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COPAL COPAL COCOACOCOA InfoInfo

A Weekly Newsletter of Cocoa Producers' Alliance th st Issue No. 462 17 – 21 October, 2011 r

e t e t c e l n s a i l w l e A

N ' s a r e o c c u o d C o r P e

s a u o o c o H

- Do your health a favour, drink Cocoa everyday

C Health and Nutrition ‘

 Darkn chocolate that's rich in antioxidants‘It’s nature’s miracleLabour Issues food’

I  Production and Quality UP-COMING EVENTS  IN THIS ISSUE  ANALYSIS-West1. Africa set for another big cocoa Environmental Issue ICCOINSIDE DAILY COCOA THIS PRICESISSE: season  Research studies warn of effectLONDON of climate (LIFFE) change FUTURES on  Ivory Coast cocoa output hits record despite crisis cocoa MARKET UPDATE  Ivory Coast rains, sun boost cocoa crop-farmers  Kraft Foods (NYSE:KFT) Introduces New Cocoa Research & Development NEW YORK (ICE) FUTURES Scheme  MARKET UPDATE  Scientist urges cocoa farmers to embrace cocoa fertilization Promotion & Consumption FROM THE NEWS MEDIA  Coalition aims to boost procurement of sustainable cocoa   TIT BITS

The Market Others  Europe cocoa: Industry waits for price falls   markets

Processing & Manufacturing  Malaysia's cocoa grinding in Q3 down 2.8%  Nigeria cocoa grinder eyes Asia, Latam

Business & Economy  Cocoa Mall to open in Ibadan, Apapa In the News (from Newspapers worldwide)

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

17th October 1693.91 2667.93 1708.33 2645.67

18th October 1672.13 2628.61 1701.00 2599.67

19th October 1689.15 2666.05 1704.67 2645.00

20th October 1661.83 2620.05 1689.33 2589.33

21st October 1670.00 2630.28 1673.67 2597.33

Average 1677.00 2643.00 1695.00 2615.00

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

Monday 17th October 2011 Month Opening Trans Settle Change Daily High Daily Low Volume Dec 2011 1708 1693 -13 1713S 1673S 5,199 Mar 2012 1725 1709 -14 1730 1694S 2,506 May 2012 1741 1723 -15 1745 1709S 745 Jul 2012 1759 1736 -15 1760S 1723S 557 Sep-12 1750 1748 -15 1752S 1736S 136 Dec 2012 1758 1762 -12 1760S 1753S 74 Mar 2013 1771 1774 -12 1771S 1771S 7 May 2013 1781 1781 -15 1781 1781 1 Jul 2013 1779 -15 0 Sep 2013 1779 -15 0 Average/Totals 1748 9,225

Tuesday 18th October 2011 Month Opening Trans Settle Change Daily High Daily Low Volume Dec 2011 1673 1684 -9 1687S 1652 7,826 Mar 2012 1692 1702 -7 1705 1675S 4,608 May 2012 1706 1717 -6 1721 1691S 1,431 Jul 2012 1705 1732 -4 1734 1705S 447 Sep-12 1729 1744 -4 1748S 1719S 295 Dec 2012 1740 1758 -4 1747 1740S 53 Mar 2013 1753 1770 -4 1753 1751S 4 May 2013 1777 -4 0 Jul 2013 1775 -4 0 Sep 2013 1775 -4 0 Average/Totals 1743 14,664

Wednesday 19th October 2011 Month Opening Trans Settle Change High Low Volume Dec 2011 1690 1687 3 1697 1667 5,585 Mar 2012 1709 1706 4 1715 1687 2,416 May 2012 1723 1721 4 1731S 1704S 725 Jul 2012 1732 1734 2 1745S 1720S 1,048 Sep-12 1746 1748 4 1753 1734S 395 Dec 2012 1762 1759 1 1762S 1757 27 Mar 2013 1771 1 0 May 2013 1778 1 0 Jul 2013 1776 1 0 Sep 2013 1776 1 0 Average/Totals 1746 10,196

