copal cocoa info. 551.doc · web viewglobal cocoa grindings will climb 0.9 percent in the 2012-13...

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

MARKET UPDATE NEW YORK (ICE) FUTURES

MARKET UPDATE FROM THE NEWS MEDIA

COPAL COCOACOPAL COCOA InfoInfo A Weekly Newsletter of the Alliance of Cocoa Producing Countries

Health and Nutrition The health benefits of cocoa Cocoa rich in health benefits Natural cocoa remedy for asthma patients

Production and Quality ‘Nigerian farmers must bring back cocoa to old

glorious days’ World Cocoa Foundation and ACDI/VOCA Join

forces to bring technology, other benefits to Indonesia's Cocoa Farmers

Cocoa production expected to reach 60,000 tonnes by 2020

The Market Cocoa gains to 3-Week High on crop delay

concern; Sugar Advances European Cocoa Processing Seen rising for first

Business & Economy Petra Foods says good-bye to its cocoa-

ingredients business

Labour Issues

Environmental Issue West African Cocoa Harvests seen delayed on

Weather to crop size

Research & Development

Promotion & Consumption Peru Cocoa and Chocolate Salon opens in Lima Ghana: Cocoa Fair Slated for 28th September

Do your health a favour, drink Cocoa everyday

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

Issue No. 551 1st – 5th July 2013

time since 2011 Asia Cocoa-Butter holds at 4-yr peak, set to rise

further Peru's cocoa exports to grow 20 percent this year

Processing and Manufacturing Cocoa Processing Company cries out for help -As

“dumsor-dumsor” cripples its activities Cargill ready to process more of Ghana’s cocoa

Others Ivory Coast forest clearances threaten cocoa

exports, human rights

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)

1st July 1457.94 2190.12 1459.00 2158.33

2nd July 1475.15 2214.32 1479.33 2187.00

3rd July 1513.41 2268.41 1501.67 2246.33

4th July 1511.38 2265.38 1530.67 2227.33

5th July 1493.84 2239.09 1524.00 2208.33

Average 1490.00 2235.00 1499.00 2205.00

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

http://www.nybot.com/reports/dmrs/etsDMRs/dmrFutures.asp?dmrMonth=08&dmrDay=10&dmrYear=2007&commodityID=1&commodityType=future

mailto:[email protected]




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

(£ per tone)

Monday 1st July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 1439 1432 -8 1439 1420 2,995Sep 2013 1457 1452 -6 1459S 1439 8,088Dec 2013 1468 1463 -6 1472 1450 4,870Mar 2014 1467 1462 -5 1469S 1449S 2,557May 2014 1461 1466 -4 1471 1454S 456Jul 2014 1463 1471 -5 1472S 1461 178

Sep 2014 1476 1476 -5 1476S 1472 8Dec 2014 1481 1486 -4 1481 1481 7Mar 2015 1496 6 0May 2015 1501 6 0

Average/Totals 1471 19,159

Tuesday 2nd July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 1432 1451 19 1453 1425 3,156Sep 2013 1455 1474 22 1475 1446 8,318Dec 2013 1466 1483 20 1485 1457S 7,516Mar 2014 1462 1481 19 1483S 1455S 2,104May 2014 1462 1482 16 1485S 1458S 467Jul 2014 1467 1488 17 1487S 1466S 112

Sep 2014 1473 1493 17 1492S 1472S 24Dec 2014 1502 16 0Mar 2015 1512 16 0May 2015 1517 16 0


Wednesday 3rd July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 1455 1476 25 1481 1452 2,036Sep 2013 1477 1498 24 1504 1474 8,088Dec 2013 1486 1506 23 1510S 1484 3,639Mar 2014 1483 1501 20 1504S 1483S 3,713May 2014 1486 1503 21 1506S 1486S 610Jul 2014 1491 1509 21 1510 1491S 248

Sep 2014 1503 1514 21 1515S 1503S 46Dec 2014 1511 1523 21 1511S 1511S 7Mar 2015 1533 21 0May 2015 1538 21 0


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

3

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








Thursday 4th July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 1480 1510 34 1517S 1479S 1,655Sep 2013 1504 1532 34 1540 1502S 8,630Dec 2013 1510 1535 29 1541S 1509 3,662Mar 2014 1507 1525 24 1529S 1507S 2,315May 2014 1507 1525 22 1530S 1506S 817Jul 2014 1517 1531 22 1536S 1515S 302

Sep 2014 1516 1536 22 1539S 1516S 119Dec 2014 1531 1545 22 1547S 1531 57Mar 2015 1555 22 0May 2015 1560 22 0


Friday 5th July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 1508 1504 -6 1525 1495S 1,124Sep 2013 1529 1526 -6 1547 1515 8,712Dec 2013 1531 1526 -9 1546 1515 3,618Mar 2014 1524 1520 -5 1538S 1510S 1,644May 2014 1530 1522 -3 1540S 1515S 273Jul 2014 1535 1527 -4 1546S 1524 123

Sep 2014 1540 1532 -4 1548 1534S 46Dec 2014 1551 1541 -4 1551 1538S 29Mar 2015 1551 -4 0May 2015 1556 -4 0


Average for the week 1531 2831 2831



4










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

(US$ per tone)

Monday 1st July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 2203 2201 7 2203 2170 4Sep 2013 2167 2159 -5 2167 2138 15,389Dec 2013 2170 2168 -5 2175 2148 3,601Mar 2014 2177 2177 -5 2184 2157 1,029May 2014 2170 2187 -3 2187 2167 655Jul 2014 2180 2197 -3 2197 2177 275

