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					                           COPAL COCOA Info
                                A Weekly Newsletter of Cocoa Producers' Alliance
                 Issue No. 424                                                             24th – 28th January 2011
In-House Cocoa Newsletter
 Cocoa Producers' Alliance

                                      UP-COMING EVENTS                                              IN THIS ISSUE
                                                                                                    INSIDE THIS ISSE:

                             Course on products from cocoa by-products – 21st February       ICCO DAILY COCOA PRICES
                             – 4th March 2011, New Tafo-Akyem, Ghana                          LONDON (LIFFE) FUTURES MARKET
                            Sub-committee of the COPAL 50th Anniversary – 15th March          UPDATE
                             2011 – ICCO Board Room, 1-19 New Oxford Street,
                             London, United Kingdom.                                          NEW YORK (ICE) FUTURES MARKET
                            Selection Committee for the post of New Secretary General –       UPDATE
                             16th March 2011 - ICCO Board Room, 1-19 New Oxford
                             Street, London, United Kingdom.                                  FROM THE NEWS MEDIA
                            Market Committee of Experts – 17th March 2011 - ICCO             TIT BITS
                             Board Room, 1-19 New Oxford Street, London, United

                                      Do your health a favour, drink Cocoa everyday
                                                ‘It’s nature’s miracle food’
    In the News (from Newspapers worldwide)
     Health and Nutrition
     Scientists identify cocoa‘s ‗novel mechanism‘ for   Business & Economy
        heart benefits                                     Indonesia May Raise Cocoa Bean Export Tax in
     Why we love chocolate                                   February
     Chocolate May Reduce Risk of Heart Failure           Cameroon‘s Cocoa Exports Drop 9.9% in Week
     Is chocolate a treatment for genital warts              to Jan. 24
                                                           Cocoa bean shipment a taste of good news for
    Production and Quality                                    Camden
     Uganda sees 2010/11 cocoa exports up on more
        acreage                                           Labour Issues
                                                           ILO Launches support to stop Child Labour on
    The Market                                               Cocoa Farms in 3 districts
     UPDATE 1-300,000 T Ivorian cocoa ready for
        export – sector                                   Environmental Issue
     Chocolate Prices on the Rise                         Chocolate Drought Predicted, With World
     Cocoa Has Longest Rally in 15 Months on Ivory           Supply of Cocoa Gone by 2014 – OH NO!0
        Coast Concerns
     Cocoa Factory Faces Shutdown                        Research & Development
     SOFTS-Cocoa peaks at 1-yr high, sugar firm          
     Nigerian Cocoa Price Jumps 8.2% in a Week After     Promotion & Consumption
        Ivory Coast Ban                                   
     Davos: Nestle: Only Long Term Cocoa Price Rise
        Could Require Chocolate Hikes                     Others
     World 'faces chocolate drought in 2014'              Valued Opinions Reveals Britain as A Nation of
     Maersk halts Ivorian cocoa exports: official            Milk Chocolate Lovers
                                                          Chocolate lovers face price rise as ingredients
    Processing & Manufacturing                                soar
     ADM Dutch cocoa plant to hit full capacity in Feb    Ivory Coast's Alassane Ouattara Wants EU
                                                              Sanctions on 5 Cocoa Exporters

    ICCO Daily Cocoa Prices
                          ICCO Daily Price     ICCO Daily price    London futures      New York futures
                            (SDR/tonne)          ($US/tonne)          (£/tonne)          ($US/tonne)

    24 January                 2166.30             3371.33            2168.33              3281.67

    25 January                 2177.51             3394.56            2191.33              3329.33

    26 January                 2177.81             3402.72            2189.00              3334.33

    27th January               2176.19             3403.69            2183.33              3341.33

    28 January                 2129.35             3330.95            2146.67              3268.33

    Average                    2165.00             3381.00             2176.00              3322.00

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

Monday                24th January             2011
Month                      Opening Trans           Settle       Change     Daily High   Daily Low   Volume
    Mar 2011                   2290                2190           42         2307S       2170S      10,430
    May 2011                   2220                2161           47         2269S       2144S      5,715
     Jul 2011                  2248                2154           43         2252S        2140      2,195
    Sep 2011                   2209                2135           36         2216         2132       750
    Dec 2011                   2138                2110           23         2146         2100       197
    Mar 2012                   2163                2110           18         2163         2110      1,156
    May 2012                   2125                2112           16         2125S       2125S        1
        Jul-12                                     2118           18                                  0
        Sep-12                                     2122           18                                  0
    Dec 2012                                       2131           18                                  0
Average/Totals                                     2134                                             20,444

Tuesday               25th January             2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
    Mar 2011                   2214                2227           37         2231         2187      8,372
    May 2011                   2176                2176           15         2190         2155      5,657
     Jul 2011                  2166                2171           17         2182         2148      2,431
    Sep 2011                   2147                2154           19         2164         2136      1,396
    Dec 2011                   2127                2123           13         2136S       2104S      1,349
    Mar 2012                   2120                2132           22         2144S        2115       972
    May 2012                   2126                2136           24         2151S        2116       140
        Jul-12                 2130                2143           25         2146         2130       79
        Sep-12                                     2147           25                                  0
    Dec 2012                                       2156           25                                  0
Average/Totals                                     2157                                             20,396

Wednesday             26th January             2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
    Mar 2011                   2237                2214          -13         2254         2187      5,936
    May 2011                   2185                2179           3          2203         2146      4,419
     Jul 2011                  2185                2174           3          2190S       2141S      2,705
    Sep 2011                   2169                2167           13         2172S        2131       653
    Dec 2011                   2138                2142           19         2143         2103      1,290
    Mar 2012                   2140                2151           19         2151         2135       320
    May 2012                   2148                2155           19         2155S        2140       207
        Jul-12                 2155                2161           18         2161         2152       21
        Sep-12                                     2163           16                                  0
    Dec 2012                                       2172           16                                  0
Average/Totals                                     2168                                             15,551

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Thursday               27th January            2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
    Mar 2011                   2225                2200          -14         2249         2195      5,569
    May 2011                   2190                2180           1          2219        2166S      3,514
     Jul 2011                  2184                2170           -4         2204        2155S      1,311
    Sep 2011                   2170                2160           -7         2190        2152S       522
    Dec 2011                   2150                2140           -2         2166         2125       999
    Mar 2012                   2165                2147           -4         2169        2135S      1,729
    May 2012                   2166                2154           -1         2172S       2136S        93
        Jul-12                 2166                2160           -1         2179        2142S        76
        Sep-12                                     2162           -1                                  0
    Dec 2012                                       2171           -1                                  0
Average/Totals                                     1930                                             13,813

Friday                 28th January            2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
    Mar 2011                   2191                2164          -36         2210         2156       5,476
    May 2011                   2175                2143          -37         2185         2136       5,997
     Jul 2011                  2161                2133          -37         2176         2126       1,690
    Sep 2011                   2149                2122          -38         2157         2115       855
    Dec 2011                   2130                2107          -33         2143S        2096       877
    Mar 2012                   2115                2117          -30         2126        2114S       101
    May 2012                   2134                2130          -24         2134        2122S        68
        Jul-12                 2141                2135          -25         2144        2129S       131
        Sep-12                 2148                2143          -19         2152         2145        65
    Dec 2012                                       2156          -15                                  0
Average/Totals                                     1924                                             15,260

Average for the week                               2116                                             17093

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                                      New York Board of Trade
                       (New York Futures Market – Summary of Trading Activities)
                                           (US$ per tone)

