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					COPAL COCOA Info
A Weekly Newsletter of Cocoa Producers' Alliance

Cocoa Producers' Alliance In-House Cocoa Newsletter

Issue No. 326

9th – 13th March 2009

UP-COMING EVENTS
 Second Roundtable for a Sustainable Cocoa Economy, Port-ofSpain, Trinidad & Tobago, 24th – 27th March 2009.  5th National Cocoa Day, Umuahia, Abia State, Nigeria 16th - 17th April, 2009.  International Workshop on Cocoa Policies, Market Reforms and Level of Implementation of COPAL Scientific Research Workshop Recommendations, Salvador, Bahia, Brazil 15th – 19th June, 2009     

INSIDE THIS ISSE:
ICCO DAILY COCOA PRICES

IN THIS ISSUE

LONDON (LIFFE) FUTURES MARKET UPDATE NEW YORK (ICE) FUTURES MARKET UPDATE FROM THE NEWS MEDIA TIT BITS

Do your health a favour, drink Cocoa everyday ‘It’s nature’s miracle food’

In the News (from Newspapers worldwide)
Health and Nutrition  Dark Chocolate Production and Quality  World's Biggest Cocoa growers face Aging Trees  Cameroon Cocoa farmers urged to modernize to increase yields     Aged Trees result in drop in Africa�s Cocoa Production Ivory Coast Cocoa Arrivals To Mar 8 Seen Down 16% On Yr. Ivory Coast Cocoa Buyers See Rapid Falls In Quality. COCOBOD to buy 531,282 tons of beans this season Business & Economy  A fairer deal for cocoa growers  Cadbury pledge major boost to Fair Trade  Ghanaian cocoa farmers visit Croydon  Barry Callebaut Cameroon buys 24,929 tons Cocoa Beans Aug-Feb  Cadbury Fairtrade certified  Imbalance in Cocoa Seeds produced and processed  DJ US Jan Cocoa Imports -14.0% from DecMar 13  Divine Chocolate Leads as Catalyst for Change in Chocolate Market. Labour Issue  Child Labour threatens Chocolate's Sweet Image

The Market  ICE Cocoa Review: Rallies On Speculative Buying, Weak Dollar.  W. African cocoa mid-crop outlook seen favourable  SW Nigeria Graded Cocoa at 350,000 Naira/Ton as Mktg Resumes  Raw Sugar, Coffee, Cocoa advance as Funds Buy  MARKET TALK: ICE Cocoa Looks To New Highs On Outside Support. Processing & Manufacturing  UPDATE 1-ICCO cuts cocoa grindings by 10 pct in Asia, Oceania  Indonesia 2009 Cocoa Grinding likely down 40% on demand –Indus  Campco begins to buy cocoa from AP  N6b cocoa processing plant under way

Environmental Issues  Liberia: Authorities Report Fresh Invasion of Crop-Destroying Caterpillars Research & Development  Cocoa shells to fuel power station Promotion Others  Farm Commodities Could Soar Again - FAO  The Financial Gains of Fairtrade in Ghana

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

9th March 10th March 11th March 12th March 13th March

1594.61 1581.15 1650.42 1675.07 1682.23
1637.00

2326.58 2316.81 2421.39 2466.47 2479.95
2402.00

1736.33 1732.00 1812.33 1837.00 1826.00
1789.00

2250.33 2233.67 2340.67 2383.00 2401.67
2322.00

Average

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

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

Monday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

9th March
Opening Trans 1814 1749 1702 1695 1659 1644 1627 1635

2009
Settle 1833 1776 1727 1706 1673 1650 1650 1657 1661 1652 1699 Change 14 21 24 31 29 29 29 28 28 28 1627S 1635S 1624S 1632S Daily High 1850 1791 1739S Daily Low 1806 1749 1699S Volume 3,421 4,925 315 163 224 46 0 50 50 0 9,194

1715
1677 1644

1689
1657 1635

Average/Totals

Tuesday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

10th March
Opening Trans 1840 1783 1734 1715 1685 1660 1660

2009
Settle
1797 1770 1724 1702 1672 1647 1652 1654 1658 1649 1693 Change -36 -6 -3 -4 -1 -3 2 -3 -3 -3 High 1846 1792 1743 1720 1685 1660 1660 Low 1777 1750 1709S 1688 1673 1652 1657 Volume 6,530 8,343 1,012 348 798 213 4 0 0 0 17,248

Average/Totals

Wednesday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

11th March
Opening Trans 1813 1780 1737 1720 1693 1666 1666

2009
Settle 1866 1852 1805 1780 1753 1710 1710 1718 1722 1713 1763 Change 69 82 81 78 81 63 58 64 64 64 High 1872S 1857 1810 1784S 1764 1722S 1666S Low 1806 1780 1735 1720 1685 1658 1666S Volume 5,201 8,614 1,698 505 947 491 3 0 0 0 17,459

Average/Totals

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

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Thursday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

12th March
Opening Trans 1860 1835 1797

2009
Settle 1892 1878 1830 1803 1776 1742 1737 1743 1747 1738 1789 Change 26 26 25 23 23 32 27 25 25 25 1720S 1724S 1720S 1724S High 1909 1892 1844 1819S Low 1858 1835 1794 1770 Volume 2,811 7,256 2,540 832 168 30 0 25 25 0 13,687

1775
1750 1730 1720 1724

1790
1730

1738
1730

Average/Totals

Friday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

13th March
Opening Trans 1913 1879 1829 1798 1759 1734 1736

2009
Settle 1826 1861 1821 1796 1768 1741 1739 1745 1749 1740 1779 Change -66 -17 -9 -7 -8 -1 2 2 2 2 High 1914 1895 1845 1815 1785S 1749S Low 1826 1858 1812 1786 1759S 1730 Volume 11,647 13,075 3,541 461 106 58 3 0 0 0 28891

1749S

1736S

Average/Totals

Average for the week

1779

17296 86,479

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

4

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

Monday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

9th March
Open 2337 2265 2244 2247 2213 2212 0 0 0 0

2009
Price 2263 2266 2258 2256 2250 2248 2251 2264 2258 2287 2260 Change -60 -6 -7 -7 -7 -7 -7 -5 -6 3 High 2337 2285 2267 2264 2249 2243 0 0 0 0 Low 2271 2220 2213 2213 2213 2212 0 0 0 0 7650 Volume 0 5277 1403 700 250 20

Average/Totals

Tuesday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

10th March
Open 2238 2271 2269 2267 2261 2260 0 0 2240 2285

2009
Price 2242 2245 2237 2235 2230 2229 2232 2245 2236 2279 2241 Change -21 -21 -21 -21 -20 -19 -19 -19 -22 -8 High 2238 2288 2280 2274 2268 2261 0 0 2240 2285 Low 2232 2225 2223 2222 2243 2221 0 0 2237 2280 6826 Volume 11 4310 1247 711 461 86

Average/Totals

Wednesday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

11th Mdarch
Open 0 2233 2237 2267 2265 2328 0 0 0 0

2009
Price 2331 2334 2328 2326 2320 2315 2316 2325 2321 2338 2325 Change 89 89 91 91 90 86 84 80 85 59 High 0 2350 2346 2344 2336 2333 0 0 0 0 Low 0 2233 2237 2267 2265 2328 0 0 0 0 Volume 4 4133 1132 727 386 488 1 1 3 2 6877

Average/Totals

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

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Thursday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

12th March
Open 0 2304 2291 2300 2319 2287 0 0 0 0

2009
Price 2337 2340 2341 2339 2332 2325 2325 2334 2331 2348 2335 Change 6 6 13 13 12 10 9 9 10 10 High 0 2407 2406 2399 2390 2382 0 0 0 0 Low 0 2294 2291 2300 2319 2287 0 0 0 0 7261 6001 664 457 137 2 Volume

Average/Totals

Friday
Month
Mar 2009 May 2009 Jul 2009 Sep 2009 Dec 2009 Mar 2010 May 2010 Jul 2010 Sep 2010 Dec 2010

13th March
Open 0 2384 2390 2398 2410 2394 0 0 0 0

2009
Price 2378 2381 2383 2381 2371 2363 2366 2376 2373 2397 2377 Change 41 41 42 42 39 38 41 42 42 49 High 0 2445 2444 2434 2430 2394 0 0 0 0 Low 0 2374 2374 2374 2368 2360 0 0 0 0 141941 133339 4564 3868 155 11 1 3 Volume

Average/Totals

Average for the week 2020

2375

42639 170,555

Spot Prices (US $ per tonne)
9th March
Main Crop Ghana, Grade 1 Main Crop Ivory Coast, Grade 1 Main Crop Nigerian, 1 Superior Arriba Sanchez f.a.q Malaysian 110 Sulawesi f.a.q Ecuador Cocoa Liquor Pure Prime Press African Type Cocoa Butter 10/12% Natural Cocoa Press Cake
Source: Cocoa Merchant Association

10th March
2755 2610 2592 2560 2587 2257 2373 3562 5740 988

11th March
2844 2699 2681 2649 2676 2346 2462 3703 5967 1027

12th March
2850 2705 2687 2655 2682 2352 2468 3713 5983 1030

13th March
2891 2746 2728 2696 2723 2393 2509 3778 6087 1048

2808 2639 2606 2589 2593 2283 2403 3263 5718 914

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

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News
Health and Nutrition
Dark Chocolate Food For Thought – Foodtv
Your favourite indulgence, dark chocolate, does have health benefits but make sure it’s the real deal.