Sep 2014 2191 2206 -5 2207 2190 245Dec 2014 2202 2215 -8 2205 2201 25Mar 2015 0 2224 -8 0 0 1May 2015 0 2232 -9 0 0 0


Tuesday 2nd July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 0 2203 2 0 0 1Sep 2013 2161 2178 19 2180 2149 12,808Dec 2013 2177 2189 21 2191 2159 4,332Mar 2014 2180 2197 20 2199 2167 651May 2014 2181 2206 19 2208 2181 105Jul 2014 2198 2217 20 2221 2198 120

Sep 2014 2204 2226 20 2205 2204 22Dec 2014 0 2234 19 0 0 0Mar 2015 0 2244 20 0 0 0May 2015 0 2252 20 0 0 0


Wednesday 3rd July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 0 2250 47 0 0 3Sep 2013 2175 2230 52 2243 2175 20,305Dec 2013 2175 2241 52 2255 2175 7,398Mar 2014 2209 2250 53 2261 2209 3,963May 2014 2243 2258 52 2267 2242 331Jul 2014 2252 2266 49 2275 2252 153

Sep 2014 2275 2274 48 2276 2275 40Dec 2014 0 2282 48 0 0 1Mar 2015 0 2293 49 0 0 1May 2015 0 2302 50 0 0 0




5









Thursday 4th July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 Sep 2013 Dec 2013 Mar 2014 May 2014 Jul 2014

Sep 2014 Dec 2014 Mar 2015 May 2015

Average/Totals #DIV/0! 0

Friday 5th July 2013 Month Opening Trans Settle Change High Low Volume

Jul 2013 2214 2214 -36 2214 2214 3Sep 2013 2248 2204 -26 2250 2190 12,754Dec 2013 2256 2215 -26 2259 2200 4,522Mar 2014 2265 2225 -25 2268 2208 2,097May 2014 2268 2233 -25 2268 2215 1,013Jul 2014 2271 2240 -26 2272 2233 254

Sep 2014 2277 2247 -27 2277 2240 47Dec 2014 2255 2254 -28 2255 2255 4Mar 2015 2263 2264 -29 2263 2263 3May 2015 0 2273 -29 0 0 0


Average for the week 2237 3763 3763



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News

The health benefits of cocoaHive Health MediaBy Joe ErringtonJune 30, 2013

We have always been told that chocolate is good for us, but have been somewhat reluctant to believe it. It does sound too good to be true, no amount of vitamins and minerals can compensate for the huge fat content can it?

It is for this reason that we are told that dark chocolate is the healthiest option. Truth be told though, there is little nutritional difference between dark and milk chocolate. Most chocolate is so highly processed that it loses its vital nutrients,

leaving only a lump of fat and sugar. If you want to capture chocolate at its best, you need to enjoy it raw.

What is Raw Chocolate?

Cacao is the raw, unprocessed form of chocolate, not to be confused with cocoa. Cacao seeds are found growing in large pods on trees, after harvesting they are removed from the pods and undergo a natural drying and fermentation process.

So What is Cocoa?

Cacao is roasted to make cocoa. It then has sugar and fats added to form chocolate as we know it. Obviously this sugar and fat is not healthy, and the roasting process removes many of cacao’s nutritional value.

What are the benefits?

Antioxidants help to prevent damage to cells from free radicals. This are particles which are linked with cancer and heart disease, they build up in the body after exposure to pollution, UV light and many other toxins. As well as reducing the risk of cancer and heart disease, antioxidants are known to reduce cholesterol and blood pressure, and improve blood flow and circulation. Many of us fail to get enough fibre in our diets. Dietary fibre keeps us fuller for longer, and stimulates the production of digestive enzymes, helping to improve our digestion and fight obesity. Chocolate is associated with happiness. While this may seem a little unscientific, chocolate has been known to help produce endorphins and serotonin. Endorphins lessen pain and relieve stress, serotonin is the brain’s feel good chemical, helping to lighten your mood and fight depression.

Cocoa rich in health benefitsWebMDBy Bill HendrickJuly 2, 2013

cocoa and measuring spoons

March 23, 2011 -- Cocoa, used throughout history as a folk medicine, may actually have significant health benefits, according to a new study by Harvard researchers.

Their analysis of 21 studies with 2,575 participants shows that cocoa consumption is associated with decreased blood pressure, improved blood vessel health, and improvement in cholesterol levels, among other benefits.



7

NEWS

Health and Nutrition



Eric L. Ding, PhD, of Harvard Medical School says the apparent health benefits come from polyphenolic flavonoids in cocoa that have the potential to prevent heart disease. Flavonoids are antioxidants that are commonly found in fruits, vegetables, tea, wine, and coffee.

Cocoa Flavonoids Good for Cholesterol

In addition to decreasing blood pressure and improving blood vessel health, consumption of flavonoid-rich cocoa decreased “bad” LDL cholesterol among people under age 50, and increased good HDL cholesterol, the analysis showed.

Flavonoid-rich cocoa consumption also was linked to reductions in risk factors for diabetes -- a major risk factor itself for cardiovascular disease.

Also, resistance to the hormone insulin, which helps regulate blood sugar, favorably dropped among people who consumed flavonoid-rich cocoa, compared to people in comparison groups.

Further, consumption of flavonoid-rich cocoa did not change triglyceride levels of study participants or make them obese. Triglycerides are a type of blood fat that have been linked to coronary artery disease when levels are elevated above normal.

