTPC] that allows the state-owned company to process 25,000MT of cocoa beans per annum. The new deal is an addition to 2-existing tolling arrangements that allowed CPC to process a total of 17,500 MT of cocoa beans per annum in exchange for cash. The move totals 42,500 MT that CPC will process on an annual basis from 2015-20. In the 2015 financial year, CPC processed 887 MT of cocoa, down from the 5,260 MT in 2014.

CPC’s fortunes have been on a nosedive since 2009, when it recorded a GH¢16.9 million loss. The loss was triggered by a combination of factors, including dampened demand for its products, rising finance costs on loans procured in the early 2000s and domestic and external economic challenges.

[Ghana Web 27/07/16]

Ghana Increases Premium For FarmersBoth the Transmar Group and Nestlé Ghana Limited have announced a 20% increase per certified cocoa bag as its new premium for farmers raising premiums from GH10 to GH12/bag. In 2016, Nestle International had estimated to buy 1,030,000 tonnes of beans from Ghana, and therefore called on cocoa farmers to ensure that they adopted good agricultural practices.

[Graphic 12/08/16]

“”

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COMMODITY NEWSCOCOA

NigeriaAfreximbank, ICCO, NEXIM Others Partner On Cocoa Sector Intervention In a bid to revive the ailing cocoa industry, Afreximbank and the International Cocoa Organization (ICCO) have partnered with the Bank of Agriculture (BOA) and the Nigerian Export-Import Bank (NEXIM) on possible ways of intervention and development of the industry.

[Nigeria Today 19/08/16]

Daily Spot Price [ICCO]These are the average of the quotations of the nearest three active futures trading months on NYSE Liffe Futures and Options and ICE Futures US at the time of London close.

Date ICCO daily price (SDRs/tonne)

ICCO daily price (US$/tonne)

London futures (£ sterling/tonne)

New York futures (US$/tonne)

21 Jul 16 2156.37 2989.03 2311.67 2915.33

22 Jul 16 2142.39 2968.17 2325.67 2883.67

25 Jul 16 2119.35 2934.10 2288.33 2854.00

26 Jul 16 2113.68 2931.42 2286.00 2849.67

27 Jul 16 2121.00 2937.89 2300.00 2853.00

28 Jul 16 2110.29 2933.98 2285.00 2852.67

29 Jul 16 2090.52 2912.89 2251.67 2826.33

1 Aug 16 2136.53 2984.58 2306.67 2911.67

2 Aug 16 2114.06 2958.07 2273.33 2875.33

3 Aug 16 2168.67 3039.22 2324.67 2969.67

4 Aug 16 2167.32 3029.40 2351.67 2958.00

5 Aug 16 2181.18 3047.68 2372.67 2981.00

8 Aug 16 2182.20 3037.73 2361.33 2984.00

9 Aug 16 2160.88 3006.65 2346.67 2948.67

10 Aug 16 2186.14 3054.34 2380.67 3001.67

11 Aug 16 2177.03 3037.06 2374.00 2985.67

12 Aug 16 2172.85 3029.46 2377.00 2973.33

15 Aug 16 2172.93 3032.47 2378.00 2992.33

16 Aug 16 2195.82 3078.79 2389.33 3034.00

17 Aug 16 2208.31 3094.28 2402.33 3051.00

18 Aug 16 2233.58 3139.41 2411.67 3095.67

19 Aug 16 2216.37 3114.93 2407.67 3072.33

22 Aug 16 2152.09 3020.30 2326.33 2973.33

23 Aug 16 2171.40 3054.01 2326.33 3029.00

24 Aug 16 2173.73 3053.76 2336.00 3005.67

25 Aug 16 2175.57 3055.81 2341.67 3010.67

29 Aug 16 2125.04 2968.06 2302.00 2912.33

30 Aug 16 2098.53 2929.21 2270.00 2877.00

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AngolaNestlé Considers Manufacturing Nescafé Products In AngolaNestlé Angola is considering a project for production of Nescafé branded coffee and drinks for domestic consumption and for export. Meetings have been held with the Angolan government for the plans to be put in place, as part of the economic diversification project underway in Angola. At present Nescafé products are imported. In the case of coffee once production has increased the company is prepared to buy the beans and, in addition to production for local consumption, it will export the product to other group factories. In the 2014/2015 agricultural season Angola produced just 12,000 MT of coffee. The crop was consumed by the domestic market as well as markets in Asia, America and Europe.

[Macauhub/AO 17/08/16]13

COMMODITY NEWSCOFFEE

KenyaSector Demands Reforms - Peasant Coffee Farmers Association FormedThe push by small scale coffee farmers from 31 counties to gain access to international markets is the latest initiative by growers to take control of how and when they get paid by buyers. The farmers say they will fetch a higher price for their coffee if they operate independently. The farmers have formed the Peasant Coffee Farmers Association to manage their operations. The Association will process, market and sell their produce to potential markets in Italy and US so that they do not have to rely on millers they have used in the past.

The move comes after a group of farmers when to court to throw out rules gazetted by the national government introduced to reform the coffee sector. The rules were developed on recommendations of a task force report, presented to President Uluru Kenyatta earlier in the year.

The latest action by farmers indicates that problems surrounding the production, marketing and distribution of coffee are far from resolved. Therefore, stakeholders may want to step back and work together to determine how best this vital sector can be more efficiently managed.

[Standard Media 14/08/16]

Crop Could Hurt On Cold WeatherPrevailing cold weather in Kenya may curb the flowering of coffee trees before next year’s early crop. The plants needs at least a month of dry conditions to prepare for the flowering that occurs when rains arrive in October before the so-called fly crop due from April to June.

Although Kenya isn’t a major global producer of the crop, it produces the arabica variety used in specialty drinks such. The nation is expected to produce 45,000 MT of coffee in the 12 months through September, compared with 38,000 MT a year earlier, according to the country’s Coffee Directorate.


