copal cocoa info - alliance of cocoa producing …. 487.doc · web viewplantation industries and...

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

MARKET UPDATE NEW YORK (ICE) FUTURES

MARKET UPDATE FROM THE NEWS MEDIA

o Meeting of the International Organizing Committee for the 17th International Cocoa Research Conference, (ICRC) Yaounde, Cameroon, 24th April to 3rd May 2012.

COPAL COCOACOPAL COCOA InfoInfo

A Weekly Newsletter of Cocoa Producers' Alliance

Health and Nutrition

Production and Quality Nigeria to become largest producer of cocoa in 10-

years All-out effort to check drastic drop in cocoa

The Market Uganda’s cocoa prices up amid dwindling supplies Cocoa shortage to push up chocolate price NY cocoa settles firm, sugar ends at 3-month low

Processing and Manufacturing Views diverge before Europe, US cocoa grind data Europe's Sweet Tooth Buoys Cocoa

Business & Economy

Labour Issues

Environmental Issue

Research & Development

Promotion & Consumption

Others Caterpiller attack hits south Cameroon cocoa

Do your health a favour, drink Cocoa everyday

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

Issue No. 487 9th - 13th April 2012

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)

9th April 1416.91 2179.9 1407.00 2125.00

10th April 1387.42 2133.17 1388.00 2070.67

11th April 1397.39 2155.3 1390.00 2104.67

12th April 1430.08 2205.78 1419.33 2152.33

13th April 1462.72 2256.98 1458.67 2204.67

Average 1419.00 2186.00 1413.00 2131.00

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 9th April 2012

Month

Opening Trans

Settle Change High Low VolumeMay 2012 Jul 2012 Sep 2012 Dec 2012 Mar 2013 May 2013 Jul 2013 Sep 2013 Dec 2013 Dec 2014

Average/Totals #DIV/0! 0

Tuesday 10th April 2012 Month Opening Trans Settle Change High Low Volume

May 2012 1416 1378 -43 1422S 1375S 6,612Jul 2012 1422 1389 -37 1427S 1383S 6,309Sep 2012 1426 1397 -34 1432 1391 2,749Dec 2012 1437 1406 -30 1438S 1400S 1,938Mar 2013 1418 1398 -27 1430 1393 1,648May 2013 1425 1408 -23 1430 1402 430Jul 2013 1410 1409 -25 1410S 1409S 9Sep 2013 1415 -21 0Dec 2013 1440 1429 -10 1440 1432 12Mar 2014 1440 1446 -10 1442 1440 105

Average/Totals 1408 19,812

Wednesday 11th April 2012 Month Opening Trans Settle Change High Low Volume

May 2012 1373 1381 3 1397 1366 4,318Jul 2012 1384 1390 1 1404 1375S 6,133Sep 2012 1392 1399 2 1413S 1385S 1,284Dec 2012 1401 1408 2 1420S 1395S 1,831



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





Mar 2013 1394 1397 -1 1411 1388S 1,433May 2013 1408 1404 -4 1418S 1397S 609Jul 2013 1407 1408 -1 1412 1407 28Sep 2013 1415 1413 -2 1415 1415 2Dec 2013 1430 1425 -4 1435 1430 13Mar 2014 1440 -6 0







Thursday 12th April 2012 Month Opening Trans Settle Change High Low Volume

May 2012 1370 1412 31 1414S 1360S 6,814Jul 2012 1382 1418 28 1420S 1367S 9,016Sep 2012 1394 1428 29 1429 1377S 2,800Dec 2012 1405 1436 28 1437S 1386S 1,492Mar 2013 1392 1428 31 1429S 1380 1,438May 2013 1395 1437 33 1435S 1389S 727Jul 2013 1405 1444 36 1407 1400 105Sep 2013 1411 1449 36 1412 1401S 79Dec 2013 1423 1458 33 1423 1413S 24Mar 2014 1476 36 0


