UTZ Cocoa Statistics Report

2017

UTZ is the

largest program

in the world for sustainable cocoa

There are more

than 760,000cocoa farmers in the UTZ program

UTZ certified cocoa is produced

in 21 countries

In 2017, enough UTZ certified cocoa was

sold to make 29.2 billion milk chocolate bars

Chocolate products with

the UTZ nameor logo are

available in 128countries

Introduction

The main goal of this report is to present the scope and scale of the UTZ cocoa program in 2017. The statistics report is written in order to inform our stakeholders and is part of our commitment to transparency.

The statistics report focuses on the key indicators related to:

• Market uptake: sales of UTZ certified cocoa

• Program reach: UTZ certified cocoa production, premiums being paid

and multi-certification of this production

This report is part of the UTZ monitoring and evaluation system. Most of the data in this report is collected via our online traceability system, the Good Inside Portal.

We recognize that there may be shortcomings with the reliability of the data. We look forward to receiving your feedback. For more information, please contact the Monitoring & Evaluation Department at ME@utz.org

©2018 UTZInformation presented here is for informative purposes only. UTZ grants permission to use information for personal, non-commercial use, without any right to resell or redistribute information or to compile or create derivative works therefrom.

Summary

Higher reach of UTZ cocoa program

The UTZ cocoa program has been able to grow and increase its reach:

21% more certified farmers

22% higher total estimated production

The top UTZ producing cocoa countries reflect the world

distribution of cocoa production

15% of cocoa farmers worldwide are part of the UTZ cocoa

program

New initiatives (Cocoa Action, Cocoa & Forests Initiative) have

brought more attention on sustainable cocoa

Increase in demand for UTZ cocoa

Farmers are selling a higher % of their cocoa as UTZ:

In 2017, 76% of the estimated production of UTZ certified cocoa

was sold as UTZ, an increase from 2016 (54%)

UTZ is continuously monitoring implementation issues (such as

traceability and deforestation) in key producing countries and

improving its assurance model

Content

1. Reach

2. Global sales

3. Premium

4. Estimated production

5. Supply-demand trend

6. Multi-certification

1.1 Geographical reachThe UTZ Cocoa program increased its reach to 21 countries

New countries: Fiji and Honduras (1 producers’ group each) Drop-out country: Togo (1 producers’ group)

1.2 Program reachThe UTZ Cocoa program reached more than 700,000 farmers

Estimated 15% of the cocoa farmers worldwide are UTZ* Largest absolute increase is seen in Côte d’Ivoire Largest relative growth is seen in Cameroon

The certified area increased by 29% and the number of workers increased by 8%

Relative growth ‘16 – ‘17 21% 29% 8%

Number of workers in 2016 has been reviewed due to higher data quality and is lower than reported in 2016* Based on World Cocoa Foundation 2016 estimate: http://www.worldcocoafoundation.org/about-cocoa/cocoa-value-chain/

2,706,596

2013 2014 2015 2016 2017

Certified area (ha)744,778

2013 2014 2015 2016 2017

# of farmers

21,781

2013 2014 2015 2016 2017

# of workers (permanent and seasonal)

1.3 Program reachThe number of farmers in the UTZ Cocoa program is steadilygrowing

329,978

144,007

71,125

54,105

35,100

110,463

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Côte d'Ivoire Ghana Indonesia Nigeria Cameroon Others

Nu

mb

er o

f fa

rme

rs

2015

2016

2017

Global increase of 21% in the number of farmers Largest absolute increase is seen in Côte d’Ivoire Largest relative growth is seen in Nicaragua (+104%)

Ghana has fewer groups but with increasing number of producers (+16%)

Relative growth ‘16 – ‘17 23% 16% 39% 3% 101% 9%

2.1 Global sales of UTZ certified cocoa beansUTZ cocoa sales increased by 83% over 2017. Lion’s share of this is coming from West Africa

‘First Buyer Sales’ are all the confirmed sales from a certified producers’ group or estate to the first buyer. Years are calendar years.

Sales per crop year are steadily increasing (+26% for main harvest) Strong growth in the demand for UTZ certified cocoa. Largest absolute growth in Côte d’Ivoire

More demand linked to commitment of important customers National record harvest in 2016/2017 in Côte d’Ivoire

For administrative reasons and anticipation of Mass Balance changes, some sales were recorded in 2017 instead of respectively 2016 and 2018

UTZ is continuously monitoring traceability challenges and improving its assurance in key producingcountries

295,084

390,416

581,709 639,087

1,166,649

2013 2014 2015 2016 2017

MT

coco

a b

ean

eq

uiv

alen

t

83%

10%

49%

2.2 Monthly global sales of UTZ certified cocoa beans

Sales represent the first sales from a certified producers’ group or estate to their first buyer

For administrative reasons, part of the 2016 harvest was recorded in February 2017 The market anticipated the UTZ Mass Balance changes in December 2017

‘First Buyer Sales’ are all the confirmed sales from the producer to the first buyer.