14

RwandaIncreased Production To Boost Economic GrowthThe Coffee Exporters and Processors Association of Rwanda [CEPAR], has said coffee is a key ingredient in achieving sustainable development. CEPAR was formed in 2010 to increase production which is being implemented through the establishment of the fertilizer fund. The fund was initially implemented by National Agriculture Export Board [NAEB]. One of CEPAR’s objectives is to promote and market coffee products in the country and beyond and it already exports almost 75% of Rwanda’s coffee. The 20 members of the association buy and distribute fertilizers to farmers so that they can increase productivity.

[All Africa 08/08/16]

TanzaniaGrowers Want Exemption From Multiple ChargesThe Cooperatives Association, G32, has asked the government to review policies and rules to exempt farmers from unnecessary charges when selling their coffee. Some 27 levies act as a disincentive to farmers to expand their production who instead revert to other crops or economic activities.

Meanwhile a recently established coffee fund should issue subsidies to farmers and compensate them once price of coffee goes down in the world market so that they go on with production. In the 2015/16 season the G32 collected 716,870 kg and has expectations at collecting 700,000 kg for 2016/17 should climatic conditions allow! Projections are to export coffee worth 518m/- whilst exploring additional markets in Germany, China, Japan, Zambia, USA, Finland and South Africa.

[Daily News 02/08/16]

15

COMMODITY NEWSCOFFEE

UgandaUCDA Report - Coffee Exports Drop Latest statistics from the Uganda Coffee Development Authority [UCDA] indicate that in June, the 9th month on the coffee calendar, there was a 7% and 4% decline in volume and value, respectively. Industry experts blame the poor performance on the dry spell in the country. According to the report, in June the country exported a total of 266,337 kg bags down from 285,945 kg bags exported in May.

The UCDA report states that out of the total volume exported in June, the country earned US$26.5 million [Shs90.1 billion] down from US$27.6 million [Shs93.8 billion] value realised the previous month. Out of the June coffee total exports of 266,337 kg bags, the country exported 201,381 kg bags of Robusta and 64,955 kg of Arabica. Coffee exports for 12 months, which also marks end of the 2015/16 financial year [July 2015 to June 2016], totaled 3.56 million bags worth $352 million [Shs1.1 trillion].

UCDA projects July exports to be 260,000 bags. The main season in south western regions and the fly crop from Bugisu sub-region are underway. Less coffee is expected due to the dismissal production from the main harvest in Masaka.

[Monitor 29/07/16]

Uganda To See Higher 2016-17 OutputUganda may boost output 5% next season as trees planted in recent years begin producing and weather improves. Production in the coffee year through September 2017 may climb to 4.2 million 60-kg bags, from 4 million bags projected for the season ending next month according to the Uganda Coffee Development Authority [UCDA]. Shipments from the continent’s biggest grower of the crop after Ethiopia may climb 5.6% to 3.8 million bags next season from 3.6 million seen this year. The regulator cut its export forecast this season by 200,000 bags after a drought cut yields.

The main destinations for deliveries of Ugandan coffee, 80%of which are robusta, include the European Union, Sudan, Morocco, India, Russia and the U.S. Uganda has pursued a coffee replanting program for more than 2-decades, replacing trees affected by wilt disease or that are old and less productive. It plans to boost annual output to 20 million bags by 2020 by planting 900 million trees in 3-years through June 2019.


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RegionalTextiles Go Duty FreeTextile travel and luggage goods, including backpacks, handbags, and wallets, are now eligible for duty-free treatment when exported from Least Developed Beneficiary Developing Countries and those eligible under the U.S. African Growth and Opportunity Act [AGOA]. Several West African countries fall in either or both these categories, giving the region a competitive cost advantage over non-African manufacturers of these goods.

The surprising decision followed a year-long petition process at the U.S. International Trade Commission and the U.S. Trade Representative [USTR]. Petitioners, many of whom source from Asia, had asked that the duty-free treatment apply to all country members of the Generalized System of Preferences [GSP], a much more expansive trade preference program under which the U.S. provides duty-free treatment to multiple imports from developing countries.

[USAID 07/0/716]

East Africa Ban On Used Clothes Presidents of East African Community [EAC] partner states recently announced they will ban imports of used clothes, locally known as caguwa. They gave sound economic reasons for the ban: promoting the local textile industry and other economic activities linked to it, creating jobs, raising taxes, and so on. Despite these good reasons, the decision was bound to be contentious. It is in fact huge business worth billions of dollars annually.

Most used clothes originate from the United States. There are thousands of companies in the US that export used clothes to Africa. There are also hundreds of charities and NGOs dealing in the same merchandise. Banning their imports would therefore drive many people out of business, kill jobs and bankrupt many companies. As such the US is making concerted lobbying moves to reverse the decision.

[New Times 19/08/16]

17

COMMODITY NEWSCOTTON, TEXTILES & LEATHER

Burkina FasoBurkina Looks To Bayer After Monsanto BanBurkina Faso has asked Bayer CropScience, the agricultural unit of German chemicals company Bayer AG, to help produce genetically modified cotton even as the government decided to stop planting a variety introduced by Monsanto Co., the world’s largest seed company. Burkina will only grow conventional cotton this season but doesn’t rule out a return to genetically modified cotton, according to state-controlled Sofitex the country’s largest buyer.

Burkina Faso said in April it was completely phasing out Monsanto’s cotton because the length of the fiber degraded, which hurt revenue for 3-consecutive seasons. But if Monsanto can restore the quality of the crop, the government will tell farmers to resume planting genetically modified cotton. The industry continues to negotiate for compensation it seeks from Monsanto, as buyers and producers estimate they’ve lost 48 billion CFA francs [US$82 million].


EthiopiaCommissions Textile & Apparel Manufacturing Industrial ParkEthiopia has commissioned the largest industrial park in Africa, signalling its intention to become one of Africa’s manufacturing hubs. The megafacility, built at a cost of US$250 million, is intended mainly for textile and apparel manufacturing and agroprocessing. Located in Hawassa town, some 275 km south of the capital, Addis Ababa, the industrial park is located on an area of 1.3-million m2, making it the largest in Africa. The park has already attracted 15 major manufacturing companies from China, Indonesia and the US. Ethiopia aims to export textiles and apparel worth US$2 billion a year by 2020, up from US$250 million currently.

