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									                           COPAL COCOA Info
                                 A Weekly Newsletter of Cocoa Producers' Alliance
                 Issue No. 441                                                             23rd – 27th May 2011
In-House Cocoa Newsletter
 Cocoa Producers' Alliance




                                      UP-COMING EVENTS                                              IN THIS ISSUE
                                                                                                    INSIDE THIS ISSE:

                            Seminar of Cocoa Statistics for Nigeria, 2nd June 2011,          ICCO DAILY COCOA PRICES
                             Akure, Ondo State, Nigeria.
                                                                                              LONDON (LIFFE) FUTURES MARKET
                            SPS Capacity Building Workshop, 7th -10th June 2011,
                                                                                               UPDATE
                             Yaounde, Cameroon.
                            Seminar on Futures Markets, 13th – 17th June, 2011, London,      NEW YORK (ICE) FUTURES MARKET
                             United Kingdom.                                                   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                                  Business & Economy
 Cocoa improves digestion, helps maintain weight       Malaysian cocoa a money-spinner
 Can chocolates really be healthy?                     Peru's cocoa exports up 67 percent in first quarter

Production and Quality                                 Labour Issues
 Deadly Fungus threatens Latin American cocoa         
    crop
 Swiss chocolate co trains cocoa farmers on quality   Environmental Issue
    aspects                                            

The Market                                             Research & Development
 Cocoa prices fall on fears of quality                
 Quality concerns hit cocoa price in Europe
 Cocoa Rises in N.Y. on Ivory Coast turmoil;          Promotion & Consumption
    Sugar, Coffee Climb                                
 Cocoa market to have 189,000-ton surplus, ICCO
    Forecasts                                          Others
                                                        Frosty Pod Rot in Cocoa is worse than Witches’
Processing & Manufacturing                                 Broom, ICCO Says
                                                       Watch Cocoa ETN as Fungus threatens Crops


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

  rd
23 May                     1840.22             2906.05              1821.33                2886.67


  th
24     May                 1842.98             2919.01              1819.00                2901.33


  th
25 May                     1898.34             3004.12              1866.67                2977.33

  th
26 May                     1914.72             3041.28              1874.00                3027.00

  th
27 May                     1885.59             3003.71              1837.67                2984.00


Average                    1876.00             2975.00               1844.00               2955.00




               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                23rd May                 2011
Month                      Opening Trans           Settle       Change     Daily High   Daily Low   Volume
     Jul 2011                  1810                1792          -24         1815         1790      7,674
    Sep 2011                   1843                1822          -23         1844S       1820S      3,602
    Dec 2011                   1871                1850          -24         1872        1850S      1,774
    Mar 2012                   1894                1875          -22         1894        1875S      1,247
    May 2012                   1910                1890          -21         1910        1890S       226
        Jul-12                 1915                1900          -17         1920S       1900S       35
        Sep-12                 1925                1907          -20         1931S        1921       66
    Dec 2012                   1933                1919          -17         1940S        1933       55
    Mar 2013                   1940                1928          -17         1940         1940       11
    May 2013                                       1928          -17                                  0
Average/Totals                                     1881                                             14,690



Tuesday               24th May                 2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
     Jul 2011                  1790                1791           -1         1810         1785      7,147
    Sep 2011                   1823                1819           -3         1837         1812      3,954
    Dec 2011                   1850                1847           -3         1864         1840      1,539
    Mar 2012                   1875                1873           -2         1890         1865       768
    May 2012                   1884                1887           -3         1891         1880       18
        Jul-12                 1900                1897           -3         1900         1895       47
        Sep-12                 1902                1905           -2         1911         1900       95
    Dec 2012                   1933                1919           0          1933S        1926        9
    Mar 2013                                       1932           4                                   0
    May 2013                                       1932           4                                   0
Average/Totals                                     1880                                             13,577



Wednesday             25th May                 2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
     Jul 2011                  1790                1841           50         1855        1784S      6,336
    Sep 2011                   1815                1867           48         1880S        1810      3,835
    Dec 2011                   1839                1892           45         1896S       1837S      2,204
    Mar 2012                   1869                1918           45         1920        1869S       511
    May 2012                   1898                1932           45         1935S       1898S       27
        Jul-12                                     1942           45                                  0
        Sep-12                 1902                1950           45         1902         1902       15
    Dec 2012                                       1964           45                                  0
    Mar 2013                                       1977           45                                  0
    May 2013                                       1977           45                                  0
Average/Totals                                     1926                                             12,928