M ‎ ar 9, 2009 Why It's Good for You You may eat dishes with dark chocolate hoping they have health benefits, but chances are you simply can't resist having them! The good news is, real chocolate contains several minerals and phenylethylamine, a naturally occurring substance may boost your mood. It also contains stearic acid, a unique saturated fat that some believe lowers cholesterol. Where to find it Dark chocolate contains at least 35% chocolate liquor, the pure thick liquid of cocoa butter and cocoa solids. Look for dark chocolate or chocolate that contains at least 70% cocoa. Milk chocolate candy bars and white chocolate, which isn't real chocolate at all, contain too much sugar and fat to be healthy. Powdered cocoa is made from cocoa solids, cocoa that has been dried, roasted, ground, and the butter removed. The solids are then pulverized into powder.

Production & Quality
World's Biggest Cocoa growers face Aging Trees Source: Reuters Miami, March 9 - Crop disease, aging trees and resulting lower yields will prevent significant cocoa production growth in the biggest producing countries Ivory Coast, Ghana and Indonesia, experts said Saturday. Cocoa yields have fallen in Indonesia's top growing region Sulawesi due to the disease cocoa pod borer and aging trees, said Peter Petersen of the Olam Group, speaking on a panel at the Cocoa Merchants' Association of America International Cocoa Conference. Lower household income has also forced farmers to redirect funds to their basic needs instead of improving crop production, Petersen said on the gathering's last day. Production in Sulawesi fell 45 percent in the 2007/08 crop year, from 2005/06, and has shown no sign of recovery in 2008/09, he said. On the other hand, cocoa production in Indonesia's Sumatra, the second biggest cocoa producer in the region, has doubled in the last four years amid low pest pressure. But Petersen did not see the area growing enough to make up for Sulawesi's fall. The world's biggest producer Ivory Coast faces a flood of problems ranging from aging trees to poor farming that could hinder production, said Frederic Wenger of Noble Resources. Wenger sees the Ivorian 2008/09 crop at 1.28 million tonnes, on a botanical crop basis that does not look at bean arrival figures. An adjusted trend suggests a 68 percent chance that the 2009/10 crop will stand between 1.115 million tonnes and 1.343 million tonnes, he said. Many farmers are also growing "turn-key" rubber farms, growing rubber trees amid their other crop to either harvest both crops or switch to rubber production when the trees mature. Managing director for London-based Primary Commodity Research Robert Fish projected the world's second biggest producer Ghana will harvest 730,000 tonnes in 2008/09, up from 717,000 tonnes the year before. It will be difficult to sustain growth, he said, partly because the expansion in the western region appeared to be slowing. For‎ Stitzer,‎ the‎ firm‘s‎ branding‎ is‎ the‎ most‎ important‎ factor‎ in‎ its‎ success,‎ coupled‎ with‎ consumer‎ desire‎ to‎ spend even through times of low expendable cash, albeit on cheaper luxuries rather than expensive commodity

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

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items.‎ ―In‎ difficult‎ times,‎ people‎ gravitate‎ toward‎ brands‎ they‎ know‎ and‎ love,‎ and‎ affordable‎ treats,‖‎ he‎ said This‎sentiment‎was‎backed‎by‎the‎firm‘s‎rival‎Nestlé previously announced it is to raise its dividends by 15 per cent,‎"reflecting‎strong‎performance‎in‎2008‎and‎confidence‎for‎2009.‖ Cameroon Cocoa farmers urged to modernize to increase yields

MarketWatch (press release)
By Emmanuel Tumanjong, contributing to Dow Jones Newswires; YAOUNDE, Cameroon, Mar 09, 2009 (Dow Jones Commodities News via Comtex) -- Cocoa farmers in Cameroon should abandon archaic methods of growing their crop and adopt techniques that will allow them to increase yields, Jerome Mvondo, general manager of the state-run Cocoa Development Authority, or SODECAO, said Monday. "Farmers are very reticent to change from their old habits of growing cocoa," Mvondo told Dow Jones Newswires in the trading town of Bafia, in the Center province, where he is distributing thousands of high-yielding hybrid cocoa plants to farmers. "They choke up the plants and cause them not to have enough sunlight. Other farmers don't even know how to prune the plants, causing them to bear fewer pods." Mvondo said farmers need to leave enough space between trees so that sunlight can get through and to learn when and how to prune trees and use fertilizer. "By so doing, the trees start bearing pods even two-and-a-half or three years after planting," Mvondo said. The Center province accounts for 30-35% of Cameroon's annual cocoa production of over 187,000 metric tons, government and industrial data shows. Aged Trees result in drop in Africa�s Cocoa Production

Ghanaian Times
By Bloomberg 10 March 2009 Aging trees and low yields on smaller farms may limit the ability of growers to boost cocoa output in Africa, the world‘s‎largest‎source‎of‎the‎beans‎used‎to‎make‎chocolate,‎said‎Sona‎Ebai, the secretary general of the Cocoa Producers‘‎Alliance. ―The‎scale‎of‎farms‎is‎too‎small,‖‎Ebai‎said‎last‎Friday‎at‎a‎cocoa‎merchant‎conference‎in‎ Miami.‎―We‎need‎to‎overcome‎that.‎Soil‎depletion‎is‎a‎major‎problem.‎We‎need‎to‎invest‎in‎infrastructure.‎ We need‎to‎build‎capacity.‖ Many trees on the 5 million hectares (12.36 million acres) planted with cocoa in West and Central Africa are 35 to 50 years old, Ebai said. His Lagos, Nigeria-based group represents 10 countries, including Ivory Coast and Ghana, the two largest growers. African farms yield 350 to 400 kilograms of cocoa per hectare, below the 1.5 metric tons that the same amount of land produced in Malaysia, he said ―I‘d‎like‎to‎see‎even‎one‎metric‎ton‖‎per‎ hectare in Africa, Ebai said. To achieve better economies of scale, African growers need about 10 hectares, which would be five times larger than the average family cocoa farm of about two hectares, he said. Global output of cocoa has trailed consumption in nine of the past 16 years, Karl Walk, director of the cocoa department at Blommer Chocolate Co. and chairman of the World Cocoa Foundation, said at the conference. In the year through September, global grindings, a measure of consumption, may exceed production by 193,000 tons, making it the third-straight yearly deficit, according to the International Cocoa Organisation in London. Boosting yields in Africa will help maintain enough supply to meet consumption gains, even if the area shrinks because of crop diversification, Ebai said. The Cocoa Foundation is working to educate farmers around the world about techniques such as grafting plants and methods to combat pests and diseases, Walk said. These socalled field schools are helping some farmers boost yields by 30 per cent to 55 per cent, he said. Cocoa also competes with crops such as rubber and oil palm for land and farmer resources, William Lansing, a commercial director for the Americas at ADM Cocoa, a unit of Archer Daniels Midland Co., said at the conference. ―The‎ concern‎ would‎be‎ if‎prices‎ get‎to‎a‎point‎ where‎it‎doesn‘t‎ spur‎ good‎husbandry‎and‎ we‎see‎ continued‎supply‎deficits,‖‎Lansing‎said.‎He‎does‎not‎expect‎a‎fourth-straight deficit. Cocoa futures have dropped 15 per cent this year in New York, after jumping 31 per cent in 2008, the most of 19 commodities tracked by the Reuters/Jefferies CRB Index. African producers may be unable to expand their farms‎because‎many‎of‎their‎children‎don‘t‎want‎to‎be‎in‎the‎business,‎Ebai‎said. ―We‎need‎a‎new‎generation‎of‎ cocoa‎ farmers,‖‎ he‎ said.‎ ―The key‎ is‎ farmers‎ have‎ to‎ get‎ out‎ of‎ poverty.‖ The industry should develop farm organisations that can help growers get better access to services such as marketing and new technology, he said.

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

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Ivory Coast Cocoa Arrivals To Mar 8 Seen Down 16% On Yr. ABIDJAN, Ivory Coast, Mar 11, 2009 (Dow Jones Commodities News via Comtex) -Arrivals of cocoa beans from Ivory Coast's farms at the ports in Oct. 1 to March 8, the first 23 weeks of the 2008-09 season, are seen at 833,000 metric tons, down by 16% on the 990,000 tons arrived in the same period last season, according to industry estimates obtained Wednesday. Arrivals in week 23 were about 12,000 tons, up on the 11,000 tons delivered in week 23 of last season, when harvesting of the Oct-March main crop started early but also tailed off earlier than this season. This season the total main crop is expected to be down by 8%-15% on last season's 1.066 million tons due to adverse weather conditions, diseases and aging of trees. Since the April-September midcrop started growing on the trees, the weather has been good for crop growth. The season's second and last crop is therefore expected to be around 350,000 tons, up on last year's 284,000 tons. Ivory Coast Cocoa Buyers See Rapid Falls In Quality. ABIDJAN, Mar 11, 2009 (Dow Jones Commodities News via Comtex) -- Cocoa buyers in Ivory Coast say the quality of beans coming from the bush in the world's biggest cocoa grower is falling rapidly as the main season draws to an end. The director of a major exporter based in Abidjan said: "There appears to be a decent amount of cocoa out there but a lot of it is poor quality produce repeatedly circulating and being rejected by exporters. We're seeing quality levels deteriorating rapidly." Official data show Ivory Coast's shippers and cocoa processors declared 672,753 metric tons of cocoa for export from Oct. 1 to March 3, down 160,311 tons, or 19% on the 833,064 tons declared in the same period last season. Saibou Touré, a cocoa buyer and cooperative member from Abengourou in the east of the country, said: "The quality of the beans isn't good at the moment which means we have to sieve the beans and market only the bigger ones." Katinizongui Soro, a farmer and cooperative member from Duékoué in the West said: "We are getting very small beans at the moment so it is proving hard work to achieve the right quality standards. We have to sort and sift just to meet the minimum norms.' Farmers report that the lack of decent beans has led to a drop in prices. Jerome Eba, a cooperative farmer from Daloa in the center-west of the country said: "We're only able to sell the best of our beans at the moment and we're concerned by the drop in prices - at the moment farmgate prices have fallen to 400-475 CFA francs", or $0.77-0.93/kg. Ivory Coast produces an average 1.3 million tons per year of cocoa or 40% of global supply. COCOBOD to buy 531,282 tons of beans this season Joy Online Source: Bloomberg 13 March 2009 Ghana,‎ the‎ world‘s‎ second-biggest cocoa producer, bought 0.3 percent more beans from farmers in the first 24 weeks of the season, according to two people with access to the information. Purchases reached 531,282 metric tons through Feb. 26, compared with 529,739 tons a year earlier, the people said, who declined to be named because the information is confidential. The data include total purchases of cocoa declared by private licensed buyers who act on behalf of the state-run Ghana Cocoa Board. Ghana‘s‎annual‎cocoa‎harvest,‎which‎is‎produced‎mainly‎by‎small-scale farmers in the rural center of the country, may rise to about 700,000 tons this season, from 680,000 tons a year earlier, the Cocoa Research Institute of Ghana said in October.