[Engineering News 05/08/16]

18

MaliRains Could Help Cotton Production TargetHeavy rain in cotton-growing regions could help Mali reach its production target of 650,000 tonnes despite a dry start to the season, the state-owned Malian Company for Textile Development [CMDT] said. In May, West Africa’s biggest cotton producer cut its 2016/17 season forecast to 650,000 tonnes from a previous estimate of 750,000 to 800,000 tonnes, without giving a reason. Dry weather in June raised fears that even this reduced target would not be met. However since July it has rained regularly almost every day in all of the cotton-growing regions. Furthermore farmers have increased their seeding area by 2% this year. The government raised prices and renewed subsidies in April to encourage farmers to expand production.

Last season’s crop of 513,553 tonnes was far less than the 650,000-tonne target because of damage linked to late rain. Mali’s cotton season runs from April and includes a growing phase from around May to October and a harvesting and sales period from roughly November to March.

[Reuters 25/07/16]

MauritiusBrexit Set To Dent Textile Exports As Rupee GainsThe U.K.’s decision to exit Europe’s common market could hurt Mauritius’ apparel export earnings by about a 10th, in line with the rupee’s appreciation against the pound. The island’s central bank cut its benchmark rate saying Brexit had damaged its growth outlook for the US$11.5-billion economy. Mauritius made shipments to the U.K. worth 10.9 billion rupees [US$305.6 million] in 2015, 58% of which were clothing such as T-shirts and trousers. It also supplies seafood and sugar. The EU takes up more than half of Mauritius’ exports, providing 25.6 billion rupees worth of sales, excluding sugar. Meanwhile, the dollar’s appreciation since the referendum has inflated manufacturers’ import costs, causing a “double whammy.”


19

COMMODITY NEWSCOTTON, TEXTILES & LEATHER

Tanzania2017 Cotton Output To Double As Price Spurs FarmingTanzania may double cotton production to a 4-year high next season as stronger prices for the fibre encourage farmers in the world’s 4th-biggest producer of the organic variety to increase cultivation. According to the Tanzania Cotton Board ginning companies are raising the amount they pay farmers to an average of 1,000 shillings [$0.46] per kilogram, 25% more than they previously received. While output for the current season will be broadly unchanged from last year’s harvest of 150,000 MT because of dry weather, the price increase will have positive repercussions for the following period. The Board is estimating production at 300,000 MT for the 2017 season.


President Tells Cotton Board To Relocate President Magufuli has directed the Tanzania Cotton Board [TCB] to relocate its head offices from Dar es Salaam to Lake Zone regions where the majority farmers are situated. The move would mean the board would be closer to the farmers and would enable it to better address their challenges.


Leather Product Market Attracts Turkish ExportersTurkish leather product exporters are optimistic about boosting exports to Tanzania after finding the market better than what they expected. The Istanbul Leather and Leather Products Exporters’ Association clinched 40 business deals during a recent 2-day visit. Tanzania is second in Africa after Ethiopia with highest livestock population of more 22 million cattle, 16 million goats and 7 million sheep as per 2015 statistics.


20

AngolaTômbwa To Launch Canned Fish IndustryCanned fish production will start in Tômbwa municipality, western Namibe province in October this year, upon completion of tests at locally-based plant PesSul. The facility has a capacity of 200,000 cans of tuna per day and 50,000 of sardine and mackerel. The first phase is estimated to cost US$4, the new plant will produce 3-million cans of 120 grams of the pelagic species and 9-million of 80 grams of tuna fish until the end of 2016.

[Angola Press 10/08/16]

BotswanaHatchery Project On CourseThe Mmadinare Fish Hatchery which was constructed in 2006 is in the process of being refurbished. The hatchery, a government initiative to promote fish farming around the country, was a result of the need to produce adequate fish seed to enhance reservoir fisheries and aquaculture development. The facility was built with the intention to produce around 400-500,000 fingerlings of both tilapia and catfish per annum and distribute them to farmers around the country.


GhanaNew Legal Framework & Increased Investment Promotes Aquaculture The Minister for Fisheries and Aquaculture has encouraged increased investment in fish farming. Ghana presently imports 500,000 MT of fish annually which needs to change. Plans have been outlined to create fish farming, canoe fishing and conservation zones in the Volta Lake as well as the introduction of a new legal framework to help promote modern technologies to support the growth of fish farming ventures.Under it, the well-established farms would be assisted to convert some of their facilities into training and breeding centres to train more farmers to increase fish production levels.

[TheFishSite 15/08/16]

Fisheries Management Scheme - Creation of habitat protection areas for spawning

grounds in estuaries or mangroves - Controlling the number and capacity of vessels in

efforts to rebuild fisheries stocks - Strict implementation of the sanctions framework

under the fisheries (amendment) act 2014 to promote procreation of fishes

- Undertake survey and registration of active canoes - Increase the traditional 1-day per week fishing

holiday to 2-days per week - Control/moratorium on new entrants to the fishery21

COMMODITY NEWSFISH

SenegalSenegal Takes Steps Towards Sustainable & Better-Governed Fisheries SectorUnfortunately, Senegal’s open access regime to artisanal fisheries has contributed to the depletion of marine resources and the increase of fish prices. The overexploited fish stocks have pushed the Senegalese to extend their navigation range, and therefore fish further offshore pushing up prices, often into neighbouring countries of Guinea-Bissau and Mauritania.

Meanwhile Senegal recently launched a campaign to emboss or place identification plates on 19,009 registered artisanal boats. Registration and embossment allow the monitoring of the overall capacity of the artisanal fleet and are a first step toward a better governance of the fisheries sector. The World Bank has supported this effort through the West Africa Regional Fisheries Program [WARFP], a program covering coastal West Africa from Mauritania to Ghana, with an investment of US$165 million over the past 6-years. WARFP intends to improve fisheries governance and management, help rebuild stocks for food security, and allow a sizeable increase in revenues from the wise use of marine resources.

