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									                  COPAL COCOA Info
                               A Weekly Newsletter of Cocoa Producers' Alliance
                 Issue No. 503                                           30th July – 3rd August 2012
In-House Cocoa Newsletter
 Cocoa Producers' Alliance




                              UP-COMING EVENTS                                     IN THIS ISSUE


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




                               Do your health a favour, drink Cocoa everyday
                                         ‘It’s nature’s miracle food’
In the News (from Newspapers worldwide)
 Health and Nutrition                                 Labour Issues
                                                     

Production and Quality                                Environmental Issue
 Malaysia targets to expand cocoa growing area by     Bad weahter endanger Ivory Coast cocoa crop
    2,000 hectare a year
 Ajimobi launches cocoa growth enhancement           Research & Development
    scheme at Oluyole                                 
 FG to increase cocoa production to 500mt by 2015
                                                      Promotion & Consumption
The Market                                            
 Cocoa prices maintain momentum amidst
    shrinking supply                                  Others
 Cocoa jumps to multi-month highs, arabica turns      Cocoa farmers advised to use prescribed
    firm                                                  insecticides on their farms
 Europe cash cocoa: Prices ease as Ivory Coast        Nigeria: cocoa farmers reject FG's 'Dangerous'
    reform eyed                                           agro-chemical

Processing and Manufacturing
 Ivory Coast plans more cocoa grinding at San
    Pedro sites

Business & Economy
 Ivory Coast cocoa reform reserve fund reaches 29
    bln CFA



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


30th July                  1607.04             2423.63                1591.00              2350.67


31st July                  1629.17             2457.33                1609.33              2390.33


1st August                 1642.79             2478.87                1635.67              2406.67


2nd August                 1629.13             2454.06                1628.67              2384.33


3rd August                 1643.29             2477.04                1628.00              2407.00


Average                    1630.00            2458.00               1619.00               2388.00




                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                        2
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 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             30th July                 2012
Month                 Opening Trans             Settle        Change         High          Low        Volume
   Sep 2012                 1601                 1609             6          1615         1599            2,946
   Dec 2012                 1584                 1593            10         1600S         1581S           2,044
   Mar 2013                 1561                 1571            13         1581S         1559S           1,187
   May 2013                 1567                 1571            14         1578S         1561S            478
   Jul 2013                 1570                 1574            14         1579S         1565S            363
   Sep 2013                 1568                 1574            14         1568S         1567S            301
   Dec 2013                                      1577            13                                         0
   Mar 2014                                      1582            13                                         0
  May 2014                                       1588            13                                         0
   Jul 2014                                      1588            13                                         0
Average/Totals                                   1583                                                     7,319



Tuesday            31st July                 2012
Month                 Opening Trans             Settle        Change         High          Low        Volume
   Sep 2012                 1608                 1629            20          1634         1599            5,652
   Dec 2012                 1597                 1613            20          1615         1581S           4,857
   Mar 2013                 1570                 1586            15         1588S         1559            2,103
   May 2013                 1572                 1585            14         1585S         1560            2,098
   Jul 2013                 1578                 1588            14          1589         1573S            686
   Sep 2013                 1577                 1589            15          1590         1572S            416
   Dec 2013                                      1592            15                                         0
   Mar 2014                                      1597            15                                         0
  May 2014                                       1603            15                                         0
   Jul 2014                                      1603            15                                         0
Average/Totals                                   1599                                                     15,812



Wednesday          1st August                2012
Month                 Opening Trans             Settle        Change         High          Low        Volume
   Sep 2012                 1654                 1654            25          1660         1634            8,929
   Dec 2012                 1621                 1637            24          1639         1616S           7,856
   Mar 2013                 1595                 1616            30          1618         1591            6,474
   May 2013                 1599                 1611            26         1614S         1589S           2,559
   Jul 2013                 1600                 1612            24         1616S         1591S           1,365
   Sep 2013                 1600                 1612            23         1618S         1596S            430
   Dec 2013                 1607                 1615            23         1616S         1607S            141
   Mar 2014                 1621                 1620            23         1621S         1621S             2
  May 2014                                       1626            23                                         0
   Jul 2014                                      1626            23                                         0
Average/Totals                                   1623                                                     27,756




