COPAL COCOA Info - Alliance of Cocoa Producing …. 541.doc · Web viewCOPAL COCOA Info A Weekly...

INSIDE THIS ISSE: ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES

MARKET UPDATE NEW YORK (ICE) FUTURES

MARKET UPDATE FROM THE NEWS MEDIA

COPAL COCOACOPAL COCOA InfoInfo A Weekly Newsletter of the Alliance of Cocoa Producing Countries

Health and Nutrition

Production and Quality PACTS and Mars commit to sustainable cocoa New National Cocoa Strategy to benefit 20,000

Households

The Market Surprising strength for cocoa prices

Processing and Manufacturing Asian Cocoa Grindings Fell 10.8% in the First

Quarter

Business & Economy Cote d’Ivoire envoy seeks cocoa boost

Labour Issues

Environmental IssueResearch & Development Cocoa Adviser has big hopes for local

Industry

Promotion & Consumption Mondelez International and Peace Corps

team up to train Cocoa Entrepreneurs in the Dominican Republic

Others

Do your health a favour, drink Cocoa everyday

‘It’s nature’s miracle food’UP-COMING EVENTSUP-COMING EVENTS IN THISIN THIS

Issue No. 541 22nd – 26th April 2013

In the News (from Newspapers worldwide)

ICCO Daily Cocoa PricesICCO Daily Price

(SDR/tonne)ICCO Daily Price

($US/tonne)London futures

(£/tonne)New York futures

($US/tonne)

22nd April 155300 2332.57 1540.33 2316.67

23rd April 1563.56 2347.04 1553.33 2325.33

24th April 1566.06 2351.88 1554.67 2333.67

25th April 1583.64 2385.59 1558.67 2367.33

26th April 1586.77 2386.89 1552.67 2372.67

Average 1571.00 2361.00 1552.00 2343.00

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

Email: [email protected] Website: www.copal-cpa.org2

mailto:[email protected]

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

(£ per tone)

Monday 22nd April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 1561 1541 -17 1563S 1538S 3,860Jul 2013 1558 1537 -18 1561 1535 6,739

Sep 2013 1562 1542 -17 1565 1539S 4,408Dec 2013 1565 1542 -17 1565S 1541 2,145Mar 2014 1564 1543 -17 1565S 1540S 2,807May 2014 1566 1549 -16 1567S 1549S 236Jul 2014 1571 1554 -16 1573S 1559S 652

Sep 2014 1571 1560 -15 1577S 1559S 74Dec 2014 1555 -15 0Mar 2015 1556 -15 0

Average/Totals 1548 20,921

Tuesday 23rd April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 1556 1551 10 1570 1547S 4,695Jul 2013 1552 1550 13 1569 1545S 10,681

Sep 2013 1565 1555 13 1574S 1550S 4,169Dec 2013 1565 1555 13 1572S 1549S 2,733Mar 2014 1566 1552 9 1574 1549S 3,046May 2014 1560 1557 8 1573S 1554 1,113Jul 2014 1566 1562 8 1578S 1560 205

Sep 2014 1571 1568 8 1579S 1571 43Dec 2014 1563 8 0Mar 2015 1564 8 0


Wednesday 24th April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 1557 1551 0 1563S 1541 4,502Jul 2013 1556 1550 0 1563 1540S 7,876

Sep 2013 1561 1557 2 1569S 1546S 2,739Dec 2013 1560 1557 2 1567S 1547S 2,553Mar 2014 1560 1552 0 1563S 1540S 4,508May 2014 1567 1557 0 1567S 1547S 885Jul 2014 1569 1562 0 1570S 1554S 740

Sep 2014 1574 1567 -1 1575 1567 51Dec 2014 1562 -1 0Mar 2015 1563 -1 0


ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX, TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-

9814-1736; FAX: +234-1-290-4262 Email: [email protected] Website: www.copal-cpa.org

3

http://www.nybot.com/reports/dmrs/etsDMRs/dmrFutures.asp?dmrMonth=04&dmrDay=11&dmrYear=2007&commodityID=1&commodityType=future

http://www.copal-cpa.org/







Thursday 25th April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 1562 1551 0 1565S 1535S 5,340Jul 2013 1562 1555 5 1563S 1535S 10,160