[World Bank 08/08/16]22

Regional4th Regional Cereal ExchangeOne hundred West African cereals producers, traders, and other stakeholders converged on Abidjan, Cote d’Ivoire, July 27-28, for the 4th regional cereals exchange. Hosted by the West Africa Trade Hub [WATH], Afrique Verte and the West African Grain Network, the event brought together buyers and sellers from across the region to identify new business linkages and other partnerships, negotiate and sign contracts, and learn about recent innovations and best practices in the cereals sector. Since the first exchange in July 2015, these events have generated US$3.5 million in executed contracts for 8,460 MT of grain, boosting regional trade and food security.

[WATH 26/07/16]23

COMMODITY NEWSFOODSTUFFS, LIVESTOCK & BEVERAGES

Burkina FasoBurkina Faso Bans Donkey Meat ExportsBurkina Faso has banned the export of donkeys, ending a massive surge in sales of meat and skins to Asia. The government adopted a decree on August 3 “regulating the slaughter and banning exports” of donkeys as well as horses and camels. Exports of hides rose from 1,000 in Q1 2015 to more than 18,000 by Q4 2015.

[Nigeria Today 09/08/16]

BurundiFood Exports Banned Over Drought ConcernsThe export of some staple foods has been banned in Burundi and farmers have been called on to put their harvests into public storage facilities, as a long dry season is expected in the East African nation.

[Fresh Plaza 19/08/16]

GabonCameroon Foberd Group Inaugrates Agro ComplexFoberd Gabon, a subsidiary of the Cameroon Foukou Group, has inaugurated an €10.7 million agro-industrial complex in Owendo specialising in the production of wheat flour, semolina and cattle feed. Production is estimated at 300T/dy to meet initially domestic demand and then for exporting to sub-regional markets within CEMAC and ECOWAS. Before the opening of this new unit Société meunière et avicole du Gabon (SMAG) was the only producer in the country. SMAG currently imports 90 000 tonnes per year for its Libreville factory.

[Ecofin 03/08/16]

24

MozambiqueIndia Buys 375,000 Tonnes Of Pulses India has signed a Memorandum of Understanding [MoU] with the Mozambican government to import 375,000 tons of legume pulses by 2019. It will buy 100,000 tons in 2016/7 and increase the amount the following year to 125,000 tons and to 150,000 tons in 2018/9.

[Macauhub/MZ 04/08/16]

Nigeria

Biscuit Maker Beloxxi Lures Private Equity InvestmentA group of private equity investors, Fund 8, have acquired a minority stake in Nigerian biscuit maker Beloxxi Industries Limited for US$80 million to help the company expand. Nigeria’s biscuit sector is growing at an annual rate of 10 to 15 percent driven by population growth.

25

COMMODITY NEWSFOODSTUFFS, LIVESTOCK & BEVERAGES

South AfricaFood Group Acquires UK Snack Maker Pioneer Food Group, South Africa’s second-largest producer of staples including bread, rice, maize meal, and cereals, has bought UK snack maker Streamfoods for £7.5m to increase its product range in Britain with branded goods. The acquisition will leverage its UK private-label portfolio and its recently upgraded manufacturing capabilities. Streamfoods is wholly owned by the Wellness Group and exports its core Fruit Bowl brand snack products for children to China and Europe.

[BD Live 02/08/16]

Wine Exports Predicted To Grow By 13%South African wine exports reached 313-million litres in 2015 up from 122-million litres in 2000 and are projected to grow by a further 13% in the next decade. The country is exporting to markets across the world with the bulk destined for the European Union and the UK. Markets in the rest of Africa, the US and China are also growing.

Project Khulisa, focusing on growth strategy, will run until 2019 aimed at boosting wine exports to strategic markets. And the industry has formulated the Wine Industry Strategic Exercise which sets clear goals for the sector. This includes increasing jobs to 375,000 by 2025 and growing the value of wine tourism from R6-billion to R15-billion.


Government To Increase Wheat TariffA South African court has ordered the government to increase the tariff on wheat imports by 30% according to Industry group Grain SA. South Africa changes the tariff on a regular basis using a variable formula based on world price movements. When the adjustment is calculated, it typically also takes a few weeks for it to be signed off and implemented. The Court has instructed SARS (South African Revenue Service) to publish the new tariff in the Government Gazette no later than 24th August. Producers say the tariffs are necessary to protect them from highly subsidised foreign competitors.

[Reuters 19/08/16]

26

Cote d’IvoireChina to Send Agricultural Experts to Cote d’IvoireChinese experts are expected to arrive in Abidjan in September to reinforce agricultural cooperation between China and Cote d’Ivoire, and help modernize the latter’s agricultural sector. China’s agriculture ministry will send 30 delegates to evaluate national needs in domains such as cocoa, cashew nuts, rice, pineapples and mangoes. In July 2016 Ivorian Minister of Agriculture and China’s Minister of Agriculture signed a Memorandum of Understanding [MoU] relating to increased cooperation.

[Xinhua 16/08/16]

EthiopiaUS$275 Million From Horticultural Export RevenueThe Ethiopian Horticulture Development Agency [EHDA] noted the just ended fiscal year saw horticulture generating US$275.45 million in export revenue, a 10.7% increase on last year. Export of fruits and vegetables as well as herbs generated US$50 million. The volume of vegetables and fruits exported was 166,000 tons. Europe is the key destination for Ethiopia’s horticulture products, taking 80% of exports. Ethiopia is becoming a preferred investment hub for horticulture export owning to conducive investment climate and government incentives.

[ENA 15/08/16]

GhanaEconomic Partnership Agreement [EPA] Ratification Ghana’s parliament has now ratified the Economic Partnership Agreement [EPA] between the government and the European Union. The ratification of the agreement by Parliament will lead to the entry of a percentage of imports from Europe to Africa and vice versa, free of tariffs. For Ghana some of the duty-free access on exports to the EU market include processed cocoa products, fruit and vegetable products, and fish. The deadline for ratification was October 1st, 2016 deadline.

[Citi FM 05/08/16]

27

COMMODITY NEWSFRUIT, VEGETABLES & HORTICULTURE

Ghana

Mango Producers’ Association Acquire New Global G.A.P Certification For Export Eighty farmers in the Yilo Krobo Mango Farmers Association are set to export an estimated 500 MT of fresh fruit valued at US$675,000 to international markets following the association’s acquisition of the Global G.A.P Option 2 Certification. Yilo Krobo is the only Ghanaian producers’ association certified this year under the new version 5 of Global G.A.P Option 2, designated for producer groups.

