copal cocoa info. 506.doc · web viewsep 2012 1576 1573 3 1577s 1560 5,159 dec 2012 1588 1585 2...

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 Cocoa Producers' Alliance

Health and Nutrition Dark Chocolate and Cocoa Powder may help lower

Blood Pressure Dark chocolate, cocoa lower blood pressure

Production and Quality UPDATE 1-I.Coast says duly inspected infested

cocoa shipments to Brazil

The Market Cocoa costs expected to increase through 2012

Processing and Manufacturing

Business & Economy Top UK Chocolatier wants to invest in cocoa farm

Labour Issues Barry Callebaut pays CHF 2.8 million in

premiums to Côte d'Ivoire cooperatives for Rainforest Alliance Certified(TM) cocoa

Environmental Issue El Niño threat warms cocoa

Research & Development

Promotion & Consumption

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. 506 20th – 24th August 2012

Lindt says can source cocoa from around the world

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)

20th August 1630.77 2458.33 1601.00 2403.33

21st August 1644.77 2487.86 1603.33 2445.67

22nd h August 1609.06 2437.19 1576.00 2385.33

23rd August 1609.87 2448.82 1576.00 2395.67

24th August 1613.52 2452.07 1579.67 2407.00

Average 1622.00 2457.00 1587.00 2407.00

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 20th August 2012 Month Opening Trans Settle Change High Low Volume

Sep 2012 1644 1605 -19 1644 1600 1,438Dec 2012 1638 1610 -21 1643 1605 3,307Mar 2013 1615 1596 -19 1627S 1589S 752May 2013 1624 1597 -20 1628S 1592 317Jul 2013 1628 1601 -20 1631S 1599S 89

Sep 2013 1601 1601 -19 1601S 1601S 21Dec 2013 1601 1601 -19 1601S 1601S 21Mar 2014 1607 -19 0May 2014 1614 -19 0Jul 2014 1608 -25 0

Average/Totals 1604 5,945

Tuesday 21st August 2012 Month Opening Trans Settle Change High Low Volume

Sep 2012 1611 1602 -3 1621 1590 2,417Dec 2012 1616 1610 0 1627S 1599 4,626Mar 2013 1602 1599 3 1615S 1586 1,829May 2013 1601 1601 4 1617 1591S 616Jul 2013 1608 1607 6 1620S 1601S 485

Sep 2013 1605 4 0Dec 2013 1607 6 0Mar 2014 1613 6 0May 2014 1620 6 0Jul 2014 1614 6 0


Wednesday 22nd August 2012 Month Opening Trans Settle Change High Low Volume

Sep 2012 1601 1574 -28 1605S 1569 3,032Dec 2012 1613 1584 -26 1614 1578 9,119Mar 2013 1601 1571 -28 1602S 1566S 3,272May 2013 1603 1573 -28 1605S 1570S 1,534Jul 2013 1607 1580 -27 1610S 1579S 781

Sep 2013 1602 1579 -26 1610 1584 65Dec 2013 1595 1580 -27 1595 1587 30Mar 2014 1586 -27 0May 2014 1593 -27 0Jul 2014 1590 -24 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 23rd August 2012 Month Opening Trans Settle Change High Low Volume

Sep 2012 1578 1570 -4 1590S 1560 1,968Dec 2012 1589 1583 -1 1602 1572S 6,133Mar 2013 1575 1571 0 1592S 1564 2,086May 2013 1578 1574 1 1596 1568S 761Jul 2013 1582 1580 0 1602 1577S 444

Sep 2013 1583 1581 2 1598S 1577S 316Dec 2013 1583 1581 1 1598S 1583S 31Mar 2014 1587 1 0May 2014 1593 1593 0 1595 1590 24Jul 2014 1600 10 0


Friday 24th August 2012 Month Opening Trans Settle Change High Low Volume

Sep 2012 1576 1573 3 1577S 1560 5,159Dec 2012 1588 1585 2 1590 1571S 3,114Mar 2013 1575 1575 4 1577S 1562 4,468May 2013 1579 1579 5 1583S 1567S 604Jul 2013 1585 1583 3 1586 1572S 229