Monday                24th January            2011
Month                          Open              Price       Change        High        Low          Volume
    Mar 2011                   3281              3312         128         3393         3244         17,177
    May 2011                   3233              3282         109         3340         3222         7,469
     Jul 2011                  3298              3268          88         3335         3221         2,298
    Sep 2011                   3286              3250          72         3319         3191         1,318
    Dec 2011                   3298              3253          62         3298         3198         1,229
    Mar 2012                   3349              3310          63         3349         3303         1,093
    May 2012                   3313              3303          64         3321         3313           4
     Jul 2012                    0               3310          61           0            0            0
    Sep 2012                     0               3314          59           0            0            0
    Dec 2010                     0               3330          59           0            0            0
Average/Totals                                    3293                                              30588

Tuesday               25th January            2011
Month                          Open              Price       Change        High        Low          Volume
    Mar 2011                   3333              3335          23         3375         3270         15,119
    May 2011                   3296              3301          19         3333         3247         3,990
     Jul 2011                  3286              3287          19         3320         3248         3,084
    Sep 2011                   3262              3261          11         3291         3227          878
    Dec 2011                   3262              3259          6          3296         3225          970
    Mar 2012                   3320              3324          14         3358         3278         1,219
    May 2012                   3278              3319          16         3304         3269          102
     Jul 2012                  3277              3324          14         3306         3274          78
    Sep 2012                     0               3327          13           0            0            0
    Dec 2010                     0               3343          13           0            0            0
Average/Totals                                    3308                                              25440

Wednesday             26th January            2011
Month                          Open              Price       Change        High        Low          Volume
    Mar 2011                   3367              3352          17         3395         3319         12,318
    May 2011                   3318              3338          37         3355         3288         4,600
     Jul 2011                  3313              3335          48         3339         3276         2,050
    Sep 2011                   3283              3313          52         3315         3251          578
    Dec 2011                   3283              3306          47         3309         3254          651
    Mar 2012                   3348              3373          49         3370         3342         1,155
    May 2012                   3340              3370          51         3355         3338          633
     Jul 2012                  3354              3376          52         3362         3354          16
    Sep 2012                     0               3378          51           0            0            0
    Dec 2010                     0               3394          51           0            0            0
Average/Totals                                    3354                                              22001

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Thursday               27th January           2011
Month                          Open              Price       Change        High        Low          Volume
    Mar 2011                   3352              3358          6          3420         3334         11,706
    May 2011                   3328              3339          1          3390         3322         3,783
     Jul 2011                  3330              3322          -13        3374         3317          974
    Sep 2011                   3323              3300          -13        3351         3295          261
    Dec 2011                   3314              3296          -10        3345         3293          322
    Mar 2012                   3361              3359          -14        3410         3352          558
    May 2012                   3354              3357          -13        3400         3349          155
     Jul 2012                  3356              3361          -15        3406         3356          72
    Sep 2012                   3376              3358          -20        3419         3376          59
    Dec 2010                   3396              3374          -20        3450         3396          31
Average/Totals                                    3342                                              17921

    Friday             28th January             2011
        Month                  Open              Price       Change        High        Low          Volume
    Mar 2011                   3355              3277          -81        3358         3256         11,479
    May 2011                   3342              3275          -64        3342         3250         4,320
     Jul 2011                  3330              3259          -63        3330         3232          960
    Sep 2011                   3295              3239          -61        3295         3221          340
    Dec 2011                   3265              3244          -52        3265         3227          275
    Mar 2012                   3324              3306          -53        3325         3289          508
    May 2012                   3323              3305          -52        3324         3288          108
     Jul 2012                  3333              3321          -40        3340         3300          109
    Sep 2012                   3345              3335          -23        3357         3311          471
    Dec 2010                   3360              3369          -5         3394         3345          118
 Average/Totals                                   3293                                              18688

Average for the week                             3293                                               3398

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 Health and Nutrit
Healthand Nutrition
Scientists identify cocoa’s ‘novel mechanism’ for heart benefits
By Stephen Daniells,

                              The potential heart health benefits of polyphenol-rich cocoa powder may be
                              related to a ‗novel mechanism‘ of boosting HDL (good) cholesterol, says a new
                              study from Japan.

                              The new study may extend our understanding of cocoa's potential heart benefits

                              The new study may extend our understanding of cocoa's potential heart benefits

                              Researchers from the Food and Health R&D Laboratories at Japanese company
                              Meiji Seika Kaisha report that cocoa‘s potential ability to boost HDL levels is
related to a proteins which boost levels of a compound called apolipoprotein A1 (Apo-A1), which is required by
the body to produce HDL-cholesterol.

―As cholesterol metabolism is known to be regulated by several different mechanisms, it is possible that cacao
polyphenols may act on multiple pathways as a regulatory receptor agonist or ligand, similar to other plant
polyphenols,‖ wrote the researchers in the Journal of Agricultural and Food Chemistry.

Cocoa‘s benefits

The health benefits of polyphenols from cocoa have been gathering increasing column inches in the national
media. To date studies have reported potential benefits for cardiovascular health, skin health, and even brain

The majority of science into the potential benefits of cocoa have revolved around cardiovascular benefits of the
flavanols (also known as flavan-3-ols or catechins), and particularly the monomeric flavanol (-)epicatechin.

Recently, however, scientists from the University of Reading in England and Mars reported that cocoa may also
affect gut microflora and possess prebiotic potential.

The new study takes us back to the health benefit with the strongest supporting science: Cardiovascular health.
While it is known that consumption of cocoa polyphenols may boost HDL cholesterol levels, and decrease LDL
cholesterol levels, the Japanese researchers state that ―the mechanisms responsible for these effects of cocoa on
cholesterol metabolism have yet to be fully elucidated‖.

Study details

In an attempt to fill this knowledge gap, the Japanese researchers examined the effects of cacao polyphenols
such as (−)-epicatechin, (+)-catechin, and procyanidin B2 and C1 in human intestinal cells.

Results showed that the polyphenols increased apo A1 protein levels, while levels of alipoprotein B, the main
alipoprotein responsible for carrying LDL cholesterol to cells.

Digging deeper into the potential mechanism, the researchers add that the cocoa compounds were also
associated with an increase in sterol regulatory element binding proteins (SREBPs).

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―SREBP is primarily responsible for the regulation of genes involved in cholesterol biosynthesis and
metabolism,‖ explained the researchers. ―Therefore, these results suggest that cacao polyphenols participate in
cholesterol metabolism.‖

―These results elucidate a novel mechanism by which HDL cholesterol levels become elevated with daily cocoa
intake,‖ they concluded.

Why we love chocolate
Liberty Vindicator –
Jan 26, 2011
The reason people are known to enjoy and crave chocolate may be connected to its chemical components.
Chocolate has been known to affect mood in many ways. It contains 380 known chemicals, triggering a host of
responses in the brain. Chocolate can also increase blood pressure and blood-sugar levels, attributing to feelings
of alertness. The caffeine in chocolate also acts as a stimulant.

However, the reason chocolate may be snatched up come Valentine's Day is that chocolate appears to contain
phenylalanine, the same chemical that is produced by the brain when people fall in love. Doctors think that
eating chocolate creates a temporary "love high."

For those gifting chocolate for Valentine's Day, consider dark chocolate, which is also high in antioxidants. This
chocolate is among the healthier varieties in which to indulge.

Chocolate May Reduce Risk of Heart Failure - Michelle Schoffro Cook –
Jan 28, 2011
Forget what you‘ve heard about death by chocolate. A new Harvard study shows that chocolate may be good
for your heart. It‘s a great day for chocolate lovers everywhere.

Murray Mittleman and his colleagues at Harvard Medical School studied data on 31,823 middle-aged and
elderly Swedish women to assess the relationship between chocolate and heart failure. The women who
consumed an average of one to two servings (that‘s a fairly small amount) of high-quality, cocoa-rich chocolate
per week had a 32 percent lower risk of experiencing heart failure. Those women who ate 1 to 3 servings a
month had a 26 percent lower risk of heart failure.