Thursday 20th October 2011 Month Opening Trans Settle Change High Low Volume

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 3 Email: [email protected] Website: www.copal-cpa.org Dec 2011 1668 1671 -16 1685S 1666 6,286 Mar 2012 1686 1691 -15 1706S 1686 4,191 May 2012 1706 1706 -15 1723 1702S 1,543 Jul 2012 1715 1721 -13 1736 1715S 571 Sep-12 1735 1736 -12 1753S 1732S 525 Dec 2012 1744 1748 -11 1760S 1742 140 Mar 2013 1758 -13 0 May 2013 1764 -14 0 Jul 2013 1762 -14 0 Sep 2013 1762 -14 0 Average/Totals 1732 13,256

Friday 21st October 2011 Month Opening Trans Settle Change High Low Volume Dec 2011 1678 1654 -17 1682S 1652 3,580 Mar 2012 1696 1676 -15 1701 1675S 3,199 May 2012 1711 1691 -15 1715S 1690S 1,020 Jul 2012 1720 1707 -14 1730S 1705S 383 Sep-12 1743 1721 -15 1743S 1720S 188 Dec 2012 1754 1734 -14 1756 1735S 66 Mar 2013 1750 1744 -14 1750S 1750S 4 May 2013 1751 -13 0 Jul 2013 1745 -17 0 Sep 2013 1745 -17 0 Average/Totals 1717 8,440

Average for the week 1717 11156 55,781

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

Monday 17th October 2011 Month Open Price Change High Low Volume Dec 2011 2684 2622 -49 2688 2596 10,471 Mar 2012 2715 2650 -50 2715 2628 3,363 May 2012 2692 2664 -48 2696 2644 622 Jul 2012 2696 2681 -47 2696 2671 180 Sep 2012 2741 2697 -46 2741 2708 61 Dec 2012 2730 2710 -45 2730 2700 36 Mar 2013 2760 2732 -46 2760 2730 2 May 2013 0 2742 -48 0 0 0 Jul 2013 0 2754 -45 0 0 0 Sep 2013 0 2767 -45 0 0 0 Average/Totals 2702 14735

Tuesday 18th October 2011 Month Open Price Change High Low Volume Dec 2011 2590 2571 -51 2607 2523 19,341 Mar 2012 2635 2610 -40 2635 2563 8,307 May 2012 2649 2625 -39 2649 2578 3,091 Jul 2012 2642 2642 -39 2645 2595 392 Sep 2012 2657 2657 -40 2668 2622 259 Dec 2012 2670 2669 -41 2680 2632 390 Mar 2013 2700 2690 -42 2700 2670 53 May 2013 0 2705 -37 0 0 0 Jul 2013 2705 2712 -42 2705 2705 26 Sep 2013 0 2725 -42 0 0 0 Average/Totals 2661 31859

Wednesday 19th October 2011 Month Open Price Change High Low Volume Dec 2011 2600 2603 32 2648 2574 8,450 Mar 2012 2626 2644 34 2688 2613 2,048 May 2012 2649 2659 34 2698 2634 1,340 Jul 2012 2680 2676 34 2684 2672 235 Sep 2012 2713 2691 34 2713 2697 51 Dec 2012 2719 2703 34 2730 2710 214 Mar 2013 2730 2724 34 2760 2730 156 May 2013 0 2734 29 0 0 0 Jul 2013 0 2742 30 0 0 44 Sep 2013 0 2757 32 0 0 0 Average/Totals 2693 12538

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 5 Email: [email protected] Website: www.copal-cpa.org Thursday 20th October 2011 Month Open Price Change High Low Volume Dec 2011 2590 2562 -41 2611 2545 10,444 Mar 2012 2637 2607 -37 2652 2590 3,595 May 2012 2641 2621 -38 2656 2605 1,090 Jul 2012 2685 2638 -38 2685 2624 323 Sep 2012 2670 2654 -37 2670 2641 168 Dec 2012 2673 2664 -39 2709 2647 182 Mar 2013 2700 2686 -38 2730 2670 20 May 2013 0 2696 -38 0 0 0 Jul 2013 0 2704 -38 0 0 0 Sep 2013 0 2722 -35 0 0 0 Average/Totals 2655 15822