More Research Needed to Nail Down Benefits of Cocoa

Most of the previous studies analyzed were short-term research projects using mostly sugar-free, dark chocolate.Ding and his colleagues say in the new study that because most chocolate is high in added sugar and fat, more research is needed to determine the risk-benefit effect on the heart health of eating commercially available chocolate.

Though past studies by Ding and others have found that cocoa may reduce heart attack risk, the dosage necessary to produce this effect is not known, and further research is needed to shed more light on that question, as well as on cocoa’s direct benefits on preventing strokes and heart attacks, according to a news release.

The new research is being presented in Atlanta at the American Heart Association’s Nutrition, Physical Activity and Metabolism/Cardiovascular Disease Epidemiology and Prevention 2011 Scientific Sessions.

Natural cocoa remedy for asthma patientsGhana Broadcasting CorporationJul 04, 2013

Natural cocoa has been proven to be a reliable breathing remedy for asthmatic patients and people with sickle cell. It also improves the health conditions of kidney patients.

These revelations were made by Professor Kofi Addia of the Ghana Medical School at the launch of this year's COPA Cola Festival and Fair in Accra.

The festival which is being organised by the Ghana Cocoa Board seeks to give cocoa processors and manufacturers and other stakeholders the opportunity to show cases their products whilst encouraging Ghanaians to consume cocoa.

‘Nigerian farmers must bring back cocoa to old glorious days’Nigerian TribuneBy Ayodele Adesanmi, Lokoja01 July 2013



8

Production & Quality



Lawmaker representing Ijumu Constituency in the Kogi State House of Assembly, Honourable Yori Afolabi, has pleaded with Nigerian farmers to bring cocoa back to its old glorious days, believing that Agriculture can generate more revenue to the economy than oil.

Speaking at the weekend, in Iyara, the headquarters of Ijumu Council Area of Kogi State, while presenting over 15,000 high breed cocoa seedlings to farmers. Honourable Afolabi stated that available records showed that Kogi State had 31,000 hectares of suitable lands for cocoa production which was just one per cent of the nation’s suitable land for cocoa production. “Out of the available land, Kogi State is currently putting into use 10,200 hectares of which Ijumu Local Government Area of the state is currently utilising 4,020 hectares, making it the highest producer of cocoa in Kogi State.

He said that the gesture was his modest contribution to encourage farming so as to reduce the high rate of crimes in the society, stressing that it would be an aberration for the people to abandon farming for elusive white collar jobs, saying that agriculture still remained the only sector that could provide jobs for youths. He said that in time past, cocoa production had greatly enhanced the economic and social status of farmers, wondering why it was abandoned.

The lawmaker, who also distributed some high breed cocoa and five tonnes of high breed maize to farmers last year, said that the new seedlings distributed would take only 42 months to get matured for harvesting.

The state Commissioner for Agriculture and Natural Resources, Dr Olufemi Bolarin, who kicked off the distribution, urged the people to go back to the farms. He disclosed that over 1.8 million seedlings of the new specie of cocoa were now available for collection free of charge in Kabba.

Bolarin also disclosed that three redemption centres were now opened for the collection of fertilisers, adding that over 63 centres were scattered all over Kogi State.

World Cocoa Foundation and ACDI/VOCA Join forces to bring technology, other benefits to Indonesia's Cocoa FarmersWall Street JournalJuly 1, 2013,WASHINGTON, July 1, 2013 (GLOBE NEWSWIRE) -- ACDI/VOCA and the World Cocoa Foundation (WCF) are launching an agricultural development initiative in Indonesia called the Cocoa Innovations Project, leveraging private-sector partnerships to help further develop the Indonesian cocoa sector.

The project aims to improve cocoa farmers' incomes and efficiency through innovations in crop management and the application of information technology. WCF provided ACDI/VOCA a $300,000 grant for the project, which was initiated with funding from the U.S. Agency for International Development. Key elements of the project include microfinance loans to cocoa farmers; use of mobile phone-based banking and agricultural extension systems; and community-based cocoa fermentation business models to improve the quality of farmers' cocoa.

WCF members Armajaro, Continaf, The Hershey Company, Mars, Mondelz International and Olam are providing private sector financial support. The Cocoa Innovations Project pairs ACDI/VOCA's 50 years of development expertise with the capabilities and resources of key local businesses, engaging a wide range of stakeholders to sustainably develop the Indonesian cocoa sector. The grant from the WCF, which represents cocoa value chain companies from around the world, is matched with $275,000 of funds from ACDI/VOCA to build on core program successes and amplify impact.

WCF President Bill Guyton said that the WCF is looking forward to partnering with Indonesian government representatives, ACDI/VOCA and cocoa farmers to make the project successful.

Guyton points out, "As in other parts of the world, cocoa is grown on small, family-owned farms in Indonesia, employing hundreds of thousands of farmers in Sulawesi and neighboring islands. Cocoa plays a vital role in food security for rural communities that rely on cocoa and other specialty crops to improve their incomes and livelihoods."



9



ACDI/VOCA's Project Leader Hasrun Hafid says about the new program, "The focus will be on farm productivity, but it won't stop there. Using a holistic value chain approach, the project will also emphasize sustainability along the entire supply chain--not just gross production increases."

The project will support farmers through the following activities:

Microfinance loans to allow farmers to multiply outputsSeasonal loans--a combination of cash and fertilizer inputs--will be disbursed to farmers, and ACDI/VOCA will demonstrate the efficacy of fertilizer and good agricultural practices via demonstration plots. Based on this current season, an additional $7.50 in output is expected for every $1.00 of project funding.