Sep 2013 1567 1561 4 1567 1542 3,081Dec 2013 1568 1560 3 1568S 1541S 3,118Mar 2014 1562 1555 3 1562S 1535S 3,725May 2014 1566 1560 3 1566S 1540S 238Jul 2014 1571 1565 3 1572S 1552S 76

Sep 2014 1577 1570 3 1578S 1556S 77Dec 2014 1556 1565 3 1556 1556 36Mar 2015 1556 1566 3 1556S 1554S 10


Friday 26th April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 1557 1542 -9 1561S 1528 3,332Jul 2013 1561 1546 -9 1565 1530S 10,760

Sep 2013 1565 1555 -6 1572S 1538S 4,490Dec 2013 1566 1557 -3 1572S 1540S 4,165Mar 2014 1561 1556 1 1566S 1535S 3,588May 2014 1570 1560 0 1570S 1543S 272Jul 2014 1563 1565 0 1564S 1551S 90

Sep 2014 1569 1571 1 1569S 1547S 23Dec 2014 1569 4 0Mar 2015 1565 -1 0


Average for the week 1559 4858 4858



4










New York Board of Trade(New York Futures Market – Summary of Trading Activities)

(US$ per tone)

Monday 22nd April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 2326 2299 -20 2326 2306 8Jul 2013 2331 2310 -23 2343 2303 11,149

Sep 2013 2341 2317 -23 2347 2310 2,516Dec 2013 2352 2322 -24 2352 2315 2,049Mar 2014 2354 2324 -24 2354 2316 863May 2014 2347 2329 -25 2347 2329 98Jul 2014 2356 2336 -25 2365 2338 130

Sep 2014 2359 2344 -24 2369 2344 44Dec 2014 0 2355 -24 0 0 5Mar 2015 0 2365 -24 0 0 0


Tuesday 23rd April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 2306 2316 17 2325 2306 4Jul 2013 2310 2327 17 2355 2307 13,526

Sep 2013 2323 2333 16 2360 2323 2,422Dec 2013 2319 2339 17 2359 2319 2,692Mar 2014 2333 2339 15 2366 2330 1,707May 2014 2340 2344 15 2355 2338 324Jul 2014 2343 2352 16 2352 2343 56

Sep 2014 2353 2360 16 2353 2348 21Dec 2014 0 2372 17 0 0 0Mar 2015 0 2382 17 0 0 0


Wednesday 24th April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 2331 2322 6 2331 2322 740Jul 2013 2317 2326 -1 2342 2309 10,343


Sep 2014 2371 2360 0 2371 2356 143Dec 2014 0 2372 0 0 0 26Mar 2015 0 2382 0 0 0 0




5









Thursday 25th April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 2329 2359 37 2367 2329 366Jul 2013 2317 2360 34 2373 2317 14,913


Sep 2014 2360 2392 32 2390 2360 230Dec 2014 2372 2405 33 2404 2372 26Mar 2015 2390 2413 31 2390 2386 11


Friday 26th April 2013 Month Opening Trans Settle Change High Low Volume

May 2013 2359 2364 5 2359 2349 58Jul 2013 2365 2364 4 2375 2330 14,057


Sep 2014 2394 2400 8 2394 2394 1Dec 2014 2408 2413 8 2408 2407 3Mar 2015 2417 2420 7 2417 2409 23


Average for the week 2387 4046 4046



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News

PACTS and Mars commit to sustainable cocoaConfectionery Production24 April 2013PACTS (a Blommer, Petra Foods/Delfi brand, and Cemoi alliance) and Mars have both signed a Memorandum of Understanding confirming their commitment to sustainable cocoa farming in Ivory Coast. Both are convinced that only a long term commitment of the entire cocoa sector will achieve results and they also believe that the farmer is the principal concern of any sustainable cocoa programme.

PACTS (Processor Alliance for Cocoa Traceability and Sustainability) and Mars, with itsVision For Change, have both created programmes based on existing Ivorian cocoa networks; Mars Cocoa Development Centres and PACTS Centres. Both companies agree on the following points:

The lack of transmission of good farming practices within the cocoa farming world The necessity to improve crop yields Priority to be given to improving the quality of cocoa beans and farmers livelihoods The importance in professionally developing the cocoa network in order to meet global demand.