                 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               26th May                2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
     Jul 2011                  1848                1849           8          1883         1833      13,869
    Sep 2011                   1874                1873           6          1904S        1859      11,139
    Dec 2011                   1890                1900           8          1929        1884S      2,674
    Mar 2012                   1916                1926           8          1952        1915S      1,272
    May 2012                   1925                1939           7          1962S       1925S       164
        Jul-12                 1950                1946           4          1962        1950S        4
        Sep-12                                     1954           4                                   0
    Dec 2012                                       1964           0                                   0
    Mar 2013                   1983                1970           -7         1983         1983       20
    May 2013                                       1970           -7                                  0
Average/Totals                                     1929                                             29,142



Friday                 27th May                2011
Month                      Opening Trans           Settle       Change        High        Low       Volume
     Jul 2011                  1853                1813          -36         1860        1805S      4,271
    Sep 2011                   1875                1836          -37         1884S       1828S      4,084
    Dec 2011                   1911                1864          -36         1911S        1855      2,109
    Mar 2012                   1936                1891          -35         1936S       1881S      2,132
    May 2012                   1935                1904          -35         1938        1897S       132
        Jul-12                 1933                1912          -34         1933S        1912        51
        Sep-12                 1915                1914          -40         1919        1915S        36
    Dec 2012                   1956                1929          -35         1956        1934S        21
    Mar 2013                   1934                1933          -37         1934         1934        31
    May 2013                                       1935          -35                                  0
Average/Totals                                     1893                                             12,867



Average for the week                               1893                                             16641
                                                                                                    83,204




                 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                23rd May                2011
Month                          Open              Price       Change        High        Low          Volume
     Jul 2011                  2897              2865          -37        2906         2870         8,725
    Sep 2011                   2917              2882          -38        2922         2888         4,355
    Dec 2011                   2950              2911          -40        2950         2912          835
    Mar 2012                   3000              2969          -36        3004         2975          918
    May 2012                   3000              2969          -33        3009         2980          324
     Jul 2012                  2998              2965          -30        2998         2998          13
    Sep 2012                   2985              2962          -34        2985         2985          59
    Dec 2012                   2983              2971          -34        2983         2983          45
    Mar 2013                     0               3001          -34          0            0            0
Average/Totals                                    2944                                              15274



Tuesday               24th May                2011
Month                          Open              Price       Change        High        Low          Volume
     Jul 2011                  2878              2884          19         2923         2860         13,268
    Sep 2011                   2897              2898          16         2936         2877         5,040
    Dec 2011                   2929              2927          16         2960         2910         1,322
    Mar 2012                   2976              2984          15         3024         2965          991
    May 2012                   2970              2978          9          3004         2970          349
     Jul 2012                    0               2971          6            0            0           10
    Sep 2012                   2962              2972          10         2962         2962          55
    Dec 2012                     0               2983          12           0            0           18
    Mar 2013                     0               3008          7            0            0            0
Average/Totals                                    2956                                              21053



Wednesday             25th May                2011
Month                          Open              Price       Change        High        Low          Volume
     Jul 2011                  2875              2962          78         2986         2874         11,906
    Sep 2011                   2900              2978          80         3000         2886         4,246
    Dec 2011                   2924              3004          77         3022         2913         1,042
    Mar 2012                   2975              3060          76         3065         2970          521
    May 2012                   3016              3056          78         3016         3016          14
     Jul 2012                  3043              3050          79         3043         3043          86
    Sep 2012                     0               3050          78           0            0           67
    Dec 2012                     0               3061          78           0            0           17
    Mar 2013                     0               3081          73           0            0            0
Average/Totals                                    3034                                              17899




                 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               26th May               2011
Month                          Open              Price       Change        High        Low          Volume
     Jul 2011                  2982              3010          48         3062         2964         15,788
    Sep 2011                   3000              3022          44         3070         2977         7,134
    Dec 2011                   3029              3041          37         3090         3003         2,463
    Mar 2012                   3083              3102          42         3140         3070          604
    May 2012                   3110              3097          41         3110         3104          111
     Jul 2012                    0               3093          43           0            0            0
    Sep 2012                   3060              3092          42         3060         3060           3
    Dec 2012                     0               3104          43           0            0            0
    Mar 2013                   3098              3124          43         3140         3098          806
Average/Totals                                    3076                                              26909



    Friday             27th May                 2011
        Month                  Open              Price       Change        High        Low          Volume
     Jul 2011                  3010              2969          -41        3040         2957         8,760
    Sep 2011                   3026              2981          -41        3051         2971         3,887
    Dec 2011                   3046              3007          -34        3062         3001         1,563
    Mar 2012                   3101              3067          -35        3103         3068          611
    May 2012                   3095              3066          -31        3096         3060          373
     Jul 2012                  3095              3061          -32        3095         3053          485
    Sep 2012                   3099              3056          -36        3105         3062          42
    Dec 2012                   3085              3068          -36        3085         3085          22
    Mar 2013                     0               3083          -41          0            0            0
 Average/Totals                                   3040                                              15743



Average for the week                             3040                                                3149
                                                                                                     3149




                 COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE,                  6
                     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
                                                  News
                                                  NEWS

 Health and Nutrit
Health and Nutrition

Cocoa improves digestion, helps maintain weight
Food Product Design
24/05/2011
UNIVERSITY PARK, Pa.—Cocoa polyphenols can inhibit digestive enzymes in vitro and may, in conjunction
with a low-calorie diet, play a role in body weight management, according to a new study published in the
Journal of Agricultural and Food Chemistry.