The scientists noted that the high concentration of phytonutrients called flavonoids in dark chocolate are potent
antioxidants that are likely responsible for the results. The flavonoids are believed to lower blood pressure and
reducing inflammation linked with heart failure.

Keep in mind that not just any chocolate will do. Forget the vast majority of candy bars on the market. The
study results were achieved with high-quality, cocoa-rich chocolate. Read DARK chocolate. The darker the
better. And, be sure the one you choose is low in sugar, has no trans or hydrogenated fats, and no artificial
colors, flavors, or other synthetic ingredients.

Is chocolate a treatment for genital warts?
io9 -

                                               All those chocolate commercials with women lounging in a bath
                                               and luxuriantly eating chocolate may get a different spin. Turns
                                               out compounds in cacao could be a powerful treatment for the
                                               sexually-transmitted disease HPV.

                                              Chocolate has been considered a delicious, addictive food for for
                                              a long time. The Latin name for the tree that produces cocoa is
                                              Theobroma Cacao, so clearly people knew early on that they'd
                                              hit on something special. Since then, chocolate has been the
central theme in Cathy comics, a massively profitable industry, and the subject of a long series of commercials
in which liquid fudge is poured in slow motion while people make ecstatic faces.

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Turns out that those commercials may be underestimating the value of chocolate.
Chocolate is rich in antioxidants, molecules that bond with oxygen compounds which would otherwise rip into
proteins, fats or DNA in the body. It has alkaloids, which animals often use to create neurotransmitters. And it
has epicatechin oligomers, which biotech startup Cacao Biotechnologies has developed into an antiviral
specifically meant to fight HPV. The treatment is scheduled to start clinical trials in six to nine months. Should
it prove effective, chocolate producers may want to rethink the whole "chocolate is sexy" thing.

  Production & Quality

Uganda sees 2010/11 cocoa exports up on more acreage
Reuters Africa
Thu Jan 27, 2011

                                      KAMPALA (Reuters) - Uganda expects its cocoa exports in the
                                      2010/2011 (Oct-Sep) season to rise 6.6 percent compared with the last
                                      season, as newly planted trees start producing beans, a senior government
                                      official told Reuters on Thursday.

                                      Cocoa is one of the major commodity exports for the landlocked east
                                      African country and a significant source of foreign exchange.

                                    Joseph Kimera, head of the state-run Cocoa Development Project (CDP)
forecast Uganda would export about 16,000 tonnes this season from the previous season's 15,000 tonnes.

Earnings from the crop last season were not immediately available but the 2008/09 year brought in $35 million
from 15,000 tonnes.

"Higher production and exports is mainly a function of an increase in planted area and more people in Uganda
have been planting cocoa trees and most of them are reaching maturation, so we anticipate this to positively
impact this season's exports," he said.

Last season's exports fell short of its forecast of 18,000 mainly on account of irregular weather patterns that
disrupted pod development and harvesting, Kimera said.

"Rains didn't come when they were expected and sunshine was so extreme in some areas at a time when rains
were needed. This led to pods falling off trees while others became small," he said.

Cocoa production has fluctuated in Uganda since it was introduced nearly 100 years ago but the government has
increased support for farmers through the supply of seedlings, and by training them to take care of their crops.

Output peaked in the 1960s, but a series of bottlenecks -- government neglect, a lack of finance and price
fluctuations -- throttled the sector in the 1970s and 1980s to the point where the crop was virtually relegated to
the economic periphery.

Kimera said exports this season were likely to be higher than 16,000 tonnes but that they decided to be more
cautious as a way of hedging against the adverse impact of the evolving instability in traditional weather
patterns. Uganda has an estimated 18,000 hectares of land under cocoa cultivation, and the crop supports about
10,000 households.

  The Market

UPDATE 1-300,000 T Ivorian cocoa ready for export – sector
Reuters Africa
Jan 24, 2011

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ABIDJAN (Reuters) - Around 300,000 tonnes of Ivorian cocoa registered before presidential claimant Alassane
Ouattara called for a one-month ban on deliveries remains to be exported, the head of the local sector body
CGFCC told Reuters on Monday. "What I can tell you is that as of today, we have one million tonnes registered
and 700,000 tonnes exported," CGFCC president Ano Gilbert said. "Three hundred thousand tonnes are in the
According to the terms of the ban called by Ouattara as part of efforts to starve incumbent Laurent Gbagbo of
cash after an election dispute, cocoa which had been registered before the weekend appeal can still be exported.

Earlier, exporters estimated that cocoa arrivals at ports in top grower Ivory Coast reached around 843,000
tonnes by Jan. 23 compared with 759,408 tonnes in the same period of the previous season.

Gilbert's figure is obtained via a computer system capturing registered volumes at the point they enter the
warehouse and is seen as more up to date than the exporters' estimates.

Chocolate Prices on the Rise
By: Maggie Newland
Politics half way around the world could affect the price you pay for chocolate. Political unrest in the Ivory
Coast has led the country's leader to call for a ban on cocoa bean exports from the world's largest cocoa

Local chocolate shops say they'll feel the effects of the ban even if they don't use beans from the Ivory Coast.
Chocolate retailers say their costs have already gone up significantly over the past few years.

Some stores have had to raise prices. Other shops say they'll keep prices steady but make smaller size chocolates
to deal with the rising cost of cocoa.

Cocoa Has Longest Rally in 15 Months on Ivory Coast Concerns
By Debarati Roy and Isis Almeida
January 25, 2011,
 (Bloomberg) -- Cocoa rose, capping the longest rally in 15 months, on mounting concern that exports will be
halted from Ivory Coast, the world‘s biggest producer.

A one-month export ban announced by Alassane Ouattara, the internationally recognized winner of a Nov. 28
presidential election, is intended to cut off funds to incumbent Laurent Gbagbo, who refuses to step down.
Companies risk sanctions should they pay export taxes to the industry body controlled by Gbagbo, the Ouattara
administration said.

―If they are going to stick with the ban, then prices could easily climb,‖ said Matthias Banzhaf, a commodity
trader at Tiberius Asset Management AG in Zug, Switzerland

Cocoa for March delivery climbed $23, or 0.7 percent, to settle at $3,335 a metric ton on ICE Futures U.S. at
11:58 a.m. in New York. The most-active contract rose for the seventh straight session, the longest rally since
Oct. 22, 2009. The price has gained 19 percent since the end of November.

Prices may rise to $3,720, the highest since January 1979, according to a Bloomberg survey of six analysts.

In London, cocoa for March delivery rose 37 pounds, or 1.7 percent, to close at 2,227 pounds ($3,521) a ton on
NYSE Liffe.

―Overall, global production prospects look very good, with the main upside to prices stemming from the Ivory
Coast political situation,‖ Sudakshina Unnikrishnan, an analyst at Barclays Capital in London, said in a report.

Ivory Coast‘s production represents a third of global cocoa supplies and is forecast to expand 1.9 percent in the
year that began on Oct. 1, according to Macquarie Group Ltd.

Mars Inc. said today in a statement that an Ivorian ban won‘t affect its chocolate production in the short term.

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Archer Daniels Midland Co. ―remains committed‖ to cocoa farming and was ―carefully assessing the situation‖
in Ivory Coast and any effect of European Union sanctions on its business, Roman Blahoski, a spokesman, said
in an e-mail yesterday.

Cargill Inc. said it temporarily suspended bean purchases in Ivory Coast.