Friday 13th April 2012 Month Opening Trans Settle Change High Low Volume

May 2012 1415 1452 40 1460S 1413S 3,787Jul 2012 1421 1458 40 1467S 1419 6,092Sep 2012 1429 1466 38 1475S 1429S 2,047Dec 2012 1450 1475 39 1483 1440S 2,361Mar 2013 1431 1464 36 1468S 1431S 559May 2013 1448 1471 34 1475S 1448S 110Jul 2013 1480 1478 34 1480S 1480S 3Sep 2013 1482 33 0Dec 2013 1491 33 0Mar 2014 1509 33 0


Average for the week 1475 2720 2720











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

(US$ per tone)

Monday 9th April 2012 Month Open Price Change High Low Volume

May 2012 2095 2108 23 2118 2068 18,336Jul 2012 2108 2118 10 2127 2082 17,547Sep 2012 2132 2136 8 2141 2102 1,230Dec 2012 2151 2154 7 2159 2122 412Mar 2013 2166 2170 7 2175 2141 409May 2013 2154 2183 8 2188 2150 267Jul 2013 0 2195 8 0 0 0Sep 2013 2197 2204 8 2197 2197 6Dec 2013 0 2217 9 0 0 5Mar 2014 0 2240 5 0 0 5

Average/Totals 2173 38217

Tuesday 10th April 2012 Month Open Price Change High Low Volume

May 2012 2115 2064 -44 2127 2052 22,501Jul 2012 2125 2070 -48 2133 2058 23,739Sep 2012 2136 2085 -51 2142 2076 4,002Dec 2012 2142 2102 -52 2157 2092 2,040Mar 2013 2170 2119 -51 2175 2110 1,027May 2013 2160 2133 -50 2160 2123 980Jul 2013 2150 2146 -49 2150 2147 75Sep 2013 2155 2155 -49 2155 2155 7Dec 2013 2165 2168 -49 2165 2165 212Mar 2014 0 2191 -49 0 0 5


Wednesday 11th April 2012 Month Open Price Change High Low Volume

May 2012 2067 2103 39 2126 2052 17,497Jul 2012 2060 2104 34 2128 2056 20,347Sep 2012 2083 2117 32 2133 2072 2,365Dec 2012 2090 2133 31 2152 2089 1,366Mar 2013 2111 2149 30 2168 2108 1,411May 2013 2125 2160 27 2177 2120 457Jul 2013 2136 2171 25 2158 2132 107Sep 2013 2155 2178 23 2155 2142 31Dec 2013 2163 2188 20 2163 2152 54Mar 2014 0 2209 18 0 0 0











Thursday 12th April 2012 Month Open Price Change High Low Volume

May 2012 2116 2160 57 2167 2061 12,865Jul 2012 2111 2143 39 2154 2060 22,683Sep 2012 2117 2162 45 2171 2077 5,547Dec 2012 2137 2179 46 2188 2096 1,365Mar 2013 2128 2192 43 2202 2113 784May 2013 2130 2207 47 2211 2129 657Jul 2013 2204 2220 49 2204 2204 5Sep 2013 2155 2230 52 2157 2155 21Dec 2013 2173 2243 55 2173 2173 21Mar 2014 0 2266 57 0 0 0


Friday 13th April 2012 Month Open Price Change High Low Volume

May 2012 2160 2248 88 2259 2160 13,706Jul 2012 2143 2200 57 2217 2143 25,261Sep 2012 2165 2214 52 2230 2162 4,145Dec 2012 2183 2233 54 2248 2183 1,520Mar 2013 2220 2248 56 2262 2205 499May 2013 2250 2261 54 2268 2250 115Jul 2013 2270 2272 52 2270 2270 1Sep 2013 2278 2282 52 2278 2278 1Dec 2013 2289 2295 52 2289 2289 6Mar 2014 0 2318 52 0 0 0


Average for the week 2257 8228 8228











News

Nigeria to become largest producer of cocoa in 10-yearsBusinessDayBy SIAKA MOMOH13 April 2012 E-mail Print PDF

The Executive Director, Conservation Alliance (CA), Ghana, Yaw Osei-Owusu, has predicted that in the next 10 years, Nigeria would be the largest producer of cocoa in the world, with the right incentives in place.