Researches at Penn State University determined the in vitro inhibitory effects of cocoa extracts and procyanidins
against pancreatic alpha-amylase (PA), pancreatic lipase (PL) and secreted phospholipase A2 (PLA2), which are
digestive enzymes, and characterized the kinetics of such inhibition. The team tested three types of cocoa—a
cocoa extract that underwent regular processing; an extract that underwent minimal processing (Lavado) that is
high in flavanols; and an extract that underwent minimal processing (Dutch-processed) that is low in flavanols.
The team also examined cocoa procyanidins (degree of polymerization (DP) = 2 to 10).

Cocoa extracts and procyanidins dose-dependently inhibited PA, PL and PLA2. Lavado cocoa extract was the
most potent inhibitor (IC50 = 8.5 to 47 μg/mL). An inverse correlation between log IC50 and DP (R2 >
0.93) was observed. Kinetic analysis suggested regular cocoa extract, the pentamer, and decamer inhibited PL
activity in a mixed mode. The pentamer and decamer noncompetitively inhibited PLA2 activity, whereas regular
cocoa extract inhibited PLA2 competitively.

Can chocolates really be healthy?
Times of India
By Mansi Kohli, |
May 25, 2011,

                                   Whether to satiate tastebuds, satisfy cravings or restore carbs in the body, the
                                   profound wonders of chocolates are endless.

                                   Not only can we write realms about our love for chocolates, we are not
                                   telling you that chocolates are actually healthy for you. Yes, you read write.
                                   Chocoholics can celebrate with a healthy dose of dark chocolate as it is full
                                   of antioxidants.

According to a Spanish study published in 2010 in the Journal of Hepatology , mentioned in livestrong , "The
antioxidants in dark chocolate reduce the damage that can occur to blood vessels...The dark chocolate can help
prevent the blood vessels in the liver from rupturing". Medical experts suggest that munching on 100 grams of
chocolate every day helps in reducing the occurrence of cardiovascular mishaps by 21 per cent. "The flavanols
in cocoa beans have a biochemical effect of reducing platelet clumping, similar to but much less than aspirin,"
says Diane Becker, MPH, ScD, a researcher with the John Hopkins University School of Medicine as mentioned
in webMD .

How much chocolate is too much? To gain from chocolate's health benefits, one must refrain from eating a
whole bar of chocolate at one go. One square a day, say about 30 calories of chocolate is more than enough to
enjoy its health benefits.

In order to gain maximum health benefits from chocolates, Mayo Clinic tells us to go for "chocolate that
contains at least 60 per cent cocoa. Milk chocolate typically has 15 per cent to 25 per cent cocoa. Dark chocolate
tends to have 50 per cent to 80-plus per cent 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
Also note that according to bbc , "It is true that dark chocolate contains antioxidants, but also a lot of fat and
calories. People who want to add some chocolate to their diet need to subtract an equivalent amount of calories
by cutting back on other foods to avoid weight gain."

Rule of Thumb #1: More nonfat cocoa solids present in the chocolate translate to higher amounts of antioxidants
in it. Stay away from chocolates that have extra fat content in them under the name of "milk fat" or "partially
hydrogenated vegetable oil" other than "cocoa butter."

Rule of Thumb #2: Read the label of the chocolate as it will clearly state if the chocolate has saturated fats and
trans fats other than stearic acid.

Keep in mind that one tablespoon of cocoa butter has 4.5 grams of monosaturated fat, 0.3 grams of
polyunsaturated fat and 9 grams of saturated fat.


  Production & Quality

Deadly Fungus threatens Latin American cocoa crop
Wall Street Journal
By JEAN GUERRERO
MAY 23, 2011
VILLAHERMOSA, Mexico—Cocoa farmers from Brazil to Mexico are scrambling to protect their crops from a
potentially devastating fungus that could crimp supplies of the chocolate ingredient.

Frosty pod rot, spread by spores carried by wind and human contact, is making its way through Latin America,
bringing back memories of a blight that devastated Brazil's cocoa industry two decades ago.