The mission of this MoU is to create two new centres that will be based on CDC (Cocoa Development Centre) principles, these in turn, will also be applied to two PACTS centres. PACTS and Mars have also agreed upon a communal cooperation for their sustainable development programmes, prioritising:

Production of quality cocoa beans Qualitative training with on-hand demonstrations in the centres Correct fertility of land Use of quality plant material Interaction, reaching a larger number of farmers. In five years time more than 8000 farmers should benefit from the creation of 4 new centres Respect and implementation of international work standards and the eradication of child labour.

PACTS and Mars will be sharing their experience and knowledge as PACTS has already created 15 fermentation and drying centres in Ivory Coast and plans to have 25 by 2015. MARS has 13 CDCs and hopes to create a further 25.

New National Cocoa Strategy to benefit 20,000 HouseholdsSolomon Times Online26 April 2013

Solomon Islands aims to produce 20,000 metric tonnes of cocoa by 2020 under a new Cocoa Policy to be launch by the government on Friday 26th April 2013 at the Honiara Hotel.



7

NEWS

Health and Nutrition

Production & Quality



The Minister of Agriculture and Livestock, Hon David Tome will launch the policy and says it would help increase the incomes 20,000 cocoa growing households.

“Cocoa is a major revenue earner for Solomon Islands and represents the second major agriculture export for the country. More than 20 per cent of Solomon Island families are involved in cocoa production and the majority of income from cocoa production goes back into rural communities”.

At the moment Solomon Islands produces around 4,000-6,000 metric tonnes of cocoa annually, but the Ministry believes the new strategy will help bring the amount to 20,000 over the next seven years.

According to Dr John Konam, an AusAID funded cocoa adviser to the Ministry, cocoa trees in Solomon Islands are only producing 25 per cent of their yield potential.

“Many of the 23 million cocoa trees in this country are more than 30 years old. They are neglected, over-grown and are not producing their yield potential of 23 million kilograms of dry beans per year. In addition, cocoa farmers lack basic management skills and are relying on poor material”.

“The genetic material used throughout the country is also highly variable. We estimate that 70 per cent of the national genetic material in cocoa has been lost since 2000. Seedlings are currently produced from open pollinated sources”.

But the barriers to increasing production can easily be addressed said Dr Konam.

“The focus of the strategy is rehabilitating cocoa crops, planting improved crop varieties with higher yields and developing better market linkages, so that farmers are better managing and benefiting from their cocoa”.

“A key focus will be training farmers on the importance of integrated pest and disease management in cocoa gardens, which was first introduced by the AusAID funded CLIP program. This system involves targeted pruning, weeding and tree management practices that can help farmers to vastly improve yields from their cocoa trees.”

“We also need to bring plantations back in to production that were abandoned during the tensions and increase access to credit for the industry”.

The Cocoa policy aligns to the Solomon Islands Government’s National Agriculture and Livestock Sector Policy 2009-2014.

Surprising strength for cocoa pricesFutures MagazineBy Sholom SanikApril 25, 2013

The recent activity in the cocoa market can be best described as counterintuitive. The market has rallied sharply for no apparent reason. Even the typical peripheral reasons often cited, such as a weak U.S. dollar or broad commodity strength would not have applied. The dollar has been directionless, and commodities, if anything, have been getting clobbered.

Short-covering by funds can hardly be blamed either. The most recent Commitment of Trader data show that speculators increased their net-

long position by more than 9,000 contracts from the previous week, to hold their largest long position since January.



8

The Market



Ivorian output is the single most important factor that determines cocoa prices. Despite bumps and grinds in weather conditions along the way, the 2012-13 crop has fared well. Port arrivals stand at 1.064 million tonnes, down about 1% from last year at this time. The main crop is just wrapping up, and farmers are beginning to ship early mid-crop beans. The consensus of analysts is that the mid crop should do well, with a median estimate of 400,000 tonnes, higher than the previous 5-year average.

January and February were dry, delaying the onset of the mid-crop, but then the rains picked up. Total 2012-13 production should meet last year’s 4.1-million tonne output level.

Butter prices have maintained their recent strength in both Asia and Europe, at about 1.75 and 1.95 times the London spot price, respectively. Powder prices continue to weaken, however, and have fallen to below $2,500 per tonne, down from $5,000 per tonne one year ago. Weak powder prices have dragged down the combined ratio to its lowest level in many years.

A degree of tightness seems to have developed in the butter market, because the two main products are sold as a package, and processors are reluctant to sell when the combined price is so low. Still, this does not explain strong bean prices.