Friday 21st October 2011 Month Open Price Change High Low Volume Dec 2011 2577 2566 2594 2553 7,658 Mar 2012 2627 2611 2637 2596 2,868 May 2012 2617 2625 2647 2611 1,900 Jul 2012 2635 2643 2656 2629 338 Sep 2012 2654 2657 2675 2647 202 Dec 2012 2686 2670 2695 2659 495 Mar 2013 0 2690 0 0 101 May 2013 0 2700 0 0 0 Jul 2013 0 2708 0 0 0 Sep 2013 0 2726 0 0 0 Average/Totals 2660 13562

Average for the week 2660 2466 2466

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 6 Email: [email protected] Website: www.copal-cpa.org NewsNEWS

HealthHealth and Nutrition Nutrit

Dark chocolate that's rich in antioxidants Choclatique specializes in gourmet chocolates, keeping abc7.com with a "less is more" theme. But there's only four Lori Corbin ingredients in there. It's cocoa butter, cocoa mass - or October 17, 2011 chocolate liquor - a touch of vanilla, and a little bit of LOS ANGELES (KABC) sugar. -- By now you may have heard that certain types of A bonus to those who watch their sugars, this three- chocolate can be good for ounce bar contains only 7.5 grams of sugar. That's the you, and dark chocolate is equivalent of about two teaspoons. And if you're doing the clear winner when it what you should and eating only just one ounce (about a comes to antioxidants. third of the bar), you're getting less than a teaspoon of One local chocolatier sugar. created a product that has as many antioxidants as a pint of blueberries. "I take one Q91 is Engoron's antioxidant dark chocolate. Cocoa in the morning and one in the evening every single day. beans roast for hours, not minutes, bringing out flavors It's like a one-a-day vitamin for me," said Choclatique uncommon in most chocolate. "So if you were to take a owner Ed Engoron. look at a European-flavored dark chocolate, it's always bitter, brittle [and] grainy. Ours isn't," said Engoron. But A sweet one at that. Engoron is talking about his special high quality ingredients and longer production time creation, Q91."If you take a look at one of our little means you'll pay more for it. squares, it's equal to about a pint of blueberries," said Engoron. It's equal in antioxidants that is. Health experts Engoron said chocolate bars run around $6.50 for three say about an ounce of dark chocolate can do a body ounces - that's a 100-gram bar. The Q91 runs a little bit good. "It's one of the health prescriptions that I give that more. people actually like. One to two squares of dark chocolate a day- high cocoa dark chocolate. It's got to Beyond Q91, there's wine chocolates, dessert chocolates have a lot of cocoa, because that's where the flavanols and cocoas as well. Engoron hopes there's something for are found," said Jonny Bowden, a nutritionist and author everybody. "Chocolate is supposed to be fun. You know of "The Most Effective Ways to Live Longer." you can't say chocolate without smiling," he said.

Production & Quality The International Cocoa Organisation (ICCO) said last month it saw a possible balanced or surplus market in ANALYSIS-West Africa set for another big cocoa 2011-12, defying the market's consensus for a small season deficit. "Good rainfall in West Africa in August and reports of good pod counts suggest the 2011-12 crop Reuters Africa could be better than initially anticipated by the market," By Richard Valdmanis Rabobank said in a research note. Oct 14 2011 DAKAR, Oct 4 (Reuters) - West African plantations will Officials in West Africa's four main growers -- Ivory churn out huge amounts of cocoa during the early Coast, Ghana, Nigeria and Cameroon -- have put out months of this season thanks to near-ideal growing initial forecasts for the crop that add up to nearly 2.9 weather, and the full harvest is likely to rival last year's million tonnes, but they appear to be weighed down by a record volumes. The region produced a record of nearly conservative outlook from Ghana. 3.2 million tonnes of cocoa during the 2011-12 season that just ended, raising its share of the global market to NO WAR, NO PROBLEM about 75 percent from two-thirds. The world's top grower, Ivory Coast, is likely to move The banner crop came despite a war in top grower Ivory about the same amount of cocoa to portside warehouses Coast and was attributed mainly to ideal weather from between October and December as it did during the same the La Nina phenomenon -- a pocket of cooler-than- period of last year's banner crop, exporters estimate. If normal water in the Pacific -- which is expected to return the nation's plantations continue to get weekly rains this season. The outlook could further dampen global broken up by periods of sunshine through mid- cocoa futures prices CCc1 LCCc1 and reinforce November, it will nearly ensure that Ivory Coast's main emerging expectations for a supply surplus during the October-to-March harvest rivals or exceeds last season's 2011-12 season, which are slowly replacing earlier record. predictions of a small deficit.