The spread of the disease could add to worries about the supply of cocoa and send futures prices even higher.
Futures touched $3,826 a metric ton on IntercontinentalExchange earlier this year when political turmoil in
Ivory Coast, which provides one-third of the world's cocoa, threatened global supplies.

The cocoa bean is native to Latin America, but the nexus of cocoa production shifted to West Africa in the early
1900s as infestations such as frosty pod rot devastated Latin America's cocoa horticulture.

In 2005, the disease arrived in Mexico, the sixth-largest producer in the region and the farthest north the fungus
can possibly spread. Chocolate companies such as Nestlé SA say the industry has finally touched bottom, but
that the outlook can only improve as all of the countries affected in the region collaborate to find solutions.

                                        A woman spreads cocoa beans to dry in Venezuela. The outbreak of
                                        frosty pod rot has raised concerns about the Latin American cocoa crop,
                                        stirring worries about supplies and pushing up futures prices.

                                        Before the advent of frosty pod rot, "the trees were so filled up with
                                        cocoa fruit that I could stand behind one and you couldn't see me," says
                                        Felícito Domínguez-Sánchez, owner of 37 acres of cocoa trees in the
                                        southern state of Tabasco.

Now, only three of the round, green pods protrude from the trunk of one of his trees. Every day, Mr.
Domínguez-Sánchez enters his plantation daily with his machete to hack off "sick" plants, which he identifies
by the fine, white powder coating their surfaces, and buries them underneath damp leaves covering the ground.

International researchers and Latin American governments say the best defense against the fungus would be the
use of cocoa varieties resistant to the disease. Governments and food companies such as Nestlé SA and Mars
Inc. have invested heavily in researching cocoa's genetics and breeding, but the research has yet to produce
disease-resistant varieties.




               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
Some experts blame abnormal temperatures and rainfall for helping to spread frosty pod rot and warn that the
trend is putting global supplies in jeopardy. "We don't have a dike to hold back the ocean of disease pressure,"
said Howard-Yana Shapiro, global head of plant science and research for Mars.

The fungus hasn't yet arrived in Brazil, the largest producer in Latin America and the fifth-largest world-wide,
but industry leaders there are working with research institutions just in case the disease leaks through the border
with Peru, where it has been detected.

The international research center on tropical agriculture, Costa Rica-based Catie, has developed six varieties that
are tolerant of the fungus and is sharing them with other countries. A tolerant variety is one that sees less
damage to its production than the average plant; a resistant variety's production isn't affected by the fungus at
all.

In Mexico, government officials have identified nine native cocoa species that show some tolerance. Some of
these species produce the white seeds that can be made into "fine" cocoas, which are valued above conventional
varieties. Fine cocoas originate mostly from Latin America. The fungus, however, has forced many producers
out of the industry. Mexico, the 12th largest cocoa producer in the world, has seen its production fall by half
since 2005, when the disease arrived from Guatemala.

Frosty pod rot isn't the only disease that has wreaked havoc on cocoa production in Latin America, but its arrival
was what brought the region's industry to its knees. Two decades ago, a fungus called witches' broom appeared
in Bahia, Brazil, and cut the state's production by 70% in 10 years. In the harvest that ended in April, Bahia
produced 153,600 metric tons of cocoa, down from the record 397,400 tons seen in the 1986-1987 season before
the witches' broom fungus appeared.

"The impact of witches' broom was very serious in Brazil, but if the frosty pod rot arrives, the effect would be
catastrophic," says Wilberth Phillips, head of the research center Catie. Costa Rica's cocoa production dropped
72%, and exports virtually came to a halt within five years of the arrival of the disease in 1978, according to the
center's statistics. In Honduras, production fell to 1,200 metric tons in 2005 from 4,500 metric tons in 1997.
Thousands of acres throughout the region have been abandoned or switched to other crops.

Protecting cocoa crops from this disease is proving difficult. The disease is nearly impossible to contain in
humid areas such as in Mexico's south eastern Tabasco state, producers say.

Some in the industry are worried that the frosty pod rot could make its way to West Africa, which supplies more
than half of the world's cocoa.

With cocoa futures around $3,000, more than double the five-year average, producers are traveling to other
countries to search for better varieties of the plants. But this could contribute to the spread of the disease if the
producers travel with clothes or plants contaminated with spores.

"The procedures they have in a lot of African countries are not as sophisticated or developed for keeping that
sort of [disease] out," says Michael Segal, information officer for the International Cocoa Organization, or
ICCO.

In Mexico, the most recent place to suffer the arrival of the fungus, the Agriculture Ministry aims to increase
cocoa yields from 357 pounds per acre to 1,784 pounds per acre with a program that subsidizes the purchase of
plants that have been bred to be disease-tolerant. Last year, 1.5 million of these plants were produced with the
help of the program, and this year Mexico aims to produce two million.