Mobile financial transactions: an innovation in the cocoa supply chain

The project is piloting an interest-bearing mobile bank account, allowing cocoa buyers to pay a farmer through his or her mobile phone. The model will be tested with 2,000 farmers in late 2013 to prove the system for wider adoption in the agriculture sector.ICT for cocoa farmers

The project will partner with the Grameen Foundation to introduce the TaroWorks mobile extension ICT platform to the cocoa value chain. The TaroWorks platform uses mobile phone applications and human networks to provide poor farmers with relevant, timely agricultural information.

A community-based fermentation model

The project will pilot a community-based fermentation business model in two cocoa communities in 2013 and 2014 to train women's groups to ferment beans for higher quality and a higher price.

Cocoa production expected to reach 60,000 tonnes by 2020BernamaBy TANAH MERAH,July 2, 2013 Malaysian Cocoa Board is optimistic cocoa production in the country will reach approximately 60,000 tonnes by 2020.A board member, Datuk Hilmi Yusoff, said Malaysia produced about 3,400 tonnes of cocoa which was not sufficient to meet domestic demand. "There are cocoa-based product manufacturers who are sourcing dry cocoa beans from Indonesia to meet their demand," he told reporters after opening a course on cocoa cultivation and production here Tuesday.

Hilmi said the industry had vast potential to develop further and farmers could derive high returns from the cultivation of the commodity. "For this year, the government has allocated RM12.6 million to develop 1,580 hectares of land under cocoa plantation nationwide," he added.

Hilmi said dry cocoa beans currently fetched about RM5,900 per tonne and the International Cocoa Organisation had forecast that prices would continue to spiral as supply dwindled.

Cocoa gains to 3-Week High on crop delay concern; Sugar AdvancesBloombergBy Isis Almeida at [email protected] 4, 2013 Cocoa rose to a three-week high in London on speculation the next harvest in West Africa, the world’s main growing region, will be delayed. Sugar gained.



10

The Market



It’s dry in eastern Ivory Coast, the largest producer, and more rain is needed in second-ranking Ghana, according to MDA Weather Services in Gaithersburg, Maryland. The season in West African nations usually begins in October.

“Some dryness has developed across east central portions of Ivory Coast, which may stress development of the main cocoa crop,” Kyle Tapley, a meteorologist at MDA, said in a report e-mailed yesterday. “Some dryness is also a concern across west central portions of Ghana.”

Cocoa for September delivery advanced 1.3 percent to 1,518 pounds ($2,296) a metric ton by 12:08 p.m. on NYSE Liffe in London. Prices, which rallied 1.6 percent yesterday, reached 1,521 pounds a ton, the highest for the September contract since June 13. Trading is closed on ICE Futures U.S. in New York because of Independence Day.

Ivory Coast’s central-western Daloa region, which produces about 300,000 tons a year, was dry from June 21-30, data from the National Meteorological Service showed. The region usually gets 42 millimeters (1.7 inches) of rainfall at this time of the year, long-term averages show. The town of Bondoukou in the eastern part of the country got 10.8 millimeters, below the long-term average of 39 millimeters, according to the data.

Less Rain

In Ghana, the western region, which accounts for 55 percent of the country’s output, got less rain than last year. Rain in the towns of Sefwi Bekwai, Bogoso and Echi were 102.9 millimeters in June 11-20, data from the Ghana Meteorological Agency showed. Last year, rainfall amounted to 343.6 millimeters.

Barry Callebaut AG (BARN), the biggest maker of bulk chocolate, said sales volume grew by 8.2 percent in the first nine months through May, citing demand from emerging markets. “It seems that prices recently benefited from solid demand figures as shown by Barry Callebaut’s earnings,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “Technicals are also favorable.”

Robusta coffee for September delivery rose 0.3 percent to $1,816 a ton in London. White sugar for October delivery gained 0.7 percent to $479.80 a ton on NYSE Liffe.

European Cocoa Processing Seen rising for first time since 2011BusinessweekBy Isis AlmeidaJuly 04, 2013Cocoa processing in Europe, the biggest consuming region, probably rose for the first time in more than a year as some processors expanded after a slowdown.

The so-called grind, an indication of demand, rose 8.3 percent in the second quarter from a year earlier, according to the mean estimate of 10 traders, brokers and processors surveyed by Bloomberg. That would be the first gain since the fourth quarter of 2011. Bean processing fell 18 percent from April to June last year, data from the European Cocoa Association showed. The Brussels-based industry group will report figures for the second quarter on July 15.

Delfi Cocoa (Europe) GmbH was operating its factory in Hamburg “closer to full capacity,” Karel Menu, the company’s managing director, said in May. The plant had slowed processing in the second half of last year. While some companies curbed processing in 2012 because of excess cocoa butter stockpiles, others cut back this year because of too much cocoa powder. Prices for cocoa powder fell 11 percent in the second quarter, according to KnowledgeCharts, a unit of researcher Commodities Risk Analysis in Bethlehem, Pennsylvania.

“The last year was so poor that figures for this quarter may not look as bad, but in fact I hardly can imagine they can be good,” said Javier Almela, the chief purchasing officer at grinder Natra SA (NAT) in Valencia, Spain, which buys almost 40,000 metric tons of cocoa a year. “Grindings cannot be good because the problem of the stocks of cocoa butter seems to have swtiched to the problem of the stocks of cocoa powder. If you want to keep the ratios up, you have to reduce the production.”



