COPAL COCOA Info A Weekly Newsletter of Cocoa Producers Alliance Issue No 320 In House Cocoa Newsletter 2

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					              COPAL COCOA Info
              A Weekly Newsletter of Cocoa Producers' Alliance
                Issue No. 320
In-House Cocoa Newsletter                                               26th – 30th January 2009
 Cocoa Producers' Alliance

                                UP-COMING EVENTS                                IN THIS ISSUE
                                                                                INSIDE THIS ISSE:

                                                                           ICCO DAILY COCOA PRICES
                                                                           LONDON (LIFFE) FUTURES
                                                                            MARKET UPDATE
                                                                           NEW YORK (ICE) FUTURES
                                                                            MARKET UPDATE
                                                                           FROM THE NEWS MEDIA
                                                                           TIT BITS

                                Do your health a favour, drink Cocoa everyday
                                          ‘It’s nature’s miracle food’
In the News (from Newspapers worldwide)
 Health and Nutrition                                  Processing & Manufacturing
 Chocolate may be Beneficial for Chronic Fatigue       Colombia: Grupo Nacional De Chocolates to
 SWEET NEWS: Chocolate lovers cheer research on           Buy Mexican Chocolate Manufacturer Nutresa
   cocoa‘s healthful qualities                             for USD 95 Mln
                                                        Archer Daniels Midland to acquire German
Production and Quality                                     chocolate company
 Cocoa price shoots up following West Africa supply    Barry Callebaut to cut 100 jobs at Dijon plant
 SW Nigeria Graded Cocoa Up At 370,000 Naira/Ton      Business & Economy
    - Buyers                                            Leap in cocoa prices likely to push up cost of
 Ghana cocoa harvest lags, but buyers say pick-up         chocolate
    possible                                            UPDATE 1-Ghana Cocobod eyes bigger cocoa
 Government to Allocate Rp 3.2tr To Improve Cocoa         crop, grind
    Sector                                              The nation‘s cash cow
 Central Cameroon Cocoa Prices Rise On Bean
    Scarcity - Indus                                   Environmental Issues
 Cameroon Cocoa Farmers Miss Out On 30% Rise In        Ivory Coast eyes Liberian worms, fears for
    Crop -Official                                         cocoa
 Cameroon: Insecticides Shared to Cocoa/Coffee         Rainforest finance – Valuing trees not timber
 Cocoa Producer Price not changed                     Research & Development
 Cocoa farmers in a PNG Province dismayed over         Scientists waiting on patent for new cocoa
    delay in release of funds                              varieties
 Barry Callebaut Cameroon Buys 22,025 Tons Cocoa       PhD reveals heart benefits of chocolate
    Beans Aug-Dec                                       U of I offering internships for teen food
The Market
 Foods and Softs Outlook for January 30, 2009         Others
 SOFTS-Cocoa rallies late, sugar and coffee            EU Agric. Consultants visit Kenema
    consolidate                                         Cote d'Ivoire PM in north to accelerate peace
                                                        Another Roadmap to Sustainable Cocoa

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

    26th January          1,805.04             2,696.96             1,962.33             2,656.67

    27th January          1,849.40             2,785.09             1,990.33             2,757.33

    28th January          1,874.68             2,833.07             2,002.33             2,799.00

    29th January          1,880.35             2,829.42             2,005.67             2,801.67

    30th January          1,885.61             2,813.18             1,982.33             2,772.00

     Average              1,859.02             2,791.54             1,988.60             2,757.33

                   P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                          Email: Website:
          International Financial Futures and Options Exchange (LIFFE)
                  London Futures Market – Summary of Trading Activities
                                     (£ per tonne)

Monday         26th January             2009
Month               Opening Trans           Settle       Change     Daily High   Daily Low   Volume
Mar-09                  2020                1982           -43         2038        1964      10,593
May-09                  2002                1960           -44         2013        1944      7,522
Jul-09                  1988                1945           -44         1996        1933       347
Sep-09                  1959                1927           -42        1966S        1916S      260
Dec-09                  1917                1882           -42        1917S        1871        76
Mar-10                  1889                1854           -36         1891        1872        31
May-10                                      1861           -36                                 0
Jul-10                                      1872           -37                                 0
Sep-10                                      1883           -37                                 0
Dec-10                                      1883           -37                                 0
Totals                                      1905                                             18829

Tuesday        27th January             2009
Month               Opening Trans           Settle       Change        High        Low       Volume
Mar-09                  1962                2008           26          2021        1930      6,495
May-09                  1930                1988           28          2000        1910      3,555
Jul-09                  1920                1975           30         1981S        1895       811
Sep-09                  1885                1959           32         1965S        1883       750
Dec-09                  1868                1923           41          1930        1868       333
Mar-10                  1812                1888           34         1892         1812       259
May-10                                      1895           34                                  0
Jul-10                  1857                1906           34          1857        1857        10
Sep-10                                      1917           34                                  0
Dec-10                                      1917           34                                  0
Totals                                      1940                                             12,213

Wednesday      28th January             2009
Month               Opening Trans           Settle       Change        High        Low       Volume
Mar-09                  2005                2022           14          2024        1995      4,805
May-09                  1983                1999           11          2000        1972      2,899
Jul-09                  1980                1986           11          1987        1958       420
Sep-09                  1949                1971           12         1966S        1948S      582
Dec-09                  1929                1934           11         1929         1911       125
Mar-10                  1892                1899           11          1898        1876       257
May-10                                      1906           11                                  0
Jul-10                  1909                1917           11         1917         1909        90
Sep-10                  1918                1928           11         1918         1915        5
Dec-10                                      1928           11                                  0
Totals                                      1949                                             9,183

              P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
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Thursday             29th January            2009
Month                    Opening Trans           Settle       Change        High        Low       Volume
Mar-09                       2025                2023           1           2045        2009      7,084
May-09                       2011                2002           3           2023        1990      3,911
Jul-09                       2002                1992           6           2004        1979S     1,317
Sep-09                       1969                1977           6           1985        1964       682
Dec-09                       1950                1932           -2         1950         1927       979
Mar-10                       1897                1897           -2          1905        1895       456
May-10                       1911                1908           2           1911        1911        2
Jul-10                                           1915           -2                                  0
Sep-10                                           1927           -1                                  0
Dec-10                                           1927           -1                                  0
Totals                                           1950                                             14,431

Friday               30th January            2009
Month                    Opening Trans           Settle       Change        High        Low       Volume
Mar-09                       2011                1995           -28         2011        1977      5,561
May-09                       1989                1979           -23         1990        1960      5,817
Jul-09                       1972                1973           -19         1982        1954S     2,167
Sep-09                       1956                1966           -11        1965S        1945       919
Dec-09                       1909                1926           -6          1930        1908S     1,182
Mar-10                       1879                1872           -25         1882        1860       332
May-10                       1888                1882           -26         1888        1888        20
Jul-10                       1888                1890           -25         1888        1888        20
Sep-10                                           1902           -25                                 0
Dec-10                                           1902           -25                                 0
Totals                                           1929                                             16,018

Average for the
week                                             1935                                             14135
Total for the week                                                                                70,674

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

Monday         26th January            2009
Month                   Open              Price       Change        High        Low          Volume
Mar-09                  2671              2667          6          2716         2629         6,209
May-09                  2680              2675          7          2720         2639         2,656
Jul-09                  2668              2662          6          2707         2629          332
Sep-09                  2652              2646          12         2674         2613          410
Dec-09                  2620              2610          11         2630         2572          443
Mar-10                    0               2582          13           0            0           13
May-10                    0               2580          13           0            0            2
Jul-10                    0               2587          6            0            0            0
Sep-10                    0               2580          6            0            0            0
Dec-10                    0               2626          -3           0            0            0
Totals                                     2622                                              10065

Tuesday        27th January            2009
Month                   Open              Price       Change        High        Low          Volume
Mar-09                  2667              2745          78         2772         2623         7,685
May-09                  2679              2756          81         2780         2634         4,220
Jul-09                  2635              2743          81         2764         2620          491
Sep-09                  2629              2725          79         2745         2605          826
Dec-09                  2580              2689          79         2697         2563          669
Mar-10                  2550              2655          73         2669         2523          323
May-10                  2648              2650          70         2648         2648           5
Jul-10                  2650              2668          81         2662         2650           2
Sep-10                    0               2734         154           0            0            0
Dec-10                    0               2771         145           0            0            0
Totals                                     2714                                              14221

Wednesday        28th January            2009
Month                   Open              Price       Change        High        Low          Volume
Mar-09                  2775              2792          47         2809         2750         5,510
May-09                  2800              2800          44         2818         2760         2,587
Jul-09                  2800              2785          42         2800         2749          581
Sep-09                  2783              2766          41         2783         2727          260
Dec-09                  2703              2728          39         2739         2688          145
Mar-10                  2713              2694          39         2716         2658          240
May-10                  2698              2690          40         2698         2692           8
Jul-10                  2704              2710          42         2713         2688          128
Sep-10                  2727              2776          42         2727         2723           5
Dec-10                    0               2813          42           0            0            0
Totals                                     2755                                               9464

              P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684
                     Email: Website:
Thursday                29th January           2009
Month                            Open           Price      Change        High        Low          Volume
Mar-09                           2807           2801         9          2837         2745          6,898
May-09                           2840           2808         8          2845         2754          3,290
Jul-09                           2808           2791         6          2810         2766           420
Sep-09                           2800           2773         7          2800         2749           305
Dec-09                           2738           2735         7          2747         2688           527
Mar-10                           2699           2697         3          2705         2680           584
May-10                           2687           2692         2          2696         2687           19
Jul-10                               0          2686         -24          0            0             1
Sep-10                               0          2746         -30          0            0             0
Dec-10                               0          2776         -37          0            0             0
Totals                                          2751                                               12044

Friday                  30th January           2009
Month                            Open           Price      Change        High        Low          Volume
Mar-09                           2795           2771         -30        2799         2730          6,243
May-09                           2783           2779         -29        2805         2740          3,304
Jul-09                           2756           2764         -27        2781         2735           466
Sep-09                           2750           2745         -28        2765         2715           108
Dec-09                           2688           2710         -25        2721         2668           113
Mar-10                           2667           2671         -26        2680         2631           280
May-10                           2645           2667         -25        2680         2640           36
Jul-10                           2663           2659         -27        2679         2663            7
Sep-10                               0          2747         1            0            0             0
Dec-10                               0          2777         1            0            0             0
Totals                                          2729                                               10557

