copal cocoa info. 515.doc · web viewover the past five years, african grindings have risen by an...

INSIDE THIS ISSE: ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES

MARKET UPDATE NEW YORK (ICE) FUTURES

MARKET UPDATE FROM THE NEWS MEDIA

0COPAL COCOA0COPAL COCOA InfoInfo A Weekly Newsletter of Cocoa Producers' Alliance

Health and Nutrition Pure Cocoa Powder, the key ingredient in dark

chocolate and found in diabetes support supplements has been clinically proven to reduce cardiovascular risk Cocoa may boost brain function

Production and Quality Cocoa harvest starts as rains, disease threaten yield DA injects P192 M to coffee, cocoa industries Rich Cocoa yield is predicted in Cote d’Ivoire

The Market Money Managers reduce wagers on rising London

cocoa by 10% Nigeria: Europe killing local cocoa market –

Farmers

Labour Issues Nestlé buying additional 5 300 tonnes of

Fairtrade cocoa

Environmental Issue

Research & Development

Promotion & Consumption Chocolate aficionados in seventh heaven

Others Cameroon sees black pod outbreak in Centre,

South-West regions

Do your health a favour, drink Cocoa everyday

‘It’s nature’s miracle food’UP-COMING EVENTSUP-COMING EVENTS IN THISIN THIS

Issue No. 515 22nd – 26th October 2012

Processing and Manufacturing

Business & Economy Investors applaud Hershey's vow to source 100%

certified cocoa by 2020 Chocolate conquers new worlds, from Asia to

Brazil European dominance in cocoa challenged

In the News (from Newspapers worldwide)

ICCO Daily Cocoa PricesICCO Daily Price

(SDR/tonne)ICCO Daily Price

($US/tonne)London futures

(£/tonne)New York futures

($US/tonne)

22nd October 1661.52 2562.94 1623.67 2525.33

23rd October 1654.35 2546.09 1627.00 2501.67

24th October 1599.46 2457.65 1562.67 2414.33

25th October 1597.33 2459.71 1557.00 2411.33

26th October 1591.05 2444.25 1546.33 2401.00

Average 1621.00 2494.00 1583.00 2451.00

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684

Email: [email protected] Website: www.copal-cpa.org2

mailto:[email protected]

International Financial Futures and Options Exchange (LIFFE)London Futures Market – Summary of Trading Activities

(£ per tone)

Monday 22nd October 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1600 1628 14 1630S 1593S 5,120Mar 2013 1594 1619 13 1622S 1586S 2,223May 2013 1598 1624 12 1627S 1592S 658Jul 2013 1605 1631 12 1633S 1598S 252

Sep 2013 1609 1633 11 1635S 1601S 156Dec 2013 1633 1630 12 1633S 1633S 5Mar 2014 1624 14 0May 2014 1628 16 0Jul 2014 1625 1635 15 1625S 1625S 13

Sep 2014 1640 34 0Average/Totals 1629 8,427

Tuesday 23rd October 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1616 1630 2 1631S 1607S 5,564Mar 2013 1608 1623 4 1625S 1598S 3,131May 2013 1613 1628 4 1630S 1603S 680Jul 2013 1618 1634 3 1636S 1611S 754

Sep 2013 1620 1638 5 1637S 1615S 80Dec 2013 1634 1637 7 1634S 1614S 59Mar 2014 1631 7 0May 2014 1634 6 0Jul 2014 1641 6 0

Sep 2014 1646 6 0Average/Totals 1634 10,268

Wednesday 24th October 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1617 1563 -67 1630 1557 6,073Mar 2013 1611 1559 -64 1621S 1554S 7,302May 2013 1613 1566 -62 1625S 1562S 3,970Jul 2013 1618 1574 -60 1630S 1569 2,111

Sep 2013 1621 1579 -59 1636S 1576S 338Dec 2013 1634 1577 -60 1635S 1579S 388Mar 2014 1630 1574 -57 1630S 1575S 25May 2014 1577 -57 0Jul 2014 1584 -57 0

Sep 2014 1589 -57 0Average/Totals 1574 20,207

ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX, TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-

9814-1736; FAX: +234-1-290-4262 Email: [email protected] Website: www.copal-cpa.org

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http://www.nybot.com/reports/dmrs/etsDMRs/dmrFutures.asp?dmrMonth=04&dmrDay=11&dmrYear=2007&commodityID=1&commodityType=future

http://www.copal-cpa.org/







Thursday 25th October 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1574 1556 -7 1574 1539S 3,514Mar 2013 1566 1554 -5 1568S 1538S 3,575May 2013 1568 1561 -5 1570S 1545 812Jul 2013 1576 1569 -5 1578S 1554S 1,634

