CocoaKaroliina Lehtonen

Lily-Ann Chen

What is cocoa?

• Cocoa is the dried and fully fermented fatty seed of the cocoa tree.

• The worlds smallest soft commodity market (grown not mined)

• Seeds from the pod of a Theobroma tree

Where is cocoa produced?• Country Amount produced

Côte d’Ivoire 1.3 million tonnes

Ghana 720 thousand tonnes

Indonesia 440 thousand tonnes

Cameroon 175 thousand tonnes

Nigeria 160 thousand tonnes

Brazil 155 thousand tonnes

Ecuador 118 thousand tonnes

Malaysia 30 thousand tonnes

Where is cocoa traded?• Cocoa is traded on two world exchanges:

London and New York; both are traded electronically.

• The main exporters; are also the main producers of cocoa beans.

• Trading hours for the cocoa market are from 7:00 AM Central Time to 10:50 AM Central Time. The market is traded in 10 metric ton contracts, with a minimum price fluctuation of $1 per ton indicating a change in value of $10 per contract.

What goods are made from cocoa?

• Chocolate• Cocoa butter,

used in beauty products

• Cocoa powder, also known as the hot chocolate powder

• Cocoa liquor (no alcohol)

Price History• Price has fluctuated over

the years• Back in the 1970s, cocoa

prices skyrocketed due to worldwide drought, hitting $4,000, even $5,000/ton.

• Cocoa prices will keep going up in 2008. "There will be strong demand for cocoa and chocolate,”

• Increase in dairy prices.

• Price has fluctuated over the years

• Back in the 1970s, cocoa prices skyrocketed due to worldwide drought, hitting $4,000, even $5,000/ton.

• Cocoa prices will keep going up in 2008. "There will be strong demand for cocoa and chocolate,”

• Increase in dairy prices.

Unit: US Dollars per Metric Ton

Industry groupsCompany Total sales in 2005

(in US$ Millions)

Mars, Inc. 9,546

Cadbury Schweppes PLC (CSW) 8,126

Nestlé SA 7,973

Ferrero SpA 5,580

Hershey Foods Corp. (HSY) 4,881

Kraft Foods Inc. (KFT) 2,250

Meiji Seika Kaisha Ltd. 1,693

Lindt & Sprüngli 1,673

Barry Callebaut AG 1,427

Ezaki Glico Co. 1,239

•Top Ten Confectionaries Worldwide, ranked by 2005 sales Source: Candy Industry, January 2006-via ICCO

•High cocoa prices have mostly been bad news for chocolate makers, who must adjust to the rising dairy prices.

•Top Ten Confectionaries Worldwide, ranked by 2005 sales Source: Candy Industry, January 2006-via ICCO

•High cocoa prices have mostly been bad news for chocolate makers, who must adjust to the rising dairy prices.

Other Information

• Today, the cocoa industry tops $1.4 billion worldwide. The International Cocoa Organization [ICCO] predicts yields for the 2007-08 year could be as high as 3.78 million metric tons.

• It takes about 300-600 cocoa beans to produce one kilo of chocolate

Interesting Facts

• Cocoa beans were used as currency by the Mayan and Aztec civilizations over 1400 years ago.

• Rumor has it, that Napoleon carried chocolate with him on all his military campaigns for a quick energy snack.

• The world chocolate comes from the Aztec word “xocolatl”, which means bitter water.

• Chocolate syrup was used for blood in famous movies; like Alfred Hitchcock’s Psycho.

Bibliography"M@rket Inform@tion in the commodities area." INFO COMM. 18 May 2004. UNCTAD. 30 Oct. 2008 <http://r0.unctad.org/infocomm/anglais/cocoa/market.htm>.

"Cocoa." Cocoa. June-July 2002. Wikipedia. 30 Oct. 2008 <http://en.wikipedia.org/wiki/cocoa>

"About Cocoa." International Cocoa Organazation. 26 May 2007. ICCO. 30 Oct. 2008 <http://www.icco.org/about/growing.aspx>

"Cocoa Trading Information." Cocoa Trading. 2008. Market Technologies. 30 Oct. 2008 <http://www.tradertech.com/information/cocoatrading.asp>

"Cocoa Story: Cultivation, trade and transport." European Cocoa Institution. 30 Oct. 2008 <http://www.geocities.com/chocolatecorner/benefits.html ->

Cocoa Beans-Monthly Price. Index Mundi. <http://www.indexmundi.com/commodities/?commodity=cocoa-beans&months=300>

"Cocoa Hits Its Sweet Spot -." Boning up on beans. Seeking Alpha. 30 Oct. 2008 <http://seekingalpha.com/article/65707-cocoa-hits-its-sweet-spot>