Average for the
week                                            2714                                               11270
Total for the week                                                                                 67,621

Spot Prices (US $ per tonne)
                                               26th       27th         28th         29th            30th
                                             January    January      January      January         January
Main Crop Ghana, Grade 1                      3207        3296         3332         3341           3288
Main Crop Ivory Coast, Grade 1                3064        3153         3189         3198           3139
Main Crop Nigerian, 1                         3049        3138         3174         3183           3119
Superior Arriba                               3020        3109         3145         3154           3123
Sanchez f.a.q                                 3044        3133         3169         3178           3138
Malaysian 110                                 2657        2746         2782         2791           2771
Sulawesi f.a.q                                2874        2963         2999         3008           2944
Ecuador Cocoa Liquor                          4507        4658         4718         4734           4434
Pure Prime Press African Type Cocoa Butter    7370        7616         7715         7740           7454
10/12% Natural Cocoa Press Cake               1209        1249         1266         1270           1302
Source: Cocoa Merchant Association

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Health and Nutrition
Chocolate may be Beneficial for Chronic Fatigue
Thursday, January 29, 2009 by: Sheryl Walters, citizen journalist
(NaturalNews) Regularly consuming chocolate could be beneficial to those with chronic fatigue syndrome,
according to a study at Hull York Medical School. People who suffered with the illness found that they had
more energy when they consumed high cocoa content.

Chronic fatigue syndrome (CFS) is an illness that has a vast array of diverse symptoms; the primary one being
exhaustion. Most chronic fatigue specialists advise their clients to avoid chocolate because of the caffeine and
sugar it contains.

Professor Steve Atkin, who led the study, said he had clients who reported feeling much better after swapping
normal milk chocolate for dark chocolate with a high cocoa solid content. This sparked him to investigate

The trial consisted of 10 patients who received 45g of dark chocolate or white chocolate dyed to look like dark
chocolate everyday for two months. After the month was over, they avoided chocolate for one month and then
began taking the other type of chocolate for two months. When the patients were taking a daily dose of dark
chocolate, they reported significantly less fatigue, but felt the fatigue return when they stopped eating it.

Atkin was surprised at what good results were achieved. "Although it was a small study, two patients went back
to work after being off for six months." He explained: "Dark chocolate is high in polyphenols, which have been
associated with health benefits such as a reduction in blood pressure. Also high polyphenols appear to improve
levels of serotonin in the brain, which has been linked with chronic fatigue syndrome and that may be a
mechanism." Although more research was needed to confirm the findings, Atkin said that patients would not do
themselves any harm by eating small amounts of dark chocolate. He added that no one in the study put on any

Chronic fatigue is a very complex illness with many different causes including food intolerances, Candida,
heavy metals and parasites. There is no single cure that works for everyone, and most people require quite a few
lifestyle changes along with herbs, nutrients and detoxing.
Because of this, chronic fatigue specialists warn against believing that eating chocolate daily is going to
completely solve the problem.

Most importantly, consuming chocolate with sugar in it should be generally avoided by everyone, especially
those with a disabling illness.

Raw Chocolate
While dark chocolate is high in antioxidants and other nutrients, raw chocolate is even more potent since none
of the nutrients have been destroyed through heating and processing. Further, raw chocolate is sugar free. Most
people make raw chocolate with agave nectar, stevia or xylitol. All of these are fine in moderation for those with
chronic fatigue syndrome because they don`t create blood sugar imbalances and they don`t feed the imbalances
like sugar does.

SWEET NEWS: Chocolate lovers cheer research on cocoa’s healthful qualities
Bradenton Herald, United States - 26 Jan 2009
Among chocolate fanatics, almost any excuse is a good one for snarking down that food of the gods, but now,
you might even be able to convince yourself you‘re doing it for your health. Chocolate does have healthful
qualities, according to research showing that isolated compounds in cocoa provide ―antioxidants‖ that help cells
resist damage, and positively affect glucose metabolism and blood pressure.

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―There are components in cocoa, which is the component of chocolate that gives it its health properties, just like
green tea and blueberries have phytochemical compounds that provide health benefits to us,‖ said Oren D.
Rosenthal, Ph.D., P.T., an assistant professor at the Lake Erie College of Osteopathic Medicine campus at
Lakewood Ranch.

However, Rosenthal was cautious about what he recommends to chocolate lovers because of other additives that
might be lurking in that delightful chocolate bar. ―The important thing to recognize when picking up a chocolate
bar or candy bar — all the other ingredients,‖ said Rosenthal, who teaches integrative clinical nutrition and has
been active in helping Sarasota County schools develop more nutritious snacks for kids.

One big red flag is something you might see on the candy‘s label that says: ―Partially hydrogenated oils,‖ which
means transfats. They have a harmful effect on the body‘s cholesterol levels, raising the risk of cardiovascular
disease, he said. ―It‘s worse than if you had eaten saturated fat,‖ he said. ―This is why whole states like
California and cities like New York have banned transfats.‖

And that‘s not the only additive that might be in your innocuous-looking chocolate candy that can be harmful.
―Certainly there are high amounts of added sugars and other chemicals people don‘t recognize that they
probably shouldn‘t be eating,‖ Rosenthal noted.

The trouble is, healthful benefits primarily accrue from the cocoa that makes up part of the chocolate.

Most people do not eat cocoa in its pure form because its taste is decidedly unpleasant. They much prefer it
enhanced with sugar, corn syrup, milk and milk fats, cream, nuts and oils.

―… Once the studies funded by chocolate interest groups were discarded, the ones left offered conflicting
results,‖ said a report at, a scientific Web site.

―From a nutritional perspective, chocolate is no less a junk food than ice cream or doughnuts,‖ it concluded.

―… While no one is trying to discourage people frome enjoying an occasional chocolate treat, urging consumers
to increase their chocolate intake for ‗health reasons‘ leaves nutritional research less than credible, particularly
when diabetes and obesity have become an out-of-control global problem.‖

A Hershey‘s milk chocolate bar, for instance, has 210 calories, 110 from fat, with 13 grams of total fat, 8 grams
of which is saturated fat.

A review of the health issue by the medical advice Web site said dark chocolate, but not
milk chocolate or dark chocolate eaten with milk, is a potent antioxidant. But its researcher added a similar
caveat, noting: ―If health is your excuse for eating chocolate, remember the word ‗moderate‘ as you nibble.‖

Still, Rosenthal likes and occasionally eats chocolate himself. He offered practical advice for those of us who
are hopeless choco-holics but still want to do the right thing. ―If I eat chocolate, it‘s 70 percent dark chocolate,
and organic, too, to reduce exposure to pesticide residues. I prefer organic dark chocolate with maybe three to
four ingredients: Cocoa, cocoa butter, sugar, vanilla and maybe lecithin, which helps blend things together,‖
said the professor.

The label should read: 70 percent cocoa.

He cautioned that chocolate is still a high-calorie food, so if someone is indulging in a standard American diet
and is overweight, adding chocolate may not offer significant health benefits. But for those at a normal weight
who eat well, a few ounces of dark chocolate a day can be part of a healthy lifestyle, he said.

―I always tell people: ‗If you leave KFC after having the fried chicken, french fries, large muffin and big soda
and think you‘re reversing all the damage, you‘re deluding yourself,‖ said Rosenthal. ―If you‘re eating whole
grains, salmon, broccoli, a little piece of dark chocolate is actually adding to the phytochemicals that help
protect the body.‖

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Production & Quality

Cocoa price shoots up following West Africa supply concerns
Ghana Business News, Ghana - 29 Jan 2009
                                             Cocoa rose to the highest price in five months on speculation
                                             that crop-damaging armyworm caterpillars will spread into
                                             Ivory Coast and Ghana, the world‘s leading growers.
                                             The plague that has destroyed crops in Liberia may spread to
                                             much of West Africa unless action is taken, the UN Food and
                                             Agriculture Organization said in a statement today on its Web
                                             site. Ivory Coast, which shares a western border with Liberia
                                             and is adjacent to Ghana on its eastern side, may produce 1.1
                                             million metric tons of the beans this season, down 20 percent
                                             from a year earlier, an exporter said today.

                                                   ―A decrease in production has been the theme lately,‖ said Fain
                                                   Shaffer, president of Infinity Trading Corp., a commodities
                                                   brokerage in Medford, Oregon. ―Any type of disease that‘s
going to threaten the crop could definitely take the price higher.‖

Cocoa futures for March delivery rose $9, or 0.3 percent, to $2,801 a metric ton on ICE Futures U.S. in New
York. Earlier, the price reached $2,837, the highest for a most-active contract since Aug. 29. The chocolate
ingredient gained for the fifth straight day and the eighth time in nine sessions.

Cocoa harvesting in Ivory Coast, which officially starts Oct. 1, began late this year because of bad weather and
prolonged rainfall. Arrivals of cocoa at ports in Ivory Coast fell as much as 40 percent in the current season,
International Cocoa Organization statistician Laurent Pipitone said this month. World output will fall short of
consumption, Pipitone said.

Cocoa has gained 5.1 percent this month. In 2008, the price jumped 31 percent, the most among 19 raw
materials in the Reuters/Jefferies CRB Index.

SW Nigeria Graded Cocoa Up At 370,000 Naira/Ton - Buyers
IBADAN, Nigeria, Jan 30, 2009 (Dow Jones Commodities News via Comtex) -- The price of graded cocoa in
southwestern Nigeria has risen to 370,000 naira ($2,514) a metric ton up from NGN345,000 last week, buyers
said Friday.
Graded cocoa has been inspected and certified fit for export.
"Cocoa has never been sold at such a high price in the country," a buyer in Akure, capital of Ondo state, told
Dow Jones Newswires.
He attributed the unprecedented rise in prices to the depreciation of the naira against the dollar. The naira was
trading at NGN146.60 to the dollar Friday from NGN147.90 early in the week.