Sep 2013 1581 1574 -5 1583 1559S 1,260Dec 2013 1559 1571 -6 1559S 1559S 50Mar 2014 1559 1564 -10 1561S 1554 199May 2014 1567 -10 0Jul 2014 1574 -10 0


Friday 26th October 2012 Month Opening Trans Settle Change High Low Volume

Dec 2012 1557 1544 -12 1568S 1541 4,713Mar 2013 1555 1544 -10 1563S 1540S 3,750May 2013 1562 1551 -10 1570S 1549S 1,334Jul 2013 1571 1559 -10 1573S 1557S 1,129

Sep 2013 1567 1565 -9 1580S 1561S 546Dec 2013 1557 -14 0Mar 2014 1554 -10 0May 2014 1556 -11 0Jul 2014 1561 -13 0


Average for the week 1556 2086 2086



4










New York Board of Trade(New York Futures Market – Summary of Trading Activities)

(US$ per tone)

Monday 22nd October 2012 Month Open Price Change High Low Volume

Dec 2012 2475 2516 27 2526 2460 12,223Mar 2013 2478 2523 26 2531 2469 5,505May 2013 2487 2530 25 2538 2480 682Jul 2013 2492 2538 26 2543 2489 248

Sep 2013 2499 2544 26 2548 2494 164Dec 2013 2506 2549 24 2550 2506 4Mar 2014 0 2554 24 0 0 0May 2014 0 2560 24 0 0 0Jul 2014 0 2568 24 0 0 0

Sep 2014 0 2579 24 0 0 0Average/Totals 2546 18826

Tuesday 23rd October 2012 Month Open Price Change High Low Volume

Dec 2012 2500 2498 -18 2518 2474 13,217Mar 2013 2495 2508 -15 2521 2481 6,816May 2013 2510 2516 -14 2522 2491 1,581Jul 2013 2518 2527 -11 2530 2508 336

Sep 2013 2529 2535 -9 2535 2527 45Dec 2013 2538 2543 -6 2543 2538 13Mar 2014 2548 2548 -6 2548 2548 2May 2014 0 2554 -6 0 0 0Jul 2014 0 2562 -6 0 0 0

Sep 2014 0 2573 -6 0 0 0Average/Totals 2536 22010

Wednesday 24th October 2012 Month Open Price Change High Low Volume

Dec 2012 2493 2399 -99 2495 2389 20,485Mar 2013 2506 2413 -95 2506 2404 9,417May 2013 2510 2423 -93 2512 2416 2,839Jul 2013 2499 2435 -92 2503 2429 884



Thursday 25th October 2012



5









Month Open Price Change High Low VolumeDec 2012 2405 2402 3 2425 2376 13,935Mar 2013 2417 2412 -1 2436 2389 8,469May 2013 2435 2423 0 2445 2399 3,452Jul 2013 2447 2435 0 2455 2411 802

Sep 2013 2455 2443 0 2462 2419 157Dec 2013 2462 2449 -2 2469 2426 119Mar 2014 2467 2454 -2 2470 2440 156May 2014 2468 2461 -1 2477 2468 2Jul 2014 0 2469 -1 0 0 0


Friday 26th October 2012 Month Open Price Change High Low Volume

Dec 2012 2405 2383 -19 2425 2379 10,074Mar 2013 2414 2394 -18 2433 2391 6,902May 2013 2427 2405 -18 2445 2403 1,950Jul 2013 2438 2418 -17 2455 2417 1,311



Average for the week 2425 3722 3722



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News

Pure Cocoa Powder, the key ingredient in dark chocolate and found in diabetes support supplements has been clinically proven to reduce cardiovascular riskAlbany Times UnionOctober 19, 2012Cocoa the pure form of chocolate has been proven to reduce the risk of stroke and improve blood flow for people with Type 2 Diabetes. Diabetes Support Supplements, a new dietary supplement from ProactiveLife, is the first product to infuse pure cocoa powder with nine other ingredients to provide support for healthy blood glucose levels and cardiovascular support. Recent studies have shown pure cocoa lowers cardiovascular risk.

According to the Journal of American College of Cardiology June 3rd addition type 2 diabetics who consumed pure cocoa witnessed a 30% increase in arterial blood flow.

At the American Heart Institute’s conference in 2011 Harvard researchers looked at 21 studies involving 2,575 participants and found that cocoa consumption is associated with decreased blood pressure, improved blood vessel health, and improvement in cholesterol levels, among other benefits. Eric L. Ding, PhD, of Harvard Medical School believes the health benefits come from polyphonic flavonoids in cocoa.