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 7 Email: [email protected] Website: www.copal-cpa.org Ivory Coast's finance ministry is anticipating a cocoa weather conditions wiping out the effects of a damaging crop of 1.3 million to 1.5 million tonnes in the full 2011- political crisis, authorities said Monday. The output as of 12 season -- at or slightly below last year's record of September 25 was more than 25 percent higher than in about 1.5 million, a source told Reuters last week. "The 2010, Massandje Toure-Litse, head of the state cocoa weather is still favourable and the plantations have been management committee, said at a meeting to mark the treated (for pests) much more than in past years," the opening of the 2011-2012 season. She said that the source said, corroborating information collected by market had expected a slump in the world's top cocoa Reuters from farmers in the growing regions of Soubre, producer, but instead the export of beans in 2011 totalled Daloa and San Pedro last week. 1.417 million tonnes, as against 1.2 million in 2010.

The industry managed its record output last season Control of the cocoa industry was hotly disputed between despite a post-election civil war that drove many farmers outgoing president Laurent Gbagbo, who refused to step from their plantations and halted exports for three down in the wake of the November 2010 vote, and his months. The absence of conflict this year could provide a rival Alassane Ouattara, who was finally sworn as boost. Ivorian officials are also mulling sector reforms president in May. Ouattara, whose victory was including providing farmers a fixed minimum price for internationally recognised, persuaded major world beans, which they hope will revitalize the industry by chocolate-makers to boycott Ivorian cocoa until he took encouraging investment in plantations in the coming power, then helped to dispose of accumulated stocks years. through tax relief.

In No. 2 grower Ghana, which posted the most dramatic Ivory Coast has about 35 percent of the world cocoa increase to production last season to more than 1 million market, and cocoa and coffee account for 40 percent of tonnes from just over 632,000 the previous year, officials its export revenue and 20 percent of its gross national appear to be playing it safe. The country is banking on product. Toure-Litse's committee said it would output of 850,000 to 900,000 tonnes of cocoa during the concentrate on training farmers to improve quality and 2011-12 crop, but "it could be more, depending on the quantity of output. weather", Noah Amenyah, a spokesman for regulator Cocobod, told Reuters. Ivory Coast rains, sun boost cocoa crop-farmers Reuters Africa Ghanaian officials have attributed the dramatic increase By Loucoumane Coulibaly in output in the 2010-11 season largely to good weather Oct 17, 2011 and government efforts at improving farming techniques * Rains good for crop, but threat to bean quality and incentives. Analysts have said the country may also * Some farms inaccessible because of flooding have received more than 100,000 tonnes of smuggled beans from war-stricken Ivory Coast. Smaller producers ABIDJAN Oct 17 (Reuters) - Abundant rains punctuated Nigeria and Cameroon both anticipate significant by sunny spells last week in most of Ivory Coast's key increases this year."I am looking forward to our national cocoa regions have boosted the main crop, but heavy output hitting a new record of 250,000 tonnes this rains in some areas have prevented harvesting and may season," said Jerome Mvondo, general manager of damage quality by preventing proper drying, farmers said Cameroon's Cocoa Development Authority on Monday. (SODECAO), adding that output could rise further in 2012-13 due to improved husbandry methods. Harvesting of the 2011/12 cocoa main crop (Oct-Mar) is underway and farmers in western regions said they were The country yielded about 202,000 tonnes of cocoa in the expecting a healthy main crop, even compared with last 2010-11 season, up 18 percent from the previous season. season. Michael Ndoping, general manager at Cameroon's National Cocoa and Coffee Board (NCCB), declined to In the western region of Man, traditionally known for its give a forecast for 2011-12 but said output "could be coffee, farmers said the weather was good and new cocoa much better this season if the weather is good". farms have started to come on tap, some of them on former coffee plantations that switched to cocoa a couple In Nigeria, where reliable output figures are hard to come of years ago. "It's raining a lot. The weather is very by, farmers said they were upbeat about the 2011-12 favourable to cocoa here," said farmer Adama Bakayoko. season due to the weather. The Cocoa Association of "During the political crisis, a lot of planters switched Nigeria, which estimates output of around 300,000- their farmers from coffee to cocoa. There's more money 350,0000 tonnes per year, said production could increase in it." by 10 to 15 percent this year as plantations mature and farmers embrace new husbandry techniques. Nigeria's In the western region of Duekoue, farmers said several government puts annual cocoa output above 400,000 downpours boded well for the development of the main tonnes, while the ICCO estimates around 240,000 tonnes. crop and would extend harvesting for a longer period. "We know we're going to have cocoa of good quality and Ivory Coast cocoa output hits record despite crisis in abundance until December," said farmer Amara Kone. (AFP) "But after that, from January to March, isn't yet clear -- it Oct 17, 2011 will depend on how brutal the dry season is." ABIDJAN — Ivory Coast's cocoa production hit a record 1.48 million tonnes in 2010-2011, with favourable