But many producers say they can't obtain the bank credits required for participation in the program. "We're told
we don't have enough guarantees," said Mr. Domínguez-Sánchez, who added that his bank has told him that he
doesn't have proper proof of ownership for his property, which is cooperatively owned. Many farmers in Mexico
similarly involved in cooperatives face problems meeting bank requirements for loans.

Government officials say they are working to encourage banks to lend money to farmers so they can buy the
disease-tolerant cocoa plants.




                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
Swiss chocolate co trains cocoa farmers on quality aspects
ImagesFood.com
26 May 2011

                                        Indian Organic Farmers Producers Company Ltd (IOFPCL) and the
                                        Switzerland-based Chocolate Stella are exploring new areas in the cocoa
                                        sector, including value-addition, and export of organic and conventional
                                        cocoa on long-term basis.

                                        IOFPCL has been doing business with Chocolate Stella since 2009, an
                                        end user of cocoa, in the global market. The company makes dark
                                        chocolate directly out of cocoa produced by farmers in Kerala, signifying
                                        the presence of Indian cocoa in the global market.

Mr Antony Panakal, Business Development Manager of Chocolate Stella, said that there is a potential interest
for dark chocolate in the world market and consequently, there will be demand for superior quality cocoa from
IOFPCL. The company had started imparting training to farmers in India and there are about 5,000 farmers
involved in the activities of IOFPCL, which is expected to increase to 10,000 in the current financial year.

Timely intervention

The lead farmers from Kerala were trained in Switzerland on quality improvement aspects of cocoa and
chocolates. The intervention of IOFPCL enhanced the price of cocoa from Rs 16 to Rs 50 a kg. Mr Antony, who
was here to support the export activities of organic and fair trade products of IOFPCL with member farmer
groups in various parts of the State, said that the Indian single origin chocolate introduced by Chocolate Stella in
the International Confectionary Fair at Cologne in Germany had received encouraging response.

Seeking more participation from farmers in the activities of IOFPCL, he said that the intervention of IOFPCL
could provide better farm gate price to the farmers, reduce involvement of intermediaries in the value chain and
facilitate presence of India in the international cocoa market. The intervention of IOFPCL is able to link the
Indian cocoa farmers with the end user of cocoa in Switzerland, he added.

Exports

Mr K.J. Thomas, Managing Director, said that IOFPCL had so far exported 60 tonnes of organic cocoa, three
tonnes of organic vanilla, 16 tonnes of organic coffee, 22 tonnes of organic coconut oil, 100 tonnes of organic
pepper to Switzerland, the US and Germany. The company is expecting 100 per cent growth during the current
financial year.

India is in deficit of 10,000 tonnes of cocoa and the demand is increasing in the world due to various reasons. A
comprehensive policy by the Government for promotion of cocoa industry is essential including creation of a
crop-specific autonomous institution with full mandate for its sustainable growth, he said.


  The Market

Cocoa prices fall on fears of quality
BusinessDay
24 May 2011

                                        Europe’s fresh cocoa prices fell in thin trade this week as buyers waited
                                        to learn more about the quality of Ivory Coast cocoa beans before
                                        making new purchases, traders said. Ivory Coast, the world’s top cocoa
                                        producer, resumed cocoa exports earlier this month after a disputed
                                        presidential election led to an export ban, European trade sanctions, a
                                        crippled banking system, and weeks of civil war.

                                        Abundant rains which fell in Ivory Coast’s cocoa-growing regions
should enable a strong mid-crop until at least early August.


                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
“The market is a bit boring and people expect it to go down because of fundamentals,” one trader said.

“On the other hand we still don’t know what the quality of the beans is. It is still pretty unsafe to send people
there to look into it,” he said.

Cocoa arrivals at Ivorian ports are running around 13 percent above last year’s levels and deliveries are set to
keep picking up, but security remains a problem up-country, exporters said on Friday.

Thousands of cocoa farmers who fled their fields during five months of conflict in Ivory Coast are too afraid of
ethnic reprisals to go home, and many fear their plantations are either looted or rotting.

Ivory Coast differentials were at around 60 pounds over London nearby cocoa futures contracts LCCc1, 20
pounds down from last week. “Now the main concern is getting logistics in Ivory Coast back to normal,”
another trader said. “Also we should be getting the first indication about the new crop to be harvested in
November, so the market is looking into it too.”

Cocoa purchases declared by private buyers to Ghana’s Cocobod industry regulator hit 846,385 tonnes by May
5 since the start of the season in October.