He said the currency had fallen by more than 20% against the dollar between December and the last week of
"Cocoa prices will continue to rise as long as the value of the naira continues to fall," he said.

A buyer in Ile-Ife, a cocoa-growing and marketing town in Osun state, said the price of cocoa was also up at
NGN370,000 in the state, adding that exporters were buying at the price.

He said the volume of main crop cocoa beans in the market was "quite low" as harvesting of the crop was
almost at its end. This has also helped to keep prices high, he said.
"Main crop cocoa will finish in the bush by mid-February though marketing of the beans still held in stores and
warehouses will continue until early March," he added.
He said farmers in the region were being paid NGN350,000/ton for their cocoa, also the highest price ever to

The southwest cocoa belt accounts for 70% of Nigeria's annual cocoa production of 242,000 tons.

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Ghana cocoa harvest lags, but buyers say pick-up possible
Wed Jan 28, 2009
By Kwasi Kpodo
ACCRA (Reuters) - Cocoa purchases by Ghanaian industry regulator Cocobod are down more than 10 percent
year-on-year, but buyers in the world's second biggest grower said there was time for the harvest to recover.
Fears of smaller than previously expected harvests in West Africa, home to four of the world's top five growers,
have boosted cocoa prices on world markets in recent months, but the Ghanaian outlook may be less gloomy
than thought.

"There's still hope for the crop," said Nana Ohemeng Tinyase, a buyer in the Ashanti region. "The harvest has
begun to normalise steadily in the past three weeks. The good news also is that the harmattan has not been that
harsh, so we are very hopeful," he added.

The harmattan, a seasonal wind that blows Saharan dust across West Africa, has been less harsh in Ghana this
year than in some parts of neighbouring Ivory Coast, where farmers said it intensified last week. Ghana's
Meteorological Agency said on state radio on Tuesday that it expected the harmattan to end this week.

Buyers said that this year's crop progress resembles that of 2005/06 when bumper yields that had been expected
in the first three months of the season only came much later in the campaign. "It is too early to start talking
about a small harvest," said another buyer, who spoke on condition of anonymity.

We have four more months to go and the indications are that the crop could pick up. We've experienced this
trend in the past so for us in the industry this is normal," he said.

Purchases made by industry regulator Cocobod to the end of December were 405,000 tonnes, down 13.6 percent
on the corresponding period in 2007/08, a season which started slightly later than this one. Farmers and cocoa
authorities have blamed smuggling of Ghanaian beans, particularly into Ivory Coast, as a major drain on the
country's resources. "Our worry is the smuggling," the second buyer said. "It has become clear that some buyers
out there will do anything to have Ghana's cocoa in their stocks in order to enjoy attractive prices," he said.

Prices at farm-gate in Ivory Coast are at or above 700 CFA francs per kg, equating to almost $1,500 per tonne,
while in Ghana the price set by Cocobod was 1,632 cedis, or $1,246, for the whole of the 2008/09 season.

Anthony Fofie, who was appointed Chief Executive of Cocobod on January 1, said the organisation would crack
down on smuggling. "Smuggling of cocoa along our western and eastern borders to neighbouring countries
which deprives the nation of the expected production and much needed foreign currency ... needs to be tackled,"
he said.

In an interview with Reuters on Tuesday, Fofie said Ghana was on course to raise cocoa production by a third to
1 million tonnes by 2010/11, but did not comment on production trends this season .

Government to Allocate Rp 3.2tr To Improve Cocoa Sector
Jakarta Globe, Indonesia - 28 Jan 2009
In sweet news for the country‘s small cocoa growers, a senior Agriculture Ministry official said that the
government is planning to spend Rp 3.2 trillion ($281.6 million) from now to the end of 2011 on expanding
cocoa production and improving the quality of beans, with Rp 1 trillion of the money due to be spent this year.

The country is also considering imposing a duty on imported cocoa beans, Achmad Manggabarani, the
Agriculture Ministry‘s director general of plantations told the House of Representatives‘ agriculture commission
on Wednesday. ―We want to see processors reducing cocoa bean imports by utilizing locally produced beans,‖
he said.

Manggabarani said disease had reduced yields to 660 kilograms per hectare last year, after rising as high as
1,100 kilograms per hectare a few years ago. The cocoa sector has been ravaged by disease and pests in recent
years. According to Halim Razak, the chairman of the Indonesian Cocoa Association, as quoted by Bloomberg,
cocoa production may have fallen to 480,000 metric tons last year from 520,000 tons in 2007.

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―We are embarking on a campaign aimed at boosting yields to 1,500 kilograms per hectare by the end of 2013
and significantly improving the quality of cocoa beans,‖ Manggabarani told the committee. He said that in 2008,
the country‘s smallholder cocoa plantations extended to 1.56 million hectares, and provided a livelihood to 1.53
million families.

In 2008, however, around 70,000 hectares of cocoa plantation were totally destroyed by pests and disease, while
235,000 more hectares were partly destroyed, he said. An additional 145,000 hectares of plantation were poorly
managed. Most of the affected plantations were located in eastern Indonesia.

The hearing was also attended by four governors from Sulawesi, the country‘s main cocoa-growing center.

Central Cameroon Cocoa Prices Rise On Bean Scarcity - Indus
YAOUNDE, Cameroon, Jan 29, 2009 (Dow Jones Commodities News via Comtex) -- Cocoa bean prices in
Cameroon's Center Province rose to 1,050-1,150 CFA francs ($2.16-$2.37) a kilogram this week from
XAF1,050-XAF1,100/kg nearly two weeks earlier due to a scarcity of cocoa on the market, farmers and traders
said Thursday.

The Center Province accounts for 30%-35% of Cameroon's annual cocoa output, of over 187,000 metric tons,
directly behind the Southwest province, which produces at least half the country's cocoa. Cocoa trading in
central Cameroon slowed as farmers hoarded their harvests seeking much higher prices as demand for cocoa

Cocoa farmer Alphonse Emmanuel Nguile, who heads the over 53,000-member National Organization of Cocoa
and Coffee Producers in Cameroon, or ONPCC, said: "If prices are still jumping to higher heights, it's because
there is scarcity of cocoa in the markets. Not only is there less cocoa, many farmers like me, who have good
storage facilities, only sell cocoa when prices get higher, as is the case now," said Nguile. Meanwhile, several
traders, like Philippe Ogouen said they are taking a break, awaiting for the mid-crop harvest to start in May or

Cameroon Cocoa Farmers Miss Out On 30% Rise In Crop -Official
YAOUNDE, Cameroon, Jan 29, 2009 (Dow Jones Commodities News via Comtex) -- Cameroon's cocoa
farmers are missing out on crop yield gains of as much as 30% because they're misusing pesticides,a senior
official in the country's Ministry of Agriculture and Rural Development told Dow Jones Newswires Thursday.

Cameroon produced more than 187,000 metric tons of cocoa in the 2007-08 season, a 2% increase from the
2006-07 season, government and industrial data show. Correct use of insecticide could see a 30% increase in
cocoa production, said Luc Njock Nken, the ministry's national coordinator of the pilot Cocoa and Coffee
Support Project. "But many farmers don't respect the application norms prescribed for the insecticides," he
explained. "Cameroon has about 600,000 hectares of cocoa farms, but only an estimated 110,000 hectares are
treated yearly. "Our aim is to ensure that farmers apply these chemicals very properly on their farms as we head
toward the mid-crop harvest (June-July)," said Njock Nken, who helps distribute pesticides to 3,000 farmers.

Cameroon: Insecticides Shared to Cocoa/Coffee Farmers
Lukong Pius Nyuylime, Washington - 26 Jan 2009
Cocoa/Coffee farmers in the Centre Region were last Friday happy recipients of a high value insecticide from
the Cocoa and Coffee Plant Protection Support Project of the Ministry of Agriculture and Rural Development.
Some 4,375 litres of Gawa Powerful Systemic Insecticides used in fighting against cocoa mimids, 17 Knacsack
Power sprayers and other protection equipment were shared to representatives of 48 farmer organizations.

The exercise, piloted by Luc Njock Nken, the National Coordinator of the support project, was organised to
launch the distribution of the products in the Centre Region and continue the process ignited recently by the
Vice Prime Minister, Minister of Agriculture and Rural Development during the mini agro pastoral shows in the
northern part of Cameroon. The exercise, Njock Nken said, equally marks the beginning of the cocoa/coffee
treatment campaign in a bid to boost production.

The interesting thing about the sharing of the insecticide this time is that farmers received them on time. In the
past, as a result of too administrative bottlenecks in the contract award process, farmers received the insecticides
late and consequently applied them late leaving very little impact on the plants, he said. The Gawa Powerful

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Systemic Insecticide shared to farmers is effective and kills both insects and eggs. One litre of Gawa Powerful
Systemic Insecticide is capable of treating one hectare of cocoa plants. Correct use of the product can lead to a
30 per cent increase in production, Agriculture officials said.

Farmers in the country's seven cocoa and coffee producing regions will receive the product provided they group
themselves into associations or cooperatives. The distribution which started on 16 January this year ends on
February 04. "Government has spent 5.4 billion CFA Francs between 2003 and 2008 on insecticides to the
benefit of over 1 million farmers in seven of the ten regions of Cameroon", Luc Njock Nken, stating that only
farmers who show prove of responsibility by saving substantial amounts of money will continue to receive the

Cameroon has about 600,000 hectares of both cocoa and coffee. Only 110,000 hectares have been treated. The
Cocoa and Coffee Plant Protection Support Project since 2003, has identified 450 farmers' organizations, 400 of
which have received support, representing over 1 million farmers. The project has equally trained 985 farmers'
delegates and 3,643 village phyto-sanitary brigades to ensure correct application of insecticides. So far, the
project has acquired 280,000 litres of insecticides, 337,000 sachets of pesticides, 2,041 sprayers, and 1,500
protection equipment.