Osei-Owusu, an Agric expert made this revelation in Abuja at a one-day workshop on ‘Greening the Cocoa Industry’, organised by Global Environment Facility (GEF) and Rainforest Alliance.

According to Owusu, Cocoa for five consecutive years, has led the pack of non-oil exports in Nigeria, according to figures released by the Nigerian Export Promotion Council (NEPC).

This is coming at a time when analysts predict that the non-oil sector will drive Nigeria’s economic growth in 2012, with GDP expected to grow at 8.1 per cent.

According to NEPC, cocoa products yield was about $215.2 million in 2006 as against $229.6 million for sheep goat skin and leather. Sesame seeds and oil recorded $32.3 million, rubber $62.7 million, plastics $17.6 million, Cotton/yams/fabrics &49.9 million.

In 2007, cocoa accounted for $312.6 million as against $300.5 million for sheep, goat skin and leather; $71.6 million for sesame seeds and oil; $79.7 million for rubber; $73.1 million for plastics; $45.5 million for cotton, yams and fabrics;$47 million for aluminium and article; $75.9 million for cashew nuts and edible fruits; $36.1 million for Gum Arabic; and $46.7 million for pawns, fish and crustaceans.

The figures for 2008 have cocoa recording $487.8 million as against $333.6 million for sheep, goat skin and leather; $105.2 million for sesame seeds and oil;$129 million for rubber; $100.6 million for plastics; $60.7 million for cotton, yamso and fabrics; $64 million for aluminium and article; $55.4 million for cashew nuts and edible fruits; $37.1 million for Gum Arabic; and $47.9 million for prawns, fish and crustaceans.

And in 2009, the trend continued with cocoa recording $662..2 million while sheep, goat skin, and leather accounted for $289.4 million; sesame seeds and oil $115.2 million; rubber $62.5 million. In 2010 cocoa accounted for $822.8 as against $188.8 million for sesame seeds and oil. In fact cocoa led with $533.3 million in the first half of 2011.

Nigeria is currently the fourth largest producer of cocoa in the world producing 7 per cent of world output of 4.025 million metric tonnes, coming after Cote D’ Ivoire, Ghana, and Indonesia which produce 36 per cent, 19 per cent and 14 per cent respectively.

West Africa, which supplies approximately 70 per cent of global output, is easily the most important cocoa production region in the world in terms of economics. The most important individual countries are the Ivory



NEWS

Health and Nutrition

Production & Quality


Coast, Ghana, Nigeria and Cameroon. Among non-African countries producing significant amounts of cocoa are Indonesia, Brazil, Ecuador, the Dominican Republic and Malaysia.

Backing his declaration, he noted that once the right motion is set and fully put in place, the sky would be the limit of the country in cocoa production.

He gave the incentives as training and re-training of farmers, provision of incentive to boost production, support from both private and public, getting the right policies from the government, as well as the provision of land and encourage more people to go into cocoa farming.

All-out effort to check drastic drop in cocoaDaily ExpressApril 15, 2012Penampang: Cocoa production in the country has fallen drastically, prompting the Government to spend more money and open up more land in an all-out effort to address the decline.

Since 2000, cocoa areas in the country have started to drop due to competition for space with other commodity crops, particularly oil palm and last year it totalled 20,543 acres with a production of 4,605 tonnes, down almost 70 per cent from 15,654 tonnes in 2010.

Plantation Industries and Commodities Minister, Tan Sri Bernard Dompok, said his ministry has therefore launched the National Commodities Industries Policy for the period 2011-2020, among others, to see the cocoa industry continue to grow. "For the cocoa industry, the policy has set a target to add 2,000 hectares each year so that the total area of cocoa cultivation can be increased from 20,543 hectares in 2011 to 40,000 hectares by 2020," he said.

He said his ministry, through the Malaysian Cocoa Board, has always tried to help farmers increase their income by cultivating cocoa in small spaces around the house or cocoa processing courses such as courses in chocolate and cocoa-based beverages.