Price ratios for cocoa butter, a key ingredient in chocolate, firmed to around 1.28 times .London bean contracts ,
against 1.20. “There is strong demand for cocoa butter now and ratios are higher,” one trader said. “The cocoa
butter price is very low. The chances that prices could be significantly lower are very slim, so everyone is
buying.

Quality concerns hit cocoa price in Europe
Commodity Online
25 May 2011
LONDON (Commodity Online) : Quality concerns over Ivory Coast cocoa, which restart cocoa exports this
month, hit prices of the commodity in European markets.

Analysts said fresh cocoa prices fell in thin trade this week as buyers waited to learn more about the quality of
Ivory Coast cocoa beans before making new purchases.

Ivory Coast, the world’s top cocoa producer, resumed cocoa exports after a disputed presidential election led to
an export ban, European trade sanctions, a crippled banking system, and weeks of civil war.

Abundant rains which fell in Ivory Coast’s cocoa-growing regions should enable a strong mid-crop until at least
early August. Cocoa arrivals at Ivorian ports are running around 13 percent above last year’s levels and
deliveries are set to keep picking up, but security remains a problem up-country.

Thousands of cocoa farmers who fled their fields during five months of conflict in Ivory Coast are too afraid of
ethnic reprisals to go home, and many fear their plantations are either looted or rotting. Ivory Coast differentials
were at around 60 pounds over London nearby cocoa futures contracts LCCc1, 20 pounds down from last week.

Cocoa purchases declared by private buyers to Ghana’s Cocobod industry regulator hit 846,385 tonnes by May
5 since the start of the season in October.

Price ratios for cocoa butter, a key ingredient in chocolate, firmed to around 1.28 times .London bean contracts ,
against 1.20.

Cocoa Rises in N.Y. on Ivory Coast turmoil; Sugar, Coffee Climb
San Francisco Chronicle Bloomberg
May 25, 2011
(Bloomberg) -- Cocoa futures rose to the highest in more than a week on concern that turmoil in Ivory Coast, the
world's biggest producer, will delay the harvest, reducing supplies. Sugar and coffee gained.

Amnesty International said both sides in Ivory Coast's political crisis committed war crimes and warned that
President Alassane Ouattara's failure to condemn atrocities by his backers is enabling abuses to continue. Cocoa



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shipments were disrupted during fighting between supporters of Ouattara and former leader Laurent Gbagbo
following a disputed November election. "Normalcy has returned to an extent, but it's not completely peaceful,"
said Erica Rannestad, a commodity analyst at CPM Group in New York. "Peace needs to prevail for farmers to
return back to their fields."

Cocoa for July delivery rose $48, or 1.6 percent, to settle at $3,010 a metric ton at 12:03 p.m. on ICE Futures
U.S. in New York, gaining for the third straight day. Earlier, the commodity reached $3,062, the highest for a
most-active contract since May 13. The price surged to a 32-year high of $3,775 a ton on March 4.

Raw-sugar futures for July delivery gained 0.05 cent, or 0.2 percent, to 22.69 cents a pound.

Arabica-coffee futures for July delivery advanced 0.75 cent, or 0.3 percent, to $2.656 a pound.

On NYSE Liffe in London, cocoa, robusta coffee and refined sugar climbed.

Cocoa market to have 189,000-ton surplus, ICCO Forecasts
BusinessWeek
By Isis Almeida, ialmeida3@bloomberg.net
May 26, 2011,
(Bloomberg) -- Cocoa supplies will outpace demand by 189,000 metric tons in the current marketing season as
production rises in Africa, according to the International Cocoa Organization.

Output will jump 52 percent to 960,000 tons in the 2010-11 season in Ghana, the world’s second-biggest cocoa
grower, ICCO Executive Director Jean-Marc Anga said in an interview in London today. Production in top
producer Ivory Coast will increase 4.7 percent to 1.3 million tons, he said. The estimated surplus is 70,000 tons
larger than projected in February.

“We had two big factors to take into account,” Anga said. “One is the excellent weather conditions that were
conducive to higher output, and secondly, the high prices have been a good incentive for farmers to implement
better husbandry of cocoa plantation.”

Cocoa prices reached a 32-year high of $3,775 a ton on March 4 after Ivory Coast exports were disrupted by
armed conflict between backers of President Alassane Ouattara and those of former leader Laurent Gbagbo, who
refused to cede power after a disputed election in November. Ouattara has since taken office and lifted a ban on
cocoa exports.

Cameroon, Indonesia

Output in Nigeria will increase by 5,000 tons to 240,000 tons, and production in Cameroon is estimated at
215,000 tons, a 10,000-ton jump, Anga said. The biggest decline will come from Indonesia, the third-largest
producer, where output will fall to 510,000 tons from 550,000 tons, according to the ICCO.