Cocoa Producer Price not changed
The Statesman Online, Ghana
Adu Koranteng , 27/01/2009
The management of Cocoa Board has debunked rumours making the rounds that officials had reduced the
producer price of cocoa. A release from the public Affairs Department of Cocoa Board assured Ghanaians the
producer price of cocoa had not changed since the last review in September, 2008. ―The Producer price per
tonne (16 bags) of cocoa remains GH¢1,632.00 which translates in GH ¢102.00 per bag of 64kg,‖ the release
stated. The Board urged cocoa farmers to be calm and not be perturbed since nothing had changed.

Cocoa farmers in a PNG Province dismayed over delay in release of funds
Radio New Zealand International, New Zealand - 26 Jan 2009
Cocoa farmers in East Sepik province in Papua New Guinea have expressed dismay over the delay in the release
of just under a millions US dollars in funding for their cocoa and coconut project. A representative of the
farmers, Nick Klapat, says he came back to the province from Port Moresby empty-handed despite his efforts to
follow up the release of the money earlier approved for the project under the Government‘s national agricultural
development plan.

The newspaper, the National, reports him as saying he has wasted nine months in Port Moresby without
succeeding to have the money released. He said he was surprised to learn that a funding in the same amount had
already been released to a similar project - the Angoram cocoa and coconut project. Cocoa is a primary source
of income for some 40,000 farmers in the province with a combine export earnings of at least 10.5 million US
dollars annually.

Mr Klapat is calling on the East Sepik regional MP and Prime Minister Sir Michael Somare to immediately
intervene the release of their funding.

Barry Callebaut Cameroon Buys 22,025 Tons Cocoa Beans Aug-Dec
YAOUNDE, Cameroon, Jan 28, 2009 (Dow Jones Commodities News via Comtex) -- The Cameroon subsidiary
of Switzerland-based Barry Callebaut AG (BARN.EB) bought 22,025 metric tons of cocoa beans for crushing
between August and December up from the 15,981 tons it bought a year earlier, data from the National Cocoa
and Coffee Board showed Wednesday.

The cocoa season in Cameroon runs from August through July. According to the statistics, the company bought
locally known as Societe Industrielle Camerounaise des Cacaos SA, or Sic Cacao, bought 4,642 tons of cocoa
beans in December alone, down from 4,910 tons a year earlier. Sic Cacao has grinding capacity to process
30,000 tons of cocoa beans a year. The Swiss firm owns a 70% share and the rest is held by the Cameroon
government and local private individuals.

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.

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The Market

Foods and Softs Outlook for January 30, 2009
Friday, January 30, 2009
by CRB Research Team of Commodity Research Bureau
Foods and Softs Outlook - An Excerpt from CRB'S Futures Market Service
COFFEE—March Nybot Arabica coffee prices rose to a 3-1/2 month high, correcting upward from last
month‘s 1-1/2 yr low. Bullish factors include (1) the plunge in Columbian coffee inventories to a 17-month low
as Colombian coffee production in 2008 fell -9% to 11.5 mln bags, and (2) ICO‘s 2009-10 forecast for a 5 mln
bag world coffee deficit. Bearish factors include (1) the +14% y/y rise in Nov Brazilian coffee exports, (2) the
+1.8% rise this year in global coffee inventories to 4.55 mln bags, and (3) ICO‘s forecast for a 15% hike in
global coffee production in 2008/09 to 134.2 mln bags from 116.2 mln bags in 2007/08. Large specs aided the
recent coffee price gain as they doubled their small long position to 3,158 as of Jan 20. USDA coffee summary:
2007-08 world coffee production 117.8 mln bags (-4.7% vs 2006-07‘s 122.9 mln); 2007-08 world ending stocks
at a record low 18.3 mln bags.

COCOA—March cocoa prices surged to a 5-month high. Bullish factors include (1) concerns of a smaller-than-
expected Ivory Coast cocoa crop this year, (2) the +1.9% rise in US cocoa bean processing
in Q4 2008 y/y, (3) the -36% drop in cocoa deliveries to Ivory Coast ports between Oct 1-Jan 11, and (4) ICO‘s
upward revision of its global cocoa deficit forecast to 77,000 MT (from 41,000 MT) due to a cut in its 2007-08
global cocoa crop forecast to 3.65 mln tons. Bearish factors include (1) cocoa bean processing in Europe rising
at its slowest pace in 6-yrs during 2008, and (2) general commodity liquidation that took cocoa prices to a 14-
month low in Oct Large specs as of Jan 20 held a moderate long position of 18,522.

SUGAR—March sugar prices rallied to a 4-month high. Bullish factors include (1) speculation that India, the
world‘s second-largest sugar producer and biggest consumer, may end its 60% tax on imported sugar, taking

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excess supplies off the market, and may import 1 MMT of sugar this year after no sugar imports the last 2-yrs,
and (2) ISO‘s forecast of a 3.6 MMT global deficit and an overall 4% cut in global sugar production in 2009.
Bearish factors include (1) the fall in crude oil prices to a 4-3/4 year low, undercutting ethanol and sugar prices,
and (2) a lack of trade finance for importers, weakening demand. As of Jan 20, large specs held a large long
position of 113,669. USDA Sugar crop summary: 2008-09 world production 158.8 MMT (-4.7% y/y vs 166.6
MMT in 2007-08), consumption 162.1 MMT (+3.2% y/y from 157.1 MMT in 07-08), ending stocks 38.6 MMT
(-9.6% y/y from 42.7 MMT in 07-08).

SOFTS-Cocoa rallies late, sugar and coffee consolidate
Forex Pros, British Virgin Islands - 27 Jan 2009
* Cocoa buoyed by late surge
* Sugar falters just over 13 cents, basis March
* Coffee stumbles after hitting near 4-month high (Writes through with U.S. comments and closing prices for
ICE markets, adds byline, dateline)
By Rene Pastor and Nigel Hunt
NEW YORK/LONDON, Jan 27 (Reuters) - Cocoa futures charged to a strong close on late investor fund buying
on Tuesday while sugar and coffee faltered as both markets consolidated after recently touching four-month
highs, analysts said.

Talk of a bullish crop report about top cocoa grower Ivory Coast may have sparked the late investor buying
spree, but details were scanty. The buying in nearby months triggered automatic buy orders on the way up,
traders said.

Daniel McNamara, of Transmar Commodity Group in New Jersey, said "industry buying, continued concern
over a shortfall in West Africa" propped up bean values. "It has proven to be a buy-the-dip market," he said,
adding buyers would wait for a sell-off, not get it and are forced to pay up late in the session.

New York's March cocoa contract rose $78 or by 2.92 percent to finish at a four-month high at $2,745 a tonne.
London's May cocoa contract closed up 28 pounds at 1,988 pounds a tonne. Cocoa had rallied to a 24-year top
above 2,000 pounds on Monday over worries about crop prospects in the main areas of West Africa.

There are some worries demand would be hit by a recession, but recent grind data in the U.S. and Europe seem
to indicate no slackening in consumption.

Macquarie Bank commodity strategist Kona Hague forecast a global cocoa deficit of 88,000 tonnes in 2008/09,
but a broadly balanced market in 2009/10.

Trading in sugar and coffee futures were subdued. "It looks like death warmed over," said Jack Scoville, vice-
president of brokers the Price Group when asked about the performance of the two markets. The key March raw
sugar contract, which had hit a four-month high on Monday, touched a session peak of 13.05 cents for the
second day running, but the advance was capped there by producer sales and profit-taking.

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The sugar markets were still being supported by widespread belief that India will begin importing sugar because
of lower domestic production this season. New York's March raw sugar contract shed 0.01 cent to settle at 12.91
cents per lb. London's March white sugar contract gained $1.10 to close at $371.70 a tonne.

Coffee futures dribbled lower, with arabica contracts in New York faltering after climbing to a near four-month
high for the second straight day. Analysts said arabica futures, basis the spot month, may mount a run toward
$1.30 but that would attract producer sales from Central and South America, analysts said. London's March
robusta contract shed $3 to end at $1,728 a tonne. New York's March arabica futures lost 0.30 cent to close at
$1.219 per lb.

 Processing & Manufacturing

Colombia: Grupo Nacional De Chocolates to Buy Mexican Chocolate Manufacturer Nutresa for USD 95
30 January 2009 - Colombia's Grupo Nacional de Chocolates SA has said it will acquire Mexican chocolate
manufacturer Nutresa SA for USD 95 million. "The operation fits within Grupo Nacional de Chocolates'
strategic goals and, through this acquisition, our presence in our strategic region, that comprises Mexico, will
strengthen," the company said.

Nutresa caters for the markets of Mexico, the U.S., Central America and the Caribbean, Grupo Chocolates said.
The deal is subject to approval by the Mexican antitrust authority but the company expects the deal to close by
February. Grupo Chocolates saw its net profit amount to USD 77 million in the first nine months of 2008, up
46% from the same period in 2007.

Archer Daniels Midland to acquire German chocolate company
Trading Markets (press release), CA - 27 Jan 2009
Jan 27, 2009 (Datamonitor via COMTEX) -Archer Daniels Midland Company, a global supplier of cocoa and
chocolate ingredients, has signed an agreement to purchase Schokinag-Schokolade-Industrie Herrmann, a
Germany-based producer of chocolate and cocoa powder. The purchase is subject to approval by relevant
antitrust authorities.
Mark Bemis, vice president of Archer Daniels Midland (ADM) Cocoa and Milling, said: "This acquisition will
be an excellent fit for our business as we continue to enhance our global presence across the entire cocoa and
chocolate value chain."

Hans Hermann, owner and chief executive of Schokinag, said: "For the people of Schokinag and for our
customers, I see this as a great opportunity. ADM Cocoa's global strengths in sourcing and processing,
combined with Schokinag's long tradition and service to European and global chocolate markets, are a
combination that is good foundation for future growth for our employees, our valued customers and the
Mannheim community."

Barry Callebaut to cut 100 jobs at Dijon plant
By Lindsey Partos, 28-Jan-2009, France - 28 Jan 2009
Swiss firm Barry Callebaut, the world's largest chocolate maker, is to cut around 100 jobs at its production site
in Dijon, France. The pod-to-pallet supplier of cocoa products cited the loss of two significant orders for the
impact on the Dijon site.