104,817

176,043

89,763

119,397

90,054

76,06985,526

64,937

77,795

18,231

80,980

183,038

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

MT

co

coa

bea

n e

qu

ival

ent

2.3 Sales of UTZ certified cocoa beans per origincountry Increase in sales coming from main UTZ producing countries

‘First Buyers Sales’ are all the confirmed sales from the producer to the first buyer.*Other includes Domincan Republic, DR of Congo, Sierra Leone, Uganda, Brazil, Tanzania, Vietnam, Nicaragua, Togo, Mexico and Panama

Largest absolute change is seen in Côte d’Ivoire Ghana sales boosted by new sourcing market members and internal Mass Balance

purchases by Licensed Buying Companies Cameroon and Nigeria sales boosted by important investments in large groups

Relative growth ‘16 – ‘17

671,854

176,201

71,805 70,976 64,658

111,156

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Côte d'Ivoire Ghana Cameroon Nigeria Indonesia Others

MT

coco

a b

ean

eq

uiv

alen

t

2015

2016

2017

94% 123% 118% 79% 51% 13%

2.4 Market uptake The uptake of UTZ cocoa by market continues; amount of licensedsupply chain actors and requests for labeling approvals grew again

Number of Supply Chain Actors increased by 17% 82% of the licensed Supply Chain Actors are based in Europe In 2017, 13,158 new consumer-end products on the market with the UTZ label

415

610

879

1,184

1,387

2013 2014 2015 2016 2017

Number of Licensed Cocoa Supply Chain Actors

‘Supply Chain Actors’ include traders, manufacturers and retailers.

17%

Group member premium (in cash)

Management

76% of groups use UTZ premium for their IMS

53% of groups use UTZ

premium to pay for their

external audit

Products & services to the group 78% of groups

use UTZ premium to

provide technical

assistance

62% of groups

use UTZ premium

to provide productive

inputs

31% of groups use UTZ premium for basic

community services

55%

Based on data from 2013/2014 time period

3.1 Premium transparencyOn average 45% of UTZ premium is used to further professionalize at coop level, 55% is paid in cash to group members

3.2 Premium An average of 83 euros/MT was paid in cash premium to UTZ producers’ groups and estates

UTZ premium calculations are based on transactions data recorded in the GIP. Values under 10 and above 350 EUR/MT are excluded from 2017 analysis.

The UTZ Premium is an additional cash amount paid above the market price for a similar conventional (non-certified/non-verified) product. It is mandatory and agreed upon between the certified group or producer and the first buyer

Additionally to the cash premium, buyers support cocoa producers’ groups with in-kind investment

122

102 102

8983

2013 2014 2015 2016 2017

Average Cash Premium in EUR/MT

4.1 Global Estimated UTZ ProductionSignificant growth to almost 1,5 million tons

Estimated production is based on license information from licenses valid on December 31st 2017

Estimated production is the volume indicated on the certificate of a producers’ group or estate

The largest increase (232,742 MT, +23%) in volume is seen in Africa

879,771 917,603

1,188,166

1,449,882

2014 2015 2016 2017

MT

coco

a b

ean

eq

uiv

alen

t

4%

29%

22%

4.2 Estimated production per origin countryIncrease in estimated production in main origin countries

Estimated production is based on license information from licenses valid on December 31st 2017*Others includes Dominican Republic, Sierra Leone, DR Congo, Uganda, Tanzania, Brazil, Vietnam, Liberia, Colombia, Nicaragua, Mexico, Panama, Honduras and Fiji.

Largest absolute change is seen in Côte d’Ivoire: estimated productionincreased by 23% This is mostly due to new members entering the UTZ Cocoa Program

Cameroon: new certified large groups in 2017

817,264

193,566

99,314 83,130 69,437

187,172

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Côte d'Ivoire Ghana Nigeria Ecuador Cameroon Others

MT

coco

a b

ean

eq

uiv

alen

t

2015

2016

2017

Relative growth ‘16-’17 23% 7% 36% 39% 95% 5%

5. Supply-demand trendsProducers sell on average 76% of their estimated production as certified

Supply-demand ratio is based on first buyers sales and estimated production 2017. It indicates a trend but not an absolute number.

Supply-demand ratio measures the share of estimated production (as mentionedon the certificate) that is sold as UTZ

Increase in supply-demand ratio linked to a higher increase in first buyer sales (+83%) than in certified estimated volume (+22%)

Supply-demand ratio increased in all regions with a largest relative growth seen in Asia

43% 44%

63%

54%

76%

2013 2014 2015 2016 2017

% of estimated production sold as UTZ

6. Multi-certificationThe number of multi-certified producers’ groups and estates is stable

Multi-certification represents the number of producers’ groups and estates that were UTZ as well as certified for one or more other schemes ‘Others’ includes schemes such as SPP, SASSANDRA, PROJET QPP, HACCP, FERMICOA, CROP LIFE, CP, COSTCO, cocoa life & COCOA TRACE

In 2017, 24% of the UTZ producers’ groups and estates were certified for at leastanother standard

Double-certification UTZ and Rainforest Alliance is the predominant combination Fairtrade: increase mainly because of Ghana and Peru

25%

8%

16%

8%

1%

24%

8%

14%

6%

2%

24%

9%

12%

6%

3%

Multi-certified Fair Trade Rainforest Alliance Organic Others

% o

f to

tal p

rod

uce

rs’ g

rou

ps

and

est

ates

2015

2016

2017