Certification of farms and packhouses is an international food safety standards requirement for exports, particularly to the European Union [EU] and Middle East. Major fresh fruit exporters in Cote d’Ivoire, Burkina Faso and Senegal also export under Global G.A.P Options 1 and 2 certifications. Within Ghana, the West African Trade Hub [WATH] is supporting the Dangbe West Mango Farmers’ Association to acquire certification by August.

[WATH 26/07/16]28

KenyaRegulatory Potato Bill For the past 2-years, the Potato Produce and Marketing Bill has been pending before parliament, now, National Assembly Speaker Justin Muturi has promised to fast track the Bill which seeks to end exploitation of potato farmers by cartels. It aims at establishing a National Potato Council to promote quality and quantity of production and to set standards to regulate the industry. At least 24-counties stand to benefit if it sails through and signed into law by President Kenyatta.


Kenya Faces Cut In Agricultural Export RevenueKenya is facing a two-pronged cut in its agriculture export revenue due to Britain’s exit from the European Union [EU] and the looming deadline for signing a deal allowing the country duty-free access to the lucrative European market. Unless the East African Community–European Union Economic Partnership Agreement [EAC-EU EPA] is signed before October 1, Kenya will also face export duty of between 8-12%. This will make Kenya’s exports uncompetitive. Currently 90% of Kenya’s exports to the European Union are agricultural or agro-processed. The Kenya National Bureau of Statistics put the value of exports in cut flowers, green beans and mangoes at Sh90.4 billion in 2015.

For the duty-free deal to come into force, East African Community members ought to endorse it jointly. But some have been reluctant because they are considered least developed countries and enjoy preferential treatment because of it. Should the deadline elapse before a deal is reached, Kenya will have to revert to less generous access terms under the generalised system of preference, which could mean a reduction, but not complete elimination of tariffs.

Meanwhile, smallholder farmers exporting fruits and vegetables to the UK could be the biggest casualties of Brexit – 80% of these go to the UK. The Kenya Organic Agriculture Network, whose members sell fruits and vegetables to Britain, noted tedious documentation requirements for the global Good Agricultural Practice [GAP] and associated costs, which are usually very high, were among the consequences their farmers were facing after Brexit.

[Nation 15/08/16]

29


MozambiqueAgricultural Business Centres To Open Twenty-three agricultural business centres due to open in Mozambique will increase the production capacity of small farmers in the centre and north of the country. A pilot center, opened in Chimoio, Manica province, is a partnership between the governments of Mozambique and the United States, through the US Agency for International Development [USAID], involving grain purchase and sale of seeds and fertilisers, as well as technical support for production and mechanised harvesting. The centres, known as “3I Farmers Empowerment Hubs” are managed by the Export Trading Group, which provides most of the funding and will focus on the operation of the marketing outlets for agricultural equipment.

[Macauhub/MZ 18/08/16]

NamibiaNew Board For Potato And Onion Producers AssociationA new board has been elected by members of the Namibian Potato and Onion Producers Association [POPA] at a meeting in Tsumeb. Vico Blume, a horticulture producer was elected as chairperson. POPA represents Namibian potato and onion producers. The association’s mission is to stimulate, protect and promote potato and onion production and marketing in Namibia.

[The Namibian 24/07/16]

NigeriaMexican Collaboration On BananaThe Cross River State government in Nigeria is collaborating with the San Carlos Group, a Mexican company, to establish 3,000 ha of banana plantation in the state. The plan is to establish 250 ha in Okoyong first before expanding.

[Today 01/08/16]

30

South AfricaCitrus Could Benefit From BrexitBritain’s decision to leave the European Union [EU] could benefit the citrus industry in the Eastern Cape say producers. Although there will be little change in the short term as the “divorce” process could still take up to 2-years. The import regulations for citrus shipped to Britain at present are the same as for other countries in the EU, but Britain could ease these in future by offering more favourable conditions. Such a move would make citrus export easier and as a result give a strong boost for the South African citrus industry. At present 10% of South African citrus exports go to Britain and 29% to the EU. It is likely that a longer season will mean more sales and that the unfair black spot regulations will fall by the wayside.

[News24.com]

Blueberry Volumes Ramping UpBlueberry production is ramping up in South Africa, as harvesting starts in the north of the country. United Export is expecting a huge increase in overall volumes this year, last year total production was around 200 tons. It has programs in place in the UK and Europe and promotions planned with the local retailers. It is looking to grow its footprint in the local market and ramp exports to UK, Europe, Middle and the Far East.


31


ZimbabweChina To Open Its Markets To Farm ProduceThrough economic and technical co-operation agreements signed between Zimbabwe and China in December 2015, Zimbabwe is to receive US$4 billion for its agriculture programme. China has agreed to open its markets to farm produce from Zimbabwe. China is interested in horticulture, beef, citrus fruits and organic products.


Netherlands Offers A Market For Organic FruitAccording to ZimTrade, Zimbabwe’s trade development and promotion organisation, the Netherlands presents a growing market for organic fruits, particularly dates, figs, mangoes, pineapples, avocados and guavas.

The import bill for mangoes, mangosteens and guavas in the Netherlands has been on an upward trend, increasing by 38% from US$197 million in 2011 to US$272 million in 2015. As the Netherlands does not produce these fruits, it is one of the largest importers globally.

In 2015, amongst the European Union [EU], the Netherlands accounted for 25% of the total import bill [US$929 million] for mangoes, mangosteens and guavas. It was followed by Germany and the United Kingdom, both at 18%.

Meanwhile the interim Economic Partnership Agreement [EPA] offers opportunities for Zimbabwe to export its fresh produce to the EU bloc duty free and quota free.


Testing Laboratory For Agro-Processing SectorZimbabwean companies in the food and agro-processing sector now have access to a new Chromatography Trace Elements Testing Laboratory. It can assist mango producers/exporters in testing their products for safety and quality in order to ensure that they meet international standards for export. Commercial production of mangoes in Zimbabwe has been minimal.