Cocoa Factory Faces Shutdown
 Peace FM Online –
Jan 26, 2011
US food-processing giant, Archer Daniels Midland Company (ADM), is facing problems acquiring light crop
beans for processing and imminent disruption in its production line if the supply situation does not improve in
the next few months, industry sources have revealed.

The company came very close to shutting down its 30,000-tonne plant located in Kumasi, after laying-off 70
temporary staff, but rescinded the decision after discussions with its main supplier, Ghana Cocoa Board.

Industry experts say ADM‘s presence in the industry is vital, as it will help Ghana maintain its reputation as a
producer of premium quality cocoa and also create new opportunities for Ghanaian cocoa farmers.

ADM is one of the world‘s largest cocoa and chocolate manufacturers, with cocoa-processing plants in Europe,
Africa, North America, South America and Asia. The company launched its Ghana plant in Oct 2009 in Kumasi,
raising the country's grinding capacity by nearly 10 percent to 350,000 tonnes.

The facility comprised a bean warehouse, a processing plant and a finished goods warehouse which sit on a
75,000 square-metre site. It processes cocoa beans into cocoa liquor for use in chocolate.

Cocoa processing companies in Ghana have in recent times raised concerns with the Cocobod over the
dwindling supply of light crop beans, which is sold to them at a 20 percent discount as the main raw material for
their plants.

Ghana runs two cocoa seasons the larger main crop runs from October and ends in April (33 – 36 weeks) and
the light crop season from May to September.

The light crop, which accounts for roughly a fifth of the annual production, is most preferred by local processing
companies. However, in the absence of that, some companies buy the main crop to complement their stock.

Currently, Ghana is in the main crop harvest season - a situation that makes it difficult for Cocobod to get light
crop beans for processors as is being demanded by ADM.

―Currently, our beans are growing larger because of good weather and best industry practices… statistics show
that we produce 90 percent main crop and 10 percent light crop beans,‖ Cocobod Public Affairs Manager Noah
Amenyah told B&FT in an interview. He said, despite the situation, Cocobod continues to ensure that
processing companies receive their share of light crop beans when it is available.

Ghana is world no.2 cocoa-grower after Ivory Coast. Currently Installed processing capacity is about 350,000
tonnes, nearly three times the cumulative output of the sought-after light crop in a year.

SOFTS-Cocoa peaks at 1-yr high, sugar firm
Reuters Africa
By Sarah McFarlane;
Jan 27, 2011
                              * ICE cocoa futures CCc2 hit a fresh one-year high as the ban on cocoa exports
                             from top grower Ivory Coast continued to underpin prices.

                             * ICE March cocoa CCc1 rose $20 or 0.6 percent to $3,372 a tonne at 0922 GMT.

                              * European cocoa butter producers began making inquiries to buy the product from
                             grinders in Asia after offers from Ivory Coast came to a virtual stop over

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uncertainty in exports from the world's top cocoa bean producer, dealers said Thursday. [ID:nL3E7CR0K0]

 * A lack of clarity over Ivorian cocoa exports is causing a significant slowdown in trade and will affect the
entire supply chain from farmer to end user, the European Cocoa Association said on Wednesday.

 * A bullish target at $3,391 per tonne is temporarily aborted for New York cocoa CCc2, as it may correct to
$3,259 first, as per a wave pattern and a rally that has exhausted, Reuters analyst Wang Tao said.


* ICE raw sugar futures were slightly higher underpinned by a tight supply outlook.

* ICE March raw sugar SBc1 was up 0.04 cent or 0.2 percent at 33.18 cents a lb at 0927 GMT, while London
March white sugar LSUH1 rose $2.90 or 0.4 percent to $802.50 per tonne.

 * Premiums for Thai raw sugar slipped by a couple of points on Thursday on the prospect of more sales from
India, while a few deals with Japanese consumers helped stir up physical trade after several failed Indonesian
tenders. [ID:nL3E7CR06M]

* A bullish target at 33.35 cents per lb has been shifted up to 33.76 cents for New York sugar SBc1, as a fierce
wave "3" progresses, according to Reuters market analyst Wang Tao. [ID:nL3E7CR0H8]


* Arabica coffee futures were steady, with the recent fall in prices triggering some light industry buying.

 * ICE March arabicas KCc1 traded up 0.3 cent or 0.1 percent at $2.3780 per lb. Liffe March robusta coffee
traded down $3 or 0.1 percent at $2,090 per tonne.

 * Vietnam's coffee exports this month dropped an estimated 3.7 percent from the same month in 2010 to
140,000 tonnes, or 2.33 million bags, in line with market expectations, the government said on Thursday.

 * Starbucks Corp (SBUX.O: Quote), the world's largest coffee chain, expects rising coffee prices to hit profits
more than it previously thought but stressed that it would not raise prices to cover the extra expense.

 * New York coffee KCc2 is biased to fall to $2.32 per lb, as a rebound in the previous session has not violated a
downtrend formation, according to Reuters market analyst Wang Tao. [ID:nL3E7CR0IX]


 * The U.S. dollar held near 2-1/2 month lows on Thursday, while commodity prices and Asian stocks rose after
U.S. Federal Reserve policymakers voted unanimously to maintain a $600 billion bond-buying plan to fuel an
economic recovery. [MKTS/GLOB]

 * The dollar rose 1 percent on the day versus the yen on Thursday as the Japanese currency extended losses
following a downgrade of Japan's government debt rating by Standard and Poor's. [USD/]

 * Brent crude hovered near $98 on Thursday after better-than-expected U.S. home sales data and a pledge by
Federal Reserve to keep monetary policy steady drummed up market sentiment. [O/R]
 * European shares dipped on Thursday, hurt by ratings agency Standard & Poor's downgrade of Japan's credit
rating to AA-minus from AA, though miners gave the market some support. [.EU]

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Nigerian Cocoa Price Jumps 8.2% in a Week After Ivory Coast Ban
By Vincent Nwanma
Jan 27, 2011
The price of cocoa in Nigeria, the world‘s fourth-largest producer, rose 8.2 percent in the past week after an
export ban by the Ivory Coast, the world‘s largest producer, according to Abang Neji Abang, secretary general
of the Cocoa Association of Nigeria.

Farm-gate prices for the chocolate ingredient rose to 460,000 naira ($3,021) a metric ton today from about
425,000 naira a week ago, Abang said. Prices in London have climbed about 5 percent over the same period.

Cocoa is ―increasing almost every day,‖ Neji said by phone today from Akure, in western Nigeria. Prices had
been steady at 425,000 naira for most of the season which started Oct. 1.

―I plan to sell next week,‖ said David Onyenweaku, a farmer said by phone from Umuahia, in southeastern
Nigeria. Some farmers have had to sell beans to pay for farm leases, Neji said.

The harvest is slowing as farmers approach the end of the main-crop season, Neji said. Nigeria‘s cocoa year is
divided into two harvests. The main-crop harvest begins in October and ends in January, while the light-crop
season, the smaller of the two, usually begins in March and ends in June.

Nigeria Exports

Cocoa-bean exports from Nigeria in the first 10 months of last year rose 13 percent to 140,537.5 tons from
124,663 tons a year earlier, according to figures from the Federal Produce Inspection Service, the government
agency that supervises exports of cocoa beans.

Nigeria ranks behind Ivory Coast, Ghana and Indonesia in cocoa production, according to the International
Cocoa Organization. Cocoa exports are Nigeria‘s biggest foreign exchange earner after crude oil, according to
figures published the Nigerian government. To contact the reporter on this story: Vincent Nwanma in Lagos via
Accra at

Davos: Nestle: Only Long Term Cocoa Price Rise Could Require Chocolate Hikes
Barron's (blog)
By Vito Racanelli
January 27, 2011,
Nestle (NSRGY) CEO Paul Bulcke said Thursday that the Swiss food giant would raise chocolate prices only if
it found that the underlying long trend in cocoa prices had risen and its actions to contain that were not enough
to ―keep the substance of its business…. It‘s not a one to one reaction.‖ The market won‘t absorb that.