Sep 2013 1585 1585 4 1585S 1579S 87Dec 2013 1585 1586 5 1585S 1575 27Mar 2014 1588 1592 5 1588S 1588S 2May 2014 1587 1598 5 1587 1587 12Jul 2014 1591 1605 5 1591S 1590S 150


Average for the week 1586 2519 2519



4










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

(US$ per tone)

Monday 20th August 2012 Month Open Price Change High Low Volume

Sep 2012 2500 2465 -22 2509 2440 292Dec 2012 2442 2408 -34 2463 2383 10,231Mar 2013 2454 2420 -34 2473 2400 1,992May 2013 2472 2431 -33 2474 2413 780Jul 2013 2479 2441 -31 2479 2429 135

Sep 2013 2450 2449 -29 2450 2438 12Dec 2013 2445 2456 -30 2451 2445 8Mar 2014 0 2465 -30 0 0 0May 2014 0 2475 -30 0 0 0Jul 2014 0 2484 -31 0 0 0

Average/Totals 2449 13450

Tuesday 21st August 2012 Month Open Price Change High Low Volume

Sep 2012 2465 2473 8 2497 2450 101Dec 2012 2408 2433 25 2453 2394 9,706Mar 2013 2420 2446 26 2466 2410 1,689May 2013 2435 2457 26 2476 2424 599Jul 2013 2444 2467 26 2474 2444 32

Sep 2013 0 2475 26 0 0 4Dec 2013 0 2483 27 0 0 0Mar 2014 0 2492 27 0 0 0May 2014 0 2502 27 0 0 0Jul 2014 0 2511 27 0 0 0


Wednesday 22nd August 2012 Month Open Price Change High Low Volume

Sep 2012 2451 2420 -53 2451 2410 40Dec 2012 2431 2380 -53 2440 2369 10,440Mar 2013 2431 2395 -51 2451 2383 1,730May 2013 2445 2405 -52 2445 2396 819Jul 2013 2431 2415 -52 2433 2407 122

Sep 2013 2440 2423 -52 2442 2411 120Dec 2013 2459 2432 -51 2459 2457 8Mar 2014 2468 2441 -51 2468 2466 8May 2014 0 2451 -51 0 0 0Jul 2014 0 2460 -51 0 0 0




5









Thursday 23rd August 2012 Month Open Price Change High Low Volume

Sep 2012 2461 2425 5 2467 2404 61Dec 2012 2380 2385 5 2428 2370 12,292Mar 2013 2405 2398 3 2439 2387 3,179May 2013 2420 2410 5 2439 2400 1,024Jul 2013 2439 2420 5 2449 2413 182



Friday 24th August 2012 Month Open Price Change High Low Volume

Sep 2012 2419 2437 12 2439 2417 13Dec 2012 2385 2397 12 2408 2366 6,107Mar 2013 2395 2411 13 2420 2380 873May 2013 2407 2420 10 2424 2391 342Jul 2013 2416 2430 10 2429 2415 96



Average for the week 2436 1365 1365



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News

Dark Chocolate and Cocoa Powder may help lower Blood PressureHuffington Post08/15/2012

A new review of research, published in the Cochrane Library, suggests that consuming dark chocolate or cocoa powder every day is linked with slightly lowered blood pressure.

"Although we don't yet have evidence for any sustained decrease in blood pressure, the small reduction we saw over the short term might complement other treatment options and might contribute to reducing the risk of cardiovascular disease," study researcher Karin Ried, of the National Institute of Integrative Medicine in Australia,

said in a statement.

The researchers conducted their meta-analysis of20 different trials that included 856 people. Trials lasted for different lengths, from two weeks to eight weeks to even 18 weeks, and included eating anywhere from 30 to 1,080 milligrams of flavanols (what is found in anywhere from 3 to 100 grams of chocolate) every day.