Tea Company Invests In Avocado, MacadamiaZimbabwe’s largest tea producer, Tanganda Tea Company has set an ambition aim of more than doubling export revenue to US$22 million by 2019, through increased sales of packed tea and new crops. Tanganda has invested US$4.4 million in the development of new plantations of macadamia and avocado and the new crops are expected to support the company’s export drive.


Nhimbe Fresh Exports To Expand Berry ProductionZimbabwean horticultural company, Nhimbe Fresh Exports is aiming for a US$30 million revenue in the medium term, driven by growth in sales volumes of high value fruits. To achieve this it plans to expand production of blueberries, raspberry and stonefruit in the next 4-years. Most of the products will be exported to supermarket chains in Europe, particularly the UK. It is also looking at exporting 800-1,000 tonnes of sugar snaps and 2,000 tonnes of stonefruit.


32

CameroonSafacam Finalises Palm Kernel Oil Production Unit The Société Anonyme Agricole et Forestière du Cameroon [Safacam] has completed the construction of its new palm kernel production unit. Although the investment cost was not revealed, Socfinaf note production of palm oil will contribute to the increase in turnover of Safacam this year. Socfinaf SA, parent company of Safa France, through French industrialist Vincent Bolloré owns 69% of shares in Safacam.

[Business in Cameroon 30/07/16]

Refineries Import 16,000 Tons Of Palm OilAgro-industries producing vegetable oils and soap in Cameroon decided to import 16,000 tons of palm oil to absorb the production deficit. According to the Cameroon Oleaginous Refiners Association [ASROC] 9,000 tons of imported palm oil and other derivatives were offloaded at the Douala Port during H1 2016, while 7,000 additional tons are currently en route to Cameroon. Imports are VAT-exempted and benefit from a preferential customs duty of 5%.

[Business In Cameroon 04/08/16]

GabonGabon To Boost 2016 Palm Oil Harvest By 18,000 TonnesGabon expects at least 18,000 MT of additional palm oil this year as it pushes towards a 250,000 MT/yr target to become the key African palm-oil exporter by 2025. Gabon produced 30,000 MT in 2015.

Belgian Societe Belge d’Investissement pour l’Agriculture Tropical, or SIAT-Gabon, accounts for about 20,000 MT/yr. But in the next 5-years Olam’s plantations will start producing commencing this year with an initial 9,000 MT.

To meet its ambitions of becoming a key player in West Africa’s palm-oil industry, Gabon’s government is in talk with India’s 3F Oil Palm Agrotech to inject about US$200 million for another 40,000 ha plantation in the sector.

[Dow Jones 31/07/16]

33

COMMODITY NEWSPALM OIL & OILS

GhanaGhana To Establish Oil Palm Regulatory Board The Deputy Minister of Food and Agriculture, Dr Ahmed Yakubu Alhassan, noted pans have advanced for the approval of a Regulatory Board for the oil palm sub-sector. Speaking at the latest Tropical Forest Alliance [TFA] 2020 Palm Oil Initiative Ghana Country workshop, Dr Alhassan said the Board is necessary to regulate and create a conducive environment for the growth and development of oil palm with benefits to the economy. The board will create a platform for formalised interaction between government and the private sector to implement policies to ensure the viability of the oil palm industry.

[GNA 31/07/16]

Sierra LeoneTomco Energy Reviews Funding For Palm Oil VentureTomCo Energy Plc has told investors it is continuing to review debt and equity financing options for its proposed palm oil venture. Last month it announced it had completed due diligence for the project in the Makeni oil palm belt, in Sierra Leone, and it was finalising the formation of its palm oil division. A report by Astratec Africa outlined plans for a 1 tonne per hour plant, which could be scaled up to 2tph. The necessary equipment is to be sourced from India. TomCo noted the processing plant will cost around US$500,000 and said it would also need to raise additional working capital.

[ProActiveInvestors 18/08/16]

TanzaniaSunflower Oil Processors JV With India Sunflower oil processors in the Central Zone corridor have entered into a Joint Venture deal with the Indian-based Solvent Extractor’s Association, thanks to the Indian Trade and Investment for Africa. A recent event dubbed the ‘Sunflower Business to BusinessMeeting’ attracted processors from all central zone regions and drafted a Sunflower Development Strategy Plan.

[Citizen 01/08/16]

34

AngolaBiocom Plans To Produce 256,000T By 2020Angolan company Companhia de Bioenergia de Angola [Biocom] announced that it will produce 256,000T of sugar by 2020 which will provide 50% of the consumption needs of the Angolan population. Biocom, which is owned by Brazilian company Odebrecht and Angola’s Cochan and Sonangol, expects to produce 47,000T this year over 80,000 ha, almost double the amount of the first harvest. Biocom currently represents the largest private investment in Angola, outside of the oil sector. With an investment of US$750 million, Biocom is the first Angolan company to produce white crystal sugar, ethanol and energy from biomass or bagasse from sugarcane.

In the 2015/2016 harvest, Biocom produced 24,770T of sugar. For the 2016/2017 period, production is expected to be 47,000T. For 2020/2021, when it is due to reach the maximum production capacity of the first phase, the project is expected to produce in excess of 256,000T.

[Macauhub/AO 25/07/16]

Mozambican Entrepreneurs Support Sugar ProductionThe Angolan government is to support a sugar production project that Mozambican entrepreneurs and their Angolan partners plan to implement in Uíge province. At present Angola does not produce enough sugar to supply the country.

[Macauhub/AO/MZ 11/08/16]

Cote d’IvoireBRVM To Sell 23% Of SucrivoireThe Ivorian government has approved the sale of its entire interest [23%] in Sucrivoire, through the Regional Stock Exchange (BRVM). The transaction is expected by the end of 2016. Sucrivoire is one of only 2-sugar producers in the country with an estimated production of 92,000 tonnes in 2014 and turnover of US$82.3 million. The 2015 performance, still subject to validation by General Assembly have not yet been made public. The move by the Ivorian state is part of a privatization program launched in December 2013.

