COPAL COCOA Info - DOC 11

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					                            COPAL COCOA Info
                               A Weekly Newsletter of Cocoa Producers' Alliance
                 Issue No. 465                                      7th – 11th November, 2011
In-House Cocoa Newsletter
 Cocoa Producers' Alliance




                              UP-COMING EVENTS                                    IN THIS ISSUE


                       1.                                                   ICCO INSIDE THIS ISSE:
                                                                                  DAILY COCOA PRICES
                                                                            LONDON (LIFFE) FUTURES MARKET
                                                                             UPDATE
                                                                            NEW YORK (ICE) FUTURES MARKET
                                                                             UPDATE
                                                                            FROM THE NEWS MEDIA
                                                                            TIT BITS




                              Do your health a favour, drink Cocoa everyday
                                        ‘It’s nature’s miracle food’
In the News (from Newspapers worldwide)
 Health and Nutrition                                    ‘Cargill   Announces      Memorandum       of
                                                         Understanding to Support Cocoa Sector in Cote
                                                          d'Ivoire
Production and Quality
 DJ Nigeria's Cocoa Production to drop 10% in        Labour Issues
    2011-12 Season - Trade                             Ivory Coast cocoa farms child labour: Little
 World 'needs extra 1m tonnes' of cocoa by 2020         change

The Market                                            Environmental Issue
 Ivory Coast Cocoa Premium is said to remain         
    stable in Europe
                                                      Research & Development
Processing & Manufacturing                            
 Cocoa grindings growth seen slowing in 2011/12
 UTZ CERTIFIED Q3 close shows significant            Promotion & Consumption
    increase in Coffee, Tea and Cocoa Sales           

Business & Economy                                    Others
 New technology introduced to enhance bulk export     Rains batter Cameroon, cocoa disease spreads
    of Ghana’s cocoa




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

 th
7 November                 1739.12            2738.75             1707.67              2746.33


 th
8 November                 1705.19            2686.35             1671.00              2692.00


 th
9 November                 1652.98            2594.84             1631.67              2591.00

  th
10 November                1624.66            2546.77             1602.67              2544.33

                               -                  -                   -                    -
  th
11 November

Average
                          1680.00            2642.00             2642.00              1653.00




               COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                 2
                   P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                          Email: econs@copal-cpa.org Website: www.copal-cpa.org
                 International Financial Futures and Options Exchange (LIFFE)
                         London Futures Market – Summary of Trading Activities
                                             (£ per tone)



Monday                7th November             2011
Month                      Opening Trans           Settle       Change     Daily High   Daily Low   Volume
    Dec 2011                   1689                1689           12         1697S        1673      6,220
    Mar 2012                   1710                1709           9          1723S       1699S      4,558
    May 2012                   1725                1725           11         1737S       1714S      1,062
    Jul 2012                   1743                1739           10         1752S       1729S       304
        Sep-12                 1750                1752           13         1765S        1740       103
    Dec 2012                   1760                1761           11         1765S       1760S       29
    Mar 2013                                       1774           10                                  0
    May 2013                                       1782           10                                  0
     Jul 2013                                      1775           10                                  0
    Sep 2013                                       1775           10                                  0
Average/Totals                                     1748                                             12,276




Tuesday               8th November             2011
Month                      Opening Trans           Settle       Change     Daily High   Daily Low   Volume
    Dec 2011                   1692                1652          -37         1693S        1643      7,258
    Mar 2012                   1712                1673          -36         1713S        1662      6,132
    May 2012                   1727                1688          -37         1727        1680S      1,192
    Jul 2012                   1740                1703          -36         1741        1703S       300
        Sep-12                 1753                1708          -44         1753S       1718S       549
    Dec 2012                   1761                1725          -36         1762S       1734S       593
    Mar 2013                   1776                1738          -36         1776S       1776S       200
    May 2013                                       1744          -38                                  0
     Jul 2013                                      1737          -38                                  0
    Sep 2013                                       1737          -38                                  0
Average/Totals                                     1711                                             16,224




Wednesday             9th November             2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
    Dec 2011                   1650                1613          -39         1661         1609      6,395
    Mar 2012                   1671                1633          -40         1683        1629S      7,279
    May 2012                   1696                1649          -39         1698        1645S      2,269
    Jul 2012                   1714                1664          -39         1714S       1660S       677
        Sep-12                 1708                1677          -31         1708S       1675S       682
    Dec 2012                   1710                1692          -33         1710S       1689S       366
    Mar 2013                   1731                1705          -33         1731         1703       179
    May 2013                                       1712          -32                                  0
     Jul 2013                                      1699          -38                                  0
    Sep 2013                                       1699          -38                                  0
Average/Totals                                     1674                                             17,847




                 COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,               3
                     P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                            Email: econs@copal-cpa.org Website: www.copal-cpa.org
Thursday               10th November           2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
    Dec 2011                   1614                1583          -30         1624S        1580      4,971
    Mar 2012                   1629                1605          -28         1643        1603S      8,537
    May 2012                   1651                1620          -29         1656S       1618S      3,060
     Jul 2012                  1665                1637          -27         1671        1636S      2,347
        Sep-12                 1680                1651          -26         1686S       1650S       988
    Dec 2012                   1699                1666          -26         1699S        1666       199
    Mar 2013                   1710                1679          -26         1710S        1678        42
    May 2013                                       1687          -25                                  0
     Jul 2013                                      1674          -25                                  0
    Sep 2013                                       1674          -25                                  0
Average/Totals                                     1648                                             20,144