A meta analysis conducted by the British Medical Journal (BMJ) in 2011 reported the following. “Of the seven studies, five trials reported a significant inverse association between chocolate intake and cardiometabolic disorders. For example, individual studies showed reductions in the risk of coronary heart disease, the risk of cardiovascular disease mortality, and the risk of incident diabetes in men.”

A presentation at the European Society of Cardiology (ESC) 2011 Congress showed that people who consumed the most chocolate had a 29% lower risk of stroke compared with people who consumed the lease amount of chocolate.

ProactiveLife was founded in 2011 to help people take control of their health. The approach incorporates community, lifestyle changes, and natural supplements to assist people with blood sugar regulation and provide cardiovascular support.

Diabetes Support contains 10 ingredients to lower blood sugar naturally including cocoa, cinnamon, omega-3, vitamin D and others while providing cardiovascular support. Along with lifestyle changes including diet and exercise Diabetes Support is a new proactive approach to better health.

Cocoa may boost brain functionAged Care INsiteOct/Nov 2012 |Having a nice hot cup of cocoa at night not only tastes good but it might assist in decreasing the risk of dementia.

A study funded by the Mars confectionary company tested the effect of daily cocoa intake on 90 elderly volunteers.

Participants were given milk-based cocoa drinks containing high, intermediate or low level of plant compounds called flavanols, which are said to reduce the risk of dementia.



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NEWS

Health and Nutrition



The diet was restricted to eliminate other sources of flavanols from foods and beverages other than the dairy-based cocoa drink. Researchers found consuming the flavanol-rich drinks led to better scores in tests of working memory, verbal memory and task-switching.

Blood pressure and insulin resistance also decreased in participants drinking high and intermediate levels of flavanols.

Lead researcher Dr Giovambattista Desideri, from the University of L’Aquila in Italy, said: “This study provides encouraging evidence that consuming cocoa’s flavanols, as part of a calorie-controlled and nutritionally balanced diet, could improve cognitive function.”

Desideri said the positive effect on cognitive function may be mediated by an improvement in insulin sensitivity. “It is yet unclear whether these benefits in cognition are a direct consequence of cocoa flavanols or a secondary effect of general improvements in cardiovascular function,” he said.

Cocoa harvest starts as rains, disease threaten yieldBusinessDay18 October 2012

Cocoa farmers in Nigeria, the world’s fourth-largest producer of the chocolate ingredient, have started the harvest for the 2012-2013 season with yields threatened by flooding.

Many cocoa farms are submerged in water, leading to high humidity and destruction of crops, Sayina Riman, president of the Cocoa Association of Nigeria, which groups farmers, traders and processors, said by phone yesterday from the city of Calabar in southeastern Nigeria. “Even the

cherrelles that have formed are under the flood, so they are destroyed.”

There are a growing number of cases of black pod, a fungal disease that thrives in wet conditions, said Isaiah Ndiyo, a farmer in Itumbuzor, in southeastern Abia state. Farmers are now lowering initial expectations of a good harvest, he said.

Nigeria, Africa’s most populous country of more than 160 million, is facing its worst flooding in decades after its two biggest rivers, the Niger and the Benue, overflowed their banks as dams let out water following a year of heavy rains. Farms, homes and roads have been washed away and more than 148 people killed by floods in the past two months, according to the country’s emergency agency.

Nigeria lags behind Ivory Coast, Ghana and Indonesia as a cocoa producer, according to the website of the International Cocoa Organization.

The cocoa association projected in September that Nigeria’s cocoa output would rise by 20 percent to 300,000 metric tons from 250,000 metric tons as new farms started producing. “We now have a threat of lower production because of incessant rainfall and flooding of our cocoa farms,” Riman said.

Nigeria’s cocoa year is divided into two harvests, with the main one beginning in October and ending in January, while the smaller crop usually begins in March and ends in June. Cocoa for December delivery fell 1.4 percent, to $2,385 a ton in New York yesterday.

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8

Production & Quality



DA injects P192 M to coffee, cocoa industriesABS-CBNnews.com10/27/2012 MANILA, Philippines - The Department of Agriculture has allocated P192 million to boost coffee and cocoa production in the country through a new plantation and several agribusiness zones.

The agency said in a statement it has partnered with Nestle Philippines in putting up a mother plant garden in Cagayan Valley expected to produce 200,000 Robusta coffee seedlings a year.

With regard to cocoa, the Agriculture department and the Cocoa Foundation of the Philippines will be establishing five Cacao Agribusiness Zones Development projects in Davao City, Compostela Valley, Zamboanga del Norte, Palawan and Camarines Sur.

These agribusiness zones will house fermentation and drying facilities, nurseries, quality assurance equipment, and warehouses, among others.