[Ecofin 23/08/16]

35

COMMODITY NEWSSUGAR

NigeriaImports Hit US$227 Million In 7 MonthsNigeria has imported US$227 million worth of sugar in the first 7-months of this year, a report by the Central Bank of Nigeria (CBN) has revealed. The highest monthly value of imports of US$79.1 million was recorded in June with prices reaching US$242.5/MT. Local production has dropped to 70,000 MT, a decline of over 7% from the 2015 estimate of 75,000 MT. It is feared that the decline in local production, which was linked with poor infrastructure, would prevent local supplies from meeting the rising sugar consumption in the country over the next 5-years. A study by the National Sugar Development Council revealed that Nigeria would need $1.238 billion to meet 49% or 860,000 MT of the total sugar demand by 2020.

[Leadership 18/08/16]

Data from United States Department of Trade (USDT)

RwandaSugar Processing Factory In To Be ConstructedGovernment has approve construction of a 100,000 T sugar processing factory to be constructed by Mauritius Investors. The move is part of efforts aimed at production self-sufficiency by 2020. Current production stands at 10,000T. Rwanda imports 80,000T of sugar every year against an annual demand of 90,000T annually.

The new sugar processing factory in Rwanda which is part of an important multi-purpose development is projected to cost between US$250m and US$300m and will be constructed in Eastern Province of Rwanda and the sugarcane plantations that are expected to supply for the new factory will be in Ndego and Kabare areas of Kayonza District and Nasho Sector in Kirehe District.

The initiative is part of a bigger plan that will have an ethanol making factory and in the long run see the establishment of another third plant which will be generating a whole 25 MW of energy from bagasse, a sugarcane residue.

[Construction Review 09/08/16]

36

South AfricaCoca-Cola To Rethink Spending PlansAfrica’s biggest Coke bottler, Coca-Cola Beverages Africa, will rethink its spending plans in South Africa if Pretoria’s proposed tax on sugary drinks gets the green light. In a bid to fight a growing obesity rate the government has proposed a 20% tax on sugar sweetened drinks.

Coca-Cola Beverages Africa was created earlier this year through a combination of SABMiller and Coca-Cola African soft drink operations. The deal won an antitrust go-ahead on several conditions that included a commitment to spend R800-million to develop farmers and retailers.


Tanzania100% Output Target SetThe Prime Minister, Kassim Majaliwa, has instructed sugar producing factories to put measures in place, which will ensure that sugar production capacity in the country stands at 100% by 2020. The move will avoid unnecessary imports. The Tanzania Sugar Board will sit with experts from the Ministry of Agriculture, Livestock and Fisheries to identify the amount of sugar required in the country.

Current sugar demand stands at 420,000 MT/yr whilst the country has a sugar production capacity of 320,000 MT p.a meaning there is a scarcity of 100,000 MT. Plans are afoot to extend farms by 400,000 ha to avoid imports. Sugar production in Tanzania comes mainly from 4-large companies, which include Kilombero Sugar Company, majority owned by South Africa’s Illovo Sugar, and TPC, a unit of Mauritius sugar producer Alteo.


37

COMMODITY NEWSSUGAR

UgandaRaw Sugar Output By Top Processors Down 14% In H1Raw sugar production by Uganda’s 3-main processors fell 14% in H1 2016 versus a similar period last year hurt by a shortage of mature cane. Kenya has a small but thriving sugar production sector mostly dominated by the Kakira Sugar Works, Sugar Corporation of Uganda Ltd and Kinyara Sugar Works. Full-year output from the 3-producers is seen reaching 330,000 tonnes, down from last year’s 341,879T. The Uganda Sugar Manufacturers’ Association (USMA) noted these plants produced 154,501T in H1 2016. In the same period last year production was 178,761T.

The decline was due to the unavailability of mature cane for milling. Eight new smaller processors who lack outgrower schemes were also poaching on cane supplies of the 3-large plants and causing a shortage of the raw cane. Combined production from all the smaller producers this year is likely to reach 100,000T which could push Uganda’s overall output to 430,000T.

Uganda’s consumption of raw sugar this year is projected at 370,000T and the government has said it is keen to attract investment into the sector to meet growing demand, which is forecast by USCTA to hit 700,000T by 2030.

[Reuters 24/08/16]38

KenyaExporter To Miss Output Target On Strike Tea output in Kenya, the world’s biggest exporter of the black variety, may miss the government’s target this year as a strike by tea pickers in Bomet and Kericho counties hurt harvesting, the East African Tea Traders Association [EATTA] said. Employees stopped work for 2-weeks at the end of June demanding a 30% pay increase. While they returned to factories for half of that, a “long-term solution” has yet to be found. This means production may be below 450 million kg, or less than the 500 million kg projected by the Government.

Kenya ranks as the world’s third-largest producer of the leaves, behind India and China, and hosts the biggest auction of the crop, in Mombasa. Unlike India and China, it doesn’t consume most of its output. Kenya produced 399 million kg in 2015, earning the East African nation US$1.24 billion.

Unusual heavy rains from October helped boost production earlier in 2016, and tea exports in H1 climbed 33%bto 200.5 million kg from a year earlier. The average price in the period declined 10% to US$2.26/kg because of the higher output.


State Firm Invests Sh300 Million In Tea FactoryA Government investment firm, Industrial & Commercial Development Corporation [ICDC], has allocated Sh300 million for the Sisibo Tea Factory in Keiyo, Elgeyo Marakwet County.

[Standard Digital 01/08/16]

39

COMMODITY NEWSTEA

RwandaTea Export Earnings Rise to US$70.7 MillionRwanda’s total tea export revenue increased by 16.25% to US$70.7 million during 2015/16 fiscal year compared to US$60.8 million the previous year, the National Agricultural Export Board [NAEB] has indicated in a new report.NAEB attributed the increase to the high volume of tea sold in 2015/16 compared to 2014/15 and better prices on international market since March 2015. According to the report, Rwanda exported 24.9 million kilos of green tea over the year. On average, prices increased to about US$2.85/kg during the 2015/16 fiscal year compared to US$2.48/kg the previous year.