Hit by the slowdown in chocolate consumption due to a contraction in European economies, volumes at the
Dijon site are expected to decline by March 2009, said the company in a statement sent to

At a meeting with employees on Monday, management at the Barry Callebaut plant added that the reduction in
volumes was 'general' for the industry as a whole across Western Europe. For the period 2007 to 2008 the
chocolate market "had stagnated" and could fall in 2009, the firm added.

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The management told meeting attendees that since Barry Callebaut had taken over the Dijon site in July 2007 it
had invested about €10 million. Further, in order to confront the contraction in volume demand the firm said it
would: reinforce competitivity at the plant; intensify research for new markets; and pursue qualitative efforts.

Last week the Zurich-based company announced a 4.1 per cent drop in sales volume in Europe to 230,824
tonnes for the three months to 30 November 2008, compared to the same period in the previous year. Total sales
revenue for the period rose to CHF1.43 billion €0.95bn), a wisp above CHF1.42 billion recorded a year earlier.

Revenue from emerging markets
Faced with western European and North American markets that continue to drop in pace, Barry Callebaut, like
all other major confectionery players, are continuing to look to emerging markets to support longer term targets
and to generate strong revenue.

Earlier this month, for example, the Swiss firm unveiled a new chocolate production facility in Mexico, its third
largest plant in the world. Expanding in step with its customers, Barry Callebaut invested about €30m in the new
industrial chocolate facility, based at Monterrey in the north-eastern Mexican state of Nuevo Leon. "Chocolate
confectionery in Mexico is expected to grow on average by 6.5 per cent per year in value terms over the next
five years," said Patrick De Maeseneire, CEO of Barry Callebaut, citing figures from market researcher

With an annual capacity of around 100,000 tonnes, Callebaut‘s new Mexican facility will supply Central and
South American chocolate markets previously fed by the firm's facilities in North America.

Sourcing some cocoa from Brazil, but also from Africa, the supply needs will "depend on the recipe of the
customers, who are a mixture of international and local players," Josiane Kremer from corporate
communications at Barry Callebaut recently told

 Business and Economy

Leap in cocoa prices likely to push up cost of chocolate
By Javier Blas and Jenny Wiggins in London
Financial Times, UK - 27 Jan 2009
Chocolate prices in shops are likely to rise further after wholesale cocoa prices in London jumped last week
above the key £2,000-a-tonne level for the first time in almost 24 years. Premium brands, which typically use
more cocoa, are likely to be the worst affected as any further rise in prices is expected to exacerbate the shift by
consumers to cheaper brands.

Cadbury of the UK, which lifted its chocolate prices 5 per cent last year, has warned that, if cocoa prices remain
high, it will raise prices further this year. As the key cocoa contract is priced in sterling, the impact on chocolate
prices in stores will, however, be eased for consumers outside the UK because of the strength of the euro and the
US dollar against the pound.

Hedging by the chocolate industry should help protect producers against volatile cocoa prices. Cocoa prices last
week rose 15 per cent to £2,005 a tonne, the highest since April 1985, in part because of the weakness of
sterling but also because of fresh worries about the crop in West Africa and speculative buying. Prices have
risen 75 per cent in the past year.

There are growing concerns that supplies from Ivory Coast and Ghana, the world's leading producing countries
which account for almost 60 per cent of cocoa bean output, will be much lower than last year. Cocoa bean
arrivals at ports in Ivory Coast are running about 30 per cent below last harvesting season. Concerns about a
lower crop had spread to neighbouring Ghana after Hans Kilian, the influential cocoa analyst, lowered its
harvest estimates for the West African country, traders said.

"If the price of cocoa is going up due to scarcity, this is because individual farmers are producing lower yields,"
said Sophi Tranchell, managing director at Divine Chocolate. "Chocolate prices are going up in store but the
high cocoa price won't necessarily benefit those individuals."

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Divine is a chocolate brand part-owned by cocoa producers in Africa.

UPDATE 1-Ghana Cocobod eyes bigger cocoa crop, grind
By Kwasi Kpodo
ACCRA, Jan 27 (Reuters) - Ghana's Cocobod regulator is on track to raise cocoa output by a third to 1 million
tonnes by the 2010/11 season, and may extend tax breaks to continue growth of the domestic processing
industry, its new chief said. Anthony Fofie, who became Cocobod Chief Executive on Jan. 1, said Ghana could
raise output to 1 million tonnes by 2010/11 through increased use of fertiliser and disease control.
"It is achievable and we're about getting there," he said.

Fofie said farmers would continue to receive good incomes from cocoa to encourage production and ensure
bean quality. The No. 2 grower raised its farm gate price by a third to 1,632 cedis/tonne ($1,246) for the
September 2008-September 2009 season, after world cocoa futures prices surged in 2008.

Worries over West African supplies have helped push prices up again in the past three months. London futures
hit a 24-year intraday high of 2,013 pounds/tonne on Monday partly due to the weak pound. They eased to 1,946
pounds/tonne by 1510 GMT on Tuesday.

Ghana's 2008/09 output reached 405,000 tonnes by the end of December, 13.6 percent down year-on-year.
Neighbouring Ivory Coast, the world's top grower, was down a fifth.

Fofie said he could not comment on current production trends until he heard back from Cocobod researchers
who were carrying out a crop assessment. Ghana, with an average 680,000 tonnes annual cocoa output over the
past five years, enjoys a quality premium. Ghana has encouraged rapid expansion in local processing in recent
years. He said higher output should make cocoa the nation's top earner, though it could rapidly be overtaken by
crude oil which is scheduled to flow from offshore oil fields from late 2010.

Ghana earned about $1.5 billion from cocoa last year, making the cash crop the country's second biggest earner
after gold. Gold brought in nearly $1.7 billion in the first nine months of 2008, according to the latest Chamber
of Mines data.

Eager for more revenue from cocoa, Ghana has encouraged the local grinding industry. Capacity is set to almost
double in the next couple of years to almost 500,000 tonnes as companies like Cargill and Archer Daniel
Midland invest around the main ports of Tema and Takoradi.

A major draw is a 20 percent discount local processors receive on purchases of beans from the light crop, the
lesser of two annual harvests, whose beans tend to be smaller and therefore yield fewer high-value products per
However, more processors competing for the light crop -- a fraction of annual output -- limits the value of this

Fofie said Cocobod and the government may offer increased tax breaks or credit finance to encourage local
processors, particularly to those processing cocoa beyond the usual semi-finished products of nibs (shelled
beans) and liquor, and those located outside the port towns of Tema and Takoradi. Fofie was a Cocobod deputy
chief executive in charge of agronomy and quality control until the previous chief,

Isaac Osei, resigned after being elected to Parliament in December. Fofie said Cocobod would redesign its
extension services to farmers to improve education, husbandry and yields as well as protecting Ghana's
reputation as a high quality origin.

Cocobod will encourage its Cocoa Marketing Company (CMC) subsidiary, which sells all Ghana's cocoa beans,
to take advantage of growing demand from Southeast Asia and Eastern Europe, and to increase direct shipments
to the United States. Ghana sells most of its cocoa to buyers in European Union countries and some parts of

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The nation’s cash cow
By Seyi Osiyemi
The Punch, Nigeria - 28 Jan 2009
A ‗cash cow‘ is a product or a business unit that generates unusually high profit margins: so high that it is
responsible for a large amount of a company‘s operating profit. This profit far exceeds the amount necessary to
maintain the cash cow business, and the excess is used by the business for other purposes.

Risks of a cash cow include complacency, with management ignoring the need for change as market forces
erode value; and ongoing turf wars between the management in charge of the cash cow and other managers
trying to garner support for other products.

The above definitions succinctly describe the economic situation in Nigeria, with particular regards to crude oil,
which has become the nation‘s cash cow over the last few decades.

It is common knowledge that Nigeria has earned phenomenal revenue from crude oil sales, which culminated in
the creation of the Excess Crude Account by the Obasanjo administration in 2004. Funds were drawn from the
Excess Crude Account in the past to pay for special projects and debt servicing. During Obasanjo‘s
administration, about $12.4bn was withdrawn from the account to offset Nigeria‘s debt to the Paris Club; $17m
for two additional days for the 2006 National Population Census; and more than $2.3bn for Niger Delta Power
Plants. Whilst it‘s not the reason for my comments, it is worth noting that the so-called ‗power projects‘ is still a
dog‘s breakfast!

It is not surprising that Nigeria has now become so complacent, even though market forces (i.e. the current
global economic downturn) has eroded the value of crude oil from its peak of $147 to $40 per barrel. Whilst
other countries (United Arab Emirates, as an example) have been looking at ways of generating revenue and
reducing their dependence on crude oil, economic managers in Nigeria seem to me unable to see beyond their

Dubai is, arguably, the current largest construction site in the world, with the monarch working extremely hard
to turn the city into one of the world‘s favorite tourist destinations. The decision to diversify was based on the
advice received on the depletion of its oil reserves and hence, the need to explore alternative ways of raising
revenues. Dubai is now famous for its shopping malls and upmarket fashion label shops.

A report recently released on world commodities did show that over the last decade, cocoa has remained the
most stable commodity. In fact, cocoa is trading at its highest in 37 years. I remember vividly being taught about
‗cash crops‘ (cocoa, rubber, etc.) during my primary education. I don‘t think at that point I knew the meaning of
‗crude oil.‘ The infrastructure built in the old Western Region by the late Chief Obafemi Awolowo was mainly
financed through cocoa export. Instead of our leaders to think outside the box and use the current global
economic crisis to retrace their steps, they are still busy speculating on future oil prices.

The 2009 budget is based on $45, which is higher than the current oil trading price, which means the 2009
budget might be in deficit from the word ‗go.‘ Members of the Senate Committee on Budget Appropriation
jumped for joy last week when oil price rose from $40 to $48 as a result of the lsraeli-Palestinian crisis. The
Senate Committee Chairman was quoted as saying, ―the benchmark for the 2009 budget should be raised
higher;‖ and he went as far as speculating that oil will be trading at $50 and rise to $100 within the next two
months.‖ When did honourable members of the Senate become oil trading experts?

Governance in the states of the federation (probably with the exception of Lagos and, perhaps a few others) goes
to sleep for 29 days every month, only for state executives to turn up in Abuja at the end of the month to collect
their share of national ‗booty‘ from the Excess Crude Account.