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

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The Market
ICE Cocoa Review: Rallies On Speculative Buying, Weak Dollar. KANSAS CITY, Mar 11, 2009 (Dow Jones Commodities News via Comtex) -- U.S. cocoa futures rallied 3.8% Wednesday as the dollar weakened and speculative buying forced prices above technical resistance, activating buy stops. Most active May cocoa on ICE Futures U.S. rose $89 to settle at $2,334 a ton - its strongest settlement in one week. "You're seeing a weak dollar and cocoa's getting a nice technical bounce in here, " said Jimmy Tintle, analyst at TransWorld Futures. Cocoa futures had previously reached a technically oversold condition, prompting speculators to the buy, he said. Bullish traders took May cocoa to a $2,350 high for the session and also a one-week top. Those same traders will now target the $2,400 area on cocoa, said Tintle, but first it must scale 100-day moving average resistance at $2,370 a ton. Another layer of resistance resides at $2,360-$2,372 - a price gap on the daily chart left from the March 2 gap lower opening, an analyst said. Profit-taking knocked prices off their strongest levels by the end of the day. One broker cited quality concerns over the Ivory Coast crop as partly responsible for the rally. While there are still plenty of beans, Ivory Coast cocoa buyers said cocoa quality is rapidly falling as the main season draws to an end and exporters are rejecting more as a result. Ivory Coast has declared 672,753 metric tons of cocoa for export from Oct. 1 through March 3, down 19% from the same period one year ago, government data showed. This year's crop has been affected by adverse weather, disease and tree production cycles. Bullish traders also cite expectations that consumption will outstrip production by 193,000 tons in 2008-09, International Cocoa Organization figures show. Global production is expected to decline 5% in 2008-09 to 3.52 million tons. London May cocoa futures were up 4.7% on technical strength, as traders also drove prices up through resistance areas and buy stops. ICE futures volume was pegged at 6,351 lots, with 380 calls and 743 put options traded. ICE cocoa open interest increased 827 positions to total 118,203, the exchange reported. Close $2,331 $2,334 $2,328 Change +89 +89 +91 Range $2,331-$2,331 $2,274-$2,350 $2,269-$2,338

Mar May Jly

W. African cocoa mid-crop outlook seen favourable

guardian.co.uk
By David Brough March 11 2009 LONDON, March 11 (Reuters) - Talk that India could remove an import duty on white sugar again drove white sugar futures higher on Wednesday, while investor and trade buying pushed up cocoa in light volumes, dealers said. Robusta and arabica coffee futures edged up in routine two-way investor dealings and rollover business. In sugar, talk that India, the world's biggest sugar consumer, could remove the import duty was the dominant talking-point in the market, triggering increased physical buying interest. But analysts were sceptical that India would import physical white sugar imminently. "People who are short of the whites are covering their positions just in case (the market climbs further)," said Jonathan Kingsman, managing director of Lausanne-based consultancy Kingsman SA. "Domestic prices (in India) are not that high, and we were surprised that a request (to remove duty) should be made now."

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

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He was referring to an Indian press report which, quoting a government official who asked not to be identified, said the election commission was considering a proposal from the government to remove the duty on refined sugar. Talk of removal of the duty had driven up white sugar futures on Tuesday and was again the main driving factor on Wednesday, dealers said, as it signalled fresh Indian physical demand for white sugar. India recently swung from net exporter to importer of sugar. The benchmark whites-over-raws premium has risen to around $112 per tonne from $100 on Friday. London May white sugar futures were up $6.7 or 1.7 percent at $391.90 per tonne in moderate volume of 1,218 lots at 1229 GMT, while ICE May raw sugar was up 0.14 cent at 12.73 cents per lb. Some traders said that sugar had upward price potential as the market was still below its recent highs. Cocoa futures rose, as dealers talked of trade and investor short-covering, as well as rollover business in nearby months. Expectations of a good-sized mid-crop in main West African producers kept a lid on the upside, dealers said. "Trade and specs (buyers) are kicking around," one dealer said. "There is not much in terms of origin (selling) and industry (buying.) ICE May cocoa was up $41 or 1.8 percent at $2,286 per tonne at 1230 GMT, while London May was up 24 pounds or 1.4 percent at 1,794 pounds per tonne. Cocoa arrivals at ports in top grower Ivory Coast reached 828,000 tonnes by March 8, exporters estimated on Tuesday, compared with 1,023,527 tonnes in the same period of the previous season. Robusta and arabica futures inched higher in routine two-way investor dealings in thin volumes, against a backdrop of increasing concern over the outlook for demand during a global economic downturn. London May robustas were up $4 to $1,440 per tonne in low turnover of 1,068 lots at 1231 GMT, while May arabicas were up 0.65 cent at $1.0660 per lb. Brazil's coffee farmers are keeping a tight hold of their beans after a flurry of trade early in the year, with weak demand by foreign importers holding prices at levels too low to entice growers to sell. (Reporting by David Brough; editing by Peter Blackburn) SW Nigeria Graded Cocoa at 350,000 Naira/Ton as Mktg Resumes MarketWatch (press release) By Obafemi Oredein IBADAN, Nigeria, Mar 12, 2009 (Dow Jones Commodities News via Comtex) -- The price of graded cocoa in southwestern Nigeria has fallen and stood Thursday at 350,000 naira ($2,379) a metric ton as marketing of the commodity resumed in the region, buyers said. Graded cocoa, which has been inspected and certified fit for export, was sold at NGN360,000/ton in the region two weeks ago. Cocoa marketing was at a standstill last week because there were no prices for graded cocoa, one buyer in Akure, capital of Ondo state, told Dow Jones Newswires. He said the transition from the 2008/09 main crop cocoa to the mid-crop cocoa was responsible for the price uncertainty. Harvesting of the main crop cocoa began in September in the southwest and ended last month. The mid-crop is now on sale in the region. "Selling and buying of graded cocoa has resumed in the southwest and Lagos after exporters agreed to buy cocoa at 350,000 naira a ton," Bola Awofeso, a buyer in Ile-Ife, Osun state, said. Late last month, graded cocoa peaked at NGN400,000/ton in the southwest but Awofeso said the price has fallen because the mid-crop cocoa now on sale is smaller in size and weighs less that the main crop. Awofeso said the bean count of the mid-crop cocoa in the state stood at 250 to 260 grams per 300 beans, which is "attracting the attention of local buying agents who buy cocoa from farmers on behalf of exporters." He said the recent good rainfall throughout the southwest since December had helped to boost the size and weight of the mid-crop cocoa. The southwest cocoa belt accounts for 70% of Nigeria's annual average cocoa production of 242,000 tons. Raw Sugar, Coffee, Cocoa advance as Funds Buy Source: Reuters 13/03/2009 London, March 13 - Raw sugar, cocoa and coffee futures rose on Friday with funds showing renewed appetite for commodities as equity markets rallied, arousing suggestions that inflation may return, dealers said. "Generally there seems to be a feeling that funds are looking at commodities again as a hedge against inflation," one dealer said. May raw sugar futures on ICE rose 0.06 cent at 13.15 cents a lb by 1318 GMT with the contract rebounding strongly after dipping to 12.42 cents on Monday, its lowest level since late January. "I get the feeling that they
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(funds) have renewed confidence (in soft commodities) and sugar seems to be the attractive one for them. People are also talking India numbers down again," one dealer said. Sugar prices have been boosted by diminished production prospects in India and talk of substantial imports of whites over the next few months. May whites in London peaked at $405.00 per tonne on Friday, its highest level for 5-1/2 months before slipping back to $402.30, off $0.70. "You've seen the whites (over raws) premium jump $15 and I think it may have risen too quickly," one dealer said. COFFEE'S MORE BULLISH MOOD Coffee futures also rose with May arabicas on ICE up 0.80 cent at $1.135 per lb. Dealers said the market's strong rebound on Thursday had created a more bullish mood after prices had looked poised test support at the bottom of its recent range. May dipped to a low of $1.0445 on Thursday, only marginally above its contract low of $1.0435, before rallying on fund shortcovering to end sharply higher at $1.1055. "Coffee was part of a big fund attraction (for commodities). I think New York needs to get through $1.12 (on May) to really change the picture," one dealer said. The Reuters-Jefferies CRB index, a widely watched commodity benchmark, was up 1.05 at 212.86 on Friday. It has now risen 4.6 percent from Wednesday's finish of 203.50. Dealers said the rise in arabica coffee had been largely short covering by funds although some may be beginning to establish long positions. May robusta futures in London were up $26 at $1,556 a tonne. Cocoa futures also rose with May futures on ICE up $87 at $2,427 a tonne and May cocoa in London up 10 pounds at 1,888 pounds a tonne. Dealers noted the comparative strength of gains in New York partly reflected its earlier settlement on Thursday. Prices rose sharply in post-settlement trade. The strength of sterling also helped to keep a lid on London prices. Sterling rallied against the dollar on Friday, lifted by positive sentiment in European stock markets as investors lowered their guard towards riskier assets. MARKET TALK: ICE Cocoa Looks To New Highs On Outside Support. Mar 13, 2009 (Dow Jones Commodities News via Comtex) -ICE cocoa futures are holding gains on a push through resistance as the falling U.S. dollar slides and firm equities. Most-active May cocoa is up $82 at $2,422 a metric ton, off of the $2,445 intraday high, andthe nearby March contract is bid up $3 at $2,342. May's advance through the $2,407 puts it on a course for a test of $2,550$2,600 level in the next two weeks, says Jimmy Tintle, analyst at Transworld Futures in Tampa. He notes futures made a double-bottom pattern on a weekly chart, making May unlikely to reattempt $1,900 lows. Cocoa could find pressure in a firmer U.S. dollar or a breakdown in equities, he notes. ICE cocoa warehouse stocks decreased by 8,733 145-pound bangs Thursday to total 2.9 million bags, according to exchange data. Liffe May cocoa is unchanged at $1,878 a ton.