"I was told that in Penampang at this time, there were 67 cocoa farmers in Kg Putaton, Kg Timpangoh, Kg Kibunut, Kg Terian and Kg Babagon cultivating a total area 68 hectares.

"I believe that the farmers here still have the land for cocoa that can be operated in integration with other crops.

"As the price of cocoa beans are in the range of RM6,500 to RM8,000 per tonne, cocoa farmers who adopt good agricultural practices to produce quality cocoa beans can earn a profitable and lucrative income.

"As such, it is my hope that more cocoa farmers in Penampang will carry out cocoa planting either on a small scale or commercial plantation.

This measure is also expected to help increase the supply of cocoa beans to local cocoa factories which require about 300,000 tonnes per year while Malaysia only produced 4,605 tonnes of cocoa beans in 2011. "In this regard, Malaysia has to import a total of 295,000 tonnes of cocoa beans from other producing countries, particularly Indonesia, Ivory Coast and Ghana." He said this at the Penampang Cocoa Planting Roadshow at Kg Putaton, Penampang Multipurpose Hall on Saturday.

Dompok said this year, the Government has also approved an allocation of RM17.85 million to the Malaysian Cocoa Board under New Cocoa Planting Programme, to develop 1,567 hectares of new cocoa cultivation areas in Malaysia. "Of the 1,567 hectares, the new cocoa cultivation area approved for the State is 750 hectares, of which 40 hectares are from the Penampang district. However, this area can be expanded if there are new applications from the landowners to be included in the New Cocoa Planting Programme this year or next year." He said another programme conducted by the Malaysian Cocoa Board in an effort to promote the cultivation of cocoa is the Cocoa for the People programme.

This programme was initiated in 2009, to encourage people to plant cocoa in the areas with limited land.




"This programme does not need a land grant, and the monitoring is to ensure that cocoa trees are planted and have a lot of fruits and easily managed around the home environment.

"However, from random studies made on the recipients of Cocoa for the People Programme in Penampang, it appears most people here still not understand how to plant and care for their cocoa trees.

"Therefore, I urge those who have received the cocoa seedlings to come to get information on how to plant and care properly for their cocoa trees, including fertilising and pruning them from the Malaysian Cocoa Board."

Also present were Moyog Assemblyman Datuk Donald Mojuntin and Malaysian Cocoa Board Director General Dr Lee Choon Hui.

Uganda’s cocoa prices up amid dwindling suppliesDaily MonitorBy Dorothy Nakaweesi April 11 2012

Positive trend. According to UEPB, cocoa has become one of Uganda’s leading foreign exchange earners.

Uganda may be a small cocoa-producing country, but the recent increase in revenues points to growing exports of the commodity even as production lags behind.

Data from the Uganda Export Promotion Board (UEPB) indicate a growing trend in cocoa export revenues thus boosting the country’s total exports.

Latest export revenue figures indicate that in 2010, Uganda realised a total of $35.1 million (Shs87.5 billion) of out of the total 14,529 metric tonnes exported, indicating a rise from $15.7 million (Shs39.2 billion) earned from the 10,006 tonnes exported in 2007.

Mr Othieno Odoi, UEPB’s exports promotions officer while giving a validation of this performance said: “There has been a tremendous growth in export earnings of cocoa as a non-traditional export. When this is factored into the total export earnings of the country, it means a lot.”

However, experts in the sector are worried because the country is not producing enough to meet the increasing demand.

Production is not boosted, the country may lose out to global competition for a crop which fetches a premium price.

“There are too many buyers and exporters are getting poor margins. This coupled with high inflation, has made cocoa very expensive to purchase and not enough production to go round,” Mr Philip Bates the managing director of Esco (U) Limited-the leading Cocoa exporter in the country said.But farmers are laughing their way to the bank because they are being paid a good price. Currently, for each kilogramme of cocoa, a farmer is paid between Shs4,000 and Shs4,400 depending on the location and quality of the beans.

Five years ago, the Ugandan government in collaboration with the Cocoa Development Organisation embarked on a campaign to boast production. In this, strategy a total of 35 million seedlings were supposed to be planted in a spread of seven years.