Friday                 11th November           2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
    Dec 2011                   1583                1575           -8         1594        1565S       5,717
    Mar 2012                   1606                1596           -9         1614S       1584S       8,673
    May 2012                   1622                1610          -10         1629S       1600S       1,647
     Jul 2012                  1638                1625          -12         1645S       1615S       1,057
        Sep-12                 1652                1638          -13         1656S       1627S       817
    Dec 2012                   1667                1651          -15         1670S       1642S       340
    Mar 2013                   1681                1664          -15         1681        1662S        28
    May 2013                   1689                1671          -16         1689         1689        4
     Jul 2013                                      1655          -19                                  0
    Sep 2013                                       1655          -19                                  0
Average/Totals                                     1634                                             18,283




Average for the week                               1634                                             16955
                                                                                                    84,774




                 COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                4
                     P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                            Email: econs@copal-cpa.org Website: www.copal-cpa.org
                                      New York Board of Trade
                       (New York Futures Market – Summary of Trading Activities)
                                           (US$ per tone)



Monday                7th November            2011
Month                          Open              Price       Change        High        Low          Volume
    Dec 2011                   2722              2728          31         2740         2701         20,332
    Mar 2012                   2746              2750          19         2764         2727         15,142
    May 2012                   2742              2762          17         2771         2739         1,771
     Jul 2012                  2780              2775          17         2780         2767          122
    Sep 2012                   2776              2784          18         2780         2763          195
    Dec 2012                   2775              2795          21         2792         2775          113
    Mar 2013                   2810              2803          21         2810         2780           9
    May 2013                     0               2810          23           0            0            0
     Jul 2013                    0               2818          23           0            0            0
    Sep 2013                     0               2832          24           0            0            0
Average/Totals                                    2786                                              37684



Tuesday               8th November            2011
Month                          Open              Price       Change        High        Low          Volume
    Dec 2011                   2729              2663          -65        2739         2643         25,078
    Mar 2012                   2748              2689          -61        2760         2665         25,903
    May 2012                   2768              2699          -63        2769         2678         2,165
     Jul 2012                  2780              2716          -59        2780         2704         1,135
    Sep 2012                   2766              2727          -57        2766         2714          223
    Dec 2012                   2781              2737          -58        2781         2754          304
    Mar 2013                   2760              2746          -57        2760         2730          74
    May 2013                     0               2753          -57          0            0            0
     Jul 2013                    0               2761          -57          0            0            0
    Sep 2013                     0               2775          -57          0            0            0
Average/Totals                                    2727                                              54882



Wednesday             9th November            2011
Month                          Open              Price       Change        High        Low          Volume
    Dec 2011                   2676              2570          -93        2680         2549         21,842
    Mar 2012                   2695              2603          -86        2705         2586         23,127
    May 2012                   2711              2615          -84        2711         2599         2,206
     Jul 2012                  2706              2632          -84        2712         2619          465
    Sep 2012                   2650              2645          -82        2665         2640          312
    Dec 2012                   2675              2657          -80        2680         2647          439
    Mar 2013                   2730              2668          -78        2730         2660          60
    May 2013                   2688              2677          -76        2700         2688          11
     Jul 2013                    0               2685          -76          0            0            0
    Sep 2013                     0               2699          -76          0            0            0
Average/Totals                                    2645                                              48462




                 COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                  5
                     P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                            Email: econs@copal-cpa.org Website: www.copal-cpa.org
Thursday              10th November           2011
Month                          Open              Price       Change        High        Low          Volume
    Dec 2011                   2571              2504          -66        2585         2500         14,782
    Mar 2012                   2598              2559          -44        2618         2548         22,010
    May 2012                   2620              2570          -45        2624         2562         2,681
     Jul 2012                  2639              2586          -46        2639         2577         1,135
    Sep 2012                   2651              2598          -47        2652         2596          238
    Dec 2012                   2660              2612          -45        2660         2609          88
    Mar 2013                   2650              2625          -43        2650         2615          111
    May 2013                   2652              2634          -43        2652         2649          78
     Jul 2013                  2665              2642          -43        2665         2665          81
    Sep 2013                     0               2656          -43          0            0            0
Average/Totals                                    2599                                              41204



    Friday            11th November             2011
        Month                  Open              Price       Change        High        Low          Volume
    Dec 2011                   2505              2489          -15        2520         2465         9,731
    Mar 2012                   2559              2559          0          2588         2544         15,665
    May 2012                   2561              2570          0          2602         2556         2,692
     Jul 2012                  2580              2585          -1         2618         2577         1,204
    Sep 2012                   2598              2597          -1         2619         2590          284
    Dec 2012                   2610              2612          0          2631         2600          170
    Mar 2013                   2615              2624          -1         2629         2610          223
    May 2013                     0               2635          1            0            0            0
     Jul 2013                    0               2643          1            0            0           27
    Sep 2013                     0               2657          1            0            0            0
  Average/Totals                                  2597                                              29996