Processing & Manufacturing
UPDATE 1-ICCO cuts cocoa grindings by 10 pct in Asia, Oceania

Alibaba News Channel
March 10, 2009 SINGAPORE, - Cocoa grindings are forecast to fall 10 percent to 719,100 tonnes in Asia and Oceania in the crop year to September due to a global economic slump, led by declines in Malaysia and Indonesia, the International Cocoa Organization said on Tuesday. On production, the ICCO estimated Indonesia's cocoa output to rise to 510,000 tonnes in 2008/09 (Oct-Sept) from 495,000 tonnes in the previous year. Indonesia is the world's third-largest cocoa producer after Ivory Coast and Ghana. Grindings in Asia and Oceania, which include China, Israel, South Korea, Sri Lanka, Thailand and Turkey, account for about 20 percent of global grindings estimated at 3.7 million tonnes. "Cocoa processing companies

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located in the Asia and Oceania region are expected to suffer severely from the economic downturn," the ICCO said in its quarterly statistical report emailed to Reuters. "Cocoa processing activity is forecast to decline by over 10 percent in Asia and Oceania to 719,000 tonnes..." Malaysia, which is Asia's largest grinder, was estimated to process 290,000 tonnes of beans, down from 331,000 tonnes in 2007/08. Grindings in Indonesia, the region's second-largest grinder, was likely to fall 20 percent to 150,000 tonnes. Dealers said butter ratios were at their lowest levels in five years due to slumping demand for the key ingredient for making chocolates after factories slashed purchases. Most active May contract in New York cocoa futures fell to a one-week low at $2,220 a tonne on Monday, not far from a three-month low of $2,198 hit last week due to fears of falling demand for beans. The ICCO said it had revised up Indonesia's beans output in the 2007/08 crop year to 495,000 tonnes from 480,000 tonnes and pegged this year's production at 510,000 tonnes. "During the previous season, Indonesia's cocoa production suffered from the devastating Vascular-Streak Dieback (VSD) disease which had spread in Sulawesi. "Thanks to increasing production in new areas, cocoa output may slightly recover, reaching 510,000 tonnes in 2008/09. However a high degree of uncertainty remains on this short-term outlook." The VSD disease attacks leaves, branches and trunks and had spreading in the provinces of South, Central and Southeast Sulawesi, which account for 75 percent of Indonesia's cocoa output, said dealers. Last week, the ICCO forecast a wider global cocoa deficit of 193,000 tonnes in 2008/09 with a drop in production only partially offset by lower grindings. Global production was seen falling in 2008/09 by 5.0 percent to 3.52 million tonnes from 3.71 million with world grindings seen down 2.1 percent at 3.68 million tonnes. Indonesia 2009 Cocoa Grinding likely down 40% on demand –Indus MarketWatch (press release) By Helen Sun, Dow Jones Newswires SINGAPORE, Mar 13, 2009 (Dow Jones Commodities News via Comtex) -- Cocoa grinding in Indonesia is likely to fall by as much as 40% this year as demand for cocoa products shrinks amid the current global economic downturn, an industry official said Friday. Grinding will probably drop to 100,000 metric tons this year compared with 170,000 tons last year, said Halim Abdul Razak, chairman of the Indonesian Cocoa Association. "Most of the buyers of our cocoa products are in the U.S. and Europe, and the demand situation now is really worrying," he said. Industry participants said that since chocolate isn't a daily necessity, consumption has been nose-diving in the past few months as consumers pinch pennies, which in turn cuts demand for the confection's key ingredient. As chocolate sales slump in Europe and the North America, grinders in Asia have reduced their operation rates and prices. "I've heard about delays of (cocoa bean) shipments to Malaysia last month, and I think there will be more delays because of this terrible situation," Razak said. Indonesia is Asia's largest cocoa exporter and the region's No. 2 grinder after Malaysia as well as the world's third-largest producer. Malaysia sources most of the cocoa beans it processes from Indonesia. Piter Jasman, Chairman of Indonesian Cocoa Industry Association said in early January the country's cocoa output this year is likely to rise by 20% to 600,000 tons. Campco begins to buy cocoa from AP Hindu A.J. Vinayak March 13, 2009 Mangalore, The Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd has begun procuring cocoa from West and East Godavari districts in Andhra Pradesh. Mr A.S. Bhat, General Manager, Campco Ltd, told Business Line that the cooperative had begun procurement of cocoa through agents in these districts. Plans are there to set up procurement centres in Andhra Pradesh by 2010, he said.

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In Karnataka and Kerala, Campco is procuring cocoa from its grower-members through a network of 17 procurement centres. He said the cooperative procures the commodity based on its requirements. The chocolate factory at Puttur in Dakshina Kannada district requires around 3,000-3,500 tonnes of cocoa every year. Procurement price To provide better prices for its grower-members in Karnataka and Kerala, the Campco has fixed the procurement price of wet cocoa beans at Rs 30 a kg. This is one of the best prices for cocoa growers in these two States, he said. The price of wet cocoa beans, which was at Rs 15 a kg during 1972-73, crashed to Rs 6 a kg during 1979-80. It was in the range of Rs 16-22 a kg for quite sometime. Till recently, the cooperative was offering Rs 28 a kg for wet cocoa beans. N6b cocoa processing plant under way Daily Sun By CHARLES NWAOGUJI March 14, 2009 As part of efforts to add value to raw cocoa beans and create employment opportunities for Nigerians, Multitrex Investment Plc has said that it is investing N6bn on a new consumable cocoa processing plant to increase product capacity to 65,000 metric tonnes. The‎Managing‎Director,‎Multitrex,‎Mr.‎Yusuf‎Isiaka,‎disclosed‎this‎at‎a‎forum‎with‎the‎Company‘s‎investors‎in‎ Ogun State this week. He said the new plant would gulp about N6.6bn, out of which N2b would be set aside for raw materials with the exclusion of the cost of the energy project and plantation investment. He said the company had spent N3bn on the expansion and would still need another N3bn to complete it, as the firm was set to justify shareholders investments in it and to further boost their confidence. He added that the company would need to provide large working capital to ensure its warehouses were filled with raw materials, because cocoa was a seasonal product and make sure there is no shortage outside the season. Isiaka said Nigeria could not export its raw materials as real value would come from adding value noting that the company had started producing intermediate goods and in the next 18 months consumable cocoa product would be in the market. The‎company‘s‎budget‎will‎also‎accommodate‎investment‎in‎energy‎generation‎so‎as‎to‎be‎self‎reliant‎instead‎of‎ depending on the generating plant, which might not be cost effective. The chairman of the company, Chief Bayo Akinnola said the company invited the shareholders to see the ongoing development in the company. ―Meltdown‎ or‎ not,‎ this‎ company‎ will‎ grow‎ from‎ strength‎ to‎ strength,‎ we‎ are‎ confident‎ that‎ its‎ products‎ will‎ always be embraced by consumers‖,‎he‎said. Akinnola‎stressed‎the‎company‘s‎commitment‎to‎continue‎working‎ with professionals in making it the leading cocoa processor in the country. The chairman, Nestles Nigeria Plc. Mr. Olusegun Osunkeye also said, Multitrex had demonstrated leadership in the industry, adding that there was need to join hands to strengthen the Cocoa Processors Association of Nigeria in order to make government aware of the importance of cocoa processing.

Business and Economy
A fairer deal for cocoa growers 09 Mar 2009 Cadbury has announced a new deal to source cocoa for its Dairy Milk products from farmers in Ghana registered with the Fairtrade scheme. There are around 700,000 cocoa farmers in Ghana and 40,000 will initially benefit from the new Cadbury deal which will see a lower cap on prices and the negotiation of higher prices for premium cocoa beans. Cadbury sells approximately 300 million Dairy Milk bars in the UK and Ireland each year. ―This‎ is‎ groundbreaking news for thousands of small farmers in Ghana, enabling all those who‎buy‎it‎to‎make‎a‎real‎difference,‖‎said‎Cadbury‘s‎chief‎executive,‎Todd‎Stitzer.