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 8 Email: [email protected] Website: www.copal-cpa.org In the western region of Soubre, at the heart of the cocoa Bosuso (E/R), belt, an analyst reported 89 millimetres of rains Oct 21, GNA - compared with 57 mm the previous week. Farmers there Dr Francis said the weather was good for the development of the Tetteh, President crop but prevented them from properly drying the beans of the Soil they had already harvested. "It's been raining for six Science Society days. It's good for the trees but not so good for the beans of Ghana we're trying to dry," said farmer Lazare Ake. (SSSG), has attributed the In the eastern region of Abengourou, an analyst reported increase in 68 mm of rains compared with 33 mm the week before. cocoa production in Ghana over the past six years to the Farmers said they were concerned as too much rain application of cocoa fertilizer by farmers. He appealed to would disrupt collection of their beans. "There's too all cocoa farmers to embrace the concept of fertilization much rain. The rivers have burst their banks and so we as a means of increasing soil fertility which would lead can't go to the bush to collect the beans," said farmer to high cocoa production in the years to come. Dr Tetteh Joseph Amani. "We fear the quality could start to suffer." made the appeal at a forum on soil fertility and fertilizer application for cocoa farmers in the Eastern Region at Similar growing conditions were reported in south Bosuso on Thursday. He said national outputs of cocoa eastern region of Aboisso, where analysts reported 77.9 in Ghana had seen appreciable increases in the last six mm compared with 16.2 mm the previous week, and in years due to pragmatic policies put in place by the Cocoa the southern region of Divo. "It's raining too much. The Research Institute of Ghana in collaboration with the Soil roads are unpassable," said farmer Mathurin Kouame, Science Society of Ghana on areas of national control of who farms near Divo. pest and diseases on all cocoa farms, the increased use of fertilizers on farms and mass cocoa spraying. However, But in the centre-west region of Daloa, which produces a Dr Tetteh said productivity on farms remained low at quarter of Ivory Coast's national output, farmers reported 500 kilogram per hectare against potential yield of over three abundant rains mixed with enough sun to allow 2.5 tons per hectare due to inability of some farmers to drying, and were optimistic the crop would be good. embrace the concept.