11



Excess BeansEuromar Commodities GmbH, the European unit of processor Transmar Group, slowed processing capacity “significantly,” resulting in excess cocoa beans, Peter G. Johnson, president of Transmar in Morristown, New Jersey, said on May 16. The company delivered supplies to the futures market at the expiration of the May futures on the NYSE Liffe exchange in London, he said.

Cocoa powder prices in Europe were at 1,839 euros ($2,391) a ton on June 28, KnowledgeCharts data showed. That is down from 2,073 euros a ton at the end of March. Cocoa for September delivery rose 1.1 percent to 1,514 pounds ($2,309) a ton in London. Prices rose 6 percent in 2013.

Cocoa bean processing in the second quarter last year was 292,551 tons, ECA data showed. An 8.3 percent rise would imply about 316,833 tons were ground from April to June this year. That is still less than 339,377 tons processed in the first three months of 2013, ECA data showed. Europe accounts for about 40 percent of the world’s global cocoa bean processing, the International Cocoa Organization (ICCO) in London estimates.

Global cocoa grindings will climb 0.9 percent in the 2012-13 season ending in September, the ICCO estimates. In May, the cocoa group cut its forecast for bean processing to 3.987 million tons from a previous estimate of 4.008 million tons, citing lower cocoa powder prices and slowing economic growth in Asia.

Asia Cocoa-Butter holds at 4-yr peak, set to rise furtherReutersBy Lewa PardomuanFri Jul 5, 2013 SINGAPORE, July 5 (Reuters) - Cocoa butter ratios stayed at their highest level since 2009 this week and could rise further as chocolate makers replenish stocks to meet rising demand during summer holidays, dealers said on Friday.

Strong sales at Barry Callebaut also supported butter ratios, which have risen about 10 percent since January to the current level of up to 2.10 times London futures for nearby delivery, steady from last week.

Barry Callebaut, the world's No. 1 chocolate and cocoa-product maker, said more outsourcing deals from food groups and strong demand from bakeries and restaurants lifted volumes by a better-than-expected 8.2 percent in the nine months to May.

"Barry Callebaut is one of the supporting factors. We are seeing demand for butter from Europe, and with summer coming, there are chances the ratios will go up further," said a grinder in Malaysia.

"Our offer price is 2.10 times, and we've sold butter at 2.05 times. But I would think less people will be willing to sell butter at 2.05."

Butter gives chocolate its melt-in-the-mouth texture. Butter prices are determined by multiplying the ratio, a value set by grinders, with London or New York cocoa futures.

"Ratios in Asia have been consistently trading at 2.10 times London and they should move higher. There's a lot of interest for nearby and forward shipments, so I believe trade houses will start to get bullish on the ratios," said a dealer in Singapore.

"Consumption is picking up. The buyers are mainly from Europe and the U.S. There's a little bit of panic buying after Barry Callebaut's good results, and people are worried there will be very little supply ahead."

A drop in Asian cocoa grindings in the first quarter of this year because of falling margins also helped spark concerns over butter supply.

The strong butter market kept powder prices at between $2,000 and $2,500 a tonne, with deals at $2,200. Grinders noted demand from Russia and also the Middle East ahead of the Muslim fasting month of Ramadan later this month.



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Cocoa beans are ground to produce roughly equal parts of butter and powder, which is used to make cakes, biscuits and drinks.

WEEK AHEAD

Grinders expect butter ratios to stay at multi-year highs next week because of seasonal demand. "I foresee ratios rising to 2.20 to 2.30 times. I think demand will stay strong even after the summer holidays," said the grinder in Malaysia. Butter ratios last stood around 2.20 times London futures in 2006, and were at 2.30 in 1999.

Peru's cocoa exports to grow 20 percent this yearAndina - Agencia Peruana de NoticiasJul. 05, 2013(ANDINA).

Peru expects cocoa exports to grow 20 percent, primarily driven by demand from Europe and the United States, said Minister of Agriculture Milton Von Hesse.

Von Hesse noted that Asia and the Middle East are expected to enter the market. He said that in 2012 cacao exports surpassed US$ 116.6 million with a total

volume of 41,400 tones.

The main export markets were the United States and the European Union member countries such as Holland, Belgium, Germany and Italy.

Cocoa production exceeded 60,000 tones in 2012 and generated 6.3 million annual income.

Peru is the second largest exporter of organic cocoa and has more than 60 of the 100 cacao varieties in the world.

Cocoa Processing Company cries out for help -As “dumsor-dumsor” cripples its activitiesThe Statesman Online 04 July 2013

Cocoa Processing Company says interruptions in water and electricity supply continue to pose huge challenge to its operations, even leading to a plant shut-down during the 2011/2012 operational year. “The company is currently working under heavy operational challenges, including interruptions in water and electricity supply and some financial

constraints. “The plants and machinery of the three factories encountered some electrical and mechanical faults, which contributed significantly to production downtime. As a result the company could not achieve the 24,000 metric-tonne target set for 2011/2012,” the company’s Board Chairman, Jacob S. Arthur, said at their annual general meeting held in Accra last week. He revealed that CPC is currently facing serious cash flow challenges as most banks are unwilling to grant them overdraft facilities, due largely to the company’s indebtedness to the syndicate of cocoa-financing banks, led by Barclays, as well as Ghana Cocoa Board (COCOBOD).



13

Processing & Manufacturing



He explained that due to its indebtedness, 85 percent of the company’s export proceeds were used as payment for the outstanding debt to COCBOD, while the remaining 15 percent went to the syndicated banks. “Despite management’s strenuous efforts to increase production, turnover and margins fell, basically as a result of the massive fall in prices of the company’s semi-finished products on world commodity markets.”