Business and Manufacturer.comEconomy

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This news came after later in February the firm announced it has bright prospects for 2009 following six per cent sales growth in 2008. Slightly down on 2008, the purple-branded chocolate maker has predicted sales growth of 4-6% this year and Stitzer said the company is on course to hit its target of a growth percentage in the mid-teens by 2011. Pre-tax profits rose by 57% to £400 million last year, the Birmingham-based Creme Egg maker announced. ―We‎ have consistently said we are recession-resilient rather than recession-proof,‖‎said‎Stitzer.‎―We‎don‘t‎expect‎to‎ be immune from macro conditions. We have given a confident but realistic outlook about what is going on in the‎real‎world.‎Everyone‎has‎got‎‗09‎coming‎in‎a‎little‎slower‎than‎‗08.‖ Cadbury pledge major boost to Fair Trade OneWorld US March 9, 2009 WASHINGTON, Mar 9 (OneWorld.net) - Cadbury, an iconic candy company in the UK, plans to achieve Fair Trade certification for its famous chocolate bars, a move that will triple sales for Fair Trade cocoa farmers in Ghana. Cocoa farmers at the Kuapa Kokoo cooperative, Ghana. Cadbury's announcement last week means that millions of consumers in the UK will soon be supporting Fair Trade cocoa cooperatives in Ghana, says Tim Newman, campaigns assistant at the International Labor Rights Forum. "It also shows that a major chocolate company can indeed commit to Fair Trade for the mass market," adds Newman. Ghana is one of the six largest cocoa-producing countries in the world, with 2 million farmers employed in the industry. Cocoa "producers typically also get only half the world price [for the cocoa they sell], as they must use exploitative middlemen to sell their crop," says the workers' rights group Global Exchange. Moreover, approximately 284,000 children work on cocoa farms worldwide. Read more in the Global Exchange guide to Fair Trade cocoa, The Chocolate Industry: Poverty Behind the Sweetness. The Fair Trade label guarantees that the producer of the product on sale was paid a living wage for his or her work, the product was made in an environmentally sustainable manner, and the product was not made with child labor or other forms of exploitation, explains OneWorld.net's Perspectives Magazine: Fair Trade and Our Buying Choices. In 2006, Fair Trade reached about 7 million farmers and their families in poor countries around the world. Ghanaian cocoa farmers visit Croydon

Croydon Guardian
11th March 2009 A delegation of Ghanaian cocoa farmers visited Croydon College last week as part of Fairtrade Fortnight. The two men from the Kuapa Kokoo Collective told audiences how their co-operative came to own a chocolate firm in the UK. Kuapa Kokoo farmers James Adiyiah and Anane Mensah delivered a presentation to Croydon College students before heading on to other events in the borough, including a Fairtrade Celebration open to members of the public. Christopher Hunt, of the Croydon Fairtrade Network and a lecturer‎at‎ Croydon‎College,‎said:‎―The‎ story‎that‎ James‎and‎Anane‎have‎to‎tell‎is‎incredibly‎inspiring,‎and‎had‎a‎clear‎impact.‖ Barry Callebaut Cameroon buys 24,929 tons Cocoa Beans Aug-Feb MarketWatch (press release) By Emmanuel Tumanjong YAOUNDE, Cameroon, Mar 12, 2009 (Dow Jones Commodities News via Comtex) -- The Cameroon branch of Switzerland-based Barry Callebaut AG (BARN.EB) bought 24,929 metric tons of cocoa beans for grinding between August and February, up from the 19,567 tons it purchased in the previous season a year earlier, according to figures released Thursday by the National Cocoa and Coffee Board. Cameron's cocoa season runs from August through July, and the country's main-crop cocoa harvest typically ends between mid-February and mid-March. Barry Callebaut's Cameroon unit - also known locally as Societe Industrielle Camerounaise des Cacaos SA, or Sic Cacao - bought 490 tons of cocoa beans in February, down from 883 tons in February 2008. Sic Cacao has grinding capacity to process 30,000 tons of cocoa beans a year and is investing to increase its capacity, according to people familiar with the company. The Swiss company owns a 70% stake in Sic Cacao and the rest

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is held by the Cameroon government and local private investors. Barry Callebaut Cameroon bought 21,000 tons of cocoa beans for processing in the 2007-08 season, down from 21,865 tons in the previous season, government and industry data indicate. Cadbury Fairtrade certified iAfrica.com By: Janine Erasmus 12 Mar 2009 Confectionery giant Cadbury has made a landmark stride towards bringing progress and stability to the lives of poor farmers in the developing world, by becoming Fairtrade certified for its best-selling Dairy Milk brand. This means that cocoa farmers in West Africa will secure better deals for their produce. Cadbury has leaped ahead of rivals privately-owned Mars and Swiss-based Nestlé in adopting the Fairtrade standard for one of its major brands. No more guilt Chocolate lovers no longer need feel guilt as they unwrap their favourite snack, because they will be helping cocoa farmers with every purchase. While only chocolates sold in the UK and Ireland will be immediately affected by the switch-over to the ethical standard, the company hopes this is just the start of what will become a global initiative. The UK-based confectioner announced in March that from mid-2009 it would triple the amount of Fairtrade cocoa it sources from Ghana. The West African country produces what is recognised as the highest quality cocoa on the market. Cadbury established cocoa farms in Ghana over a century ago and uses only Ghanaian cocoa in its chocolate products sold across the UK and Ireland. Ghana produces more than 600 000 tons of cocoa annually, of which 15 000 tons will be snapped up by Cadbury at a guaranteed minimum price — even if the open market price falls below this level. And farmers will receive a premium for superior quality beans. Both existing certified cocoa producer groups as well as farmers new to the scheme stand to benefit from the deal. An initial 40 000 of Ghana's 700 000 cocoa farmers will reap a rich harvest from Cadbury's new venture, and it is hoped that this will encourage more young people to invest their time and effort into farming and thus revitalise the industry. Cocoa is the country's biggest cash crop and, having survived a near-collapse in the 1970s and 1980s because of mismanagement, competition from other cocoa-producing nations and rising costs, among others, the industry faces new challenges in the 21st century. Deforestation has resulted in less land that is suitable for cocoa cultivation, and young people are leaving rural areas to seek better fortunes in the cities. A historic moment Cadbury CEO Todd Stitzer said it was a historic moment for the company, and that he was extremely proud that the top-selling Dairy Milk brand now operates under the Fairtrade banner. "We believe that by joining forces with the Fairtrade Foundation, we can further improve living standards and conditions for farmers and farming communities, and create a sustainable supply of high quality cocoa for Cadbury." The initiative marks the first anniversary of the Cadbury Cocoa Partnership of local governments, farmers and communities, established in January 2008. Partners work together to secure a sustainable socio-economic situation for over one-million cocoa farmers in Ghana, India, Indonesia and the Caribbean. The partnership will see R639-million invested in these regions, with R426-million allocated to Ghana. Part of its programme involves helping farmers to organise themselves into formal groups so that they can achieve Fairtrade certification and become eligible to trade with Cadbury on Fairtrade terms. Ensuring an equitable trade The Fairtrade philosophy is aimed at securing better prices and decent working conditions for commodity farmers and workers in the developing world, and contributing to local sustainability and fair terms of trade.

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Conventional trade often discriminates against poor farmers who do not have a strong position when it comes to negotiating, and those who sell their produce under Fairtrade conditions can rest assured that they will not be unfairly exploited. Fairtrade enables them to improve their position and have more control over their lives. The Fairtrade Foundation is an organisation that strives to promote the principle of fair trade and to strengthen the position of producers, with the result that the lives of communities are improved on a sustainable level. The foundation is responsible for issuing the Fairtrade mark for products sourced from producers who comply with internationally recognised Fairtrade standards — these cover social, economic and environmental issues. It works with similar initiatives in 20 other countries to form a global network known as Fairtrade Labelling Organisations International, which is headquartered in Bonn, Germany. Currently some 7.5-million farmers and their families and communities in 59 developing countries around the world benefit from products that display the Fairtrade mark. South Africa's Heiveld Co-op, a group of rooibos growers, is certified under the Fairtrade Labelling Organisations' standards for rooibos. Since joining the scheme, the farmers' income has now tripled from about R13 per kg to R39. Imbalance in Cocoa Seeds produced and processed Bernama March 13, 2009 PUTRAJAYA, (Bernama) -- Malaysia needs to import 423,946 tonnes of cocoa seeds worth RM3.1 billion to cater to the country's cocoa processing industry and this is disappointing, says Minister of Plantation Industries and Commodities Datuk Peter Chin Fah Kui. "I am a little uncomfortable with this highly significant imbalance between the production and processing of cocoa seeds in the country," he said in his speech at the 2008 Cocoa Industry Awards ceremony here today. This high amount of import is very disheartening especially knowing that the country had produced as much as 247,000 tonnes of cocoa seeds back in 1990, he said. The cocoa industry is among the main contributors to the country's commodity sector at RM3.35 billion worth in 2008, a rise by 29 percent compared with RM2.59 billion in 2007. He said that the Cocoa Board of Malaysia (LKM) is aiming to increase the country's cocoa seeds production so that it is able to produce 60,000 tonnes a year to at least meet 20 percent of the cocoa processing industry needs by the year 2020. He also called on continued research and development to produce high yielding and disease free cocoa seeds. "If the country is able to produce 1.5 tonnes of cocoa seeds for an hectare, while all the upgrading programmes are carried out smoothly, I believe the target of increasing the hectarage for cocoa tree planting to 40,000 hectares by 2020 can be met. Chin also called on cocoa planters to diversify their crops in order to have a wider base of income. The cocoa industry is still very lucky as the price of cocoa seeds throughout last year was stable at between RM6,000 and RM8,000 per tonne, he said. "But then again, we cannot just depend on our luck. Depending on one type of commodity alone is high risk whether it is for a smallholder or a planter when the price of the commodity is down for a long time," he said. On marketing, Chin said more efforts would have to be taken to find new markets. Participating in international expositions is effective as it gives the local industry players to expose their cocoa products to other markets. In order to attract more participation in such missions, he said the Cocoa Board should also come up with attractive perks. The local market also remains a potential market that can be further exploited by cocoa producers, he said. With the rate consumption at 600 gram per capita, more efforts must be made to raise the use of cocoa in the country, he added. DJ US Jan Cocoa Imports -14.0% from Dec-Mar 13 MarketWatch (press release) -By Kareema Clark WASHINGTON, Mar 13, 2009 (Dow Jones Commodities News via Comtex) -- U.S. cocoa bean imports fell 14.0% in January from a month ago, but was up 16.0% from the previous year, the Commerce Department reported Friday. (Data is for cocoa beans, whole or broken, raw or roasted, in kilograms)