Speaking to Barron‘s at the sidelines of the World Economic Forum in Davos, of which he is a co-chair this
year, he added: ―Our job is to react to underlying trends, not hiccoughs.‖ He noted, too, this went for all
commodities used in its food production.

Cocoa prices hit a 52-week high Thursday, as political troubles in the Ivory Coast, a top producer of cocoa, have
sharply curtailed supplies in recent weeks. Sugar prices are also rising sharply.

For all the concern about soft commodity price rises, there are already reports, for example, that some countries
are increasing acreage devoted to cocoa. Nevertheless, if you have a sweet tooth, better keep an eye on cocoa.

World 'faces chocolate drought in 2014'
Economic Times
28 Jan, 2011,
LONDON: The world is facing a chocolate drought ", according to an expert, whose warning is prompted by
fears that the globe's sustainable cocoa supplies could be exhausted by 2014.

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Political unrest in the Ivory Coast, the source of almost half the world's cocoa beans, has depleted the number of
cocoa farmers there. Many have fled the country or are smuggling the crop into Ghana, where it is selling at a
far higher price, says British chocolatier Angus Kennedy.

Chocolate makers are now facing the highest cocoa prices for more than 30 years. Prices jumped by 10 per cent
this month alone following a curb on international cocoa exports initiated earlier this week by Ivory Coast's
President Alassane Ouattara.

Kennedy said that chocolate producers were facing "one of the biggest challenges to hit the industry in recent

"Supplies of sustainable cocoa are set to run out, it's that simple. The Ivory Coast is a complete no-go area for
cocoa traders as it's too dangerous, so training new farmers and trying to cut problems in the region is now

"So in effect, its sustainability is not sustainable. Prices can't go up as it's reported because there basically isn't
enough certified cocoa left to sell. Things could get nasty now as producers start to fight over the last stocks,"
the British media quoted him as saying.

Maersk halts Ivorian cocoa exports: official
Fri Jan 28, 2011
ABIDJAN (Reuters) - Danish shipping company Maersk has halted cocoa exports from Ivory Coast and stopped
taking new orders for imports to the country, in line with European Union restrictions, an official at the
company said on Friday.

Maersk is the main shipper of Ivorian cocoa beans to buyers in the United States and Asia and one of the world's
top container carriers.

"We are not loading any more cocoa. It is (because) of the EU decision and our headquarters asked us to respect
the decision ..," said an official, who asked not to be named.

The EU has imposed sanctions on Ivory Coast's incumbent leader Laurent Gbagbo, who is locked in a power
struggle with rival Alassane Ouattara and has refused international calls to stand down.

The EU restrictions imposed on January 15 refer to EU-registered ships but some analysts suggested shipping
firms might get around the ban by using ships registered elsewhere.

So far this season, Maersk has shipped just under half of the cocoa exported from the world's top cocoa grower,
according to industry data.

"Our imports ... have been stopped. Goods that were loaded before January 15 will still get there. Clients are
calling for new shipments but we are refusing because of the sanctions." The official said the last container
shipment would arrive in Ivory Coast on March 15.

  Processing & Manufacturing

ADM Dutch cocoa plant to hit full capacity in Feb
By Ivana Sekularac, Sara Webb
Jan 24, 2011
AMSTERDAM (Reuters) - Archer Daniels Midland Co (ADM.N) said on Monday its Dutch cocoa processing
plant will be fully operational in the second half of February following a fire last week.

"After having completed a preliminary assessment of the incident's impact on our production capabilities, we
anticipate that the site will be fully operational in the latter half of February," ADM said in a statement.

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A fire broke out in ADM's processing plant at Koog aan de Zaan north of Amsterdam on Wednesday, but the
warehouse was unaffected. No one was injured in the fire.

"We are still assessing the impact on production," spokeswoman Elissa Igleheart told Reuters.

A fire at the same plant in late 2003 spread to the cocoa stored in warehouse and burned for several days.

   Business & Economy

Indonesia May Raise Cocoa Bean Export Tax in February
By Eko Listiyorini – J
Jan 24, 2011
Indonesia may raise the export tax on cocoa beans in February due to the increasing price of the commodity,
said Zulhefi Sikumbang, Chairman of the Indonesian Cocoa Association.

―We estimate export tax will be increased, but we don‘t know how much,‖ Sikumbang said by phone from
Makassar, capital of South Sulawesi province, today.

The price of the chocolate ingredient increased about $100 per to $150 a ton last week and is estimated to be
higher as world supply will be short after Ivory Coast banned exports for a month, Sikumbang said.

―Indonesian exporters can‘t control the price, so we go along with international price movements,‖ Sikumbang

Indonesia kept the tax rate on cocoa bean exports for January at 10 percent, while raising the base price to
$2,593 a ton, Deddy Saleh, director general for foreign trade, said Dec 23. The government sets a base price to
determine the amount of tax to impose.

The duty exporters pay on January shipments is $259 a ton, and may be increased for February and the
following month to $300 a ton, as the average price for February shipments is at $3,200 a ton, according to

The cocoa association, known as Askindo, has asked the government to set a fixed duty on exports instead of
changing it every month. The government announces the tax rate and base price between the 20th and 25th day
of each month.

The price of cocoa products has been increasing by about 8 percent a week due to the rising price of beans, said
Piter Jasman, chairman of the Indonesian Cocoa Producers Association. ―Production cost is still relatively stable
and cheaper compared with cocoa-product manufacturers in Europe,‖ Jasman said by mobile-phone text
message today.

Cocoa butter has risen to $5,250 a ton from $4,800 a ton a week ago, and cocoa powder has increased to $4,500
a ton from $4,200 a ton a week ago, Jasman said.

Cameroon’s Cocoa Exports Drop 9.9% in Week to an. 4
Bloomberg - Pius Lukong
Jan 25, 2011
Cameroon‘s cocoa exports from the main port of Douala fell 9.9 percent during the week to Jan. 24, according
to statistics from the harbor.

Exports stood at 2,650 metric tons, down from 2,940 tons a week earlier, information e-mailed from the port
stated today. The average export price was 1,470 CFA francs ($3.05) a kilogram (2.2 pounds), up from 1,450
CFA francs the week before, according to Bloomberg calculations using rates published by the country‘s Cocoa
and Coffee Inter-Professional Board.

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A kilogram of the beans fetched 1,350 CFA francs in the South West, Abong Abraham, President of Ekona
Farmers‘ Cooperative, said in a telephone interview. Farmers sold the beans at 1,355 CFA francs in the Littoral,
1,450 CFA francs in the Center and at 1,340 CFA francs in the south production zone, according to information
e-mailed from the Cocoa and Coffee Information Relay Centers in each region.

Cocoa bean shipment a taste of good news for Camden
Cherry Hill Courier Post
By EILEEN STILWELL • Courier-Post Staff •
January 25, 2011
CAMDEN — After 14 days at sea, the Atlantic Tramp slipped quietly into a berth at the Beckett Street marine
terminal carrying an estimated $60 million in cargo.

The new, 590-foot vessel, which made its maiden voyage up the Delaware River from the West African nation
of Ivory Coast on Saturday night, was not carrying flat-screens or Blu-rays. Its 60-foot-deep holds were packed
to the brim with cocoa beans -- 283,360 bags or 20,500 tons of them.

The shipment is the largest cocoa bean shipment ever to arrive at the Port of Camden and the largest to come out
of West Africa. "It's a miracle we got the ship at all given the political strife in that country," said Jeff Wheeler,
who is responsible for getting the ship unloaded as quickly as possible.