                 ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                              3
        TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                  FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
Thursday            2nd August                2012
Month                  Opening Trans             Settle        Change         High          Low        Volume
   Sep 2012                  1651                 1649            -5          1660         1636            7,332
   Dec 2012                  1637                 1630            -7          1641         1621            1,943
   Mar 2013                  1612                 1607            -9          1620         1602            2,219
   May 2013                  1608                 1603            -8         1615S         1599S            356
   Jul 2013                  1612                 1606            -6         1612S         1602S            120
   Sep 2013                  1613                 1606            -6         1614S         1601S            277
   Dec 2013                  1609                 1609            -6          1616         1609S             60
   Mar 2014                                       1614            -6                                         0
   May 2014                                       1620            -6                                         0
   Jul 2014                                       1620            -6                                         0
Average/Totals                                    1616                                                     12,307



Friday              3rd August                2012
Month                  Opening Trans             Settle        Change         High          Low        Volume
   Sep 2012                  1653                 1648            -1         1669S         1637            5,297
   Dec 2012                  1632                 1630             0         1651S         1616S           5,122
   Mar 2013                  1608                 1606            -1         1629S         1590            2,603
   May 2013                  1600                 1602            -1          1626         1585S            912
   Jul 2013                  1604                 1605            -1         1630S         1585S           1,152
   Sep 2013                  1605                 1605            -1         1605S         1603              3
   Dec 2013                  1601                 1606            -3          1632         1594S            313
   Mar 2014                                       1611            -3                                         0
   May 2014                                       1617            -3                                         0
   Jul 2014                                       1617            -3                                         0
Average/Totals                                    1615                                                     15,402



Average for the week                             1615                                                      2800
                                                                                                           2800




                  ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                               4
         TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                   FAX: +234-1-290-4262 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            30th July                2012
    Month                 Open                Price       Change         High         Low         Volume
   Sep 2012                2330               2341           11          2356         2320         11,063
   Dec 2012                2323               2353           11          2367         2323         5,695
   Mar 2013                2353               2365           13          2378         2346         1,323
   May 2013                2364               2377           16          2390         2360          353
   Jul 2013                2381               2386           16          2396         2370           59
   Sep 2013                2390               2392           14          2402         2377           44
   Dec 2013                  0                2401           14            0            0                0
   Mar 2014                  0                2411           14            0            0                0
   May 2014                  0                2424           14            0            0                0
Average/Totals                                2383                                                 18537



Tuesday           31st July                2012
    Month                 Open                Price       Change         High         Low         Volume
   Sep 2012                2331               2376           35          2387         2312         18,702
   Dec 2012                2340               2388           35          2397         2323         9,164
   Mar 2013                2360               2398           33          2405         2336         3,529
   May 2013                2372               2408           31          2414         2351         1,364
   Jul 2013                2383               2418           32          2427         2374          674
   Sep 2013                2380               2426           34          2432         2380          209
   Dec 2013                2401               2440           39          2441         2401          121
   Mar 2014                2450               2451           40          2450         2450           38
   May 2014                  0                2464           40            0            0                0
Average/Totals                                2419                                                 33801



Wednesday         1st August               2012
    Month                 Open                Price       Change         High         Low         Volume
   Sep 2012                2390               2401           25          2409         2370         17,032
   Dec 2012                2380               2411           23          2419         2380         10,412
   Mar 2013                2411               2421           23          2428         2393         2,380
   May 2013                2423               2430           22          2438         2407          745
   Jul 2013                2435               2438           20          2449         2420         1,090
   Sep 2013                2429               2447           21          2453         2429          348
   Dec 2013                2443               2457           17          2460         2443           93
   Mar 2014                2451               2466           15          2451         2451               1
   May 2014                2476               2479           15          2476         2476               2
   Jul 2014                  0                2479           0             0            0                0
Average/Totals                                2443                                                 32103




                ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                            5
       TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                 FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
Thursday          2nd August               2012
    Month                 Open                Price       Change         High         Low         Volume
   Sep 2012                2384               2369          -32          2404         2357         17,656
   Dec 2012                2390               2383          -28          2413         2372         10,068
   Mar 2013                2407               2395          -26          2425         2382         2,778
   May 2013                2419               2405          -25          2431         2396          481
   Jul 2013                2429               2415          -23          2434         2407          175
   Sep 2013                2441               2424          -23          2441         2417          333
   Dec 2013                2453               2434          -23          2453         2429          104
   Mar 2014                2455               2445          -21          2455         2455           63
   May 2014                  0                2458          -21            0            0                0
   Jul 2014                  0                2475           -4            0            0                0
Average/Totals                                2420                                                 31658



   Friday         3rd August                  2012
    Month                 Open                Price       Change         High         Low         Volume
   Sep 2012                1653               1648           -1         1669S         1637         5,297
   Dec 2012                1632               1630           0          1651S         1616S        5,122
   Mar 2013                1608               1606           -1         1629S         1590         2,603
   May 2013                1600               1602           -1          1626         1585S         912
   Jul 2013                1604               1605           -1         1630S         1585S        1,152
   Sep 2013                1605               1605           -1         1605S         1603               3
   Dec 2013                1601               1606           -3          1632         1594S         313
   Mar 2014                                   1611           -3                                          0
   May 2014                                   1617           -3                                          0
   Jul 2014                                   1617           -3                                          0
Average/Totals                                1615                                                 15402



Average for the week                         1615                                                  2800
                                                                                                   2800




                ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                            6
       TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                 FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
                                                News
                                                NEWS

  Health and Nutrition




  Production & Quality

Malaysia targets to expand cocoa growing area by 2,000 hectare a year
Bernama
By Caroline Jackson
July 31, 2012
SERIAN, July 31 (Bernama) -- Plantation Industries and Commodities Minister Tan Sri Bernard Dompok says
the country targets to expand the area under cocoa by 2,000 hectares every year, increasing the total to 40,000
hectares from 20,543 hectares last year.

The government has approved a RM17.8 allocation this year to the Malaysian Cocoa Board to develop 2,000
hectares of land for new cocoa plantations and RM8.4 million to rehabilitate 1,000 hectares of unproductive and
abandoned areas nationwide, he said.

"To ensure cocoa bean production continues to increase and help meet the demand from local cocoa millers, the
National Commodity Industry Policy for 2011-2020 was launched to provide a policy framework for the holistic
development of the industry," he said at the launch of a cocoa cultivation basic technology course.

At the event, which was attended by Deputy Foreign Minister and Serian MP Datuk Richard Riot, 113
participants from Serian and Simunjan districts each received a RM8,000/hectare incentive for new cocoa
growers.

Dompok said Malaysia produced only about 5,000 tonnes of cocoa beans last year, far below the annual demand
of 300,000 tonnes.

"This means Malaysia needs to import 295,000 tonnes from other producers, mainly Indonesia, Cote d'lvoire
and Ghana," he said, adding now is the best time for smallholders to return to cocoa cultivation in view of the
high demand. He said such a situation would lead to a rise in cocoa bean prices in the market and ensure
lucrative returns for cocoa growers.

Earlier, Malaysian Cocoa Board Director-General Dr Lee Choon Hui said of the 1,567 hectares of land to be
developed into new cocoa plantations nationwide, 567 hectares will be in Sarawak, including in Kuching,
Samarahan, Sri Aman, Betong, Sarikei, Bintulu and Miri.

Ajimobi launches cocoa growth enhancement scheme at Oluyole
Nigerian Tribune
By Kate Ani
31 July 2012
The Oyo State governor, Senator Abiola Ajimobi at the weekend, officially inaugurated of the 2012 Cocoa
Growth Enhancement Support Scheme at the Oluyole Local Government Area Secretariat, Idi-Ayunre, Ibadan,
Oyo State.