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Origin Canada Ogn Haiti Ogn Venez Ogn Peru Ogn Phil R Ogn Ivy Cst Ogn Nigeria Ogn TOTAL JAN 2009 Total Dec 2008 Origin Canada Canada Total Panama Panama Total Haiti Haiti Haiti Total Dom Rep. Dom Rep. Total Peru Peru Total New Gui New Gui New Gui Total Ghana Ghana Entry St Albn

Jan 09 1,361 82,080 1,020 6,000 2,724 41,257,201 1,958,629 57,368,440 66,693,770 Port Jan 09 1,361 1,361 20,407 20,407 40,080 42,000 82,080 2,160,150 2,160,150 6,000 6,000 64,813 192,500 257,313 1,250,000 1,250,000 57,368,440

Origin Panama Ogn Dom Rep Ogn Ecuador Ogn Indnsia Ogn New Gui Ogn Ghana Ogn

Jan 09 20,407 2,160,150 4,330,304 6,041,251 257,313 1,250,000

Total Jan 2008 Origin Venez Venez Total Ecuador Ecuador Ecuador Ecuador Entry St Loui

49,469,063 Port Jan 09 1,020 1,020 2,686,653 750,582 893,069 4,330,304 5,266,625 175,000 599,626 6,041,251 2,724 2,724 38,754,701 2,502,500 41,257,201 579,644 1,378,985 1,958,629

Ny City

Ny City Phila San Frn Total Ny City Balt San Frn

Ny City Phila

Ny City

Indnsia Indnsia Indnsia Indnsia Total Phil R Phil R Total Ivy Cst Ivy Cst Ivy Cst Total Nigeria Nigeria Nigeria Total

San Frn

Los Ang

Phila San Frn

Phila Balt

Ny City Total

Ny City Phila

GRAND TOTAL

Divine Chocolate Leads as Catalyst for Change in Chocolate Market. Science Letter, (CABI), 17 March 2009 Unique to Divine Chocolate, one of the leading dedicated Fairtrade companies in the UK and the USA, is the amazing story of how smallholder cocoa farmers in Ghana came to own 45% of a chocolate company. A company that has pioneered the market for Fair Trade chocolate; a company with products in all the major retail markets that delivers profits to the farmers of the Kuapa Kokoo cooperative; a company that aims to change the way the chocolate industry works forever (see also ). Divine is delighted that Cadbury has joined them in saying to the industry that the current way of working is neither sustainable nor fair. Together we really have the chance to create a step change, where the very least companies should do is to pay a Fairtrade price for the ingredients they buy, and that anything less is just not acceptable. When the team that established Divine first sat down ten years ago, we set converting Cadbury's to Fairtrade as an objective because Cadbury's was synonymous with chocolate in the UK. Cadbury's started as a Quaker company with a philanthropic mission, and we hope that this conversion to Fairtrade is a return to the values on which the company was built.

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"We are very proud that through our company Divine Chocolate we have built the market for Fairtrade chocolate in the UK and shown that consumers want farmers to have a fairer deal" says Kuapa Kokoo Farmers Union. "Cadbury's has set a precedent for what's possible for large chocolate companies to achieve. If Divine can make 100% of its chocolate Fair Trade and create additional value for farmers through ownership of a brand - just think what else is possible in a market as big as the USA when big chocolate companies give farmers a fair deal" says Erin Gorman, CEO of Divine Chocolate in the USA. With Divine, for the first time in the history of chocolate, the farmers that grow the cocoa have a significant share of the wealth they are creating. Divine doesn't just pay a Fair Trade price. Divine also invests 2% of turnover in a producer support programme that has supported their democratic organisation and helped them build their business. But most important, for the past three years the farmers have enjoyed dividends from the brand they own.

Labour Issues
Child Labour threatens Chocolate's Sweet Image Journal of Turkish Weekly swissinfo, Tim Neville 12 March 2009 Swiss chocolate might not be so sweet if a key ingredient, the cocoa bean, comes from plantations that profit from forced child labour, a watchdog group says. The Swiss non-governmental organisation Berne Declaration has launched a campaign to encourage the country's chocolate producers to do more to ensure the cocoa they buy comes from ethical sources. On the cusp of the Easter season the group has released images of chocolate bunny rabbits crying blood, with the slogan, "child labour is put into Swiss chocolate". The Association of Swiss Chocolate Manufacturers, a cooperative of 18 industrial chocolate companies, says it is working to ensure Switzerland's world-famous chocolate is produced under fair and ethical practices. "We are aware of our social responsibilities as employers and are committed to a social partnership," the association says. But the Berne Declaration says the raw material supply chain is not transparent enough for consumers to know for certain that the chocolate they buy is not tainted by child labour. In a cocoa market cluttered by politics, war and cut-throat competition, it can be extremely difficult to pinpoint the conditions under which the beans were produced. "We don't want people to stop eating chocolate, but we need to make people aware that there is a problem in the industry and that producers need to be more transparent," Andrea Hüsser, a consumer affairs specialist with the Berne Declaration, told swissinfo. "They make good chocolate but we want it to be fair." « We don't want people to stop eating chocolate, but we need to make people aware that there is a problem in the industry. » Andrea Hüsser, Berne Declaration Chocolate's dark side About 60 per cent of the worldwide cocoa production comes from West Africa, with the bulk of the beans harvested from plantations in Ivory Coast, a particularly problematic country for child labour abuses. While no exact figures exist on how many children suffer under forced working conditions in the worldwide cocoa trade, labour groups and human rights activists estimate as many as 250 million children could be affected. The matter first caught the public's attention about nine years ago as media reports surfaced of force child labour in West Africa. Officials from the United States-based International Labor Rights Forum investigated the issue. "These child workers labour for long, punishing hours, using dangerous tools and facing frequent exposure to dangerous pesticides as they travel great distances in the gruelling heat," a report states. "Those who labour as slaves must also suffer frequent beating and other cruel treatment."

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The motives for using forced child labour are largely economic. While cocoa prices have climbed from about $718 a tonne in 2000 to as high as $2,600 a tonne in recent years, cocoa producers in Ivory Coast are among the most heavily taxed group of growers worldwide. Berne Declaration says farmers there keep just 35 cents of every dollar's worth of beans sold. Producers in other regions can keep as much as 90 cents per dollar. "The main problem is that prices aren't high enough for farmers to survive," Hüsser said. "They have to employ children or forced labour because they can't pay anyone to work for them." « This can be a farmer's personal way out of poverty. We have a corporate social responsibility. » Christoph Inauen, Chocolats Halbas Taking steps While Hüsser said most of Switzerland's industrial chocolate makers could not or would not divulge details on how they buy cocoa beans, at least one producer has taken steps to make sure its chocolate production is ethical and transparent. Chocolats Halbas is one of Switzerland's top five chocolate producers and makes the bars branded by Coop chain of stores. Christoph Inauen, the company's head of project management, said Chocolats Halbas started analysing environmental practices and potential for child labour abuse in cocoa-producing countries 18 months ago. "After a while we realised the way we were purchasing was not really appropriate," he told swissinfo. "We decided to do a new strategy and go directly to the source, to work directly with them so we can be certain there is no child labour in the production." The company is phasing out purchases from Ivory Coast altogether since the market there – torn by war, political instability and dominated by several very large producers – makes transparent purchases difficult. Instead the company is focusing on Ghana and Central America, where the company guarantees to buy beans for prices that exceed production costs. They also provide help with diversifying crops and creating sustainable farms. "This can be a farmer's personal way out of poverty," Inauen said. "It's not just good business. We have a corporate social responsibility."

Environmental Issues
Liberia: Authorities Report Fresh Invasion of Crop-Destroying Caterpillars. World News Connection, (CJFA), 12 March 2009. MONROVIA, March 12, 2009 (AFP) - Liberia has been hit by a second invasion of crop-destroying caterpillars which have wreaked havoc in the west African nation, agriculture ministry officials said Thursday. "We have two weeks maximum to react. We have our teams out on the field preparing to contain the situation, " Moses Subah, head of the agriculture ministry's technical team, said. "We have mobilised experts from the sub-region; experts came from Brazil, from the United States, who provided technical assistance, " Agriculture Minister Chris Toe told AFP. "Following the spraying of the caterpillars, the 11 teams have been involved in mopping up activities ...as well as the search for adult moths. This exercise has proven very successful in containing further spread." The first wave of crop destroying caterpillars was identified as Achaea Catocaloides, a very destructive pest that attacks a wide range of crops including coffee and cocoa, key cash earners. Over a hundred Liberian villages have so far been affected by the plague and authorities warn that hundreds of thousands of people could face hunger because the caterpillars have devoured all the crops.

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Liberia has declared a state of emergency and called on the international community to help it deal with the plague, which has also spread to parts of Guinea and threatens Sierra Leone's border region with Liberia.