The company reported a loss of US$10.2 million in 2012, after incurring a loss of US$6.8 million in the previous financial year. Its current liabilities exceeded current assets by US$58.1 million, compared to the 2011 figure of US$50.7 million. Mr. Arthur explained that management has initiated an action plan aimed at increasing the production of confectionery products, which currently provide between 8 and 10 percent of revenue. “Though confectionery production for the year was 1,013.46 metric tonnes, constituting more than 80 percent of the target for the 2011/2012 financial year, management is determined to step up efforts to encourage consumption of the products within the West African sub-region for profitability.” In spite of the difficulties, however, the Board Chairman said CPC processed 22,463.48 metric tonnes of raw cocoa beans, the highest production achieved in 10 years, which represents 93.6 percent of the year’s target and a 32.5 percent increase over the previous year’s production. Though CPC’s installed throughput capacity is 64,500 metric tonnes per annum, currently the company’s actual production hovers between 25 and 30 percent of the capacity, with the highest being 34.8 percent which was achieved last year. Mr. Arthur expressed optimism CPC would overcome its challenges and return to profitability. Outlining a number of new strategies to resolve some of the challenges, Mr. Arthur announced that a number of boreholes have been sunk to ease the water problems. On regular electricity supply, he said “the installation of a new switchgear and the dedicated power line have also just been completed.” He said the board has considered the possibility of processing raw cocoa beans or semi-finished products for companies for a fee as a means of effectively utilising the company’s excess plant capacity. CPC was established in 1965 and is a cocoa buyer and chocolate confectionery maker.

Cargill ready to process more of Ghana’s cocoaGhanaWeb4 July 2013Cargill Ghana Limited, a major cocoa processing company situated in the free zones enclave, has indicated its intention to process more of the country’s cocoa on the grounds that it gets some more incentives from the government.

The company did not specify the kind of incentives it requires to do so but noted that the cost of processing the cocoa beans was expensive irrespective of their fine quality and that unless it was able to get some more incentives it might not be financially possible to increase the quantity it processed.

The Operations Manager, Business Unit of Cargill Cocoa and Chocolate, Mr Wouter Evers, told the Daily Graphic exclusively that “we have the capacity to do more than we do now but Ghana’s cocoa is expensive, and to increase the quantum we process, we will require some incentives”.

This was when a delegation of some South African business people went on a tour of some companies within the free zones enclave in Tema under the guidance of the Ghana Free zones Board. Mr Evers said presently the company processed between seven and eight per cent of the country’s cocoa but had the capacity to do more.

In the near future Ghana plans to process more than 60 per cent of the cocoa it exports to the rest of the world but the process has been slow towards the attainment of that goal.



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Cargill has been sourcing cocoa from Ghana for over 40 years, and in 2007, constructed a state-of-the-art cocoa processing facility. The facility which has been fully operational since 2008 directly employs around 200 permanent staff, 200 daily contractors and indirectly supports many more jobs.

The main activities of the company are cocoa origination, primary cocoa processing into products, including high quality cocoa liquor, butter, powders and animal feed (aqua feed).

In the area of investments, Cargill launched a four-year commitment to cocoa-farmer training aimed at reaching 15,000 farmers in 2012.

Cargill announced a three-year US $5 million commitment to support sustainable cocoa in Ghana and Cote d’Ivoire in 2010.

Cargill officially opened its world-class cocoa processing facility with an annual processing capacity of 65,000 metric tonnes and a potential to expand to 120,000 metric tonnes in 2008. Cargill started construction of its new US $100 million state-of-the-art cocoa processing facility in Tema in 2007.

On the impact of the recent electricity challenges on the company’s operations, Mr Evers said the situation had affected the company’s operational cost because of the high cost of running generator sets. “We hear there are plans to increase the tariffs and that will be too much for us because already electricity cost is so high in Ghana.

The delegation also visited Gold Recovery Ghana Limited, a gold company that buys waste from gold mining areas, from which it recovers gold for sale. They also visited Cosmo, a fish processing company under construction, and Crown Cans Ghana, a can manufacturing company, both within the free zones enclave.

Petra Foods says good-bye to its cocoa-ingredients businessMotley Fool SingaporeBy Ser Jing Chong – July 2, 2013

Ser Jing - Petra Foods (SGX: P34) was known as a confectionary company with substantial interests in the supply of cocoa ingredients to third-party food & beverage manufacturers. But all that is no more, as Petra Foods made an announcement – at 11:42pm – that it has completed the sale of its Cocoa Ingredients division to European chocolate maker Barry Callebaut on 30 June 2013. The sale was already in the works in December last year when the two companies entered into

an agreement.

From now on, Petra will concentrate its efforts on its Branded Consumer business, where its confectionary sales are logged under.

The sales proceeds accruing to Petra Foods are currently estimated to be US$860m, almost US$90m short of its previous estimates of US$950m. In any case, the actual figure’s not finalised and the company will duly update investors upon the sale’s final post-completion adjustments.

There was previous mention of the possibility of distribution of Special Dividends to shareholders from the balance of sales proceeds after re-investment into Petra’s Branded Consumer business. But, due to the current uncertainty over the actual net-sales-proceeds, management can’t make any decisions on the Special Dividends yet and shareholders will have to await further notice.