I understand that the Federal, state and local governments shared N106bn in December 2008 alone from the
account. The highest recipients were the oil-producing states –– Rivers (N15.5bn); Akwa Ibom (N4.5bn); Delta

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(N3bn), Bayelsa (N1.8bn). What has been the development in these states over the last eight years, apart from
allegations and counter allegations of corruption and fraud?

It will be interesting to see how the states‘ budgets stack up against the guaranteed monthly return from the
Excess Crude Account. I‘m sure their budget is 100 percent based on future oil revenue allocations. When a
state receives N15.5bn monthly, why will the governor be interested in internally generated revenue?

Anyway, as the Yoruba says, igba kan ko lo bi orere; meaning, nothing lasts forever except for the Grace of the
almighty God. However, in the meantime, it is business as usual –– we keep milking the cash cow.

Osiyemi, a transportation planner and public analyst, wrote from Brisbane, Australia.

 Labour Issues

 Environmental Issues

Ivory Coast eyes Liberian worms, fears for cocoa
ABIDJAN, Jan 30 (Reuters) - Army worms ravaging crops in Liberia are a risk for cocoa in neighbouring Ivory
Coast, though no trees have been hit yet and experts are being dispatched to assess the threat, an agricultural
researcher said on Friday.

The U.N. Food and Agriculture Organisation (FAO) warned on Thursday that a plague of caterpillars, known as
army worms, had eaten crops and plants across Liberia and might spread throughout West Africa if left
unchecked. Farmers in the top grower's western cocoa belt say they have not yet seen any worms but experts
will set up systems to fight them should they arrive, said Amoncho Adiko, head of research at the Ivorian
National Centre for Agricultural Research (CNRA).

Ivory Coast has experienced a turbulent 2008/09 cocoa season so far, with administrative chaos, poor weather
and disease contributing to a poor crop. Cocoa deliveries to ports are picking up but the total is still some
200,000 tonnes below volumes by the same time last year. This, as well as fears of a shortfall in nearby number
two grower, Ghana, has supported high world prices and helped boost the benchmark London contract to a 24-
year high. "For now, the (agricultural) ministry has not had any reports on the presence of the worms. (But)
there is a risk as these caterpillars lay eggs and spread. They destroy everything in their path," Adiko told
Reuters on Friday. "For the moment, we have been told they are heading to Guinea," he added. Guinea is north
of Liberia and also shares Ivory Coast's western border.

The FAO said six communities in Guinea had already been hit. Liberia declared a state of emergency this week
due to the plague of caterpillars, which grow to 5 cm (2 inches) and can swarm to destroy large swathes of
vegetation. "We are taking this problem seriously," Adiko said, adding that a CNRA team would survey farms
all along the border.

"We are going to work out extent of the risk and see what steps we need to take if the caterpillars arrive in the
region. We want to know what species they are and what crops they attack," he said.
Farmers in the west said they were aware of the plague but had not seen any of the caterpillars.

"We've heard on the radio that the caterpillars are ravaging Liberia. For now, there aren't any here," said Adama
Bamba, who farms cocoa and coffee near the western town of Bangolo.
"It worries us because it is not far. We're praying that the caterpillars don't come here because if they attack the
coffee and the cocoa, we will lose lots," he added.

Rainforest finance – Valuing trees not timber
Ethical Corporation Magazine, UK - 30 Jan 2009
Including forests in global carbon markets could save tropical regions, providing local people are on board

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The idea that markets can save the planet remains a controversial one. But support for market-based
mechanisms that put a price on harming the environment, and so create value for protecting it, is rightly growing

This logic underpins the carbon markets. One of the most exciting developments in this area is the move to
unlock the value of rainforests. If done properly, this could create huge value for tropical regions, while meeting
climate targets for governments and companies all over the world (see special report, p20).

Turning tropical forests into money depends on making trees worth more left standing than chopped down. In
the fight against global warming, rainforests have a clear environmental value. Deforestation accounts for
around 20% of global greenhouse gas emissions – more than the transport sector.

The challenge for market-minded conservationists is translating this environmental good into a commercial
value. This can be done by creating financial instruments that provide income for owners of forests that match
or exceed the income generated by logging or agriculture. Funds are already being set up to generate forestry
carbon credits, which can be traded on the voluntary carbon market. Such schemes look likely to be
incorporated into the formal carbon market agreed under a post-Kyoto climate deal, which will give an added

 Research & Development

Scientists waiting on patent for new cocoa varieties
Aabida Allaham
Trinidad & Tobago Express, Trinidad and Tobago - 27 Jan 2009
AGRICULTURAL scientists have conjured up a way to grow new types of cocoa plants and are waiting on a
patent to reveal them, Prof Pathmanathan Umaharan, chairman of the ad-hoc committee, New Plant Varieties,

"There are five varieties of them and because they have not been protected, I think at this stage we should not
really divulge the details of them," he told the Express at the formal opening ceremony of the "Regional
Seminar on New Plant Variety Protection under the UPOV Convention" at the Crowne Plaza hotel, Port of
Spain, on Monday.

But during his opening remarks, Umaharan urged participants from this country and the region to keep their
eyes on the ball and protect their breeds. "Whatever innovations are made should be protected and in order to
create an innovative culture, things must be protected," he said.

Director of research and planning at the Ministry of Agriculture, Cynthra Persad, who has been working with
other researchers to create the hybrids, told the Express that they hoped the cocoa would yield maximum
benefits for the consumption market and the curative market. "Trinidad is famous for having the best cocoa and
we used that as motivation to develop these five new breeds of cocoa plants ... and right now, we are testing
them for diseases and other things, but so far it seems very good," she said.

Persad said the process of patenting was a long and tedious one, but the committee wanted the plants to flourish
on the international market. "In patenting, you can either use the European kind or the American kind, but since
we are under UPOV, we are using the one that was revised in Geneva and they never had a planned outline for
patenting cocoa, so it would be done for the first time here in Trinidad," she said.

However, according to the permanent secretary in Ministry of Legal Affairs, Christine Sookram, the Intellectual
Property Office (IPO), which was formed to stimulate research and creativity within Trinidad and Tobago 11
years ago, is not being used.

In her opening remarks at the seminar, Sookram said in 1997 the government passed legislation to protect new
varieties of plants, but no applications have been made. Nevertheless, she hopes the pending patent on the cocoa
will raise awareness and show breeders the importance of patenting their plant or produce.

PhD reveals heart benefits of chocolate

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Insciences Organisation, Switzerland - 28 Jan 2009
Research that examined the effectiveness of antioxidants such as chocolate in preventing heart disease has
earned RMIT University lecturer Indu Singh a PhD. Dr Singh studied several antioxidants – including cocoa,
olive leaf extract and vitamin E – and found they could potentially reduce the risk factors for cardiovascular

Dr Indu Singh looked at the benefits of antioxidants for her PhD. ―Unhealthy lifestyles lead to oxidative stress,
which greatly increases the risk of developing cardiovascular disease,‖ she said. ―My research looked at ways
we could prevent some of the risk factors by using natural dietary supplementation rich in antioxidants.

―The results provide evidence that antioxidant supplementation maintains normal platelet function, exerts a
positive effect on blood lipid profile and improves glucose uptake in healthy people, as well as under conditions
of induced oxidative stress.

―The antioxidants in foods rich in cocoa, olive and Vitamin E have the potential to combat oxidative stress-
induced cardiovascular diseases. ―Healthy eating is the answer and a diet that includes good amounts of olive
oil, nuts and green leafy vegetables – and some high-quality dark chocolate – will help you lower your risk of
developing heart disease.‖

Dr Singh, a Lecturer in Haematology in RMIT‘s School of Medical Sciences, said while the many studies she
undertook as part of her PhD showed the benefits of antioxidants, more research was needed.

―There is lot of mechanistic work yet to be done to identify how antioxidants actually work and what would be
their impact on people who are already suffering from cardiovascular disease,‖ she said. ―We also need to work
out the appropriate doses of antioxidants that would be beneficial for healthy people, as well as those with
existing risk factors.‖

Dr Singh said she was grateful to RMIT staff for their encouragement and support. ―After all the challenges
involved with completing a PhD, finally graduating gives me a great sense of achievement and real confidence
in continuing further in this field,‖ she said.

Read the thesis through the Australian Digital Theses Program.
Source: RMIT University

U of I offering internships for teen food scientists
FarmWeek, IL - 29 Jan 2009
High school students interested in food science may apply for a 15-day summer internship at the University of
Illinois College of Agricultural, Consumer, and Environmental Sciences. The application deadline is March 2.
―Our goal is to introduce the students to many aspects of food science through the study of chocolate,‖ said
Nicki Engeseth, associate professor of food chemistry.

Illinois Agriculture in the Classroom will work with the university on the intern program. The students will
monitor quality changes in chocolate and use scientific principles to study changes in chocolate during storage.
They also will tour the U of I Center for Microanalysis of Materials.

The students will learn about the history of chocolate, including fair-trade issues, and chocolate production from
the cacao pod to the final product.

In the teaching laboratory, students will learn why chocolate behaves as it does during food preparation and
compete in an Iron Chef competition.

Activities include a field trip to a chocolatier and participation in a sensory panel.

Six interns will be selected. Housing and meals will be provided, but students need to arrange their own
transportation to and from the university. Students need to apply by March 2, and a decision will be made by
March 23.


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EU Agric. Consultants visit Kenema
Awoko, Sierra Leone - 27 Jan 2009
A three man consultant team from the European Union led by Mr. Patrick Amah is currently in Kenema city on
feasibility study on the agricultural sector with funding from the European Union (EU). The visiting team is
working closely with key stakeholders in the city and the staff of the Ministry of Agriculture Forestry and Food
Security (MAFFS) including other donors, NGOs and Research Institutions especially the private sector to work
in line with the development priorities of the agricultural sector.Speaking to the press the head of the team Mr.
Amah disclosed that the focus of their mission in Kenema is to establish the private sector in the cocoa and
coffee industries so that the farmers can benefit adding that the STABEX project is the starter.