"The Philippines apparently has to embrace the mocha trend as the craze on coffee as a social drink has turned to more mixtures of coffee with different flavors. This is particularly coffee mixed with chocolate as a cocoa product or known as mocha," the Agriculture department said.

The Philippines imports about 100,000 metric tons of coffee beans worth P10 billion annually mainly from Vietnam, and some 20,000 MT of cocoa beans worth $42 million from Africa.

"The brisk coffee and cocoa consumption growth is prompting the industry to encourage local production," the agency noted.

Rich Cocoa yield is predicted in Cote d’Ivoire«Market Leader»28 October 2012

Positive cocoa production is predicted in the Republic of Cote d’Ivoire, one of the largest countries that produce cocoa beans. According to specialists, by the end of future marketing year the yield of cocoa beans in Cote d’Ivoire is predicted to reach the record. The new season has started this month, but analysts are already predicting positive future yield, judging from the good start.

This year cocoa beans production is predicted to reach 1.45 mln. tons (versus last year’s result of 1.46 mln. tons) in the country of Ivory Coast, which is the

translation of the name of the republic into Russian.

World cocoa beans market has been greatly dependent on political situation in western regions of Africa during the recent years, as their total production amounts to over 70 percent of world volume, and its major part is provided by Ghana and Cote d’Ivoire. Except Africa, this culture is grown in Asian countries, such as Sri Lanka, Indonesia, Malaysia, and a number of countries in South America – Ecuador, Venezuela , Brazil, and Mexico. It is worth mentioning that northern countries are major cocoa consumers.

The situation at cocoa beans market is hard to predict because there is no full-scale statistics about it.

Money Managers reduce wagers on rising London cocoa by 10%BloombergBy Isis Almeida – Oct 15, 2012 1



9

The Market



Money managers cut bets on rising cocoa prices in London by 10 percent in the week ended Oct. 9, according to NYSE Liffe, the derivatives arm of NYSE Euronext.

Net-long positions, or bets on higher prices, fell to 43,021 futures and options, the commitments of traders report published today on the exchange’s website showed. That compares with 48,004 contracts a week earlier. Cocoa retreated 1.8 percent in the period.

In robusta coffee, net-long positions climbed to 16,406 futures and options from 13,390 contracts a week earlier, the data showed. The beans slid 6.1 percent in the period.

The net-long position in white, or refined, sugar held by money managers rose to 11,696 futures and options from 6,843 contracts a week earlier, the data showed. The sweetener slipped 0.2 percent in the period.

Money managers held no position in feed wheat, unchanged from a week earlier. The grain rose 0.9 percent in the period.

Nigeria: Europe killing local cocoa market – FarmersAllAfrica.comBy Eyo Charles, 25 October 2012Calabar — Chairman of Cross River State branch of the Cocoa Association of Nigeria Nana Alphonsus has raised alarm that too much influence and overriding European decisions on the prices of cocoa from the country will soon kill the business if nothing is done now.

In an interview with our correspondent in Ikom, where cocoa is popularly grown, Nana said the Europeans determine prices of cocoa that emanate from the country, stressing that this was dangerous for the growth and future of cocoa business because local farmers and merchants are left at the mercies of this foreign cocoa cabals. He said, "prices are determined by the Euro terminal market. The producer has no influence because he produces what he does not consume and he is compelled to sell even when the market is saturated."

The cocoa boss also lamented that the Cross River State government was placing too much taxation on the local farmers and merchants and this is also making the cocoa business not to thrive beyond the local markets.

He maintained that these multiple taxes reduce farmers' income so that they are unable to increase their production.

"These taxes have reduced our members' economic outlay and stagnated the national economy," he said.

Pleading with the state government to help the local cocoa farmers make marginal gains, Nana also called on the Federal Government to invest more in the cocoa business and provide extension services as these could provide sustainable employment and also become another dependable income earner for the country.

Investors applaud Hershey's vow to source 100% certified cocoa by 2020 Melodika.net (press release)14 October 2012Today, the Interfaith Center on Corporate Responsibility, a shareholder coalition that engages companies on labor and human rights standards in global supply chains, commends the Hershey Company for its commitment to certify all its cocoa by a third party by 2020.



10

Business & Economy

Processing & Manufacturing



With a 43% share of the U.S. chocolate market, the investors view Hershey's decision as an important advancement that is certain to influence the industry and result in more sustainable cocoa farming and production.