The gain in Ghana will bring its production closer to that of Ivory Coast, which now accounts for 35 percent of
world supply, according to the ICCO. The group plans to release its crop estimates next week. “Once this is
released, people in Ivory Coast will stand up and pay attention, Anga said. “We have been telling them for the
past years that they have neglected investments in the cocoa sector.”

Ghana is still unlikely to surpass Ivory Coast anytime soon, according to Anga. “It takes a lot more than a year
or two,” he said.

Anga also said the new Ivorian government must have a “well-defined” strategy to invest in the industry. “The
government will have to decide that in the next 5 or 10 years it wants to remain the leading producer,” he said.


  Processing & Manufacturing




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   Business & Economy

Malaysian cocoa a money-spinner
Malay Mail
By Allen J.P. Stanley
May 23rd, 2011

                                        SWEET TAKES: Fazlina proudly holds a large tray of assorted
                                        chocolates yesterday

                                        KUALA LUMPUR: Malaysian cocoa gained a higher profile among
                                        locals and foreigners over the three-day International Cocoa, Coffee and
                                        Consumer Show (IC3S) at the Exhibition Centre in Mid Valley Megamall
                                        here which ended yesterday.

Organised by the Malaysian Cocoa Board and Bluedale Events & Consultants, a total of 152 organisations took
part. Some 90 per cent of them were small and medium enterprises (SMEs).

The event was launched on Friday by Plantation Industries and Commodities Minister Tan Sri Bernard Giluk
Dompok. Also present were Malaysian Cocoa Board director-general Datuk Azhar Ismail and Malaysian
Timber Industry Board director-general Dr Jalaluddin Harun.

Dompok said the plantation and commodity sectors continue to assume a prominent role in the Malaysian
economy in terms of export earnings, gross domestic product and national development. "Today, Malaysia is
ranked 24th largest trading nation globally with trade links to more than 250 countries," he said.

IC3S aims to bring greater awareness of Malaysian brands in the market, such as Sin Sing, Van Houlten, Power
Root and Tongkat Ali. "I believe the IC3S is an additional factor and incentive to develop the related industries,
and facilitate the entrepreneurs to explore business opportunities," said Dompok. "Most importantly, it is aimed
at increasing public awareness about the development of the food industry in Malaysia especially the fast
moving consumer goods (FMCG) sector."

The Minister also said Malaysian consumers have been flooded by advertising and information on products of
foreign brands more than local products, leading to the average Malaysian's perception that foreign products are
of better standard and quality.

He said the local media can play a more proactive role in raising awareness and educating consumers on the
advantages of local products. He felt due to strong economic growth, the lifestyle of Malaysians have changed
with most hypermarkets shaping their purchasing behaviour.

Azhar told The Malay Mail Malaysia produces one of the finest cocoa butter product in the world and is one of
the largest agricultural contributors to the nation's earnings, with RM4.2 billion earned through cocoa exports
last year.

"We have nine grinding plants in the country - eight in the peninsula and one in Tawau, Sabah. We are currently
focusing on semi-finished products such as cocoa butter, cocoa powder and cocoa paste. Finished products are
like chocolate and even cosmetics such as cocoa butter lotion."

The exhibition provided the opportunity for local entrepreneurs to promote their products towards the domestic
market in a competitive way and increase Malaysian awareness towards local products that are parallel with the
international standard quality at very competitive and reasonable prices.
At Friday's launch, Bluedale also invited four orphanages - PERNIM, Rumah Hope, Rumah Titian Kasih and
Rumah Amal Limpahan Kasih - as part of their corporate social responsibility.

Admission to the exhibition was free.

THE International Cocoa, Coffee and Consumer Show (IC3S) 2011 received a positive feedback from
exhibitors and the general public on the potential economic boost the show could garner.


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Many feel the world should be educated on the quality of Malaysia's cocoa production as it is in the same league
of quality as the African, Ghanaian and Ivory Coast ones.

Renaissance Hotel Kuala Lumpur executive pastry chef Niklesh Sharma said: "The Malaysian Cocoa Board is
doing a fantastic job of marketing local cocoa. Local companies should be encouraged to compete with the big
players such as Valrhona who are no doubt award-winners. Currently, I do not see any local big chocolate
company having a proper stronghold in business locally."

Malaysia's pastry arts director Lejeune Guillaume, said: "The government should assist and encourage local
companies to invite pastry chefs from overseas and promote the usage and marketing of local chocolate
products. It's all about branding image and direction. I'm sure local chocolate products can do better in the world
market."