The governor, represented by the Commissioner for Agriculture, Natural Resources and Rural Development, Mr
Bimbo Kolade, said the state currently produced 39,301.16 metric tonnes of dry cocoa beans from a total of
180,917.00 hectares of cocoa planted across 20 local government areas of the state.




                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                              7
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
He added that this administration had decided to bring Oyo State back to its past enviable position and glory in
cocoa production in Nigeria, hence, arrangement has been concluded to make available recommended cocoa
chemicals and equipemnt to farmers at a highly subsidised prices to prevent the high residual effects of
chemicals by cocoa and its by-products and to make Nigerian cocoa to be accepted globally.

“The Cocoa Growth Enhancement Support is jointly financed by the federal and state governments, and was
borne out of the Federal Government’s transformation agenda as well as restoration agenda.

Transformation and repositioning initiatives of the present administration in the state is to remove all
unwholesome practices usually associated with previous subsidies in terms of free seedlings and highly
subsidised inputs and chemicals,” he stated.

Governor Ajimobi also added that the system will contact the cocoa farmers directly by giving them
informations on how and where to receive the support at 50 per cent subsidised prices as both the state and the
Federal Government were paying the balance at 25 per cent each.

The Oluyole Local Government Council boss, Prince Abass Alesinloye, who was the chief host at the event,
appreciated the effort of the governor in assisting farmers, and also, urged the commissioner for agriculture to
make provision of more farm settlements in the Oluyole Local Government Area.

He also encouraged the farmers to make judicious use of the inputs and chemicals in order to maximise their
income, enhance their standard of living and significantly increase the nation’s export.

Also at the event was the Minister of Agriculture and Rural Development, Dr. Akinkunmi Adesina, who was
represented by the Regional Director, South West, Federal Ministry of Agriculture, Dr Talabi Julius Adeyemi ,
who said the minister wished to attend the event but was assigned to some duties by the Presidency.

FG to increase cocoa production to 500mt by 2015
CHANNELS
By Channels Television
Aug 2nd, 2012

                                              The Federal Government has announced plans to increase the
                                              production of cocoa to about 500 metric tonnes by 2015 through
                                              its growth enhancement support scheme for the agricultural
                                              sector.

                                              The plan is also expected to create 390,000 jobs in the cocoa
                                              sector.

                                            Addressing journalists in Abuja, the Permanent Secretary in the
                                            Ministry of Agriculture and Rural development, Dr Ezekeil
                                            Oyemomi refuted claims that the recently approved
agrochemicals by the Federal Government are harmful to cocoa trees.

The Executive Director of the Cocoa Research Institute of Nigeria (CRIN), Professor Malachy Akoroda said
that the pesticides have been screened and registered by the institute and the National Agency for Food and
Drug Administration and Control (NAFDAC).


  The Market

Cocoa prices maintain momentum amidst shrinking supply
BusinessDay
By OBODO EJIRO
30 July 2012




                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                               8
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
                          Cocoa prices continued their upward climb throughout last week. Though prices
                          recorded a mild deceleration in their upward climb during the week, cocoa gained
                          about $ 67.20/ tonne to settle higher at the end of the week.

                          Cocoa which opened the week at $ 2318.89/tonne closed higher at $ 2386.09/tonne.
                          According to Michael Segal, information and media officer, International Cocoa
                          Organization (ICCO), the acceleration in prices is due primarily to the expectation
                          with respect to harvest this year.

There is the strong likelihood that output will not match what was produced last year. Rainfall and peculiarities
of the nations where cocoa is exported were responsible. According to Segel, some of the traders are nervous
about the supply dynamics hence the appreciation in price.

There are opportunities in this market for Nigerian farmers and traders who can take advantage of these prices.
Cocoa is Nigeria’s second-biggest foreign-exchange earner after crude oil. The Ivory Coast , Ghana and
Indonesia produce more cocoa than Nigeria , according to the ICCO.