Said Chris Meyer of Praxis Mutual Funds and co-convener of the Hershey dialogue, "Seventy percent of the world's cocoa is grown in West Africa, specifically Ghana and the Ivory Coast, where tens of thousands of children are forced, often trafficked, to work on cocoa plantations, and small farmers are unfairly compensated for their crops. While these conditions have persisted for decades, Hershey's commitment sends a powerful message that human rights and labor abuses will no longer be tolerated in cocoa supply chains and that certified cocoa is the new industry norm."

While Hershey's Dagoba Organic chocolate is currently produced from Rainforest Alliance certified farms and the company had previously announced its commitment to make its Bliss line Rainforest Alliance certified by year end 2012, the move to accelerate certification across all its product offerings is welcome and encouraging news for shareholders and a hopeful sign for the industry.

Said Kate Walsh of the Tri-State Coalition for Responsible Investment who also leads the ICCR dialogue with Hershey, "As Hershey owns the lion's share of the U.S. chocolate market, we are pleased to see such a substantial commitment from the corporation. While there is no one solution to injustices such as forced labor, Hershey's commitment has helped raise the industry bar and is further acknowledgement of the reputational risks that non-certified brands face . We look forward to receiving more information around the upcoming certifications."

ICCR members engage companies in high risk industries to promote ethical and sustainable supply chains. Examples of past campaigns include work with the apparel industry around their sourcing of cotton from Uzbekistan, labor rights abuses in the electronics manufacturing sector and the risks of human trafficking in the travel and tourism industry.

Said Pat Zerega of the Evangelical Lutheran Church in America, "Children who are enslaved, exposed to hazardous substances and work with dangerous tools are a concern for us all. In his address at the Clinton Global Initiative last month, President Obama said, ' All the business leaders who are here and our global economy companies have a responsibility to make sure that their supply chains, stretching into the far corners of the globe, are free of forced labor. The good news is more and more responsible companies are holding themselves to higher standards.' ICCR members and NGOs have been pushing for cocoa certification for many years. We congratulate Hershey for holding itself to a higher standard and taking this important step to help eradicate child labor in the cocoa industry."

About the Interfaith Center on Corporate Responsibility (ICCR)

Currently celebrating its 41st year, ICCR is the pioneer coalition of active shareholders who view the management of their investments as a catalyst for change. Its 300 member organizations with over $100 billion in AUM have an enduring record of corporate engagement that has demonstrated influence on policies promoting justice and sustainability in the world. www.iccr.org

Chocolate conquers new worlds, from Asia to Brazilgulfnews.comOctober 28, 2012History is coming full circle: borrowed from the Aztecs four centuries ago, perfected for the palate by the Europeans, chocolate is conquering new worlds, with sales booming from Asia to Brazil.

Every second, 95 tonnes of chocolate are wolfed down around the world, or three million tonnes a year, according to figures supplied by the annual Salon du Chocolat fair, which kicks off Wednesday October 31 in Paris.

The globalisation of chocolate is most striking in Japan, where annual sales are soaring by 25 percent and French chocolatiers are feted like stars, while their Japanese counterparts now rank among the world’s best.



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http://www.iccr.org/

“Japan has converted en masse to chocolate in the past decade, with chocolate Salons in seven different cities,” said Francois Jeantet, co-founder of the Paris fair, which has spawned 21 sister events from New York to Shanghai.

For the Salon’s annual fashion show featuring life-sized chocolate dresses, this year’s model is a kimono-inspired number created by French chocolatier Frederic Cassel - who has three stores in Japan. “We wanted to express Japanese tradition, cherry blossom in the wind,” in the long sleeves with chocolate flowers, said Cassel, who worked to a design by a young fashion student, Audrey Lempeseur.

The 15-kilo edible dress - a month in the making - will be slipped on just moments before the show, lest it should melt under the spotlights. Afterwards, it will be shipped straight to Japan.

According to Jacques Pessis, president of the highly-serious Chocolate Crunchers’ Club which each year rewards the best world chocolates, France and Japan are the current masters of the game. “Thirty years ago Belgian and Swiss chocolate ruled the world. These days French chocolate is known the world over. And more and more Japanese chocolatiers, taking their inspiration from the French, are truly excellent.”

Japan aside, chocolate sales are also growing 30 per cent year on year in China, while in India - even though one in two Indians have never tasted chocolate - growth is 20 per cent, for a treat taken ultra sweet and milky. “Nearly every country in the world is now part of the chocolate trade, including Asian countries and their colossal potential markets,” said Jeantet and his fellow founder Sylvie Douce.

Six multinational firms together account for 85 per cent of the vast market: Hershey, Mars, Philip Morris, Nestle, Cadbury and Ferrero.

Producer countries like Brazil have turned into major consumers, while others like Vietnam or Indonesia are moving into cocoa growing.

“In Brazil, the market is going through the roof,” said the master chocolate maker Stephane Bonnat.