In the coastal region of Sassandra, agronomist Lassene Dr Kwame Ofori Frimpong, the Deputy Director of Traore reported 54 mm of rain compared with 27 mm the Cocoa Research Institute (CRIG) in charge of Soil previous week. Science Division, said agriculture remained the largest sector in Ghanaian economy in terms of its contribution Kraft Foods (NYSE:KFT) Introduces New Cocoa with the cocoa sector being the most critical and Scheme contributing the larger percentage of agricultural growth. eMoneyDaily He therefore urged farmers to see farming as a serious By Jack Leftman business and commit resources into it and reap the 20 October 2011 benefits in future. Kraft Foods (NYSE:KFT) has rolled out its sustainable cocoa procurement scheme in the Dominican Republic. Dr Ofori-Frimpong, who is also the National Coordinator In a commitment with the United States Agency for for Cocoa Hi-Tech Programme, said results of International Development (USAID), the Cocoa experimental trails on farmers by CRIG indicated that Partnership initiative of Kraft Foods (NYSE:KFT) is low soil fertility was a major cause of the decline in planning to increase the yield and quality of Dominican yields of cocoa farms in Ghana. He said since the cocoa. The program will provide training on farming introduction of fertilizer application and the Cocoa Hi- techniques for about for about 10,000 small-scale cocoa Tech Programme, production had gone up significantly. farmers in the country. Dr Ofori-Frimpong said the all time record of more than one million tons of cocoa production in Ghana this year Bharat Puri, senior vice president, global chocolate, Kraft was as a result of understanding and application of all the Foods (NYSE:KFT) said, “The challenges facing today’s methods being introduced to farmers by CRIG and cocoa farmer cannot be solved by any one company or SSSG. He urged farmers not to rest on their oars, but organization. Only by working together – public and continue to work hard for the country to regain its lost private sectors along with farmers and civil society – will glory of being the number one producer of cocoa in the we be able to make the difference that’s needed.” world.

Kraft Foods Inc. (NYSE:KFT) stocks were at 34.85 at Mr Abraham Kwaku Adusei, Eastern Regional Best the end of the last day’s trading. There’s been a 0.0% Cocoa Farmer, commended CRIG and SSSG for change in the stock price over the past 3 months. organizing the forum and appealed to the government to ensure that the supply of spraying chemicals reaches Scientist urges cocoa farmers to embrace cocoa farmers on time. fertilization Mr Kwaku Afrifa, a member of SSSG, also appealed to Ghana News Agency farmers to apply the fertilizer in combination with 21st October 2011 medium shade, judicious pruning, regular weeding and insecticides spraying. He said if that recommendation