As president of Camden International Commodities Terminal, the Medford resident oversees the movement and
storage of the delicate beans from ship to processing plant. Sweet spots in New Jersey and Pennsylvania include
Hershey, M&M Mars, Bloomer and Wilbur chocolates.

Eighty-four percent of all cocoa beans brought into the United States travel up the Delaware River to be
unloaded, warehoused and distributed by truck and rail throughout the region. "It's a raw product that American
workers make into something else. It's also a stable commodity that continues to feed the port during down
times," Wheeler said.

Last year, CICT handled 140,000 tons of cocoa beans from 16 ship calls.

Those brown, gnarly looking beans are spun gold to workers at South Jersey Port Corp., which has been hit hard
by the recession, labor issues and Philadelphia's successful landing of new business.

Despite temperatures in the teens Monday, longshoremen were not griping about the weather.

Emptying the Atlantic Tramp is expected to take seven days and create about 175 jobs over a two-week period,
which includes ferrying the beans to a number of warehouses scattered throughout South Jersey.

Cocoa beans have emerged as the port's fourth-strongest commodity, after plywood, steel and scrap.
"People will always spend a dollar to buy chocolate. That's why the price of cocoa has held during the recession.
They might hold off buying a new truck or a large item, but they'll always buy chocolate," said Olaf Dimter,
managing director of Unicargo Transport, a global company that manages a fleet of eight ships, including the
Atlantic Tramp.

The Atlantic Tramp was built with a special ventilating system to prevent condensation in the holds that can
spoil the beans. After Camden, it will sail to Savannah to pick up scrap, then head to Turkey. Dimter joined the
Croatian and Indonesian crew Monday to inspect the three-month-old ship that was built in China for $33

Agriculture is the top industry in the Ivory Coast or Cote d'Ivoire, a country the size of Florida with 18 million
people. It is the No. 1 producer of cocoa, No. 2 in cashew nuts and three in coffee beans.

Human rights organizations have raised concerns about child labor in the country for years.

Capt. MiHo Trojanovic said the voyage had a rough start, when two workers loading the ship died. "They work
them so hard, they don't know what they're doing," he said with disgust. "They fall asleep where they shouldn't
and they get crushed by a container or a pallet. It's terrible."

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   Labour Issues

ILO Launches support to stop Child Labour on Cocoa Farms in 3 districts
26 January 2011

                                The International Labour Organisation (ILO), through its International
                                Programme on the Elimination of Child Labour (IPEC) has commissioned a two
                                year project to assist the government of Ghana to reduce child labour to the
                                barest minimum.

                                The project dubbed ―Support for the Elimination of Worst Forms of Child
                                Labour in the Cocoa sector‖ was launched in Juaboso last Friday, January 21st

                                It will focus on the prevention and withdrawal of children from hazardous work
on cocoa farms as well as providing additional livelihood support for vulnerable families and the establishment
of a child labour monitoring system that will help ensure that rather than doing dangerous farm work, children
will be in school

Speaking at the ceremony, the Chief Technical Advisor of ILO in Ghana, Mr. Francesco d‘Ovidio observed that
about 215 million children were engaged in child labour globally, with 115 million of these in hazardous work.
He explained that although child labour was still declining, the rate has slowed and if this continues the global
goal of eliminating worst forms of child labour by 2016 will not be achieved. He said Agriculture is the sector in
which the most children were engaged in labour, indicating that in Ghana about 57% of child labourers are in
farming, fishing and/or forestry. Mr. d‘Ovidio emphasized the need to ensure that the project is sustained
through mainstreaming and local participation and ownership.

The District Chief Executive Mr. Solomon Fauchie expressed government‘s gratitude to the ILO support,
indicating that the District was very concerned about the engagement of children in hazardous work. He
mentioned that the District Assembly had mainstreamed child labour interventions into its medium term
development policy and was already participating taking steps to stop the menace. The District Magistrate, Mr.
Osei Kweku admonished the beneficiary communities to be wary of child labour perpetuators and help to
enforce the law by reporting offenders to the appropriate authorities.

The Project is being implemented by Kuapah Kokoo, under the auspices of the National Steering Committee on
Child Labour. It will last two years.

   Environmental Issue

Chocolate Drought Predicted, With World Supply of Cocoa Gone by 2014 – OH NO!0
January 29, 2011
Experters are predicting, and chocolate lovers lamenting, that there might be a chocolate ‗drought‘ over the next
several years due to the world political unrest especially in the Ivory Coast that produces 40 percent of the
world‘s cocoa beans.

The political unrest in the country have caused certified cocoa bean producers to either flee or drastically reduce
their output while training programs that can create new cocoa bean producers meeting fair trade standards, no
longer exist. The immediate result is 30 percent higher chocolate prices – the long term result is no sustainable
cocoa by 2014.

The rest of the world‘s certified producers could not produce enough to meet demand and replace the production
lost in the Ivory Coast. On average it takes three of more years to become a certified sustainable cocoa bean
farmer and extensive training is needed.

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Even when the political unrest settles in the Ivory Coast it would take three years to produce enough for current
demand and for prices to go back now to former levels.

   Research & Development

  Promotion & Consumption


Valued Opinions Reveals Britain as A Nation of Milk Chocolate Lovers (press release)
Jan 23, 2011
Valued Opinions has revealed that the UK has the second highest consumption of chocolate per person in the
whole of Europe, and that the confectionary market is worth a staggering 4 billion pounds.
A recent Valued Opinions online poll has found out the favorite type of chocolate: two thirds of Brits (66%) like
milk chocolate the best whilst 22% prefer dark chocolate and 12% would choose white chocolate. Just 1% of all
respondents of the online opinion poll didn't like chocolate at all, reflecting the fact that for most of the people
in Britain, chocolate is a luxury they can't live without.

Although chocolate has traditionally been regarded as a naughty-but-nice treat, recent scientific research into its
chemical properties has revealed that it has important health benefits. Raw cacao has the highest antioxidant
value of any natural food. Among other things, it also improves heart function, helps to reduce cholesterol and
high-blood pressure and has a wealth of stress-busting, feel-good and anti-depressant chemicals.

Evidence has suggested that consuming small quantities of high-quality dark chocolate (which, according to
Valued Opinions, around a fifth of Brits consider their favorite) has some measurable health benefits including
lowering blood pressure and cholesterol and increasing insulin sensitivity.

However, consumers won't get a chocolate-induced bill of health from the cheaper chocolate bars that stack the
UK shelves. The majority of milk and white chocolate is made from cocoa beans that have been roasted, treated
with alkalis or other chemicals. These processes strip the beans of virtually any valuable nutrition. The
chocolate is then bulked out with additives such as hydrogenated oils, animal fats, refined sugar, dairy products
and chemical preservatives; all of which make it a less than healthy option.

Milk chocolate typically contains around 20% milk fat which aside from being calorie laden also inhibits the
body's absorption of cocoa's antioxidants. White chocolate, which many consider not to be proper chocolate
because it contains no cocoa solids, doesn't fare any better; a recent Cornell University study found that it
yielded no measurable health benefits at all.

This is bad news for milk chocolate-loving Brits. Most chocolate produced for the UK market is milkier and
contains less cocoa than chocolate in the rest of Europe. In 2003, the Food Standards Authority was pleased
when the EU regulations allowed British chocolate to have 20% (rather than the former 25%) cocoa solids in
order to be classified as real chocolate.

It might not be good quality and it's certainly not healthy, but market research shows that Britons like cheap,
sweet, milky chocolate and the FSA argues that they should be allowed to continue making and eating it.