Rwanda has so far exported more than 14.4 million kilos of ‘made tea’ since January of this year alone fetching more than US$36.2 million. Over 26.3 million kg of ‘made tea’ were produced between July 2015 and June 2016 compared to 25.6 million kg recorded over a similar period the previous financial year up 2.4%. Overall, tea prices have continued to rise over the recent months, but are projected to drop on the account of increasing supply.

To enhance quality the NAEB has drafted a new tea leaf handling model along the value chain and to make the sector more competitive. The agricultural exports agency is also looking to find new markets for Rwanda’s tea to increase tea exports. UK buys 21.46% of Rwanda’s total tea exports, 21.16% to Pakistan, 16% to Egypt, 15.6% to Yemen and 10.6% to Somalia. Rwanda’s total export revenue dropped by 6.8% last year to US$558.8 million from US$599.8 million in 2014.

[New Times 25/07/16] 40

Central/West AfricaRates And Market Volatility On Everyone’s MindThe slight weakness in prices for sipo and sapele was reigned in over the past two weeks and there is no news of further price movements either up or down. On all producer’s minds is what effect the turmoil after the UK referendum will have on exports. The massive decline in the sterling exchange rate against the US dollar and euro could have a significant impact on exports. Sterling has recovered slightly from the lows immediately after the referendum but there is a risk that it will remain weakened for some time.

West and Central African producers price exports in euros for EU markets and so far there has been no pressure from buyers in either the EU or UK to lower prices and there has been no pressure [so far] from buyers outside of Europe for an adjustment of prices. Apart from direct imports from African and other worldwide producer countries the UK importers also buy significant volumes of tropical timber from continental importers/stockists and if sterling remains at current levels then the landed costs of tropical timber in the UK will inevitably rise.

[ITTO 16-31/07/16]

Buyers In No Hurry To Place OrdersFor now it is too early to predict how the different markets in EU member states will react to Brexit. Producers report a slight slackening in business for Europe but this is usual as the EU trade enjoys summer vacations. Analysts suggest buyers in UK and mainland Europe will be in no hurry to resume autumn purchases and that West and Central African exporters are bracing for a period of market uncertainty.

For the next 2-3 years [or maybe more] during the negotiations for the UK to exit the EU the UK will remain a member and it is too early to predict how markets will react. For UK timber traders a further complexity is the forecast slowdown in the construction industry as contractors and house builders are concerned over stability in the UK property market.

[ITTO 16-31/07/16]

41

COMMODITY NEWSTIMBER

GabonOzigo Harvesting Ban LiftedIn 2009 the government in Gabon banned the harvesting of Afo, douka, moabi, and ozigo but the ban on ozigo harvesting has been lifted. Apparently the ban on ozigo was because green lobbyists had evidence that the fruits of ozigo were an important part of the diet for wild elephants, this, it seems, is not the case.

In other news from Gabon, producers are concerned that the new Forestry Code due to be announced in August will be more demanding than the current code.

[ITTO 16-31/07/16]42

GhanaGhana Encouraging May Export FiguresThe export of Ghana’s wood products in May 2016 yielded €18,755,766 from a volume of 33,348 cu.m which represents an increases of 37% in value and 23% in volume compared to exports in May 2015. In terms of species the top were teak, rosewood, wawa, papao/apa and ceiba and exports went to 39 different markets with the top 5 being India, China, Vietnam, United States of America and Germany.

Wood product exports to African countries included plywood [overland transport], sliced veneer, air and kiln dry sawnwood, rotary veneer and mouldings. Major destinations included Egypt, South Africa, Morocco; with the ECOWAS sub-region market taking the largest share of 16,490 cu.m valued at €4.92million. Despite the better export performance in May, Ghana’s overland wood exports during the first 5 months of the year suffered some setback as sliced veneer, sawnwood and plywood exports were down year on year.

Plywood exports were particularly badly down. Nigeria, which had been the leading importer of Ghana’s plywood, slipped to the second ranked importer after Niger, with Burkina Faso and Togo ranked 3rd and 4th. The drop in Nigeria’s plywood import has been attributed to the foreign exchange controls introduced by Nigeria’s Central Bank.

In the first 5 months the major market destination for Ghana’s wood products were; Asia/Far East 113,671cu.m [71%]; Europe 18,972 cu.m [12%]; Africa 19,786 cu.m [12%]; America 5,510 cu.m [3%] and Middle East countries 2,953 cu.m [2%].

[ITTO 16-31/07/16]

Forestry Master Plan And Plantation Strategy ReleasedThe Ghana Forestry Commission website has made available the 20-year Ghana Forestry Development Master Plan [FDMP] [2016-2036]. This master plan is the product of consultative processes involving engagements with experts and technocrats in the forestry sector, traditional authorities and landowners, development partners, forest fringe communities, policy makers and legislators.

The vision, goal, and objectives of the FDMP reflect the national development agenda, the National Climate Change Action Plan, Sustainable Development Goals of the United Nations and the on-going sector activities. The plan seeks to contribute to reducing Green House Gas [GHG] emissions from deforestation and forest degradation, climate and temperature regulation, sustainable supply of timber and wood fuels, reducing poverty and helping to conserve biodiversity.

[ITTO 16-31/07/16]

RESOURCESFor details please view http://www.fcghana.org/userfiles/files/MLNR/FDMP_June%2015%20Final_draft.pdf43

COMMODITY NEWSTIMBER

MalawiBuyers On Leave As Leaf Regulators Bring In New Buyers Tobacco buyers have gone on summer holiday, leaving huge tonnes of unbought leaf prompting the Tobacco Control Commission (TCC) to invite three more buyers. The government has invited a Chinese firm, Chinese Monopoly, an Egyptian company, Eastern Company and the Japanese JTI. This year farmers grew 59 million kg up from of 39 million kg. Tobacco sales have this year suffered high rejection rate of as high as 80% as well as low tobacco sales on over supply. The government is now searching for another crop, including industrial hemp to replace tobacco as the main stay of Malawi economy.

[Nyasa Times 17/08/16]44

COMMODITY NEWSTOBACCO

com-watch - issue 64 - september 2016 - issue... · 2016. 12. 20. · the african commodity report...

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