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 9 Email: [email protected] Website: www.copal-cpa.org was practiced it would be possible for a farmer to realize the news reports of increased arrivals appear on the yields of over 2.0 tons per hectare with the fertilizer Reuters screens." contributing as much as 20-40 percent of the increase in yield. Cocoa futures have been falling since early September and hit a two-year low on Oct. 18, due in part to a Coalition aims to boost procurement of sustainable downturn across commodities markets in response to the cocoa euro zone debt crisis and fears of lower growth in China. Purcon 21-10-2011 European price differentials were weaker because of People in procurement jobs at confectionary firms and slack demand, with good quality Ivory Coast beans other food manufacturers will able to source sustainable quoted at around 50 pounds ($78.43) over London's cocoa more easily thanks to a new global initiative aimed December bean contract on Friday, down 10 pounds on at boosting production. the week. "Buyers are also encouraged by the continuing political stability in Ivory Coast following the civil war The World Cocoa Foundation, the US Agency for earlier this year," another dealer said. "This stability International Development and the Sustainable Trade encourages a wait-and-see cocoa purchasing strategy." Initiative are behind the African Cocoa Initiative (WCF/ACI). It will invest in sustainable cocoa programs Concerns about the impact of the euro zone debt crisis on in West Africa, where the crop, 90 per cent of which consumer spending also weakened buying interest. comes from small farmers, is major source of income. "I have the impression the chocolate industry has pretty The five-year, $13.5 million (£8.6 million) programme good supply cover and that European chocolate makers will focus on the four producing countries of Cote have already made large advance purchases of the Ivory d'Ivoire, Ghana, Cameroon and Nigeria. new crop," the first dealer said. "But there is continued nearby requirement by parts of the semi-finished It aims to foster public-private cooperative investments products industry." in cocoa and agriculture, improve the genetic quality and productivity of the cocoa varieties, expand farmer BUTTER PRICES FALL education and training schemes, and improve the agriculture input supply chain serving the famers. Price ratios fell for cocoa butter, a key chocolate ingredient. Butter for nearby delivery was offered as low The announcement comes just after Kraft confirmed that as 0.97 times the London December cocoa contract on it is expanding its sustainable cocoa initiative into the Friday, down from 1.05 times London last week. Dominican Republic, following the success of the programme in Ghana. But many producers were still demanding ratios of between 1.00 and 1.10, declining to cut below the 1.00 level. The Market "This is the first time in several years that I can remember ratios being offered under the 1.0 level," one Europe cocoa: Industry waits for price falls butter trader said. "It shows butter production is simply Reuters Africa above demand." By Michael Hogan and Jane Baird) Oct 21, 2011 The background was said to be continued strong demand HAMBURG, Oct 21 (Reuters) - Demand slowed in for cocoa powder, especially for chocolate drinks, and Europe's cash cocoa market this week as industry export demand from Asia. delayed purchasing in the hope of further future price falls, traders said on Friday. "Grinders are processing larger volumes of beans to meet powder, but they are facing slack demand for cocoa "Industrial buyers are generally holding back as London butter, which they also produce more of when they grind futures continue their slide down each day," one cash more beans," a trader said. dealer said. "The Ivory Coast main crop is now starting, and buyers hope that when large volumes start reaching "There is market talk that a very large amount of butter, the international market futures will weaken further, perhaps up to 100,000 tonnes, is being stored in Europe presenting a buying opportunity." and another 50,000 tonnes in the U.S., but no one really knows the true figures." Harvesting of the cocoa main crop in Ivory Coast, the world's leading exporter, takes place between October "However, profits are still being made on sales of cocoa and March. This year's harvest has started, and farmers powder, so it is not clear whether the bottom of the butter say they are expecting a healthy crop following a bumper market has been reached. Grindings continue to rise." crop last year. "Currently cocoa arrivals at Ivory Coast ports are still Europe's third-quarter 2011 cocoa grind rose 14.0 percent down on the year as farmers are unwilling to sell," on the year, while German third-quarter grindings shot another dealer said. "Falling futures are expected when up 36.1 percent.

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 10 Email: [email protected] Website: www.copal-cpa.org Traders said the reason for the very sharp German rise when the sector was deregulated, but only a few are now was a transfer of grinding activity to Germany following partially operational, processing less than 40,000 tonnes. a series of recent takeovers of cocoa processors by multinational commodity groups. One American Laoye said business was so bad that most processors multinational has made major transfers of cocoa grinding were crushing the beans used in making chocolate, from Britain to a newly purchased plant in Germany, cosmetics, cake, butter and liquor based on confirmed traders said. ($1 = 0.638 British Pounds). demand. "The meltdown has affected the way the business is done, what we try to do is to make sure we produce to the market ... Everybody just waits for the Processing & Manufacturing market and reacts to the market."

Malaysia's cocoa grinding in Q3 down 2.8% The expansion of a new plant located in the southwestern BERNAMA city of Ibadan cost about 1.2 billion naira. "The Malaysia Star expansion has been completed and we are just doing technical trials now, everything has been installed to October 17, 2011 about 95, percent," the FTN executive director said. KUALA LUMPUR: Malaysia's cocoa grindings in the third quarter of the year dropped 2.8 per cent to 71,451 tonnes compared with 73,529 tonnes registered in the Business & Economy same quarter last year.