Cocoa growers.



The Market


Currently, there are about 10,000 registered organic cocoa farmers with a total estimates of about 15,000 farmers found in Bundibugyo alone. Farmers in all other districts combined may reach 20,000.

Cocoa shortage to push up chocolate priceABC LocalBy Prue Bentley12 April, 2012

Chocolate has become so ubiquitous that for many it's no longer just a special treat.

It's this very success that poses serious challenges for chocolate manufacturers, like Mars Foods in Ballarat.

The main ingredient, cocoa, comes from a small tree called the cacao which is only grown in the tropics.

Demand for chocolate is now truly global, and it's grown substantially over the past decade partly because of the rise of the middle classes in emerging economies like China and India.

That's putting huge pressure on chocolate production.

There are some predictions that the price of a chocolate bar could rocket towards $10 per bar within the decade.

Barry Parkin is Vice President Commercial Global Chocolate for Mars Inc. and says the whole industry has to work with farmers to improve yields and processing to head off these sorts of price rises.

NY cocoa settles firm, sugar ends at 3-month lowReutersBy Marcy Nicholson Apr 13, 2012 * (Reuters) - U.S. cocoa futures bucked the day's weak trend in commodities and closed higher on Friday, onfollow-through buying and support from the lower-than-expected European cocoa grind data.

Raw sugar tumbled to close down 3.5 percent at its lowest settlement in three months, extending its losses after falling below the 100-day moving average. Arabica coffee changed direction on Friday to finish lower, succumbing to pressure from the firm U.S. dollar and weak commodity complex. 2:00 PM SETTLE NET PCT LOW HIGH CURRENT CHNG CHNG VOL Sugar MAY 23.37 -0.85 -3.5% 23.27 24.29 62,684 Sugar JUL 22.81 -0.71 -3.0% 22.71 23.58 56,559 Cocoa MAY 2248 88 4.1% 2,160 2,259 9,377 Cocoa JUL 2200 57 2.7% 2,143 2,217 19,932 Coffee MAY 179.2 -3.7 -2.0% 178.15 186.40 20,866 Coffee JUL 180.2 -4.05 -2.2% 179.15 187.10 20,632 TOTAL MARKET VOLUME CURRENT 30D AVG 250D AVG ICE SUGAR 151,796 110,065 90,519 ICE COCOA 35,016 26,129 19,695 ICE COFFEE 47,453 26,767 20,350 RAW SUGAR * May raw sugar futures on ICE tumbled 0.85 cent, or 3.5 percent, to close at 23.37 cents a lb, the lowest settlement since Jan. 12 for the spot contract. * May closed the week down 4.9 percent, it's biggest drop since late November.




* Sugar dropped on spillover weakness from the lower oil market, firm U.S. dollar and lower commodity complex - traders. * Market extended its losses after falling through the 100-day moving average at 23.81 cents per lb. * India is on track to achieve all-time high sugar exports over two straight seasons, 2011/12 (October/September) 2010/11 - Czarnikow. ARABICA COFFEE * July arabicas sank 4.05 cents, or 2.2 percent, to finish at $1.8020 per lb. * On the week, the July contract closed down 2.9 percent. * Total volume was heavy at roughly 47,450 lots, nearly double the 30-day average as May/July spreads buoyed volume - Thomson Reuters preliminary data. * Market turned lower but remained well within its one-month-long trading range of $1.77-$1.95. * The market was viewed to be in a long period of consolidation after falling sharply to a 17-month low in March -traders. * May/July spreading continued ahead of the May contract's first notice day April 20 - traders. * May/July spread closed at 1 cent, narrowing from 1.35 cents on Thursday. * Erratic weather is showing no mercy to Brazil's coffee crop as conditions turned dry again, depriving beans of a last moisture boost that would help them swell out more before harvesting begins in about a month, forecasters and agronomists said. * Honduras, Central America's top coffee grower, expects a record coffee harvest next season, with exports reaching more than 5.4 million 60-kilogram bags as the country aggressively expands production. COCOA * July cocoa closed up $57, or 2.7 percent, at $2,200per tonne. * On the week, July closed up 4.4 percent. * July peaked up 3.5 percent intraday at $2,217, the highest level since April 2. * The May/July spread remained active ahead of the May contract's first notice day on Tuesday. * The spread soared to close at $48 premium from $17 on Thursday, when the market first inverted. * Market extended its gains on technical buying, after the July contract failed to make a new three-month low and then closed higher on Thursday - traders.. * Higher-than-expected grind data in Europe also supported the market - traders. * Total open interest climbed by 3,071 lots to 181,940 lots on April 12, the highest since Nov. 8 - ICE data. * "The funds have been getting short on the way down and there's definitely been an inflow of new short selling into themarket. Manufacturers and industry buyers have been taking on the weaker price, that's why you're getting a nice build in the open interest." - Drew Geraghty, a commodity broker at ICAP RELATED NEWS AND OTHER TOPICS All sugar news All coffee news All cocoa news All softs news All commodities news Softs diary Weather news Foreign exchange rates