“Production-side, the country has shifted these past six years towards fine, high quality cocoa. On the consumer side, I had sold my whole stock of chocolate bars within half an hour at the first fair in Salvador de Bahia in July.”

Bonnat works with 42 small-scale farms around the world. Like him, many chocolatiers now foster direct ties with cocoa-growers, who also take part in fairs, Douce explained. “Different worlds have come together, and it has helped to vastly improve the quality of both cocoa and chocolate,” she said.

Some 200 chefs from around the world are set to converge on Paris for the 18th edition of the fair, which draws some 100,000 visitors each year.

Meanwhile, Bloomberg reports that in the UK and Ireland, Nestle will make its two-finger KitKat chocolate bars next year from cocoa certified by Fairtrade. That means an additional 800 million bars of KitKat a year using cocoa grown in the Ivory Coast that carries certification, starting in January. It’s been using Fairtrade cocoa in its four-finger KitKat since 2010.

A Fair Labor Association study requested by Nestle found this year that the world’s biggest food company needs to step up measures to combat child labour in the Ivory Coast cocoa industry. About one fifth of the cocoa Nestle gets from that country from Nestle’s sustainable-farming programme, and the rest comes from the less transparent “standard” supply chain.

European dominance in cocoa challengedFinancial TimesBy Ruona AgbrokoOctober 29, 2012



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Europe has been the centre of the global chocolate industry since the 16th century, when Spanish conquistador Hernán Cortés brought cocoa pods home from Mexico. But recent data suggest its position is slipping as emerging market consumers’ appetite for chocolate grows.

In the third quarter, European cocoa processing – a proxy for chocolate demand – tumbled 16 per cent from a year earlier, according to the European Cocoa Association. This was its second quarterly double-digit decline in a row.

The numbers were “shocking”, says Jonathan Parkman, co-head of agriculture at brokers Marex Spectron.

While some of the drop can be explained by processors running down inventories, the data highlight an underlying trend, analysts say: while Europe is still the capital of chocolate, its position as the dominant centre of chocolate production and consumption is increasingly under threat.

The shift is making the cocoa market more difficult to trade, as analysts who could once rely on European and North American processing – or “grinding” – data as the last word on cocoa demand, must now scour data from Ivory Coast, Ghana or Malaysia.

Europe’s processing numbers are “not as important on their own as they were 10 years ago”, says Paul Davis, a trader with Holland Capital, a soft commodities fund manager.

The European grindings data unsettled the market. Benchmark cocoa futures prices fell sharply in July on the day of the second-quarter releases, while traders sold heavily ahead of the third-quarter figures.

However, compared with the dramatic price moves in previous years, prices have remained in a relatively narrow band of about £1,400 to £1,700 a tonne.

The shift away from Europe is being driven by two factors. First, European chocolate consumption has been hit by the state of the economy. The recession across the eurozone, which has reduced consumers’ incomes, leaving them with less money to spend on chocolate.

As consumers in Asia and Latin America become relatively wealthier, they are eating a greater proportion of the world’s chocolate, analysts say. Brazil, Russia, India and China accounted for 55 per cent of global confectionery retail growth in 2011, according to KPMG.

At the same time, another trend is behind the dramatic fall in European cocoa processing.

Rather than processing beans in the traditional European centres of the Netherlands and Germany before being sent to the chocolate factories of Switzerland and Belgium, cocoa companies are increasingly choosing to process their beans in Africa, where they are grown, or in Asia, where demand is growing most rapidly. “The economy is slowing and confectionery retail growth is slowing – but not enough to warrant such a double-digit drop in grindings,” says Kona Haque, soft commodities analyst at Macquarie.

While European cocoa processing has declined sharply and North American grindings have fallen, in Asia – based on data from Malaysia, Singapore and Indonesia – grindings for the first three quarters of the year were up 4 per cent from a year ago, according to the Asian Cocoa Association.

Most of the world’s top cocoa traders and processors are investing in new capacity in producer countries.

In Ivory Coast, the world’s largest producer of cocoa, Olam of Singapore and Cemoi of France are both planning to boost their grinding capacity. Barry Callebaut, the world’s largest chocolate maker, plans to build a new plant in Indonesia.

Over the past five years, African grindings have risen by an average of 6.5 per cent a year, compared with 2.3 per cent for Asia and just 0.8 per cent in Europe, according to Rabobank. Analysts say exporters who opt to grind cocoa where it is grown are benefiting from lower costs, as well as tax breaks from local governments.



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At the same time, more and more companies are deciding it is futile to transport beans to Europe or the US, only to then export the chocolate to emerging consumer hotspots in Asia and Latin America. “Companies are thinking, ‘Why not just shift grinding capacity to those spots?’” says Keith Flury, analyst at Rabobank in London.