Amid the anecdotal evidence of product hoarding and the resulting build up of butter and powder inventories, there was a glimmer of hope on the demand side. Fourth quarter grind figures for North America showed surprisingly strong activity, perhaps in anticipation of stronger consumption trends. Analysts were expecting the grind to come in between -1% and +1%, but the actual number was +6%, the biggest jump in two years. The headlines took note of the news, but the market has not advanced in earnest since the data were released on April18.

Attaching too much significance to the North American grind, however, is premature, because the other key grinding regions continue to see flat to negative growth. Europe grinds roughly three times as much as North America, and its fourth quarter grind was down 4%, in line with expectations. In Malaysia, Asia’s largest processor, the grind fell by 3.2%.

The supply/demand fundamentals seem to warrant a short-sale recommendation. Indeed, for short-term traders, it would seem to be a reasonably decent bet. We are reluctant, however, to be short this market.World supplies have kept pace with demand, but only because demand growth has been anemic. The handful of producing countries that grow 75% of the world’s beans have not been successful in advancing output growth, try as they might. We constantly hear about reforms in the Ivory Coast that are designed to put more money into the hands of farmers in an effort to stimulate more spending on fertilizer and other crop-enhancements. But it has not happened. We anticipate a range-bound market for now.

Asian Cocoa Grindings Fell 10.8% in the First QuarterFox BusinessBy Leslie Josephs at [email protected] April 24, 2013Asian grindings fell 10.8% on the year in the first three months of 2013, to 140,062 metric tons, the Cocoa Association of Asia said on Wednesday.

Cocoa grindings, a measurement of the amount of beans processed, are viewed as a barometer of chocolate demand by the industry.

Cocoa grindings in the first quarter of 2012 totalled 157,000 metric tons, according to the industry group, whose members include Olam International Ltd. (O32.SG), as well as units of Nestle SA (NESN.VX), Barry Callebaut AG (BARN.EB) and Hershey Co. (HSY), according to its website. The figures reflect cocoa grinding in Malaysia, Singapore and Indonesia.



9

Processing & Manufacturing



First-quarter cocoa grindings in North America, reported last week, rose unexpectedly by 5.8%, and fell 3.9% in Europe, the world's biggest per capita chocolate-consuming region.

Cote d’Ivoire envoy seeks cocoa boostThe Japan TimesApr 24, 2013Cote d’Ivoire’s ambassador to Japan, Jerome Kloh Weya, says his mission is to enhance economic ties between his country and Tokyo — equal to the level of amicable diplomatic relations that the two countries have shared over the past 53 years.

During a courtesy visit to The Japan Times on Tuesday, Weya noted that President Alassane Ouattara is scheduled to visit the nation during the fifth Tokyo International Conference on African Development, which will be held in Yokohama in June.

In the 20 years since TICAD I was first held in 1993, the conference has evolved into a new phase, with the African economy growing rapidly.

The ambassador stressed that Cote d’Ivoire is the greatest producer and exporter of cocoa in the world, and he hopes that Japan, one of the world’s great consumers of chocolate, will import cocoa directly from Cote d’Ivoire.

At present, Japanese companies buy cocoa via European or American routes, Weya said.

“Why not establish a closer relationship between the great consumer of chocolate and the leading producer of cocoa? It will be a win-win relationship,” he said.

Cocoa Adviser has big hopes for local IndustrySolomon Times Online26 April 2013

Dr John Konam is a familiar face for many local cocoa farmers. The unassuming agricultural scientist from PNG has been working in Solomon Islands for the past three years, helping the country’s farmers to improve their cocoa production.

Dr Konam originally came to Solomon Islands as an adviser on the AusAID funded Cocoa Livelihoods Improvement Project (CLIP). Under the project, Dr Konam supported the work of agriculture extension officers to train farmers on the importance of integrated pest

and disease management in cocoa gardens. This system involves targeted pruning, weeding and tree management practices that can help farmers to vastly improve yields from their cocoa trees.



10

Business & Economy

Labour Issues

Environmental Issues

Research & Development



Dr Konam now has a new role in the cocoa sector in Solomon Islands. Following the closure of CLIP in June 2012, the Solomon Islands Government with support from AusAID employed Dr Konam to work as a cocoa adviser with the Ministry of Agriculture and Livestock. Dr Konam is helping the Ministry to launch a participatory cocoa research program with farmers to select and develop improved cocoa varieties. The plan is to develop better yielding and higher quality cocoa varieties that can help the country produce 20,000 tons of cocoa by 2020.