The new focus on the Branded Consumer business seems a smart move on management’s part, given its 17.2% annualised growth in revenue to US$478m for the five years ended Dec 2012. Meanwhile, earnings grew at an even faster annualised rate of 28.6% to US$55m in the same period. Petra’s recent first quarter results for 2013



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Business & Economy



saw the Branded Consumer business continuing its growth trend by posting a 20% year-on-year increase in quarterly profit to US$14.1m.

Chuang mentioned during yesterday’s divestment-announcement that the company’s “excited about [Petra’s] future” in the confectionary markets in Asia due to demographic trends as well as rising incomes.

In any case, the company does not seem to be the only one that’s excited about its own future, given the market’s lofty valuation of Petra at more than 50 times its last-12-months’earnings for its Branded Consumer business at its current share price of $3.93.

That’s an expectation of the market for a bed of roses for Petra. Can it deliver? Only time will tell.

West African Cocoa Harvests seen delayed on Weather to crop sizeBloombergBy Isis Almeida & Olivier Monnier Jul 5, 2013 The third-biggest cocoa mid-crop on record in Ivory Coast and dry weather are fueling speculation the next harvest will be delayed in West Africa, the biggest growing region for the beans used to make chocolate.

Farmers in Ivory Coast are harvesting the mid-crop, the smaller of two annual harvests, and it’s estimated to be 440,000 metric tons, the third-biggest ever, the London-based International Cocoa Organization (ICCO) said. Cocoa in London yesterday climbed to a three-week high on speculation dry weather now in Ivory Coast and Ghana will push back the start of the next main crop season that officially starts in October.

“It hasn’t rained for about 20 days which is unusual for the season,” Olivier Abeyao, a farmer planting cocoa in 13 hectares (32 acres) in Abengourou, eastern Ivory Coast, said by phone yesterday. “The main harvest may be delayed if the rain doesn’t fall by mid-July.”

A large mid-crop means the trees suppressed early setting of the next main crop, according to Kevin Marcus, founder of the commodity weather consulting company Marcus Weather in Passaic, New Jersey. That slows the development of pods. Harvesting of the 2013-14 crop will probably start a month later than the usual mid-to-late September, he said.

“Rain has been below normal since June 10 in Ivory Coast and Ghana, Marcus said in a telephone interview on July 3. ‘‘The combination of a big mid-crop and a dry April resulted in a late start to the setting of the main crop.’’ The weather is dry in east central parts of Ivory Coast and Ghana, according to MDA Weather Services in Gaithersburg, Maryland.

Rain Totals

Ivory Coast’s central-western Daloa region, which produces about 300,000 tons of cocoa a year, was dry from June 21-30, data from the National Meteorological Service showed. It usually gets 42 millimeters (1.7 inches) of rain at that time of year, the data show. The western region of Ghana, which accounts for 55 percent of output, was drier than last year. Rain in the towns of Sefwi Bekwai, Bogoso and Echi was 102.9 millimeters in June 11-20, data from the Ghana Meteorological Agency showed. Last year, rainfall was 343.6 millimeters.

The main crop may be ‘‘a little bit late because of the strong mid-crop but nothing of concern at this stage,’’ Laurent Pipitone, head of the economics and statistics unit at the ICCO in London, said by phone yesterday. Rain in May was ‘‘quite good,’’ he said.



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Labour Issues

Environmental Issues



A late start of the main crop means that there is still a large proportion of young pods, known as cherelles, in early July, Marcus said. The recent return of dry weather may cause young pods measuring 1 inch to 3 inches to wilt, as this is a period of high-moisture demand, he said.

‘‘It has rained only three days in June while it should be raining hard in this season,’’ said Gilles Bledou, head of a farming cooperative in Aboisso, in southern Ivory Coast. In Adiake, near Aboisso, rain was 20.2 millimeters in June 21-30 compared with 95.5 millimeters last year, according to the National Meteorological Service.

‘‘If there’s not enough rain, the output will be down and the harvest will be delayed. We’re not in a critical situation yet, but we hope it will rain more in July.”

Peru Cocoa and Chocolate Salon opens in LimaAndina - Agencia Peruana de NoticiasJul. 05, 2013Lima, (ANDINA). The fourth edition of Peru Cocoa and Chocolate Salon will open Friday in Lima with over 40 exhibitors offering a variety of chocolate treats.

The annual event, which runs from July 5-7 this year, will be attended by Deputy Agriculture Minister Juan Rheineck and the head of the National Commission for Development and Life without Drugs (Devida), Carmen Masias.

Also present will be representatives of Peru's Export and Tourism Promotion Board (Promperu), the Ministry of Production, the U.S. Agency for International

Development (USAID), and the president of the Peruvian Association of Cocoa Producers (Appcacao), Rolando Martinez.

Other special guests include world renowned chocolate maker Stéphane Bonnat and Salon du Chocolat founders Sylvie Douce and Francois Jeantet.

The three-day event will take place at Sheraton Lima Convention Center from 11 a.m. to 9 p.m. Tickets can be purchased from Tu Entrada booths.

Ghana: Cocoa Fair Slated for 28th SeptemberGhanaian ChronicleBy Bernice Bessey, 5 July 2013Ghana Cocoa Board (COCOBOD) through the National Committee for Promotion of Cocoa Consumption (NCPCC) from 28th September-1st October this year would be opening a cocoa fair to create public awareness in health and nutritional benefit of cocoa.

The four-day fair which was launched on Wednesday in Accra at the College of Physicians and Surgeons aimed at increasing local consumption of cocoa that currently stands at 0.5kg.