But chocolate lovers need not stockpile Swiss truffles or Belgian pralines just yet. Analysts agree that despite the economic crisis, Europe is likely to remain close to the heart of the chocolate industry for some time.

In order to manage risk, producers will continue to ship cocoa to Europe, says Mr Parkman.

On the consumption front, European chocoholics still account for 40 per cent of global cocoa demand and some markets will see a lift.

In Spain, for example, Euromonitor expects sales of boxes of chocolate to rise 2 per cent this year. According to the consultancy, hard-pressed workers are eating them as a treat to reward themselves for spending longer hours in the office.

Nestlé buying additional 5 300 tonnes of Fairtrade cocoaFOOD Magazine - AustraliaBy Jessica Burke 29 October, 2012

Nestle UK and Ireland has pledged to double its commitment to Fairtrade making its two-fingered Kit Kat bar certified by January.

Nestle's four-finger Kit Kit has been using Fairtrade certified cocoa since 2010, and its latest commitment will see the Swiss confectioner purchase an additional 5 300 tonnes of Fairtrade cocoa from the Ivory Coast.

Most well-known chocolate brands have been committing to certified fair trade cocoa in recent years, in a bid to end the child labour and abuse

in poor cocoa-growing regions.

Earlier this month, Hershey’s bowed to pressure to become more ethical in its sourcing of cocoa, committing to 100 per cent fair-trade cocoa across all its products by 2020.

Nestle has pledged to invest GBP65 million over ten years on plant science and sustainability initiatives to support small scale cocoa farmers globally.

The Nestle Cocoa Plan which was launched in 2009, and the new farmer co-operatives will benefit from the certification when they join the scheme.

"Today's news is the next step on our journey toward a sustainable supply of quality cocoa and our commitment to certify all our Kit Kats in the UK & Ireland," Ciaran Sullivan, managing director of Nestle Confectionery UK & Ireland, said.

"Farmers in the Nestle Cocoa Plan receive benefits such as new plantlets, farmer training and new schools for their communities. Ivorian farmers badly need our support and this move will help even more cocoa farmers and their families build a positive long term future," he added.

In November last year Nestle announced it would conduct an investigation into the presence of child labour in its business, following accusations children are employed on cocoa farms that supply to its factories.



14

Labour Issues



Chocolate aficionados in seventh heavenNew Straits TimesBy Naveen Mathew Menon 23 October 2012

KUALA LUMPUR: Chocolate fondues and chilled chocolate drinks were among the myriad of chocolate products to choose from.displayed at the Malaysia Cocoa and Chocolate Day 2012 expo at Viva Home shopping mall recently.chocolate

The Chocenwrapper booth sells chocolate fountains to allow customers to make their own chocolate fondue at home.

Chocolate lovers had a field day sampling some of the finest chocolates manufactured by Malaysian entrepreneurs.

Malaysian Cocoa Board (MCB) director-general Dr Lee Choon Hui said this marks the third time that the Malaysia Cocoa Board (MCB) board is organising the event, which was held in conjunction with World Cocoa Day on Oct 1.

“Twenty local chocolate companies took part in this year’s expo. MCB is always trying to increase the sales of local cocoa products through promotional events to help cocoa companies do well and thus boost the local cocoa industry.

“An expo like this also provides our cocoa and chocolate entrepreneurs with valuable technical and market information.

“MCB is the only agency entrusted with developing the cocoa industry in Malaysia. It also carries out research to develop the latest technologies that can boost the production of cocoa beans and help make all kinds of cocoa products.

“Our aim is also to educate the public on cocoa, encourage more people to cultivate cocoa, and produce enough cocoa beans to meet the demand of local grinders,” said Lee

“The expo is one of the key events to promote the domestic cocoa industry as well as promote the industry abroad,” said Plantation Industries and Commodities Minister, Tan Sri Bernard Dompok.

Dompok said the cocoa sector contributed RM4.2 billion towards the revenue from commodity exports, making it the fourth biggest export revenue earner after palm oil, rubber and wood products. “Malaysian cocoa products are exported to more than 80 countries, the main importers being the United States, Japan, China and the Asean countries, especially Singapore and Thailand,” he said.

Malaysia is the biggest grinder of cocoa beans in the Asia-Pacific region and fifth in the world after the Netherlands, Germany, the US and Cote d’Ivoire. “A total of 299,271 tonnes of cocoa beans were ground to manufacture cocoa products such as cocoa butter, paste and powder last year,” added Dompok.