Exports of cocoa products from Nigeria , the fourth-largest producer of the beans, rose 47 percent to $822.8
million in 2010. This represents about 35 percent of the $2.32 billion earnings from non-oil exports in 2010 for
Nigeria . Cobalt International Services inspects all Nigerian non-oil products at the ports before export

Cocoa jumps to multi-month highs, arabica turns firm
Business Recorder (blog)
By Abdul Ahad
02 August 2012

                                        Cocoa Beans

                                        NEW YORK/LONDON: Cocoa futures climbed to multi-month highs
                                        on Wednesday, with the Liffe market breaking above this year's range
                                        on worries about dry weather in West Africa and technical buy signals,
                                        while arabica coffee turned higher after hitting a one-month trough.

                                        Robusta coffee and sugar fell, tracking losses in grains which dragged
on other agricultural commodities.

Cocoa futures bucked the weak trend for the second straight day, and climbed in heavy volume after breaking
above the range the market has been stuck in for months. Dealers were watching development of the crop in
West Africa, where most of the world's cocoa is produced. A lack of origin selling helped the market to climb
easily, dealers said.

"The dry weather in Africa seems to be driving it, people seem to be concerned about the crops in Ghana and
Ivory Coast," said a London-based analyst.

London December cocoa rose 24 pounds, or 1.5 percent, to settle at 1,637 pounds per tonne, just below its
session peak at 1,639 pounds, the highest level for the second-position since November 2011.

Supply and demand prospects pointed to a tightening market in 2012/13.

"We're expecting a slightly below trend main crop in Ivory Coast and Ghana; however there's still time for a
strong tail," said Jonathan Parkman, joint head of agriculture at broker Marex Spectron.

"Next year I think grindings will rebound quite well. We know there's plenty of capacity around and I think
because we've dropped below the underlying rate of consumption there will be a bit of catching up to do."

Both Liffe and ICE cocoa markets saw follow-through technical buying as they recently soared above their 200-
day moving averages, with the London market climbing for the sixth straight day.



                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                                9
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
Volume was heavy for the second straight day in US cocoa futures, which reached nearly 34,000 lots on
Tuesday, the highest in more than two weeks, exchange data showed.

ICE September cocoa futures rose $25, or 1.1 percent to settle at $2,401 a tonne, the highest settlement for the
spot contract since March 12.

WEATHER WORRIES

The potential for weather phenomenon El Nino to strike later in the year and cut production of cocoa and sugar
was also supportive.

The Pacific region is set to experience in the next three months an El Nino weather pattern, which can bring dry
weather and affect crops, New Zealand scientists said.

Still, raw sugar futures changed direction and edged lower as the market consolidated under pressure from a
selloff in grains, with losses capped by weather concerns as dealers eyed a weak monsoon in key producer India.

"Weather is getting better in Brazil for the crush but India remains dry, so just as grains are affected by the (US)
drought, when traders hear 'dry', they do not want to sell," said Drew Geraghty, commodity broker with ICAP
North America in New Jersey.
Benchmark October sugar futures on ICE inched down 0.08 cent, or 0.4 percent, to end at 22.56 cents a lb,
having hit a three-month high of 24.00 cents last week.

"Lack of rainfall, especially in India's largest sugar producing state of Maharashtra, is reducing production
estimates; the Indian Sugar Mills Association (ISMA) lowered its 2012-13 Indian sugar production estimate to
25 million tonnes although in light of the poor Monsoon this figure appears to be on the higher side, in our
view," said Barclays Capital in a commodities note.

Thomas Kujawa of brokerage Sucden Financial said: "In the short term, we expect a test of the support around
22.20 cents and 22 cents as we expect the bears to make a cavalry charge for the anticipated fund stops below."

White sugar October futures on Liffe closed up $4.70, or 0.8 percent, at $621.50 a tonne, moving higher in late-
day dealings.

Arabica coffee futures returned to positive territory, after earlier tracking weakness in the commodity complex
but climbed up as other markets pared their losses.

September arabicas on ICE crept up 0.20 cent to close at $1.7460 per lb, after trading on both sides of
unchanged. "We do see some roaster buying down there but there is also some light origin selling that's trickling
into the market as well as some spec selling."