According to the Chief Executive of COCOBOD, Mr. Anthony Fofie research has shown that the cocoa bean contains about 300 elements which have several health and nutritional valves. He noted that as producer of the world's best quality bulk cocoa and the second largest producer of cocoa, it is not acceptable that the country's consumption is that low. "The fair seeks to give cocoa processors and manufactures, chefs, restaurant operator, input suppliers, financial institutions as well as other stakeholders the opportunity to showcase their products and services and also instill into Ghanaians the habit of consuming coca," he added.



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Promotion & Consumption

Research & Development



Mr. Fofie indicated that the board owes the mandate to execute concepts and strategies for a generic promotion of cocoa consumption in Ghana, adding the committee has also looked at various challenged facing cocoa consumption including price, availability, packaging, product and health concerns among others.

He added that committee is making plans to establish a database of information on the health nutritional benefits of cocoa as well as other area of mutual interest to stakeholder. "We wish to emphasis that the effort this cocoa consumption campaign would include the consumption and utilization of cocoa and cocoa by-products. We believe that adding valve to every cocoa will not only improve the income of our cocoa farmer but also create employment for millions of Ghanaians who would be engaged in such activity," he said.

"We therefore wish to organize a Cocoa Fair on Ghana this year to bring every cocoa together so that we can all experience the good things cocoa can offer" the chief executive stated.

Ivory Coast forest clearances threaten cocoa exports, human rightsReutersBy Ange Aboa and Joe BavierJul 1, 2013

(Reuters) - The Ivory Coast is clearing tens of thousands of cocoa farmers from protected forests, threatening exports from the world's top grower and leading to complaints about human rights abuses.

Cocoa represents about 10 percent of the former French colony's economic output but the environmental costs of the industry's growth have been high.

The European Union estimates three-quarters of the West African country's forests, have disappeared in the past five decades, mainly due to farming including cocoa plantations.

President Alassane Ouattara's government says it is prepared to pay the economic price of phasing agriculture out to save the dwindling tropical forest and the security services have started flattening houses and forcefully removing the farmers.

"In America, you couldn't imagine people illegally occupying Central Park just because they say they have nowhere else to live, could you?" said government spokesman Bruno Kone.

Ouattara has won praise and promises of billions of dollars in funding from world powers for rebuilding Ivory Coast after a brief war that followed his 2010 election win.

The forestry service says around half the 4.2 million hectares of protected forest reserves are illegally occupied and The evictions form part of his efforts to reassert state authority after a decade of stagnation and political turmoil. It also tallies with his plan to diversify the economy away from cocoa, which accounts for 40 percent of exports.

There also appears to be pressure on Ivory Coast to clear up its forestry sector as it starts negotiations with the European Union over a new timber trade agreement although illegal logging operates on a much smaller scale than cocoa farming.

HOMES DESTROYED

But moving the farmers from the 231 reserves, some of whom have lived there with their families for decades, could leave them destitute, stirring unrest as well as hurting the economy. "Everyone fed themselves through



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Others



cocoa. Not everyone can make it in the city," said Abo Baboue, a cocoa farmer, waiting beside a muddy track for a truck to carry off what belongings he could salvage after soldiers destroyed his home.

There are no figures for how many of Ivory Coast's 800,000 cocoa growers live and farm on protected land. In Niegre, the first forest to be cleared last month forestry agents counted 6,000 households - around 25,000 people - before the army moved in, cutting short the headcount.

Just weeks into the operation, those targeted have accusing security forces of abuse, including the looting of homes, stealing money and cocoa and, in some cases, rape, charges rejected by the government.In Baleko-Niegre, the main settlement inside the Niegre forest, Reuters journalists saw flattened homes, shops and restaurants after forestry officials, flanked by heavily armed soldiers, bulldozed the area.

Amadou Ama, who sold metal sheeting for roofs, said he had provided shelter to homeless neighbors' but soldiers broke down his door at night and dragged two women off. "The next morning I found them. They told me the soldiers had raped them," he said.

A day later, his house was leveled too, he said.

Kone, the government spokesman, rejected the accusations. "There have been no cases of rape or violence," he said. "If they refuse to leave, if they are aggressive towards our agents, we reserve the right to respond."

In a country awash with weapons, many larger plantation owners head their own armed militias and may not go peacefully.

PRODUCTIVE PLANTATIONS

Land available for new cocoa plantations ran out long before Ivory Coast's political crisis began in 2002, but output has continued to increase, largely from the forests.

The country produced 1.2 million tonnes (1 tonne = 1.102 tons) of cocoa during the 2000/2001 season. Despite war, conflicts over land and ethnicity, and smuggling into neighboring Ghana, production hit a record 1.5 million tonnes 10 years later.

Farmers flooded in, many from neighboring Mali and Burkina Faso due to a loose immigration policy, often paying for land illegally sold by local villagers, a practice that the government says has continued during Ouattara's first two years in power.

The illegal plantations in the Niegre forest produce between 60,000 and 70,000 tonnes of cocoa annually. "A large share of the cocoa produced in this country comes from the forest reserves ... The plantations inside the reserves are the youngest and most productive," said one cocoa exporter based in the country's second-largest port, San Pedro.

Development workers familiar with the government's plans say long-term squatters will be allowed to keep to their plantations, as long as they live outside the reserve, until they are taken over by replanted hardwood and softwood trees.

Traders say next year's main crop harvest could be the first to take a hit if farmers are not able to access and tend their plantations during July and August.

But in any case, the government's goal is to stop farming in the reserves altogether, even if it hurts growth. "If that's the price to pay, we're ready to pay it. This is something that is more important than a simple question of tonnage," said Kone.



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