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Promotion & Consumption

Environmental Issues



MCB took part in the 41st International Sweets and Biscuits Fair 2011 in Cologne, Germany, and the Fifth Sweets and Snacks Middle East Fair 2011 in Dubai, among others, Dompok said. to promote our cocoa products abroad.

At the expo, there were demonstrations on how handmade chocolate products are produced, and how it is used in cosmetic and spa-related products. Chocolate-eating and drinking competitions, treasure hunts and quizzes were also held.Among the booths at the expo was the Cherea Chocolates stall. A display of what looked like colourful lolly-pops lollipops attracted visitors to take a closer look before being enticed to buy some.

“These aren’t lollipops, but what we at Cherea call lolly-chocs,” said Noridah Md Don, the co-owner of Cherea Chocolate.

“We have them in all kinds of interesting eye-catching shapes like such as cupcakes, butterflies, badminton rackets, hearts shapes, and sunflowers.

“Our lolly-chocs are made from milk chocolate and have with marshmallow fillings. Each specially-shaped lolly-choc costs RM3, while those without such shapes (squares or rectangles) come with sprinkles on top for RM1.50 a piece.

“We also sell customised chocolate bars with your favourite characters, pictures and other things you want on the wrappers.

“For example, we have chocolate bars with wrappers bearing images of family members and friends. They ,” make perfect gifts,” she said. Said customer Dina Tajuddin: “I am really impressed with the attractive range of chocolates that have been packaged so creatively.” The Silarasa Food stall is where you can purchase a chocolate fountain for RM400 and above.

Guests at the stall happily forked out money to take their pick from bananas, marshmallows, apple slices, grapes and strawberries, among others, to dunk in their fondue. If you’re a huge fan of local cartoon characters Upin & Ipin, AOM Food Industries has them on its chocolate wrappers.

Tengku Sophielea Nadirah, 13, said her uncle, Tengku Muazam Kamal, the company’s owner, was paying Les’ Copaque, the cartoon company, to get the rights to sell Upin & Ipin chocolates.

People made a beeline at the Chocenwrapper booth where free samples of ice-cold chocolate drinks were served.

Chocenwrapper executive of operations Siti Rahayu said its dark chocolate blocks (RM12.90 for a per kg) can be heated up, and enjoyed as “chocolate fondue in a cup”. “We are also popular for our Chocolatte. These 500gm packets (RM12.30 per packet) contain a 3-in-1 dark chocolate mixture of cream, sugar and cocoa powder,” she said.

Probably the most interesting chocolate entrepreneur was Kevin Tan, 22, the owner of Maison D’Lights. “We sell imported Belgian dark and white chocolates, as well as premium ones with interesting fillings such as Brazil nuts, raisins, cherries and cranberries,” ” said Tan, whose products are sold at a stall in Subang Parade, and in Amcorp Mall’s flea market on weekends.

For dazzling gifts, there is Dazzle, a shop which specialises in gift packaging. Owner where Hom Siyah Mahsun, showed us an exquisite wooden box with silk embroidery on its cover.

She opened the “treasure chest”, to reveal 200gm of delicious, creamy, melt-in-the-mouth chocolates. “Each box costs RM48 and has dark, white as well as a mixture of both that are bound to impress the lucky receiver,” she said



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Cameroon sees black pod outbreak in Centre, South-West regionsReuters AfricaOct 16, 2012 (Reuters) - A month of persistent rainfall has provoked an outbreak of fungal black pod disease in Cameroon's Centre and South-West regions, the country's two main cocoa growing zones, farmers and traders said on Tuesday.

The epidemic threatens to further extend the woes of the world's the No. 5 grower after 2011/12 output reached 220,000 tonnes, falling well short of a projected 250,000 tonnes due to attacks by pests, caterpillars and a prolonged dry season.

"Since about mid-September, we've been having heavy rains almost every day with little sunshine," producers' cooperative union leader Emmanuel Nguile told Reuters from Bafia, the Centre Region main cocoa hub.

"The young pods simply get black, rot and dry off, an indication of the black pod disease," he said.

Farmers in the South-West region raised similar concerns.

"The rains have been so intense that many farmers have just discovered that they are wasting their money to buy pesticides and other chemicals," said Dickson Tambe, the executive secretary of the Mamfe Central Area Cooperative Union.

"They are washed off within a short time and therefore not protecting the pods," he said, adding that many trees lost flowers in the heavy rains and are not producing pods.

Production from the South-West and Centre regions account for around 80 percent of Cameroon's total cocoa production.

Cocoa is Cameroon's leading cash crop, accounting for 19 percent of exports. It is grown mainly in four regions although cultivation is expanding rapidly to three others. (Reporting By Tansa Musa; Editing by Joe Bavier



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