At the office at the Resident minister east at Maxwell Khobe street in Kenema, Hon. William Juana Smith
thanked the team for their visit adding that it will be a good relief for the people of the eastern province when it
starts in the middle of 2010.
The minister stated that it is government‘s intention to diversify agricultural production and ensure that the
people focus more on agricultural activities than mining.

At the Welt Hunger Hilfe STABEX Project office along Reservation road in Kenema city where the team first
paid a visit, the Welt Hunger Hilfe STABEX Project Manager Franz Mostel in his address to the team gave a
brief over view of their activities, experiences and the way forward in the cocoa and coffee projects in the

The team was later accompanied by the Assistant project Manager of Welt Hunger Hilfe STABEX Project
Emmanuel Kwasi Yankson to the Kenema District Council (KDC) office along Maxwell Khobe street, the Gola
Forest Programme office along Dama road, the Millennium Cocoa Growers Cooperative office along Dama
road and Ministry of Agriculture Forestry and Food security office in Kenema city.

Cote d'Ivoire PM in north to accelerate peace process
ABIDJAN, Jan. 27 (Xinhua) -- Cote d'Ivoire's Prime Minister Guillaume Soro is in his New Forces (FN)
controlled north to "accelerate" the peace process which seems the ever closest to the gate of success, according
to a communiqué released by the former rebel group. Soro went to Bouake on Sunday and is set to stay there for
10 days to speed up the process under the recently signed accord, the communiqué said on Monday.

Bouake has been the stronghold for the FN since the leading cocoa and diamond exporter in West Africa was
divided following a coup in September 2002. The government controls the southern part. The unification of
armed forces and state coffers are key elements in the accord signed in December between the government and
the FN, the fourth and probably the final document since the rival sides inked their first on March 4, 2007.

The accord, which took effect on Jan. 15 after ratified by President Laurent Gbagbo and Prime Minister Soro,
involves 5,000 ex-combatants in the army integration, a complicated situation where time, persuasion and
proper arrangements are needed. The process is expected to complete in February in the run-up to a long-
delayed presidential election.

During his stay in Bouake, Soro is scheduled to hold "a series of meetings" with representatives of the local
government, military and population, the communiqué said. The prime minister will particularly work on the
mobilization of "military authorities" to ensure the success of "the Accord IV of Ouagadougou," the
communiqué stressed.

Both sides have voiced confidence in accomplishing the peace process this year. Nearly 3.5 million people have
been accounted for in the pre-election identification, which will involve a total of 12 million nationals both at
home and abroad, including 9 million voters, the latest information indicated.

The election is seen as the breakthrough in the long-standing impasse over identification, army unification and
other key issues. The country last postponed the vote on Nov. 30 in a series since 2005.

The 8,000-strong United Nations Operation in Cote d'Ivoire has urged the country to fulfill the identification
process by the end of January 2009, and the election by the end of the spring.

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Another Roadmap to Sustainable Cocoa Production
Olaolu Olusina
Lagos, Jan 26, 2009 (This Day/All Africa Global Media via COMTEX) -- There is no doubt that cocoa is
currently blazing a trail. Now regarded as one of the market's best performing commodities, it has defied the
current global meltdown that is sending shivers down the spines of economic policy makers. The price of the
commodity that is also known as the 'Tree of Life', in fact, hit a 23-year high last December.

Coming at a time when the price of crude oil is sliding in the international market, the average price of cocoa
keeps appreciating, with London and New York March deliveries standing at $2,581.6 per tonnes as at early
January. Expectations are high that the price may peak at $3,000.

This is surely a good development for West and Central African countries which accounts for 70 per cent of the
world's cocoa output. From Nigeria through Ghana, and down to Cote'd'Ivoire and Gabon, cocoa is currently
enjoying a boom. In South West Nigeria, which is regarded as the cocoa belt of the country, accounting for 70
per cent of Nigeria's annual production of 242,000 metric tonnes, cocoa merchants are reaping a bumper
harvest, with the price going as high as $2,148 per tonnes.

In the Ashanti region of Ghana, commercial activities in the cocoa sector are currently at the peak. While output
for last year stood at about 650,000metric tonnes in Ghana, with a projection of about 700,000 tonnes for the
cocoa season, Nigeria put up a not-too encouraging 242,000 metric tonnes as at the end of last year.

In Nigeria, for instance, the free fall of the naira against the dollar is also giving cocoa a boost as the commodity
is valued in dollar at the international market. The story is not different in Ghana and Cote d'Ivoire as increasing
demand, buoyed by increasing value addition, is pushing up the price of the commodity.

Market watchers, in fact, believe that the price may go up further as the shortfall in Cote d'Ivoire's output of
396,000 metric tonnes from the previous season's 721,413 tonnes is bound to affect supply as the country alone
accounts for between 35 and 40 per cent of the world output. Bush fires in Ghana, low rainfall in the West
African region and the unsustainable methods of production had resulted in the low production recorded despite
increasing demand.

Placing the development in proper perspective, Michael Owusu-Manu, Head of the Economics Department at
the Cocoa Producers' Alliance (COPAL), an intergovernmental organisation with headquarters in Lagos, Nigeria
told THISDAY that what is pushing up the price is because "consumption is increasing and output is

Owusu-Manu stated that "more value addition is also taking place in Ghana, Nigeria and Cote d'Ivoire," adding
"the dollar is getting stronger, thus making the real rate of cocoa higher, when compared to what we had about
six months ago."

While all of these, ordinarily, should offer a ray of hope and be seen as a good development for a region in dire
need of full control of its produce at the international market, analysts are worried as to how long the boom will
last, with concerns being raised over declining productivity in the face of increasing demand.

Owusu-Manu confirmed this fear; saying despite the current boom, cocoa production in West and Central Africa
is not done in a sustainable manner. According to the COPAL official, African farmers are still cultivating larger
expanse of land for fewer yields as against what obtains in other regions where smaller farmlands are producing
higher yields.

The total area under cultivation worldwide in 2007, he disclosed, was 7,415,081 hectares with production
standing at 4,043,784 metric tonnes. Out of this, Owusu-Manu said, Africa which cultivated 4,738,232 hectares
produced 2,614,749 metric tonnes whereas America with 1,486,004 hectares produced 108,398 metric tonnes.
The COPAL official further stated that Asia and Oceania with only 731,345 hectares produced 1,140,963 metric
tonnes during the period.

Explaining further, he said Asia and Oceania showed a good potential of overtaking Africa as its yield per
hectare stood at 772 metric tonnes whereas in Africa, the yield per hectare was 539 tonnes with America
recording 327 tonne per hectare in 2007.

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This scenario, Owusu-Manu said, poses a great challenge as Africa may eventually lose its prime position to
other regions with sustainable methods of production, with Asia and Oceania strongly showing great potential.

It is important to note that the World Commission on Environment and Development (WCED) has defined
sustainable development as "development that meets the needs of the present without compromising the needs
of future generations to meet their own needs."

Given this premise, Owusu-Manu, therefore, affirmed that cocoa production can only be said to be economically
sustainable "when it is at all times sufficiently attractive for small holder farmers to properly maintain their
farms, rejuvenate their farms as required and to buy the necessary production tools and inputs to achieve optimal

Maintaining that cocoa farming "should be seen as a business and not a destination," he said with farm size in
most West and Central African cocoa-producing countries averaging one-and-a-half to two hectares, the farm
family cannot earn enough to get out of poverty. What is therefore needed, he affirmed, is "a system that allows
cocoa to play a strategic role in improving the livelihood of cocoa farmers, their families, communities and the
country concerned."

Stakeholders, it must be noted, had also expressed concerns at the gloom starring the sector in the face, despite
the apparent potential that could be derived. Only last October, about 250 delegates from the COPAL member
countries converged on Kumasi in the cocoa-producing region of Ghana for the 'African Academies Cocoa
Symposium 2008'.

The aims, among others, were to come up with a vision for cocoa in West and Central Africa in the next 30
years; to develop the logic to get there; and to secure commitment to a partnership for the future of cocoa in the
region. Sponsored by MARS Incorporated in collaboration with COPAL, and co-sponsored by the Governments
of Cameroon, Cote d'Ivoire, Ghana, Nigeria, Liberia and Togo, the Kumasi gathering, which had as its theme,
'Theobroma cacao: the Tree of Change', was a follow-up to the 2006 cocoa symposium that was held in
Washington DC, United States of America.

Bringing to the fore the role of science in ensuring sustainable production, delegates at the symposium agreed
that socio-economic development could also be achieved through remunerative incomes for farmers even as
they stressed the need for ensuring that the environment precursors to meet future's demand are put in place.

Realising the absence of, and the urgent need to create a "Cocoa Partnership for the Future," the overarching
objective of the Kumasi meeting was to determine the status, trends and future scenarios for cocoa production in
the region and how they relate to the increasing global demand.

Delegates at the conference took a cursory look at the development in the African cocoa industry and listed the
problems in the sector to include "multiple constraints both in policies as well as social, economic and
environmental limitations."

According to the delegates, these limitations had to do with lack of new sources of agricultural land and
ambiguous land tenure; low soil fertility and high land degradation; lack of new and improved planting
materials; low education and employment opportunities, poor road and communication infrastructure;
inadequate nutrition and health in working population, especially in women and their children.

The limitations identified also include an aging population as well as dwindling interest in cocoa farming among
many of the youths; high incidence of poverty and few opportunities to climb out of poverty; high risk of pests
and disease as well as weak extension services and poor knowledge dissemination.

Before coming up with what is now known as the Kumasi Cocoa Agreement, representing the views of policy,
industry, donors, scientists, farmers and others, the delegates brought to the fore the critical implications of a
scenario where "productivity achieved (in the region) is below that achieved in other regions" just as they
affirmed that gains made so far had "occurred at the expense of massive losses to biodiverse forests."

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They lamented that "the sector has lost competitiveness and risks losing its leadership position on the global
market at a time when increase in demand for cocoa exists due to its health/nutritional benefits as well as greater
purchasing power in emerging markets."

While noting that the future of the African cocoa industry is fragile and unsustainable, they called for "an urgent
need to address the many challenges faced by cocoa farmers in order to expand production and returns within a
revitalised multifunctional, agricultural sector - making cocoa an engine of change of the rural economy."