Average for the wee                              2597                                               5454
                                                                                                    5454




                 COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                  6
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                            Email: econs@copal-cpa.org Website: www.copal-cpa.org
                                                 News
                                                 NEWS

  Health and Nutrition




  Production & Quality

DJ Nigeria's Cocoa Production to drop 10% in           production each year, according to the state-run
2011-12 Season - Trade                                 Cocoa research Institute of Nigeria. "We are still
Middle East        North      Africa    Financial      having rainfall in Ondo state, the biggest cocoa
Network                                                producer in Nigeria. Substantial rains fell
By Obafemi Oredein; Dow Jones Newswires                [Thursday]," Robo said.
November 10, 2011
IBADAN, Nigeria, Nov 10, 2011 (Dow Jones               Nigeria normally produces 240,000 tons of cocoa a
Commodities News via Comtex) -- Nigeria's cocoa        year but new cocoa farms planted by cocoa-
production is expected to be down by 10% in the        producing states and rehabilitation of large tracts of
2011-12 season (October-September) due to              old cocoa farms were expected to raise national
excessive rain and otherwise poor weather, cocoa       output to 300,000 tons this season.
body officials and traders said Thursday. "Too
much rainfall hampered good development of             World 'needs extra 1m tonnes' of cocoa by 2020
cocoa this year while farmers received imported        Agrimoney.com
chemicals too late to fight cocoa diseases," Robo      By Agrimoney.com
Adhuze, an analyst with the Cocoa Association of       10th November 2011,
Nigeria, or CAN, told Dow Jones Newswires. He          World cocoa production needs to rise more than
said output by Nigeria in the 2011-12 had been         one-quarter to spare confectioners "significant
estimated at 300,000 metric tons by the association    challenges" in securing supplies, the top ranked
"but we will likely see this down by at least 30,000   chocolate maker said, unveiling plans to help
tons," following unfavorable weather.                  farmers double yields. However, the analysis failed
                                                       to prevent cocoa prices falling to two-year lows in
Rainfall has been extremely heavy in the southwest     both London and New York.
and southeast cocoa regions especially in
September and October and this led to the outbreak     Chocolate makers will need an extra 1m tonnes of
of the black pod disease in key cocoa-growing          cocoa beans by 2020 to meet demand, which, led
areas in Ondo, Osun, Ekiti, Oyo and Ogun states,       by emerging markets is growing by 2-3% a year,
traders contacted in the regions said.                 Swiss-based Barry Callebaut said.

Robo said the black pod disease was already on the     Brazilian consumption soared 12.8% in the year to
farms before effective chemical treatments arrived     the end of August.
in June, adding that they should come in in March,
before the onset of the rainy season in May. He        However, cocoa production "has been steadily
said some businessmen brought in bogus chemicals       declining for years, especially in Ivory Coast,"
that were sold to farmers at cheaper rates but were    responsible for nearly 40% of world output,
ineffective on cocoa diseases.                         Juergen Steinemann, the Barry Callebaut chief
                                                       executive, told shareholders.
"Even when the genuine chemicals arrived the
prices were high and several farmers could not buy     A bumper 2010-11 harvest, which was boosted by
enough to treat their farms. Due to excessive          favourable rains, masked the hindrance to
rainfall farmers needed more chemicals than they       production presented by volatile prices, when
usually bought each year to fight this year's black    farmers "main concern is to get a stable income",
pod disease," a trader in Ile-Ife, Osun state, said.   and better returns from other plantation crops.

Black pod, which thrives in cocoa farms in humid       Rubber was at the start of the year offering Ivory
conditions destroys 40% of Nigerian cocoa              Coast growers $2,000 a hectare more than cocoa,


               COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                       7
                   P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                          Email: econs@copal-cpa.org Website: www.copal-cpa.org
which has been the more profitable crop since
2003.                                                     The Market