Views diverge before Europe, US cocoa grind dataReuters *By Marcy NicholsonApr 11, 2012NEW YORK, April 11 (Reuters) - Forecasts for upcoming first-quarter grind data, anticipated by the cocoa industry as an indicator of demand in Europe and North America, range more widely than usual amid uncertainty about global economic forces and processing rates in top-grower Ivory Coast.

The diverging views on whether cocoa grinding rates will rise or fall in the Northern Hemisphere reflect the uncertainty surrounding the strength of demand for cocoa, the primary ingredient in chocolate, which has traditionally been considered a recession-proof consumer product.



Processing & Manufacturing


For Europe, where 40 percent of the world's cocoa is consumed, forecasts from analysts contacted by Reuters ranged from a drop of 3.8 percent to a rise of 3 percent from the first quarter last year, when 353,103 tonnes of beans were processed.In North America, estimates spanned falling 5.5 percent to rising 4 percent from the 118,633 tonnes recorded in the same period last year.

The data will be released in Europe on Friday and in North America on April 19.

Some of the uncertainty stems from the civil war last year in the Ivory Coast, the world's top cocoa grower, which shifted some cocoa bean processing to Europe, North America and Asia in early 2011 and boosted the grind rate in those regions.

Analysts said active Ivorian processing has picked up since the civil war ended after cocoa grinding dropped 12 percent in the 2010/11 season, but to what extent is still unclear.

The resulting boost to Europe and North American production last year could distort year-on-year comparisons.

"During Q1 2011, the civil war in Ivory Coast resulted in production being shifted to Europe and North America which resulted in the high skewed numbers," said Keith Flury, senior commodity analyst for Agri Commodity Markets Research in London, who forecast a drop in grindings.

A fall in the grinding would be the first since 2010 in Europe and since 2009 in North America.

Even so, most analysts are braced for a surprise.

"Over the year we are expecting a small increase in global grinds, but what we've learnt in the last few quarters is that finding out whether the cocoa is actually being ground in Europe, Africa, Asia or America is very difficult," said Jonathan Parkman, head of agriculture at brokers Marex Spectron.

"Try as I might to normalize Q1 with all the cross-wind variables from last year, I am not able to make a solid conclusion," said Shawn Hackett, of Hackett Financial Advisors in Florida.

"I am more comfortable in stating that the 2011-2012 global grind should be no better than a 1.5-percent increase. Continued decelerating global economies will not allow for a strapped consumer to indulge."

In February, the ICCO forecast world grindings will rise 2 percent to 3.99 million tonnes in 2011/12.

A London-based dealer, who expects grindings will be down 1-3 percent in Europe for the quarter and flat in North America, was less than upbeat.

"Overall demand is flat and going forward we see that remaining unchanged," he said.

This contrasts with the traditional view that cocoa demand will grow steadily, with chocolate seen as an affordable luxury even in the face of economic hardship.

A veteran dealer in New York, who forecast European grind data will be up about 2 percent while North America will fall 2-4 percent, said there is the sense in the United States that people are feeling more of a squeeze on their disposable income.