The third quarter cocoa grinding output was also 0.9 per Cocoa Mall to open in Ibadan, Apapa cent lower against the second quarter, hence marking the The Nation - second consecutive negative growth performance for the By Tonia 'Diyan year, said the Malaysian Cocoa Board in a statement 21/10/2011 today. - Residents of Ibadan, Oyo State and Apapa in Lagos should be prepared as the long-awaited Cocoa Mall, is Nigeria cocoa grinder eyes Asia, Latam markets soon to open shops activities, writes TONIA ‘DIYAN. Reuters Africa By Tume Ahemba A SET of redeveloped and refurbished Malls in Dugbe Oct 18, 2011 area of Ibadan, the Oyo State capital owned by the LAGOS (Reuters) - Nigerian cocoa grinder, FTN Cocoa Oodua Group will soon open. Ditto the Apapa Cocoa Processors, has doubled its capacity to 20,000 tonnes mall,Wemabod Housing Estate Park Lane. ahead of its plans to explore Asian and Latin American markets after a slump in demand from Europe, its They have spar, with an international retail super market executive director said on Friday. as an anchor tenant. They also have a hyper market, taking up to about 5,000 square metres shop space. Other Akin Laoye told Reuters the expansion was initially international clothing lines will also take as much as planned to take advantage of growing demand from 1,000 square metres, also the local brands. Western markets, but the economic slowdown prompted the company to look elsewhere. "We are thinking of They will offer a total of about 13,000 square metre shop exploring Asian markets in the future because Asian and space. Both malls will have about 90 shops, including Latin American markets are beginning to look up. There international brands. Other packages are the food court, seems to be some strong demand from Asia and Latin games arena, car parks and shopping floors. America, especially India and Brazil," Laoye said. "We also know that the meltdown will not last forever." Both malls will have cinema on the two floors with about six screens each, which will be functional by mid-next Nigeria's cocoa processing capacity has slumped by year. Wema Bank has also taken a space there. More around 90 percent in the last two years due to the high tenants are under way, says the owners of the facility. cost of raw beans, crippling power shortages in Africa's most populous country and weak demand for cocoa- The name Cocoa Mall originated from the Oodua Group, based products from Europe. which owns the property. They made their money many years ago from cocoa. The property in Apapa belongs to Cocoa grinders have invested more than 100 billion naira a subsidiary of Oodua. The idea of the mall came up as a in the sector in the last five years, according to industry way of upholding the original value for which the experts, but return on investment has been slow. property was established.

The industry's main grouping, the Cocoa Processors Interestingly, crops, such as cocoa which is cash crop Association of Nigeria (COPAN), said in March some found mainly in western part of the country and grinders were mulling relocating to neighbouring groundnut, produced mainly in the north would be made countries with an easier business climate. available in the malls.

The world's number four cocoa producer had about 18 Notable portraits and other pieces of information about grinders crushing some 200,000 tonnes a year in 1986 cocoa and the region would be displayed to remind people of its historical value and help enlighten the young ones on their heritage.

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 11 Email: [email protected] Website: www.copal-cpa.org Agriculture. He said the effects of increasing The Cocoa Mall in Ibadan and Apapa in Lagos, is temperatures would not only be felt on cocoa, but on expected bring a new lease of life to their other food crops - a situation which was likely to have neighbourhoods and society. serious consequences on the food security status of the country in the near future. “This means Ghana, as a country, must explore ways of mitigating the devastating Labour Issues effects of climate change,” he suggested.

Dr Aboagye, was speaking at the 22nd Annual General Meeting the Research Scientists Association, of the Council for Scientific and Industrial Research at Bunso, Environmental Issue in the East Akyem Municipality on Thursday.

Research studies warn of effect of climate change on The AGM was under the theme: “Climate Change and cocoa Variability - the Role of the CSIR in Ensuring Sustainable Water and Food Security.” Dr Aboagye said Ghana News Agency the CSIR as a leading Research institute, it would play GNA the role expected of it in contributing to addressing the 21st October 2011 negative effects of that phenomenon. “It is, therefore, incumbent on us as researchers to play our roles Dr Lawrence effectively to make sure the negative effects of the Misa climate on crop production are effectively managed”. Aboagye, Director of CSIR-Plant Genetic Research & Development Resources Institute, (PGRRI) has said recent, has Promotion & Consumption indentified the possibility of increasing temperatures which would lead to massive decline in cocoa production by 2030 in Ghana and la Cote d’Ivoire.

The studies was conducted by climate scientists at the Others Colombia –based International Centre for Tropical

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684 12 Email: [email protected] Website: www.copal-cpa.org