About Valued Opinions:
Valued Opinions is an online opinion poll platform where members have the opportunity to earn rewards by
participating in paid online surveys. Through various partnerships with popular retailers such as,
Tesco and HMV, Valued Opinions provides its members with attractive rewards in exchange for completing
online paid surveys.

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The survey topics are tailored to their member's preferences and can include anything from green issues to
healthy living, fast food to slow trains, politicians to favourite film. Made up of more than 2 million members
globally, the Valued Opinions community provides market research companies with access to untapped
opinions from a large database of consumers.

Chocolate lovers face price rise as ingredients soar
New Zealand Herald - Christopher Adams –
Jan 24, 2011
Nestle, whose chocolate products include Scorched Almonds and Kit Kat, is reviewing its pricing. Photo / Sarah
Ivey A rally in raw ingredient costs is cutting into the profits of New Zealand chocolate manufacturers, and
firms say customers could face price rises of as much as 15 per cent this year.

One company is warning of a "shockwave" through the local industry as global commodity prices filter through.

A political crisis in Africa's Ivory Coast - the world's largest cocoa producer - pushed cocoa to a 11-month high
of US$3250 ($4282) a tonne on Friday. And the price was set to climb higher overnight after Ivory Coast's
president-elect, Alassane Ouattara, ordered a halt in all coffee and cocoa exports until February 23 in an attempt
to cut off vital revenues to his rival, incumbent president Laurent Gbagbo.

Maurice Gunnell, manager of corporate services at Nestle New Zealand, said the firm had faced a 400 per cent
increase in its cocoa costs over the past two years. The situation in the Ivory Coast would be of concern,
Gunnell said.

Nestle, whose chocolate products include Scorched Almonds and Kit Kat, is reviewing its pricing. "The extent
of the commodity price increases are so huge that we can't absorb all of it and therefore we will have to pass on
some form of price increase over the next couple of months," Gunnell said, adding that the increase would be
"single digit".

A 9 per cent increase would lift the price of a Kit Kat Chunky bar bought for $2.30 up to $2.50.

Cadbury corporate affairs manager Aimee Driscoll said the company was facing pressure from fluctuating
commodity costs but was unable to say whether that pressure would result in price increases for its customers.

Paul Donovan, chief chocolate maker at Hamilton's Donovans Chocolates, said rising sugar and cocoa prices
took some time to filter through to New Zealand confectionary makers and there would likely be a "shockwave"
through the entire industry over the next few months.

The price of sugar on the London market hit a record this month.

Donovan said his firm sourced its cocoa from more politically stable Ghana, although he said developments in
the neighbouring Ivory Coast had a big impact on the global price of the commodity. He said consumers would
face price increases of up to 15 per cent for their chocolate this year.

Ivory Coast has an annual cocoa crop worth $2.1 billion, which accounts for one-third of the global supply.

Ivory Coast's Alassane Ouattara Wants EU Sanctions on 5 Cocoa Exporters
By Pauline Bax –
Jan 27, 2011
Reuters-The administration of Ivory Coast‘s President-Elect, Alassane Ouattara, called for European Union
sanctions against five cocoa exporters who defied his call for a month-long suspension of exports to pressure the
government of Laurent Gbagbo, who has refused to step down as president.

―Five shippers have decided to effectuate unauthorized operations in defiance of the ban,‖ Guillame Soro,
Ouattara‘s prime minister, said in an e-mailed statement today. ―As a result the companies and their managers
will be proposed to the sanctions committees of the United Nations, the European Union and the U.S.‖

The list included Safcacao, Ivory Coast‘s largest locally owned cocoa exporter. Cocoa upon which taxes have
already been paid can be shipped, Ouattara‘s administration has said.

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DAVOS-UPDATE 1-Activists challenge Nestle on I. Coast cocoa
Fri Jan 28, 2011
DAVOS, Switzerland, Jan 28 (Reuters) - Global activists challenged major Western chocolate makers, including
Swiss food giant Nestle, not to buy cocoa from Ivory Coast as long as exports are controlled by Laurent

The incumbent lost a presidential election in December, according to U.N.-certified results, but has refused to
hand over power to his rival, former prime minister Alessane Ouattara, who has banned cocoa exports to raise
financial pressure on Gbagbo to yield office.

Avaaz, a global campaigning organisation, planned to run a front-page advert in the Financial Times calling on
Nestle and other leading chocolate companies operating in Ivory Coast to help prevent civil war by refusing to
purchase cocoa from what it called "Laurent Gbagbo's illegal regime".

The international community has recognised Ouattara's victory but Gbagbo says he is the legitimate president
because a constitutional council -- which was packed with his supporters -- invalidated ballots from northern
regions loyal to Ouattara and declared the incumbent the winner.

"Conflict chocolate is bankrolling bloodshed. Chocolate lovers around the world want the industry to take a
stand and deal only with the democratically elected government of Ivory Coast," Avaaz executive director Rick
Patel said in a statement. He said six companies had given such assurances so far.

The Financial Times did not print the advert on Friday although Avaaz said it would do so on Saturday. "We
were disappointed to discover that the Financial Times didn't run the Nestle advert today but it will now be
appearing in tomorrow's paper." said Avaaz campaign director Alice Jay.

However, Nestle chairman Peter Brabeck told Reuters his company did not export cocoa from Ivory Coast, and
criticised the boycott campaign as unfair to African farmers.

"Sometimes these boycotts are not necessarily helping the cause they want to help by pushing hundreds of
thousands of small farmers into even greater poverty," Brabeck said on the sidelines of the World Economic
Forum Davos. "I don't think that's the right thing to do."

Cocoa Shortage Will Prove Sweet News for Top Makers
By Anthony Alfidi
Jan 28, 2011
Resource investors worry about Peak Oil and Peak Gold. Now they can start worrying about Peak Chocolate.
Certified fair-trade cocoa growers are abandoning the business: Political unrest in the Ivory Coast, where 40 per
cent of the world‘s cocoa beans are grown, has ‗significantly‘ depleted the number of certified fair trade cocoa

Cocoa beans, unlike minerals or hydrocarbon deposits, are a renewable resource but the ideal conditions for
their growth are limited. Like the best wine-growing regions, cocoa harvesting is a special source of supply
subject to localized disruptions.

Reduced availability of cocoa means smaller producers will face margin pressure before large producers.
Companies with global supply chains – like Nestle (NSRGY.PK) and Hershey (HSY) – can rapidly adjust their
sourcing. Furthermore, their brand strength gives them pricing power as demand for their well-known candy
bars is probably price inelastic. A Hershey chocolate bar is a known entity far more likely to retain its consumer
appeal than a boutique fair-trade bar. Hershey doesn‘t disclose its suppliers but has a supply base in the
hundreds, diverse enough to weather disruptions. That gives it flexibility that your favorite overpriced fair-trade
certified organic candy maker does not have.

Rising prices for commodities are already compressing margins for producers in every sector. Now chocolate
makers will experience the same pressure. Those with the most flexible supply chains will be left standing when
the dust settles. High-minded fair-trade protest campaigns won‘t hurt larger producers if fair-trade growers
aren‘t in business anymore due to political instability. The surge of boutique fair-trade chocolate makers in the
last decade has likely run its course.

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Chocolate Nations: Living and Dying for Cocoa in West Africa
Jeremy Hardin
The Guardian,
29 January 2011

                                      Akosua Boadu harvesting cocoa on her farm in the village of
                                      Amankwaatia, Ghana. Photograph: Simon Rawles/@simonrawles

                                       Six years ago, Órla Ryan was covering the commodities market for
                                       Reuters in London. Later she was sent to Ghana to report on the country's
                                       cocoa trade, where City stats and prices turned vividly into life and death
                                       issues for cocoa farmers. Chocolate Nations is a fascinating account of the
                                       struggles of cocoa producers in West Africa, almost all of them
smallholders, and what it takes to turn a crop of cocoa into a warehouse full of Ferrero Rocher.