Europe's Sweet Tooth Buoys CocoaWall Street JournalBy Alexandra Wexler April 13, 2012Europe's taste for chocolate proved sweet for cocoa on Friday.Prices for the commodity in New York and London jumped on better-than-expected European cocoa-grindings data. Cocoa grindings, which are seen as a barometer of demand for chocolate, had been expected to drop between 2% and 5% for the first quarter of 2012. Instead, the amount of processed beans decreased 0.1% from the year-ago period, to 389,452 tons, according to figures from the European Cocoa Association.




Chocolate Easter chicks are decorated at Burie Chocolatier in Antwerp, Belgium, last week, typically a busy time for chocolate makers.

"Let's face it, the Europeans have had kind of a tough go," said Jack Scoville, vice president at Price Futures Group, referring to the Continent's sovereign-debt troubles and weakened economies. "Buying a nice piece of chocolate is probably one of the cheaper ways to do something luxurious, cheaper than buying roses."

While demand for chocolate eased slightly in Europe, the decline isn't likely to be enough to compensate for an expected cocoa shortage. The International Cocoa Organization last month estimated a global

cocoa deficit of 71,000 tons, a reversal from last season's 347,000-ton surplus, due to poor weather in top-producing region West Africa.

Seasonal winds blowing off the Saharan desert damaged cocoa pods from the end of 2011 through the first few months of this year, sparking concern that output would be crimped. The region also has experienced less rain than usual.

The front-month cocoa contract on the ICE Futures U.S. exchange in New York on Friday vaulted 4.1%, to settle at $2,248 a ton, its highest settlement since March 28. On London's Liffe, the front-month cocoa contract settled 2.8% higher, at £1,452 ($2,318) a ton, its highest since April 2. Traders said investors closing out bets that prices would fall, called short covering, also contributed to the rally.

"European grind data was probably a bit better than a lot of cocoa manufacturers and processors expected, with the consensus expectation being a bit weaker than the final figure," said Jonathan Parkman, co-head of Agriculture Commodities at Marex Spectron. Investors have been concerned that demand in Europe, the largest consumer of cocoa products, would wane amid the gloomy economic climate.

"However, it is very foolhardy to take the European grind number as a proxy for what is going on in the world," Mr. Parkman said. "Despite being a large part of the global grind, the figure by no means tells you what's going on everywhere."

The decline was the first year-on-year fall in quarterly grindings since the fourth quarter of 2009.

"When you look at the European grind and subtract out Germany, the numbers were soft," said Judy Ganes-Chase, president at J. Ganes Consulting. "They just weren't quite as negative as people thought they would be."

The market will now look ahead to similar data for North America, due this coming Thursday. Traders expect cocoa grindings to be flat or slightly lower than the first quarter of 2011, indicating a slight decline in demand for chocolate.



Business & Economy

Labour Issues

Environmental Issue


Caterpiller attack hits south Cameroon cocoaReuters AfricaBy Tansa Musa Apr 9, 2012 YAOUNDE, April 9 (Reuters) - Caterpillers have attacked cocoa trees in one of Cameroon's main growing regions, dampening hopes for a bumper mid-crop in the south of the country, farmers and officials said on Monday.

The pests have infested plantations in South Region, which is Cameroon's No. 3 growing zone, after a similar attack on the South-West region earlier in the year.

South Region accounts for 15 percent of cocoa production from Cameroon, the world's fifth biggest grower, which harvested a record 240,000 tonnes in 2010/11.

"The attack has been very extensive, destroying as much as 50-100 percent of some cocoa plantations," said Essien Efa, a local cocoa farmers cooperative leader in the region's headquarters Ebolowa.

"Almost all our hopes of a bumper mid-crop harvest due to early rains in February are gone," Efa added.

Some farmers have blamed the wave of caterpillars on extreme heat and the lack of pesticides to treat the crops.

Lazarre Essimi Menye, Cameroon's agriculture minister, visited the region over the weekend and ordered the emergency distribution of pesticides and spraying kit for farmers.



Research & Development

Promotion & Consumption

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