'Fragile and sensitive'                                 Ivory Coast Cocoa Premium is said to remain
                                                        stable in Europe
"We have to do more to ensure the growth of our         Bloomberg
cocoa crop," Mr Steinemann said, terming the            By Isis Almeida
cocoa "a fragile and sensitive crop in every aspect".   November 07, 2011,
                                                        (Bloomberg) -- The premium buyers in the
Barry Callebaut itself, which alone expects to need     European market are prepared to pay for cocoa
an extra 300,000 tonnes of cocoa by 2020, was to        from Ivory Coast, the world’s largest producer, was
launch a "yield and quality initiative". This will      stable over the past month even as local prices rose,
boost output through measures such as providing         three people involved in the trade said.
agronomic advice to farmers, with the aim of
boosted yields to 800 kilogramme a hectare,             Ivorian beans from the 2011-12 crop started last
education to encourage young people intopthe            month traded in Europe at 45 pounds ($72) to 50
industry and a health plan to improve growers           pounds a metric ton above futures prices on the
livelihood. "We as market leader need to further        NYSE Liffe exchange in London, according to the
accelerate our direct impact to safeguard our           people, who declined to be identified because
growth ambition," Mr Steinemann said.                   they’re unauthorized to speak to the media. That
Asia-Pacific focus                                      compares with 40 to 70 pounds on Oct. 7, just
                                                        before beans started arriving at ports, three traders
The comments followed the group's release of            said then.
results showing a 9.0% rise to SFr258.9m in Barry
Callebaut's earnings for the year to the end of         Cocoa prices in Ivory Coast rose as farmers held
August, on revenues up 0.7% at SFr1.30bn.               back beans in hope of better prices. Average prices
                                                        paid at the country’s main growing centers climbed
The group, which makes chocolate on behalf of           to 727 CFA francs ($1.52) a kilogram (2.2 pounds)
giants such as Hershey, Kraft and Nestle, said that     in the Oct. 24-31 period from 715 CFA francs in
it had "again outperformed the global chocolate         the Oct. 17-23 span, figures published by the
market", raising volumes by 7.2% compared with          Bourse du Cafe et du Cacao show. “Since the
world growth of 3.1%.                                   beginning of the season, the cocoa price has been
                                                        supported by the decision taken by Ivorian farmers
The company expanded particularly fast in Asia,         to hold on to a portion of their beans in the hope of
where its sales volumes rose 10.4%. "It is clearly      seeing higher prices,” Lysu Paez, an analyst at
evident that the company's key global industrial        Natixis SA in Paris, wrote in a report to clients e-
customers are increasingly focusing on the Asia-        mailed yesterday.
Pacific region as the next growth area," the group
said.                                                   Buyers in Ivory Coast had to pay a premium to
                                                        NYSE Liffe prices of as much as 10 pounds a ton
Barry Callebaut shares closed 1.9% lower at             for beans as arrivals at local ports slowed, a trader
SFr820.00.                                              said on Oct. 27. Beans at ports in the country
                                                        usually trade at a discount.
Cocoa drops
                                                        Delayed Deliveries
Prices of cocoa itself extended a decline ongoing
since March, and attributed to upbeat short term        Farmers also delayed bean deliveries to ports as
hopes for world output, which were notably              they awaited government approval of an industry
improved by the end of hostilities in Ivory Coast.      reform that would guarantee a minimum price.
                                                        “This action may have been a good bet, as last
In London, December cocoa touched a two-year            Tuesday local authorities did finally agree on
low for a spot contract of £1,580 a tonne before        setting a minimum cocoa guaranteed price for
closing at £1,583 a tonne, down 2.0%.                   Ivorian farmers,” Paez said.

New York cocoa for December set a two-year low          Ivory Coast’s cocoa farmers will get a guaranteed
of $2,500 a tonne, before edging back to $2,504 a       50 percent to 60 percent of the international price
tonne at the close, a drop of 2.6% on the day.          of the chocolate ingredient as part of industry
                                                        reforms approved by the government on Nov. 2,
                                                        said spokesman Bruno Kone.


                COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                      8
                    P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                           Email: econs@copal-cpa.org Website: www.copal-cpa.org
Ghanaian beans in Europe were 85 pounds to 95          year, but that growth will slow to 2 percent in
pounds a ton above prices on NYSE Liffe, the           2011/12.
people said. That compares with 90 pounds to 100
pounds on Oct. 7. The country is the world’s           The International Cocoa Organization ICCO.L also
second-largest producer of cocoa.                      sees a slowdown in grindings, forecasting 2011/12
                                                       would see a reversion to the long-term average of
European cocoa butter, used to make chocolate,         around 3 percent growth, from around 4 percent in
was at a ratio of 0.97 to 1.04 times the NYSE Liffe    2010/11. "We don't feel that there is adequate
price, the traders said. That compares to 1 to 1.05    incentive for demand to increase at this pace in the
times the exchange price on Oct. 7. Cocoa butter       next season, the economic situation is not very
accounts for as much as 20 percent of the weight of    good, the main factor for grindings is economic
a chocolate bar, according to Commodities Risk         growth," said Laurent Pipitone, statistician of the
Analysis LC, a cocoa researcher based in New           ICCO.
York.
                                                       IVORY COAST IMPACT
Cocoa for December delivery fell 5 pounds, or 0.3
percent, to 1,677 pounds a ton by the 5 p.m. close     A disputed presidential election, leading to a ban
on NYSE Liffe. Prices are down 17 percent this         on cocoa exports, and unreliable power supplies at
year.                                                  local processing plants, brought top producer Ivory
                                                       Coast's industry to a standstill earlier this year.