November robusta coffee futures closed down $14, or 0.6 percent, at $2,192 a tonne.

Europe cash cocoa: Prices ease as Ivory Coast reform eyed
Reuters
By Ivana Sekularac
Aug 3, 2012
AMSTERDAM, Aug 3 (Reuters) - Price differentials for cocoa beans in the European cash market eased this
week as the industry remained on the sidelines in the lead up to Ivory Coast's new crop when sector reforms will
apply, traders said.

Ivory Coast, the world's top producer, is introducing a stabilisation system including a fixed price for farmers
from October 1., however, traders said much uncertainty remains over some of the details of their reforms.

Ivory Coast differentials for December delivery were about 60 pounds over London December contracts, down
10 pounds from last week.




                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                                   10
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
Ghana differentials for December delivery were 90 pounds over London December contracts, compared to 125
last week.

"The industry is short-covered, but they are not buying. There is a lot of uncertainty about Ivory Coast cocoa
reform and their new auction system," one trader said.

"They (Ivory Coast) have oversold their positions of the new crop and that is expected to put pressure on the
market."

As of early last week, Ivory Coast has sold around 910,000 tonnes, nearly 70 percent, of its projected 2012/2013
cocoa harvest at auctions which were introduced in January as part of a major reform of the sector.

Prices paid during the auctions, which are due to end in August, will be used to calculate a benchmark price for
the season, and farmers will receive at least 50 to 60 percent of that price for the duration of the season.
"The real question is what is going to happen then. Farmers are going to have high expectations," one trader
said.

The 2011/2012 cocoa season, which wraps up at the end of September, is expected to fall short of the previous
year's record harvest, due mainly to a five-month dry spell that carried into March.

Demand for cocoa butter, a key ingredient in chocolate, remained strong after Brussels-based European Cocoa
Association (ECA) reported a sharp drop in Europe's cocoa grind in July.

Price ratios for cocoa butter in the European cash cocoa market were 1.36 times London bean contracts
<0#LCC:> on Friday, compared with 1.30 last week.

"The industry is well covered for the coming holiday season. Big chocolate makers have already started
producing chocolate for Christmas and it is being stored," one trader said. "Last week, people were buying for
next year."


  Processing & Manufacturing

Ivory Coast plans more cocoa grinding at San Pedro sites
Bloomberg News
By Baudelaire Mieu
July 30, 2012
Ivory Coast, the world’s biggest cocoa producer, probably will increase processing of the beans around the port
of San Pedro by about 56 percent to more than 300,000 metric tons a year by 2015 as Olam International Ltd.
(OLAM) sets up a plant and existing factories expand output, Industry Minister Moussa Dosso said.

Singapore-based commodity trader Olam will open a grinding facility in the western port with a capacity of
120,000 tons a year by the end of 2013, Dosso said in an interview on July 27. “Ivory Coast will no longer
satisfy itself with exporting raw commodities,” Dosso said. “We’re going to boost industrialization by setting up
incentive conditions. After the cocoa sector, from which we want to get more value-added, we’ll focus on the
cashew sector.”

Ivory Coast’s government wants to boost cocoa processing to 50 percent of its annual crop as part of the
changes announced last year, which include a plan to give farmers more money for their beans. The policies
were part of requirements to get $4.4 billion in debt relief from the International Monetary Fund and the World
Bank.

San Pedro already has three cocoa-processing plants. Zurich-based Barry Callebaut AG (BARN), the world’s
biggest maker of bulk chocolate, has a facility that grinds 145,000 tons of cocoa while the Choco Ivoire factory
processes 27,000 tons, Dosso said. Ivorian grinder Sucso SA processes 20,000 tons. Choco Ivoire and Sucso are
also planning to extend their factories, Dosso said.




                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                                11
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
Choco Ivoire wants to boost its grinding capacity to 60,000 tons within the next two years, company President
Adnan Amer said in an interview in San Pedro today. Sucso expects to increase the processing capacity of its
factory to 25,000 tons, Chief Executive Officer Martial Yace said.