COPAL Secretary-General, Sona Ebai, in his presentation: "Making it Happen, Production Possibilities,"
focused on how the cocoa sector in West and Central Africa can continue to play a pivotal role in socio-
economic development while at the same time become a dependable source of supply to the world market and
contribute to a sustainable world cocoa economy. Providing an overview of the world cocoa economy,
indicating strengths and weaknesses of cocoa production in the region, Ebai noted that the greatest weakness
was low productivity and inefficiency, resulting from several challenges in the sector.

He said for West and Central Africa to be competitive in the global scene, farmers need to improve productivity,
become more efficient and improve the quality of produce. These, according to him, can be achieved with the
necessary support from government and industry in addressing all the identified challenges to ensure a brighter

Erstwhile world number one cocoa-producing country, Cote d'Ivoire, presented a pathetic picture at the meeting.
In a paper entitled 'Agro-forestry and Durable Cocoa Farming in the Context of Forest Shortage', Alex Asiri of
the Abidjan-based Centre National de Recherche Agronomique (CNRA) said that more than 2,000,000 hectares
of land was under cultivation , with a production volume of more than 1,200,000 tonnes, which, of course,
translates into 38 per cent of world product.

Asiri disclosed that this was leading to the exhaustion of forest reserve due to aging of the existing area under
cultivation. Ironically, as espoused earlier by Dr. Daniel Sellen of the World Bank, Cote d'Ivoire, in his
presentation, "The Ivorian Sector: Recent Developments," the country had the lowest farm gate prices and the
taxation on cocoa in the region.

The World Bank, according to Sellen, is therefore recommending a profound restructuring of the Ivorian sector
to ensure future development through improved competitiveness and equitable distribution of value addition.
Good governance, a cocoa development strategy, as well as a reduction in sector taxation, Sellen disclosed, were
therefore fundamental to the World Bank's agenda in Cote d'Ivoire.

Alan Fredericq of the Archer Daniels Midlands Co., (ADM), in a paper titled "African Cocoa: (on) Sustainable
Leadership?' which focused on the strength and weakness of African cocoa as a world leader, disclosed that the
world cocoa consumption was growing in relationship to the world Gross Domestic Product (GDP). According
to him, "cocoa is one of the three most preferred flavours worldwide with a wide range of uses, and
consumption enhanced by the recent findings on the health and nutritional benefits." He contended that even
though Africa accounts for about 71 per cent of world cocoa production, and 15 per cent of grindings, cocoa
production in the region still has to be sustainable.

Fredericq insisted that for Africa to retain its position as world leader it has to take advantage of its strengths
and opportunities, while at the same time improve its image, regarding production and quality by building a
positive consumer image.

With the price of the commodity on the ascendancy and the worrisome drop in production despite increasing
demand, farmers in West and Central Africa need to take drastic steps for the region to retain its leadership
position. Only by doing this, and very fast too, with the support and collaboration of all stakeholders, can cocoa
production be seen to be a sustainable venture, with farmers reaping bountifully from their toil.

Until this is done, only time will tell if whether partnership for the future, could be formed for cocoa in
producers in West and Central Africa.

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(Source: Business Recorder –

US MIDDAY: cocoa and coffee ease
NEW YORK (February 03, 2009): US cocoa futures corrected lower in early trade on Monday, off last week's
five-month high and on pressure from the weak sterling, while arabica coffee futures also eased as the dollar
firmed, traders said. Arabica coffee for March delivery down 1.00 cent at $1.1790 per lb by 9:05 am EST (1405

Commodity markets end mixed
LONDON (February 01, 2009): Commodity markets faced a mixed week as traders tracked a deepening
recession in key consumer the United States and a gloomy global economic outlook from the International
Monetary Fund. Government data showed Friday that the US economy contracted in the fourth quarter of 2008
at the fastest pace since 1982, with a 3.8 percent rate of decline.

US cocoa finishes down
NEW YORK (February 01, 2009): US cocoa futures finished lower on Friday, on profit-taking off Thursday's
five-month high, while paring earlier losses on month-end buying by funds and investors, traders said.
Benchmark March settled down $30 at $2,771 per tonne. Trading range from $2,730 to $2,799.

Fortis sees cocoa deficit of 45,000 tonnes in 2008-09
LONDON (February 01, 2009): A global cocoa deficit of 45,000 tonnes is still anticipated in 2008/09 with
reduced production prospects offset by lower anticipated demand, Fortis said in a monthly report on Friday.
Fortis cut its estimate for world net production to 3.56 million tonnes from a previous forecast of 3.58 million
issued in December and now virtually unchanged from the prior season.

London cocoa retreats, sugar advances
LONDON (January 31, 2009): cocoa retreated from 24-year highs on Friday on profit-taking, while raw sugar
firmed on expectations of a decision to allow duty free imports of raws in India, dealers said. Arabica coffee was
down as it consolidated after its recent rise to near four-month highs. "The market needed to have a bit of a
breather," said one London cocoa dealer.

US MIDDAY: cocoa falls, coffee flat
NEW YORK (January 31, 2009): US cocoa futures corrected down 2 percent in early trade on Friday, retracing
from Thursday's five-month peak, while arabica coffee futures were little changed, traders said. Arabica coffee
for March delivery steady at $1.2150 per lb by 9:14 am EST (1414 GMT).

Ivorian cocoa prices extend gains
ABIDJAN (January 31, 2009): cocoa farm-gate prices in Ivory Coast's main growing regions rose to around 750
CFA francs ($1.49) per kg last week, boosted by worries about the size of the harvest, farmers and exporters
said on Thursday.

US MIDDAY: cocoa jumps
NEW YORK (January 30, 2009): US cocoa futures climbed to a five-month high for the second straight day on
Thursday in choppy dealings buoyed by the firm dollar and tight supplies, while arabica coffee consolidated
lower, traders said. Arabica coffee for March delivery down 1.00 cent at $1.2150 per lb by 9:14 am EST (1414
GMT). Trading range from $1.2065 to $1.2250.

London cocoa hits new 24-year top
LONDON (January 30, 2009): cocoa futures hit a fresh 24-year peak Thursday before fading at the close while
sugar and coffee consolidated further after touching four-month highs earlier in the week, analysts said. "It's
mixed price action (in the soft commodity complex)," said Ralph Preston, analyst for
in San Diego, California.

Indonesian cocoa prices near historic high
JAKARTA (January 30, 2009): cocoa beans at Indonesia's main producing island of Sulawesi were trading near
their record highs on Thursday, tracking New York futures, with weak rupiah supporting the rally, traders said.

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But only a small number of farmers are benefiting from the high prices as most have sold out their beans from
the mid-crop harvest that ended in December, they said.

Sugar eases, cocoa firmer in London
LONDON (January 29, 2009): Sugar futures eased on Wednesday as profit-taking and producer selling emerged
after the market's recent run-up stalled, while London cocoa was firmer and not far from this week's 24-year
high, dealers said. London cocoa underperformed its New York equivalent with a rebound in sterling keeping a
lid on the market with West African supply concerns underpinning prices.

US MIDDAY: cocoa up, coffee firms
NEW YORK (January 29, 2009): US cocoa futures gained ground in early trade on Wednesday, but pared gains
after hitting a five-month high amid a firm pound and supply concerns, while arabica coffee quietly reversed
higher in rangebound dealings, traders said. Arabica coffee for March delivery up 0.25 cent at $1.2215 per lb by
9:18 am EST (1418 GMT).

US MIDDAY: cocoa up, coffee lower
NEW YORK (January 28, 2009): US cocoa futures crept higher in early trade on Tuesday, with a boost from the
firm pound, while arabica coffee futures eased along with the commodity complex despite the weak dollar,
traders said. Arabica coffee for March delivery down 0.65 cent at $1.2155 per lb by 9:211 am EST (1421 GMT).

Cocoa futures end higher in London
LONDON (January 28, 2009): cocoa futures ended higher on Tuesday after fund buying triggered a late surge
as the market resumed its advance after a short-lived setback, dealers said. Sugar prices also reversed earlier
losses and turned higher while coffee remained mostly lower. "A fund started buying and a lot of stops went off.
We were having a very quiet afternoon and got caught by surprise," one cocoa dealer said.

Ghana Cocobod chief eyes bigger cocoa crop
ACCRA (January 28, 2009): Ghana's Cocobod regulator is on track to raise cocoa output by a third to 1 million
tonnes by the 2010/11 season, and may extend tax breaks to continue growth of the domestic processing
industry, its new chief said. Anthony Fofie, who became Cocobod Chief Executive on January 1, said Ghana
could raise output to 1 million tonnes by 2010/11 through increased use of fertiliser and disease control.

US MIDDAY: cocoa and coffee rise
NEW YORK (January 27, 2009): US cocoa futures climbed in early trade on Monday, flirting with a four-
month high, with a boost from the firm pound, while arabica coffee futures were little changed, traders said.
Arabica coffee for March delivery up 0.35 cent at $1.20 per lb by 9:18 am EST (1418 GMT).

Ivory Coast main cocoa crop seen down 15 percent
DUEKOUE (January 27, 2009): cocoa arrivals at ports in number one grower Ivory Coast may be down by
around 15 percent year-on-year by the time the main crop ends in March, pod counters and exporters said on
Monday. The Ivorian harvest has been badly hit by disease and administrative disorder, which in turn has
pushed prices on world markets to record highs on fears the full crop will be much smaller than last year's.

Dry winds, lack of rain stress Ivorian cocoa crop
ABIDJAN (January 27, 2009): Strong, dry winds and lack of rainfall in Ivory Coast's cocoa growing regions last
week further imperilled an already smaller than expected crop, farmers in the world's biggest grower said on
Monday. The harmattan, a seasonal, dusty wind that sweeps down from the Sahara, can damage young flowers,
lessening the chance of them developing into pods for the April-September mid-crop.

Cocoa hits a 23-year peak
LONDON (January 25, 2009): Oil prices were mixed and base metals dropped last week but cocoa futures
struck a 23-year peak as US President Barack Obama began work on saving the ailing US economy. The global
economic crisis claimed more victims on Friday as Britain officially entered recession and job losses and
bankruptcies continued to mount across Europe, Japan and the United States.

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