  Processing & Manufacturing                           This boosted the utilization of processing capacity
                                                       in Europe. "The situation in Côte d'Ivoire disrupted
Cocoa grindings growth seen slowing in 2011/12         exports of cocoa products from the country and at
Reuters UK                                             the time it was not possible to foresee how long
By Sarah McFarlane                                     these disruptions would persist," the spokesperson
Nov 7, 2011                                            at Cargill said. "Consequently many processors
LONDON (Reuters) - Global cocoa grindings are          took prudent measures to protect the supply chain
expected to slow in 2011/12, reverting to historical   and ensure continuity of supply for their customers,
averages of 3 percent annual growth, as a              which led to a temporary accumulation of
deteriorating economic outlook dampens demand,         additional products stocks."
even though the latest European quarterly grindings
rose sharply.                                          Another factor which may have contributed to
                                                       Europe's jump in July-September grindings was
Rather than an indication of rapid demand growth       Cargill's   purchase    of German      processor
in Europe, where around 40 percent of the world's      Schwartauer Werke KVB.L -- including two plants
cocoa is consumed, the increase in quarterly           with capacity for 75,000 tonnes of chocolate per
grindings is due to processors catching up after       year -- which completed in June.
exports of beans stopped in top cocoa grower Ivory
Coast during conflict after a disputed presidential    Germany's July-September grindings jumped 36
election. "For 2011/12 we expect to see a continued    percent compared with the same period in 2010. "In
positive trend in the cocoa processing activity,       the past few years we have seen a series of
albeit at a lower and more sustainable pace," said a   takeovers of German grinders by multinationals
spokesperson at Cargill, whose processing and          like Cargill, ADM and Delphi," a German trader
chocolate-making plants are where around 15            said. "All the plants that were recently taken over
percent of the world's cocoa ends up.                  seem to be running at much higher levels than in
                                                       previous years."
Last month the European Cocoa Association
reported a 14 percent rise in July-September           Dealers also noted that Germany is well placed for
quarterly grindings compared with the same period      winning export business of semi-finished cocoa
a year ago, exceeding analysts' expectations.          products to chocolate manufacturers in rapidly
                                                       growing chocolate consumers Eastern Europe and
The unexpected sharp rise in European grindings        Russia.
caused upward revisions to global 2010/11
(October-September) grindings growth estimates.        POWDER DEMAND

Commodities broker Marex Spectron estimates            When cocoa beans are processed they make equal
global 2010/11 grindings grew 4.4 percent on the       amounts of powder and butter. Butter is what
                                                       makes chocolate melt in the mouth, while powder


               COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                     9
                   P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                          Email: econs@copal-cpa.org Website: www.copal-cpa.org
is used for flavour in foods including cakes,          Vietnam (21%), Honduras (15%), India (6%) and
biscuits, ice cream and cereal.                        Colombia (5%) complete the top five supplying
Traditionally, butter has been the higher value        countries.
product and the driver behind grindings growth, but
recently this has changed.                             Cocoa

The highest growth in cocoa demand is coming           With 66% of the total sales volume, Cote d'Ivoire is
from emerging markets including Asia, where            the largest supplier of UTZ CERTIFIED cocoa.
demand is focused on powder-based products,            Dominican Republic follow with 16%, Peru with
which has helped push up powder prices to trade at     6%.
a premium to butter. "They love chocolate in Asia.
They are beginning to consume chocolate based          Tea & Rooibos
products in mass quantities. Products like chocolate
cereal, chocolate drinks, and chocolate bakery         33% of certified tea volume trades are Rooibos,
items are flying off the shelves," said Shawn          coming from South Africa. Malawi is responsible
Hackett, president of Hackett Financial Advisors.      for 45% of the tea sales and Indonesia 21%. UTZ
                                                       CERTIFIED tea can also be sourced from India,
As GDP growth in emerging markets is expected to       Kenya, Sri Lanka and Argentina as well.
outpace that in developed markets, strong powder
demand could accelerate grindings growth. "Global      Mars, one of the founding partners of the UTZ
2011/12 grindings could be between 2 and 4             CERTIFIED cocoa program, has publicly
percent, partly because the macro outlook isn't        committed to source only UTZ cocoa for the Mars
looking as strong. But then again, if all the growth   bars sold in the Netherlands by 2012. Mars has
in powder demand is in emerging markets and the        pledged only sustainable cocoa will be used by
emerging markets continue to grow then maybe it        2020 in their global production. Lidl announced
will surprise on the upside," a European               their commitment to source an increasing amount
commodity fund analyst said.                           of UTZ CERTIFIED cocoa for the entire range of
                                                       their private chocolate label Fin Carré leading to
UTZ CERTIFIED Q3 close shows significant               fully a sustainable label by 2020..
increase in Coffee, Tea and Cocoa Sales
Sacramento Bee                                         All black, green, fruit, white and Rooibos teas from
By UTZ CERTIFIED                                       Ahold retail in the Netherlands now contain an
Nov. 9, 2011                                           increasing amount of tea leaves certified by UTZ.
Amsterdam, - UTZ CERTIFIED enjoys a sales              The 65 tea flavors will be switched to fully
boost in its third quarter sales. Compared to          certified contents per segment.
January - September 2010, certified sustainable
coffee sales rose 23% in the same period this year,    About UTZ CERTIFIED
leading to a sale volume of 105,757 metric tons of
coffee certified by UTZ in total. Tea sales also       UTZ CERTIFIED is one of the largest
increased significantly by almost 74% for a total of   sustainability programs for coffee, cocoa and tea in
2,416 metric tons and sales of currently registered    the world. Brands that have committed themselves
UTZ CERTIFIED cocoa have risen to 29,719               to the sourcing of (sustainable) UTZ CERTIFIED
metric tons -- an impressive increase of 149%          raw materials are global market leaders. Farmers
compared to the same period last year.                 are trained in the professionalization of their
                                                       agricultural practice and operational management
"We're encouraged by the continued increase of         with care for people and environment. This
certified coffee, tea and cocoa sold. Food             improves the quality of their products and allows
manufacturers are open to discussing future            them to produce higher volumes at lower costs.
purchases and long-term commitments" says Han          Moreover, farmers who work with UTZ
de Groot, executive director, UTZ CERTIFIED.           CERTIFIED in the global marketplace receive a
"We are also seeing well-informed consumers            premium for their crop and they don't have to pay
looking to their favorite brands to source             an annual fee for taking part in the program. The
responsibly."                                          UTZ CERTIFIED tracking system subsequently
                                                       guarantees that the raw materials have actually
Coffee                                                 been grown and harvested in a responsible manner.
                                                       For more information: http://www.utzcertified.org
Brazil remains UTZ CERTIFIED's top supplier of
coffee accounting for 39% of total sales volume.



               COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                     10
                   P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                          Email: econs@copal-cpa.org Website: www.copal-cpa.org
                                                       With the Unicontrol system, cocoa arrives at the
   Business & Economy                                  shed in bags which are emptied into the terminal
                                                       for CMC to conduct quality control exercises to
New technology introduced to enhance bulk              ensure that the beans are of the best quality that
export of Ghana’s cocoa                                Ghana is noted for . After that the heap of beans is
Ghana Business News                                    loaded into the marine vessel using conveyer belts
Source: Daily Graphic                                  positioned at the quayside at the port for export.
November 9, 2011                                       “This process takes only two days to load; hitherto
                                                       it took a week and half which was not the best as
                                                       the demand for the use of the quayside by other
                                                       vessels was very high,” Mr Andre said.

                                                       The Country Manager of Unicontrol Commodity,
                                                       Mr Kor Ritsema, said as part of the rehabilitation
                                                       exercise, the company has invested in roofing,
                                                       weighing machines, lightening systems and the
                                                       general improvement of the terminal in readiness
Unicontrol Commodity Limited, a storage and            for the anticipated increase in cocoa production.
cocoa shipping company working for the country’s
Cocoa Marketing Company (CMC), has retooled            He said after the successful introduction of the cost
its terminal in readiness for the much anticipated     effective technology to receive cocoa beans in bulk
increase in the production and export of cocoa .       some years ago in Holland, its replication in
                                                       exporting countries had become essential and
The company uses a system which ensures the            prudent, saying: “It was therefore important that
export of cocoa beans as a single bulk                 countries with dedicated terminals for cocoa like
consignment, a marked departure from the cocoa         Ghana make it easier to export in bulk without
sacks which were hitherto widely used.                 much delay which came with advantage for the
                                                       exporting and the importing countries,” he said.
The new technology, which is being practised in a
country such as Holland, also ensures that vessels     Cargill   Announces      Memorandum        of
transporting cocoa beans from Ghana are loaded in      Understanding to Support Cocoa Sector in Cote
two days, cutting down significantly from the long     d'Ivoire
days of about a fortnight that it takes to load bags   SYS-CON Media (press release)
of cocoa beans into marine vessels.                    By: PR Newswire
                                                       Nov. 11, 2011
According to officials of Unicontrol Commodity,        Company to continue to expand its training
since its inception in 1999 to export cocoa on         activities and to distribute 600,000 cocoa tree
behalf of CMC, the turnaround time for vessels at      seedlings to support farmers. Cargill's cocoa and
the Takoradi Port, especially those loading cocoa      chocolate business has agreed a memorandum of
beans, had reduced tremendously and had eased          understanding that underlines its continued support
vessel congestion at the Takoradi Port.                for Ivorian cocoa farmers and the development of
                                                       the country's cocoa sector.
This came to light at the inauguration of a
refurbished and equipped cocoa terminal at the         Cargill will invest U.S. $3.25 million to develop
Takoradi Port operated by Unicontrol to ensure that    and expand its farmer training program and support
long periods of loading large vessels were reduced.    activities to enable cooperatives to obtain
                                                       independent UTZ and Rain Forest Alliance
Speaking to the media, the Business Development        certification. This includes a partnership with
Director, Mr Eric Andre, said since the company        ANADER, Cote d'Ivoire's national rural
started working for CMC to date, it had                development agency, to support farmer training
successfully exported a total of 1.9 million tonnes    activities and the distribution of 600,000 cocoa tree
of cocoa using the bulk export approach. He said       seedlings to participating cooperatives to help
the company exported about 230,000 tonnes of           improve and renew existing cocoa farms.
cocoa during the 2010/2011 crop season and had
the capacity to scale up to about 325,000 tonnes a     The agreement with ANADER was signed at a
year since it could load a vessel of about 8,000       ceremony in Abidjan by the Minister of Agriculture
tonnes in just two days.                               for Cote d'Ivoire, Monsieur Mamadou Sangafowa




               COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                      11
                   P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                          Email: econs@copal-cpa.org Website: www.copal-cpa.org
Coulibaly and Greg Page, Cargill chairman and          Lionel Soulard, Managing Director West Africa,
chief executive officer.                               Cargill Cocoa & Chocolate said, "Successful cocoa
"Cote d'Ivoire remains one of the foremost             growing communities are important both for the
producers of cocoa in the world, and this agreement    development of the Ivorian economy and for our
strengthens our ongoing commitment to help             own business. We want to continue to provide
improve the farming practices and the livelihoods      support and assistance, where we can, to help
of Ivorian cocoa farmers, as well as support the       improve the quality, yields and incomes of farmers
development of the country's cocoa sector," said       so that cocoa farming can continue to thrive in the
Greg Page, Cargill chairman and chief executive        country for many generations to come."
officer.
                                                       About Cargill Cocoa & Chocolate:
The U.S. $3.25 million allocation for farmer
training marks another step in Cargill's Sustainable   Cargill Cocoa & Chocolate offers the food industry
Cocoa Program, which is its ongoing commitment         a wide range of both standard and customised
to build a sustainable cocoa supply chain, support     cocoa and chocolate ingredients to be used in
cocoa farmers and improve livelihoods in cocoa         delicious bakery, confectionery, and dairy
growing communities.                                   applications all over the world. Our product range
                                                       includes high quality Gerkens(R) cocoa powders,
Cargill has been training Ivorian cocoa farmers for    chocolate including Wilbur(R), Peter's(R) and
more than 10 years and today helps tens of             Veliche(R), coatings, fillings, cocoa liquors and
thousands of farmers increase yields, improve          cocoa butters. With years of experience in technical
quality and adopt more sustainable practices. In       food expertise Cargill supports its customers in
2011/2012 it will train over 60,000 farmers across     new recipes and new product development.
90 cooperatives in Cote d'Ivoire through over 1,100
farmer field schools. This training has already        Our facilities in Belgium, Brazil, Canada, Cote
enabled 44 farmer cooperatives to achieve              d'Ivoire, France, Germany, Ghana, the Netherlands,
independent UTZ certification and this figure will     UK and the USA are fully dedicated to produce in
double to 90 certified cooperatives by October         accordance with the highest food safety standards.
2012.
                                                       To secure a good quality and sustainable supply of
The intensive 10-month programme for                   cocoa beans we have our own cocoa bean sourcing
cooperatives and their members focuses on farming      operations for buying, handling and/or exporting of
techniques and post-harvest activities such as         cocoa beans in Brazil, Cameroon, Cote d'Ivoire,
pruning, plantation renewal and cocoa fermentation     Indonesia and Vietnam. Presence in all the leading
methods. In addition it also stresses broader social   producing countries allows Cargill to oversee the
aspects, such as the importance of ensuring            supply chain from beans at origin to cocoa and
children's education and HIV awareness.                chocolate products on our customers' doorstep. In
                                                       addition, extensive market research and analysis
In crop year 2011/12 Cargill is forecasting to         proves to be a source of valuable information to our
purchase 50,000 tonnes of certified cocoa, which       customers.
will represent cocoa premium payments totalling
over U.S. $9 million. Over 50 percent of these
payments go directly to farmers with the remainder        Labour Issues
being invested by the cooperatives to provide
assistance to members and to build local
                                                       Ivory Coast cocoa farms child labour: Little
community facilities. Cargill is continuing to work
                                                       change
closely with cooperatives to reach its target of
100,000 tonnes of certified sustainable cocoa beans    BBC News
from Cote d'Ivoire by 2015.                            By Humphrey Hawksley BBC News, Ivory Coast
                                                       November 10, 2011
Additionally through its partnerships with CARE
and the IECD, Cargill is improving access to                                                     A boy
healthcare, drinking water and renovating schools                                                working
in 10 communities in San Pedro and Daloa. It has                                                 on a
also renovated over 40 schools to provide                                                        cocoa
education and practical farming skills to help                                                   farm
young people improve their employment prospects.                                                 Work on
                                                                                                 cocoa
                                                                                                 farms in


               COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                     12
                   P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                          Email: econs@copal-cpa.org Website: www.copal-cpa.org
the region can be demanding - and dangerous                The sight of children carrying machetes or
                                                           pesticide equipment is common throughout Ivory
Global chocolate companies have been told they             Coast's cocoa belt.
have a moral responsibility to do more to stop
children working on cocoa farms in West Africa.            But the report by Tulane University in the US,
                                                           found that the chocolate industry's funding since
A recent report commissioned by the US                     2001 had "not been sufficient" and it needed to do
government found that more than 1.8 million                more More than 800,000 children here are believed
children in West Africa were involved in growing           to do some form of cocoa-related work.
cocoa.
                                                           I found a group walking along a muddy path
Many were at risk of being injured by machetes,            towards trees where bright yellow cocoa pods hung
pesticides or through other hazards.                       ready for harvest. They wore torn and grubby
                                                           shorts and T-shirts. There was no laughter or play.
                                            The Ivory      On their legs were scars from machete injuries.
                                                  Coast    There was no first aid kit around or any protective
                                                exports    clothing. In one hand they held a cocoa pod. With
                                            nearly half    the other they hacked it open with a machete, then
                                            the world's    prized out the beans.
                                                 cocoa.
                                            After years    Under the present system, once sold to market, it is
                                            of     civil   impossible to trace exactly where the beans came
war, the new government says ending poverty and            from - and whether or not young children are being
child labour is a priority and the chocolate industry      forced to work to produce them.
must be involved. "There is a moral obligation,"
said Gilbert Kone Kafana, minister for labour and          One of the children was Kuadio Kouako who said
social affairs. "The chocolate companies have a            he was 12 and whose home was more than 320km
duty to engage with us. We need to build roads,            (200 miles) away.
schools, hospitals and social centres; anything that
would allow Ivory Coast to progress. "This                 At first, the farm's owner insisted that three of the
development is necessary for farmers to have a             boys were his sons and that two belonged to a
good life, and it is in the interest of the industry to    friend. But when I asked for their names, he
work with us."                                             hesitated - then left. "I was living in Bouake with
                                                           my grandmother," Yao Kouassi said.
The chocolate industry is worth more than $90m
(£56.5m) a year, and more than 40% of people in            International chocolate companies say they are
the Ivory Coast live below the poverty line.               committed to ending child labour