   Business & Economy

Ivory Coast cocoa reform reserve fund reaches 29 bln CFA
Reuters
02 August, 2012

                                               Ivory Coast has paid 29 billion CFA francs into a reserve fund to
                                               guard against price fluctuations as it implements a sweeping reform
                                               of its cocoa sector, a government spokesman said on Wednesday.
                                               Cocoa pods in harvest

                                               With the reform, the world's top grower aims to boost farm incomes
                                               by stabilizing prices in the hope it will encourage farmers to
                                               reinvest in ageing and neglected plantations.

                                           "The reserve fund ... to guarantee the price floor for farmers is at 29
                                           billion CFA today. By the end of the year, it will be 40 billion. It's
planned to end up at 70 billion," Bruno Kone told journalists following a cabinet meeting on Wednesday.

The country's cocoa marketing board launched twice-daily auctions in January as part of the reform and aims to
forward sell 70 to 80 percent of next season's harvest, which opens on October 1.

By last week it had already sold nearly 70 percent of next season's projected harvest.

Prices paid during the auctions, which are due to end in August, will be used to calculate a benchmark price for
the season, and farmers will receive at least 50 to 60 percent of that price for the duration of the season.

The fund will be used to protect against the possibility of a major drop in cocoa prices.

While the government says the reforms are essential for the survival of the sector, exporters have remained
sceptical.
"The exporters' fear is that the state fails and isn't able to cover the gap in case there is a price crash on the world
market," the manager of an international exporting firm said.

"With this amount, I think we can start the new season. It's a start; they are putting together the funds which
need to be substantial."


   Labour Issues




   Environmental Issues


Bad weahter endanger Ivory Coast cocoa crop
Business Recorder (blog)
July 31, 2012
LogoCloudy skies and cool temperatures last week across most of Ivory Coast's main cocoa growing regions
could harm developing pods as the country enters the critical run-up to the main crop harvest, farmers and




                    ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                                      12
           TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                     FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
analysts said on Monday. The 2011/2012 cocoa season, which wraps up at the end of September is expected to
fall short of the previous year's record harvest, due mainly to a five-month dry spell that carried into March.

Rainfall has been steady since the rainy season began in April, and farmers say weather conditions in August
will be critical to determining if the forthcoming main crop, which opens on October 1, outstrips last year's
disappointing harvest. In the western region of Soubre, in the heart of the top producer's cocoa belt, one analyst
reported 15 millimetres of rainfall. No rain fell the previous week. "We had a little rain, and it is very cool at
night. Right now it's not a problem. But we'll need more sunshine in August to improve pod development," said
Lazare Ake, who farms on the outskirts of Soubre.

"If we get sun, we'll have more cocoa than last year, and it will start to come out of the bush in September." In
the south-eastern region of Aboisso, an analyst reported 8 mm of rainfall after a dry spell the previous week.
"The main crop is developing well, but we are worried about these cool conditions. It's not good. If it continues,
it could kill the small pods and lead to black pod," said Etienne Yao, who farms near Aboisso.

Similar growing conditions were reported in the western regions of Gagnoa and Duekoue, in southern region of
Agboville and Divo and in the coastal region of Sassandra. In the western region of Daloa, responsible for about
a quarter of Ivory Coast's national output, farmers reported two light showers, but complained of a lack of
sunshine.


  Research seeks funds to stop
Ivory Coast & Development




  Promotion & Consumption



    Others

Cocoa farmers advised to use prescribed insecticides on their farms
Myjoyonline.com
July 30, 2012
Mr George Okyere, a Senior Quality Control Manager of the Quality Control Company, has urged cocoa
farmers to desist from using unapproved insecticides on their farms to control cocoa diseases.

According to him using such dangerous insecticides on the farms does not only damage their cocoa trees but
could affect the health of the consumers of the cocoa product.

Mr Okyere said this at a day’s sensitization workshop on Sanitary Phytosanitary Project at Assin Foso in the
Central Region.