“It is a challenging but exciting time for the cocoa industry in Solomon Islands. For many years farmers having been using seedlings as planting materials but these show a lot of variability in production and quality. When we have identified some desired planting materials and we want farmers to plant them out as clones and test their performance in the field. Farmers must be prepared to adopt new cocoa management practices.”

“At the moment we are looking at ways of teaching farmers vegetative propagation skills, grafting, budding and clonal cocoa management. We are also teaching farmers to adopt integrated pest and disease management practices and then select their best trees which they will then spread within their farms” Dr Konam explains.

Part of Dr Konam’s role is also mentoring research and extension officers in the Ministry of Agriculture and Livestock. The aim is to train local cocoa experts in Solomon Islands to help with the future growth of the industry.

Raymond Vava is a research officer who has been working closely with John.

“I am so privileged to work alongside one of the regions cocoa experts. Through his mentoring I am building my confidence and developing my knowledge on cocoa. This is especially important now as we are trying to improving the planting materials for our farmers. Developing good cocoa trees is technically demanding work and Dr John is helping me to understand the whole concept right from the beginning.”

“I am looking forward to further developing my skills and helping the cocoa industry in Solomon Islands develop to its full potential.”

Mondelez International and Peace Corps team up to train Cocoa Entrepreneurs in the Dominican RepublicPR Newswire (press release)April 24, 2013

- Program Teaches Business Skills to 1,200 Young Women & Men in Cocoa Communities- Latest Project in Company's $400 Million Cocoa Life Sustainability Initiative

Mondelez International, the world's largest chocolate company with iconic brands such as Milka, Cadbury Dairy Milk, Toblerone and Green & Black's, today announced a three-year partnership with the Peace Corps to promote sustainable development in cocoa-growing communities in the Dominican Republic. This partnership will expand the Peace Corps' existing Build Your Dreams program, which teaches young women and men aged 16-29 essential skills to help them become the next generation of small business entrepreneurs. By 2015, the Build Your Dreams program plans to: Teach 1,200 young men and women skills to develop and write business plans Prepare 360 young men and women with business plans to apply for micro-financing Consult with 120 local entrepreneurs on developing their businesses

"Young entrepreneurs are at the core of thriving farming communities," said Christine M. McGrath , Vice President of External Affairs and Cocoa Life at Mondelez International. "That's why partnering with the Peace Corps is a natural fit for our Cocoa Life initiative. Together, we're helping young women and men gain financial management and income-generation skills. Armed with this new business expertise, these



11

Promotion & Consumption



entrepreneurs will be empowered to initiate their own businesses and establish more diversified, stable and inclusive economies."

This collaboration with the Peace Corps builds on Mondelez International's five-year commitment with the United States Agency for International Development (USAID) to increase the yield and quality of Dominican cocoa, while improving farmer livelihoods and communities. The program plans to reach 10,000 smallholder cocoa farmers of the CONACADO Fair Trade certified cooperative with training on farming techniques, post-harvest practices and supplemental income opportunities.

Improving the Lives of One Million People in Cocoa-Farming Communities

The Peace Corps collaboration is the latest project in Mondelez International's Cocoa Life sustainability effort – a $400 million, 10-year commitment to improve the livelihoods and living conditions of more than 200,000 cocoa farmers and about one million people in cocoa farming communities. This collaboration aligns with Cocoa Life's focus on youth and making cocoa farming a more attractive profession for the next generation.

Cocoa Life reflects Mondelez International's core values and builds on the company's successful Cocoa Partnership in Ghana and India that expanded to the Dominican Republic in 2011. It also builds on other well-being commitments, including the company's goal to sustainably source 100 percent of its European coffee by 2015 and its "Coffee Made Happy" initiative to invest at least $200 million to empower one million coffee farming entrepreneurs by 2020.

For more information on Cocoa Life, including downloadable photos and case studies of work in The Dominican Republic, Ghana, Cote d'Ivoire and India, please visit: http://tinyurl.com/atuxhzj.

About Mondelez International

Mondelez International, Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with 2012 revenue of $35 billion. Creating delicious moments of joy in 165 countries, Mondelez International is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages, with billion-dollar brands such as Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum. Mondelez International is a proud member of the Standard and Poor's 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com and www.facebook.com/mondelezinternational.



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