Research & Development
Cocoa shells to fuel power station Food Week March 11, 2009 Chocolate maker Lindt plans to use cocoa shells left over from its USA processing facilities to produce electricity. Lindt USA is and the Public Service of New Hampshire state are testing a fuel mix combining coal with cocoa bean shells at the Portsmouth power station. Lindt will eventually import the beans directly from source and produce its own chocolate from raw cocoa beans, managing the chocolate-making process from raw material to final product. A‎ Lindt‎ spokesperson‎ told‎ ConfectioneryNews.com:‎ ―The‎ US bean roasting plant extension will be in operation by Spring 2010 and will be utilised to meet all of Lindt USA‘s‎ domestically‎ produced‎ chocolate‎ needs.‖ A test burn at Portsmouth will determine the feasibility of putting the shells into use as a fuel source. Thomas‎ Linemayr,‎ Lindt‎ USA‘s‎ president‎ and‎ CEO,‎ said:‎ ―Not‎ only‎ would‎ it‎ be‎ a‎ quick,‎ local‎ solution‎ for‎ disposing of a by-product, but it would afford us another opportunity to reduce our carbon footprint as we bring our chocolate production in-house.‖ Although shells from some competitors are reused as garden mulch, Linemayr said that the company is not aware of any other cocoa-bean-shell-to-energy projects in the US chocolate industry.

Promotion Others
Farm Commodities Could Soar Again - FAO Source: Reuters 13/03/2009 London, March 13 - Stocks of agricultural commodities remain low and prices could start to rise again if there is an earlier than expected economic rebound, Alexander Sarris of the United Nations Food and Agriculture Organization said on Thursday. "Stocks are not very big now. They still have to be built up...If all of a sudden demand turns out to be higher, we will hit a constraint and prices will go up," he told Reuters on the sidelines of the Agra Europe 2009 outlook conference. Sarris, director of the FAO's Trade and Markets division, said commodity markets were likely to be volatile with producers faced with an uncertain future. "Everyone (producers) has to make decision about what is going to happen (to demand) next year but who knows. Uncertainty is making everyone take a shot in the dark," he said.

Sarris said producers should be able to provide sufficient supplies to cope with an anticipated pick-up in demand, adding if stocks had been built up by the time demand rebounded there should not be a sharp increase in prices. Prices for agricultural commodities soared in early 2007, boosted partly by very low stocks, but have fallen back sharply in the last few months as the global economic crisis deepened.

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Sarris said biofuels demand was likely to continue to be an important factor in agricultural commodity prices for some time. Biofuels are currently mainly produced from grains, sugar crops and vegetable oils. Production in some key producing areas, particularly the United States and the European Union, has, however, relied heavily on supportive government policies. Sarris said the economic crisis raised some doubts about future government policies on biofuels. "Government budgets are being crunched and they may spend now on more immediate social protection rather than biofuels. This has yet to be seen," he said. "This is going to be a tricky set of political decisions," Sarris said, adding scientific evidence had also called into question the benefits of biofuels in tackling climate change. But he said it may be hard for governments to retract supportive policies as investment decisions had now been made based on them. Sarris said production of agricultural commodities in Africa had stagnated due partly to a lack of credit. "In Africa, the availability of credit is very low," he said, adding institutional problems were hampering expansion in the continent. He said new ways needed to be found so African farmers could buy inputs and take advantage of technological advances. "Quite a lot of technology has not been applied in Africa...We have been neglecting this issue," Sarris said. These might include contracts under which inputs might be provided by international buyers of African commodities. "There is not one model which can be applied across Africa so this (institutional reform) will be long process," he said. The Financial Gains of Fairtrade in Ghana Ghana News Egu, Francis Kwaku March 14, 2009 Introduction The concept of Fairtrade in Ghana has taken a very good shape as a result of tremendous efforts by local farming communities, Oxfam, Comic Relief and other charitable organizations. The main aim of these charities is to prevent farmers who are described as being at the bottom of the supply chain from being exploited by middlemen. Farmers are guaranteed fair prices for their products which are set based on their cost of production. In situations where local market price is higher than the minimum price, market prices are used to determine prices for their products. Local farmers with the help of these charities and other governmental organisations mobilise themselves into cooperatives. This helped them to pool their resources together for the benefit of their members. One such very important co-op is the Kuappa Kookoo cooperative. From a very humble beginning, Kuappa has grown into a very important limited liability company of great importance. What gladdens my heart most is the support the Fairtrade organizations are offering to our school children in remote farm communities. These children are given the opportunity to participate in competitions with winners given prizes. Some few lucky ones among them are sponsored to attend conferences abroad. These children are our future leaders so it is very important we invest in their future. The Principles of Fairtrade The internationally‎ accepted‎ definition‎ by‎ FINE‎ for‎ Fairtrade‎ is;‎ ‗a‎ trading‎ partnership,‎ based‎ on‎ dialogue,‎ transparency‎ and‎ respect‎ that‎ seeks‎ greater‎ equity‎ in‎ international‎ trade.‘‎ FINE‎ is‎ an‎ association‎ of‎ four‎ international Fairtrade networks. These are Fairtrade Labeling Organizations International, World Fair Trade Organization, Network of European Workshops and European Fair Trade Association. The campaign for Fairtrade is carried by a group of organisations known as Fairtrade organisations. They campaign for changes in the rules and practices of conventional trade. Fairtrade organisations fall under an umbrella organisation known as International Fair Trade Association (IFAT) which is now known as World Fair Trade Organization (WFTO). The mission of WFTO is to improve the livelihood and well being of disadvantaged producers.
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WFTO has prescribed principles which act as guidelines to all fair trade organizations. These principles among other things take account of the environment, safeguarding of natural resources and meeting future investment needs. It also provides for gender equity, providing equal pay opportunities for women and men. Above all, it is against child labor and ensures that the UN convention for the right of the child is respected. (www.ifat.org) Fairtrade label In return for following these principles, WFTO registered Fairtrade organizations are allowed to use Fairtrade labeling or certification. The certification system is designed to allow consumers to identify goods which meet agreed standards. The certification is overseen by a standard-setting body known as Fairtrade Labelling Organisations International (FLO). The system involves independent auditing of producers and traders to ensure the agreed standards are met. (www.fairtrade.org.) Fairtrade makes provision for what is referred to as Fairtrade social premium. This is an annual payment made to farming communities valued at 5% of their sales. This social premium is used by the farming communities to provide schools, water supplies, etc. The premium ensures that communities have the ability to fund long term projects. Finally, Fairtrade believes in strength in togetherness. It therefore requires that farmers organise themselves into associations or cooperatives. This helps the farmers in pooling their resources together and put them in a stronger position when selling their products (www.fairtrade.org.) Financial Gains Kuappa Kookoo Company Fairtrade has brought a lot of financial gains to farmers as well as farming communities in Ghana. One major financial‎gain‎of‎Fairtrade‎to‎the‎ordinary‎farmer‎is‎the‎establishment‎of‎―Kuappa‎Kookoo‖‎in‎1993.‎This‎is‎a‎ farmers‘‎ cooperative‎ with‎ over‎ 45000‎ farmers.‎ Since‎ its‎ establishment‎ Kuappa‎ has‎ been‎ in‎ the‎ forefront‎ in‎ protecting business interests of farmers. It has also played a major role in helping farmers fight for better deals on the world market. Kuappa Kookoo has worldwide recognition and has the mandate to handle all Fairtrade premium money paid for Fairtrade products. The premium payment is handled by Kuappa Kookoo Farmers Trust Fund. Money accrued is used to purchase farming implements and distributed to members. An example is the purchase of machetes worth GHc160, 000 which were distributed to members. Apart from the above, Kuappa Kookoo has a Credit Union division which provides credit and banking services to its members. Members are offered loans to support them in their farming as well as other social obligations. This credit facility is given to members at an affordable interest rate compared to interest rate pertaining on the market. This is a big plus because such credit facilities make it possible for the farmers to expand their farms. They also use it to diversify into other areas so that in times of difficulties they will always have something to fall on. Kuappa Kookoo has a commercial wing that has an export license and thus purchases and exports cocoa beans for its members via the Cocoa Marketing Company Ltd (CMC). Kuappa members are reported to have produced 63,000 tons of cocoa beans in 2004, representing 8% of Ghana's total production of 736,000 tons. Cocoa provides‎ virtually‎ 100%‎ of‎ members'‎ cash‎ income.‎ Government‘s‎ plan‎ to‎ liberalize‎ the‎ cocoa‎ purchasing‎ industry‎is‎expected‎to‎increase‎Kuappa‘s‎cocoa‎export‎to‎about 30%. The interesting thing is that Kuappa pays farmers very attractive prices for their cocoa. The prices are usually above the government price. Kuappa also subsidizes agricultural inputs for its members. (www.fairtrade.org.) Dividend and foreign inflows Kuappa Kookoo, which began as a cooperative, later metamorphosed into a company. Currently it holds 45% shares Divine Chocolate Inc and received a dividend payment of £47,379 in 2006. Such payments allow Kuappa to pay special bonuses to its members. It also uses it to purchase farming implements and distribute to its members. Kuappa currently owns one-third shares in Divine Chocolate in the US and has two chocolate brands to its credit. These brands are Divine Fairtrade chocolate, and Dubble Fairtrade chocolate. These brands are available in supermarkets all over Europe. There have been some vital financial inflows from major charities towards the course of Kuappa. Such inflows came as a result of Fairtrade in Ghana. Comic Relief-London alone is reported to have provided Kuappa with
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three grants totalling £328,387 to help develop Kuappa. DFID has also supported Kuappa in the establishment of Kuappa Farmers Credit Union. It also financed Kuappa Impact assessment survey and gave a credit guarantee for Day Chocolate Company. In 2006, original Day Chocolate founder The Body Shop also donated its shares of 14%‎in‎Divine‎Company‎to‎Kuappa‎Kookoo‎thus‎increasing‎Kuappa‘s‎holding‎in‎Divine‎to‎45%.‎(Divine‎/DFID‎ report 2007) Support for farmers in Africa has attracted attention from well meaning organizations across the globe. Foundations like Bill & Melinda Gates Foundation granted $23 million to the World Cocoa Foundation to help farmers in West Africa improve production and obtain higher prices and market access for their products. The grant is also to help about 200,000 cocoa farmers in Côte d'Ivoire, Ghana, Nigeria, Cameroon and Liberia double their income by 2013 (http\\seattletime.nwsource.com). Divine Chocolate Ltd Another major financial gain of Fairtrade in Ghana is the establishment of Divine Chocolate Ltd. Since its establishment Divine has been marketing chocolate products from cocoa produced by Ghanaian small-scale farmers. These chocolate products are made from cocoa beans purchased directly from Ghanaian farmers. In 2006 alone Divine used 1211 tons of cocoa beans. This figure increased to 1420 tons in 2007. The company thus serves as a ready market for the farmers. The company has its own Fairtrade brand name and most supermarkets in the UK are converting their own-label chocolate to Fairtrade, supplied by Divine. Divine also raised an amount of $181.650 for a Fairtrade social premium on behalf of farmers in 2006. It again raised an amount of $213.000 in 2007. Aside of all these, Divine spent an amount of £209,500 in support of producers. Divine which was set up in 1999 with a DFID guarantee loan of £400,000 had a turnover of around £8.9 million in 2006. This increased significantly to £10.7 million in 2007. Currently the turnover of the company is £12. The good news to Ghanaians farmers with regards to the success story of Divine Chocolate Ltd is that they own 45% of the company. The farmers therefore received an amount of £47,379 in the form of dividend in 2006 from Divine. (www.divinechocolateshop.com) The growth potential of Divine is very high considering the fact that the UK chocolate market alone is believed to be worth £3.4 billion a year and that of USA, is estimated at $13 billion. Divine Chocolate Inc has plans to capture fair share in these two‎markets.‎The‎company‘s‎share‎in‎these‎markets‎will‎definitely‎trickle‎down‎to‎the‎ local farmers in Ghana who own part of the company. (www.divinechocolateshop.com). Community projects Fairtrade has contributed tremendously in the development of some farming communities. A case in point is the support Milani Limited gave to the people of Adabra in the Gomoa District. Milani Ltd. is a major fresh fruit producer and exporter in Ghana. It is a leader in the cultivation and export of fresh MD2 pineapples which the company also processes into fresh juice for the local market. This company provided a three-classroom block at the cost of GH¢3,000.00 to the people of Adabra and other ten surrounding villages. (www.modernghana.com) This project was funded from the Fairtrade premiums earned by the company for producing and exporting their produce under Fairtrade conditions. Premium is described by Fairtrade as an additional percentage price paid by consumers on top of each box of Fairtrade labelled products sold by FLO certified producers in developed countries. The company itself is reported to have made gains of GH¢50,000 since it became Fairtrade certified in 2005. (www.modernghana.com) Gains from cocoa Ghana has annual cocoa production of around 400,000 tons and‎took‎over‎Indonesia‘s‎position‎as‎the‎ world's‎ second‎ largest‎ cocoa‎ producer‎ after‎ Côte‎ d‘Ivoire.‎ Ghana‎ earned‎ $715‎ million‎ from‎ export‎ of‎ cocoa‎ in‎ 2003.‎ Considering the fact that cocoa represents around 30% of Ghana's total export earnings, this figure is quite encouraging. The second most important export commodity in Ghana is gold. Ghana produced a record level of 736,000 tons of cocoa in 2004. This increase in production was attributed to higher prices on the world market and‎the‎government‘s‎cocoa‎spraying exercise. A price of cocoa for the period was reported to be at an average of $1,600/ ton. The increase in price was attributed‎ to‎ market‎ uncertainty‎ caused‎ by‎ the‎ political‎ situation‎ in‎ Côte‎ d‘Ivoire,‎ the‎ world‘s‎ largest‎ cocoa‎ producer.‎Ghana‘s‎cocoa is of high quality and attracts a premium price on the world market. Amidst the boom in cocoa prices Kuappa is reported to have received a Fairtrade minimum price of $1600/ton for Fairtrade sales, plus the Fairtrade premium of $150/ton for investment in commercial, social or environmental projects. Sales to