Pricing and speculation are obvious threats to a farmer's livelihood but so are pests, of which there's no shortage
for the tricky little evergreen, Theobroma cacao, brought to Ghana by a migrant returning from Fernando Po in
1879. Caterpillar and black pod are common. Witches' broom turns the beans to mush inside the pod, and wiped
out huge harvests in Brazil during the 1980s, when it was still the world's second largest producer.

Another menace is the political process in West Africa. Within a few years of Ghana's independence in 1957,
farmers were hit by huge tax rises. The theory, President Kwame Nkrumah wrote in his autobiography, was that
cocoa "belongs to the country. We had to think of the general public as well as the cocoa farmers".

Farmers were sceptical. Why had their leader ordered up a presidential frigate and spent millions on a
conference of African leaders in Accra? By the late 70s, Ghana's Cocoa Marketing Board was buying from
farmers at £347 a tonne; world prices at the time, Ryan tells us, "were in excess of £3,000". In the 80s, the
government raised prices for Ghana's producers, under pressure from the IMF, and yields began to increase. But
by then, farmers were smuggling their beans into Côte d'Ivoire to get a better deal, and Ghana had been
displaced by its neighbour as the leading producer.

In 2002 a rebellion erupted in Côte d'Ivoire. The heart of the matter was land rights: the post-independence
leader, Félix Houphouët-Boigny, had opened up land to migrants from the north to create a massive cocoa sector
and a flourishing sideline in coffee. The policy worked, but after Houphouët's death in 1993 and the economic
downturn, there were bitter disputes over land allocations. Did a migrant family "own" a piece of land just
because they'd worked it since the 60s? Equally, could people in the capital, Abidjan, who hadn't visited a plot
for a generation, claim it as theirs? The result was a head-on confrontation about Ivorian identity. If you came
from the north, or had a northern (Muslim) name, you were a foreigner.

Despite the intensity of the violence, Ryan says, beans continued to move to the port. Cocoa was too crucial for
the government and the farmers for anyone to loosen their grip. When the northern opposition – Les Forces
nouvelles – started levying money on producers who bypassed the capital and ran their crops directly into Togo,
rebel takings reached $30m in one year. "The ubiquity of Ivorian beans," Ryan writes, "is such that . . . nearly
every [chocolate] bar you buy will contain at least some from its plantations." It's a safe assumption that a 2011-
vintage Twix will contain Ivorian ingredients, even though last year's harvest was hit by bad weather and

Political conflict has also dealt a blow. President Laurent Gbagbo's refusal to acknowledge defeat in last
November's elections has produced a new round of violence in Côte d'Ivoire and held up delivery. Cocoa prices
in the City have been jittery but our love of chocolate can still be indulged at a snip, while citizens of Côte
d'Ivoire prepare for the worst.

Ryan has a salutary lesson in her book about why it doesn't do to spill too many beans. Back in the 80s, Gbagbo
was a rising star in Paris. At the time he made friends with a hyperactive French Canadian commodities
reporter, Guy André Kieffer, who headed out for Côte d'Ivoire in the post-Houphouët era to work for a cocoa
auditing company. In Abidjan Kieffer got into the dangerous habit of recycling his in-house reports to the
Ivorian press.

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When the IMF told Côte d'Ivoire to abolish the state price-setter, the government created five new price
regulators to do what their predecessor had done, under the guise of market pluralism. It also introduced new
levies on producers to fund the lifestyle of managers and minions in the new buyers' cartel.

Farmers saw less from deregulation than the IMF had hoped. Kieffer, who spoke out on this and other shady
operations in the cocoa business, disappeared in 2004. His wife and brothers travelled to Côte d'Ivoire, where
Gbagbo assured them he would try to find their relative, but nothing came of it. After last year's election, it was
the president's turn to disappear, but he dug his heels in. Whatever happens next, signs of a return to normal in
Órla Ryan's leading "chocolate nation" are not too encouraging.

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EU industry not hit by ivorian cocoa export ban
HAMBURG (2011-01-27) :The announcement of a cocoa export ban in ivory coast will not hit european
chocolate and confectionery makers in the short term, the association of european chocolate, biscuit and
confectionery industries caobisco said on tuesday. cocoa futures rose sharply on monday after ivory coast's
presidential claimant alassane ouattara called for a month-long ban on cocoa exports.

cocoa at fresh one-year high
NEW YORK (2011-01-27) :Us cocoa futures closed at a fresh one-year high on tuesday as major exporters
heeded to a call to ban exports from top grower ivory coast, but the rally may be overdone. six major exporters
of cocoa from ivory coast - including cargill, the top exporter of ivorian beans - are heeding presidential
claimant alassane ouattara's call for a ban, a move designed to cut funds to incumbent leader laurent gbagbo.

Us midday: cocoa climbs
NEW YORK (2011-01-27) :cocoa futures on ice touched a fresh one-year peak early on wednesday, as six
major exporters adhered to a call for a cocoa export ban from ivory coast and new sales offers from the top
grower wound down. arabica coffee futures soared as high as 3.9 percent, taking back losses from the past two
days, after fund buying triggered automatic buy stops, dealers said.

African states at odds on ivory coast crisis
KAMPALA (2011-01-26) :Cracks emerged on tuesday in african efforts to end a power struggle gripping ivory
coast, as uganda became the latest country to question united nations recognition of alassane ouattara as its
president. ugandan president yoweri museveni said he differed from the un line on the crisis, as a delegation of
west african states prepared a us trip to lobby president barack obama and un secretary-general ban ki-moon to
back a possible use of force to oust incumbent leader laurent gbagbo.

New york cocoa hits year high
NEW YORK (2011-01-26) :cocoa futures raced to their highest levels in a year on monday but closed off the
day's highs in a measured response to a call for a one-month ban on ivory coast cocoa exports. several analysts
were sanguine about the call's potential impact as they expected that beans would continue to flow despite the
political impasse.

Liffe cocoa rises
LONDON (2011-01-26) :Liffe may cocoa ended 15 pounds higher at 2,176 pounds ($3,436) a tonne on tuesday
after rising to a six-month peak of 2,269 pounds on monday. prices first soared after ivory coast's alassane
outtara declared a month-long export ban, and six exporters said they had heeded his call, but it remains unclear
how the ban will affect global supply because the main cocoa crop has already been exported.

Us midday: cocoa little changed
NEW YORK (2011-01-26) :cocoa was little changed near one-year peaks in volatile trade early on tuesday, as
dealers waited to see whether a call to ban exports from top producer ivory coast would affect supplies. sugar
and coffee futures fell, caught up in a drop in the commodities complex, as markets fretted about economic
tightening in asia, a key consumer of raw materials.

Liffe cocoa up on ivorian export ban call
LONDON (2011-01-25) :Liffe may cocoa ended 47 pounds higher at 2,161 pounds a tonne on monday after
earlier rising to a six-month peak of 2,269 pounds. prices soared after ivory coast's alassane outtara declared a
month-long export ban although dealers said the initial surge in prices was overdone with the market set to
remain well supplied.

Us midday: cocoa surges to 1-year peak
NEW YORK (2011-01-25) :Ice cocoa hit a one-year high early on monday after ivory coast's presidential
claimant alassane ouattara urged a month-long ban on exports from the top producer to stop cash reaching rival
laurent gbagbo.

London cocoa trade under the spotlight
London has had a long history of trading cocoa, but the City's exchange is now controlled by New York's
LIFFE, and has come under scrutiny in recent years over several attempts to corner the market by hedge funds

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