Ten years ago, under international pressure,               The chocolate industry has sponsored some
chocolate companies signed an international                projects such as in the village of Campement Paul,
protocol to stop the practice of dangerous child           near the city of San Pedro. In 2008 a small school
labour. They promised to "commit significant               was built, for which the villagers had to pay half of
resources" and act "as a matter of urgency."               the $20,000 (£12,570) costs.

                                                 Cocoa     It can accommodate about 150 children. But the
                                                   pod     villagers say that another 400 in the community
                                            Cocoa is       still have no school to go to.
                                            the    raw
                                             ingredient    One child who has benefited is Dera, now 15.
                                                    for    When the school opened, his father took him off
                                              chocolate    cocoa work so he could learn to read and write.
                                            and one of     "You get very tired when you work so much," he
                                                  West     said, showing scars he still has from his machete
Africa's main exports                                      injuries. "Every day I would wake at six o'clock
                                                           and go straight to the cocoa farm."
Scarring work
                                                           The chocolate industry concedes that more needs to
                                                           be done, but says that even since 2009 its
                                                           programmes have helped hundreds of thousands of


                COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                         13
                    P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                           Email: econs@copal-cpa.org Website: www.copal-cpa.org
cocoa farming families and more than one million
children.                                                    Others

New targets                                               Rains batter Cameroon, cocoa disease spreads
                                                          Reuters Africa
Company executives refuse to speak on this issue          By Tansa Musa
and refer queries to public relations consultant          Nov 9, 2011
Joanna Scott. "Far too many children are in the           YAOUNDE Nov 9 (Reuters) - Heavy rains in
worst forms of child labour and that is                   Cameroon have caused blackpod disease to spread
unacceptable to us," she says. "No child should           and risk denting output from two leading growing
ever be harmed in the growing and harvesting of           regions in the world's fifth largest grower, members
cocoa and that is why we are totally committed to         of cooperatives said on Wednesday.
work with others in resolving the situation."
                                                          Cameroon's annual cocoa output hit a record of
                                          Child           240,000 tonnes in the 2010/11 season and the
                                       labourer           Cocoa Development Authority has forecast
                                            with          production rising to 250,000 tonnes in the on-going
                                       pesticide          2011/12 season.
                                      equipmen
                                      t Child             Joseph Nde, manager of the cocoa growing and
                                      workers -           exporting firm Cameroon Marketing Commodities
including those working with pesticides - often           (CAMACO), based in Kumba in the South-West,
have no protective equipment                              said months of rains had prevented farmers from
                                                          treating their crops with pesticides. "Right now we
Last year, under continuing pressure, the chocolate       are praying that the dry season should set in as
industry signed another agreement - this time to cut      soon as possible or else, from the rate at which the
by 70% the number of children working in                  disease is spreading across the region," he said. "I
dangerous conditions by 2020.                             am afraid this could bring down output by about
                                                          five to 10 percent this season if the heavy rains
There is, though, some difference over the figures.       continue for another month," he added. South-West
                                                          produces about 40 percent of Cameroon's overall
The US study found that between 2001 and 2009,            crop.
less than 4% of people in Ivory Coast's cocoa-
growing communities had been helped by the                Similar reports came in from the Centre region,
industry's programmes, and about 33,000 children.         which also accounts for about 40 percent of the
                                                          crop. "Many farmers have now given off the idea
The chocolate companies say they have done much           of spraying their farms because it will just be a
more. But the US Department of Labor, a signatory         waste of time and money as the rains just wash off
to the new agreement, backs the Tulane report,            the chemicals," said Emmanuel Nguile from Bafia,
saying its figures are "credible and reliable". If that   135 km north of the capital. "So within a short time
is the case, even if the 2020 target is achieved,         the blackpod has hit us and is spreading very fast.
almost a quarter of a million children would still be     Hardly will you find any farmer who will not
at risk, harvesting cocoa for global chocolate            complain that his plants and pods have not been
companies.                                                attacked."

                                                          Separately, state radio said a bridge over the Ntem
                                                          River in the South region, the country's No. 3
   Environmental Issue                                    growing area, collapsed due to floods, preventing
                                                          farmers from taking produce to market. (Reporting;
                                                          Editing by David Lewis)

   Research & Development




  Promotion & Consumption




                COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                       14
                    P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                           Email: econs@copal-cpa.org Website: www.copal-cpa.org

				
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