Two hundred and twenty-seven cocoa farmers from Breman Asikuma, Jukwa, Cape Coast, Beraku and Assin
Foso Cocoa districts attended the workshop.

The workshop was organized by Quality Control Company of COCOBOD with sponsorship from ICCO, EDES,
COLEACD, CROPLIFE, and UNIDO and it was aimed at sensitizing the farmers to apply prescribed
insecticides on their farms to enable them to produce quality cocoa beans.

Mr Okyere mentioned Confidor, Akate Master and Actra as the only approved insecticides by COCOBOD and
Sidalco, Glyfos and Roundup as the only prescribed chemicals to control weeds on their farms.

He disclosed that the European Union had detected that some cocoa beans from some cocoa growing countries
in Africa applied unapproved chemicals and insecticides on their cocoa.




                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                                 13
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org
It was in this respect that the workshop had been sponsored by these groups for the farmers to educate them to
stop such practices to avoid rejection of cocoa beans from the Sub-region on the world market, he said.

He appealed to the farmers to adhere to advise given them by the Cocoa extension officers to enable them to
produce good quality cocoa beans to meet the world market standards.
Mr Vincent Odzawa and Mr Kwesi Bediako-Esson from Quality Control Company who were the resource
persons, took the participants through topics including: "Traceability Importance in Food Safety and Hygiene",
"Safe Use of Plants Protection Equipment," and "Identifying Key Areas of Risk for Contamination in the
Production of Cocoa".

Nana Kwesi Ofori, Central Regional Cocoa Chief farmer, advised the farmers to form groups so as to benefit
from farmer based organization support programmes.

Mr Richard Ankamah, Central Regional Manager of Cocoa Swollen Shoot Virus Disease Control Unit of
COCOBOD, said the mass cocoa spraying exercise and the hi-tech project should be seen as a prgramme to
boost cocoa production.

Nigeria: cocoa farmers reject FG's 'Dangerous' agro-chemical
AllAfrica.com
By Bdul-Hameed Olawale,
1 August 2012
Osogbo — Farmers in the South-west, Kwara and Kogi states have raised an alarm over alleged danger the type
of agro-chemicals being distributed by the Federal Ministry of Agriculture poses to cocoa farms in the country.

The farmers under the aegis of Cocoa Farmers Association of Nigeria (CFAN) claimed that the agro-chemicals
procured and being sold to them by the Federal Ministry of Agriculture and Rural Development is different from
the one requested by farmers and is capable of causing harm to cocoa trees.

Speaking at a stakeholders forum yesterday in Osogbo, Osun State, the National President of the Association,
Alhaji Raheem Adeniji called for the intervention of President Goodluck Jonathan on the matter to save cocoa
farmers from imminent disaster.

Adeniji, who said the urgency of the matter occasioned the emergency meeting of stakeholders, noted that a
letter had earlier been written by the association to the President on the issue informing him about the wrong
procedure being used to procure the agro-chemicals.

He said: "While we thank Mr. President for making moves to provide agro-chemicals for us, we however reject
the type to be procured for us by the Federal Ministry of Agriculture and Water Resources. We ask Mr.
President to ask the ministry to listen to cocoa farmers in the interest of Nigeria's cocoa economy."

Alhaji Raheem said cocoa farmers in Osun, Ogun, Oyo, Ekiti, Ondo, Kwara and Kogi states were opposed to the
decision by the ministry of agriculture to impose a uniform N40,000 price for the purchase of a pack of agro-
chemicals without taking cognizance of the size of farm of each farmer, saying the Ministry of Agriculture has
continuously "ignored us."

The association also kicked against lumping different agro-chemicals in a cocoa box for framer to buy, saying
the procedure is unscientific and constitutes serious danger to the survival of cocoa trees. "To us as cocoa
farmers, this scenario is totally confusing and could adversely affect cocoa farms, thereby destroying the
Nigerian cocoa economy in future."




                   ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX,                              14
          TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-9814-1736;
                    FAX: +234-1-290-4262 Email: econs@copal-cpa.org Website: www.copal-cpa.org

								
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