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the‎Fairtrade‎market‎account‎for‎around‎3%‎of‎Kuappa‘s‎total‎production‎and‎increased‎from‎450‎tons‎in‎1999‎ to 1,800 tons in 2004. Core competence of Kuappa Kuappa has very good potential for future growth. This is because of the inflows it receives from Fairtrade as premiums and dividends from Divine. It also engages in the lucrative business of buying and exporting cocoa beans. These receipts will definitely ease the cash flow problems of Kuappa. What the company needs to do now is to concentrate on its core business and should not over expand. Currently the company has about five divisions. As a limited liability company which is fairly new, over stretching its business activities could pose a future problem. The company should consider increasing its holding in Divine and rather scale down some of its activities. The core competence of Kuappa from the look of things is commercial trading in cocoa beans. It should concentrate on this and consider out sourcing from other companies. Kuappa could be the hen which would lay the golden egg so the stakeholders need to put in much effort to keep it as a going concern. Conclusion Fairtrade has contributed immensely to the well being of farmers in our communities. It has provided price stability and ready market to our hard working farmers. It has also contributed in bringing the exploitation of farmers to the attention of world leaders. The best way forward is to make sure the gains from Fairtrade trickle down to the ordinary farmers. The gains must be shared fairly so that the farmers reap the benefit of their sweat. Few people at the top should not hijack these gains at the expense of the farmers and farming communities.

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TIT BITS
(Source: Business Recorder – www.brecorder.com)

US MIDDAY: coffee, cocoa down NEW YORK (March 10, 2009): Arabica coffee slipped to a three-month low in early trade on Monday on pressure from the firm dollar and fund selling, while currency also helped push US cocoa lower in rangebound dealings, traders said. Coffee and cocoa futures contracts on ICE Futures US began trading one hour later starting Monday, and will do so through March 27, due to international time changes. London coffee, sugar pare losses LONDON (March 10, 2009): Coffee and sugar futures pared their losses after the euro rose against the dollar, but Far Eastern producer selling still weighed on robusta coffee on Monday. The weak pound bolstered London cocoa. "We have a nice rebound on the euro," said Romain Lathiere, fund manager with Swiss-based Diapason Commodities Management. "It's a bit mitigated (losses), because we have a strong energy segment and not-sobad grains market." Sun, rain boost hopes for Ivorian cocoa mid crop ABIDJAN (March 10, 2009): Long sunny spells and plentiful rain in Ivory Coast's main cocoa growing regions last week boosted already high confidence in the forthcoming mid crop harvest, farmers and analysts said on Monday. The mid crop, which runs from April to September, is expected to partially compensate for a main crop harvest in the world's biggest producer that has fallen well short of last year's on a combination of bad weather, disease, strikes and administrative disruption. Hedge funds propel cocoa, sugar, coffee higher in London LONDON (March 12, 2009): Chart-based hedge fund buying buoyed by a weaker dollar drove up cocoa, sugar and coffee futures on Wednesday. "Its Commodity Trading Advisors (buying)," said Romain Lathiere, fund manager with Swiss-based Diapason Commodities Management. "Its correlated to technical analysis programmes." Ivorian cocoa arrivals down ABIDJAN (March 12, 2009): cocoa arrivals at ports in top grower Ivory Coast reached 828,000 tonnes by March 8, exporters estimated on Tuesday, compared with 1,023,527 tonnes in the same period of the previous season. Exporters estimated around 12,000 tonnes of beans were delivered to the West African states two ports between March 2 and March 8, down from 14,343 tonnes in the same week a year ago. US MIDDAY: coffee and cocoa rebound NEW YORK (March 12, 2009): Arabica coffee and US cocoa futures rebounded in thin dealings early Wednesday, buoyed by the weak dollar, but remained range-bound, traders said. Arabica coffee for May delivery up 1.00 cent at $1.0695 per lb by 9:06 am EDT (1306 GMT). Session range from $1.0535 to $1.0785. May volume at a light 1,512 lots. cocoa rises in London, sugar trade digests India report LONDON (March 13, 2009): cocoa futures rose on chart-based investor buying on Thursday while the white sugar market moved sideways, digesting a report that Indian authorities are seeking approval to import a large tonnage soon. Robusta futures were mostly down on Vietnamese origin selling into industry buying, dealers said. In cocoa, dealers talked of a continuation of investor buying from Wednesday. Indonesias February cocoa exports jump JAKARTA (March 13, 2009): cocoa bean exports from Indonesias main cocoa-producing island of Sulawesi more than doubled to 24,700 tonnes in February from 9,464 tonnes a month earlier, trade data showed on Thursday. Traders have said that bad weather was to blame for slow shipments in January. US MIDDAY: coffee falls, cocoa firms NEW YORK (March 13, 2009): Arabica coffee flirted with a three-month low Thursday on fund selling in options-related dealings, while US cocoa climbed on follow-through buying, traders said. Arabica coffee for May delivery down 1.90 cents at $1.0515 per lb by 9:19 am EDT (1319 GMT). Session range from $1.0720 to $1.0445. May volume at 3,503 lots.

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