Daiana Marketing director Charles Lee felt cocoa production in Malaysia has improved due to smaller acreage
for cocoa plantation. "Small acreage allows for the control of diseases spreading in plantation sites," he said. "At
one point in time, this industry was neglected. The government has to work in changing the perception of the
public towards our cocoa quality."

Delfi Marketing Sdn Bhd product manager Stephanie Siew also felt public perception needs to be changed in
order for Malaysia's cocoa business to grow. "Costing is also important as manufacturers look into this matter as
they seek quality to complement it too," she said, adding that some companies get their cocoa from Indonesia as
the cost is cheaper.

Peru's cocoa exports up 67 percent in first quarter
Living in Peru
May 23, 2011

                                          Peru's cocoa esports are up 67 percent from last year in the first
                                          quarter of 2011.

                                          Peru’s cocoa exports totaled $18 million in the first three months of
                                          2011, a 67 percent rise compared to the same period last year, when it
                                          amounted to $10.7 million, the Peruvian Exporters' Association (Adex)
                                          reported Friday.

                                        Peruvian cocoa was exported in ten items. In terms of amount, “cocoa
butter with an index of sourness expressed in oleic acid higher to one percent but lower or equal to 1.65
percent,” was the main exported product which totaled $7.8 million, according to Andina.

Out of the 23 market destinations, United States and the Netherlands accounted for 51 percent of total
shipments.

United States purchased $4.9 million worth of Peruvian cocoa (28 percent) while Netherlands purchased $4.1
million (23 percent). Furthermore, Belgium came in third with $1.9 million.

The country’s leading cocoa-exporting companies include Machu Picchu Coffee Trading, Compañia Nacional
de Chocolates de Peru, Sumaqao, Cooperativa Agraria Industrial Naranjillo, Exportadora Romex, Cooperativa
Agraria Cacaotera Acopagro and Amazonas Trading Peru.


   Labour Issues



   Environmental Issue



   Research & Development


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  Promotion & Consumption


   Others

Frosty Pod Rot in Cocoa is worse than Witches’ Broom, ICCO Says
Bloomberg
By Isis Almeida – Ialmeida3@bloomberg.net
May 24, 2011
The frosty pod rot fungus spreading in Latin American cocoa crops represents a potentially “enormous” threat,
according to the International Cocoa Organization’s Laurent Pipitone.

The fungus is affecting the crop in Colombia, Ecuador, the western part of Venezuela and Peru. It also spread to
Central America and reached Mexico in 2005, Pipitone, director of the economics and statistics division at the
ICCO, said today by phone from London.

“While in a global cocoa context the current annual loss from frosty pod is small, the potential threat presented
by the disease is enormous,” he said in an earlier e-mail. The fungus is “more destructive and difficult to
control” than black pod rot and witches’ broom, he added.

The fungus hasn’t yet been detected in Brazil, he said. Witches’ broom, a fungus that damages the branches of
plants, slashed production by 70 percent over a 10-year period after it emerged in the country’s Bahia region,
the ICCO said on its website.

Watch Cocoa ETN as Fungus threatens Crops
ETF Trends
By Tom Lydon
May 25th 2011

                                             A spreading fungal infestation over Latin America’s cocoa crops
                                             could potentially decimate global supply and push cocoa prices,
                                             along with related exchange traded notes, higher.

                                             The iPath DJ-UBS Cocoa Subindex ETN (NYSEArca: NIB) is
                                             down 5% year-to-date. The iPath Pure Beta Cocoa ETN
                                             (NYSEArca: CHOC) is a recent addition to iPath’s ETN lineup.

                                               Frosty pod rot, a fungal infection that destroys cocoa pods, is
making its way across Latin America, reports Jean Guerrero for The Wall Street Journal. Experts attribute the
rising spread of frosty pod rot to abnormal temperatures and rainfall.

So far, the fungus has not found its way into Brazil, the largest cocoa producer in Latin America and fifth-
largest globally, but signs of frosty pod rot have been found in the neighboring country of Peru.

In Mexico, the 12th largest cocoa producer, production has plunged by half since 2005 after the fungus landed
from Guatemala. Producers have a hard time containing the spread of the disease due to the humid areas the
crops are found in.

                                               A little over 20 years ago, the “witches’ broom” fungus
                                               destroyed 70% of cocoa production in Bahia, Brazil within 10
                                               years. “The impact of witches’ broom was very serious in Brazil,
                                               but if the frosty pod rot arrives, the effect would be
                                               catastrophic,” remarks Wilberth Phillips, head of the research
                                               center Catie. The leading concern is that the fungus could find its
                                               way to West Africa, which accounts for more than 50% of the
                                               world’s cocoa supply.



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The frosty pod rot fungus spreading in Latin American cocoa crops is a potentially enormous threat, Bloomberg
reported.




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