The researchers found that consuming flavanol-containing chocolate or cocoa powder was linked with, on average, a decreased blood pressure of 2 to 3 millimeters of mercury (mm Hg).

Flavanols are a kind of antioxidant compound -- also found in foods like chocolate, cranberries, tea and red wine -- that are largely responsible for chocolate's heart benefits, according to the Cleveland Clinic.

The researchers found that in trials comparing consumption of flavanol-containing chocolate or cocoa powder compared with foods that had no flavanol at all, the blood pressure-lowering effect was even greater, dropping by an average of 3 to 4 mm Hg.

However, they didn't observe any big drops in blood pressure in trials comparing consumption of high flavanol-containing cocoa powder or chocolate with low flavanol-containing cocoa powder or chocolate, which they said might be because even low-flavanol foods could still provide some sort of blood pressure benefit.Earlier this year, a study in the British Medical Journal showed that dark chocolate consumption is linked with a decreased risk of heart attack and stroke in some people at risk for the conditions, Reuters reported. The study included more than 2,000 people with metabolic syndrome who ate dark chocolate every day for a decade.

One note before you pig out: Not all chocolate products are alike -- some are loaded with fat and calories, and the health benefits described in studies are limited mainly to dark chocolate and cocoa powder. So enjoy responsibly!

Dark chocolate, cocoa lower blood pressureNigerian TribuneBy Sade Oguntola 20 August 2012



7

NEWS

Health and Nutrition



Eating flavanol-rich cocoa products such as dark chocolate or cocoa every day for a few weeks can reduce blood pressure by about two or three points. Experts found that this reduction is at par with the effects of diet changes or exercise on blood pressure in people with hypertension, reports Sade Oguntola.

altEating cocoa or dark chocolate, established to be rich in plant compounds called flavanols daily, may lead to a slight reduction in blood pressure for a short period of time, a review of past research has suggested.

The study, which was a collection of data from 20 studies published over the last decade, found that people who ate flavanol-rich cocoa products such as dark chocolate, every day for a few weeks, saw their blood pressure drop by about two or three points.

The researchers found that although the reduction was far less than the reduction people taking blood pressure lowering medication could expect, it was at par with the effects of adding diet changes or exercise to their routine.

Although there are yet no evidences for any sustained decrease in blood pressure, the small reduction achieved by eating cocoa, they suggested, could complement other treatment options and might contribute to a reduction in the risk of cardiovascular disease. Worldwide, cardiovascular disease is the highest cause of death.

Cocoa contains compounds called flavanols, thought to be responsible for the formation of nitric oxide in the body. Nitric oxide causes blood vessel walls to relax and open wider, thereby reducing blood pressure. Dark chocolate with a cocoa solid content of at least 60 per cent, is rich in flavonoids that are known to protect the heart.

The link between cocoa and blood pressure stems from the discovery that the indigenous people of San Blas Island in Central American, who take flavanol-rich cocoa drinks every day, have normal blood pressure regardless of age. However, flavanol concentrations in cocoa and chocolate products vary according to cocoa processing procedures and types of chocolate. So it is difficult to establish the optimal dosage for an effect.

The analysis, published in The Cochrane Library, reviewed data from trials in which people consumed dark chocolate or cocoa powder containing between 30 and 1080 mg of flavanols in chocolate each day.

Altogether, 856 people were involved in 20 trials lasting between two and eight weeks, or in one case, 18 weeks. All were hypertensive and met the criteria for metabolic syndrome, but had no previous history of heart disease or diabetes and did not take medication to lower their blood pressure.

Flavanol-rich chocolate or cocoa powder reduce blood pressure on average by 2 to 3 mm Hg. But the effects also seem greater in younger people than older adults.

Basically, an adult’s blood pressure should be lower than 140/85 mmHg. However, it is usually recommended that blood pressure should be below 130/80mmHg, especially in individuals with heart or circulatory disease, including heart attack or stroke, angina, coronary heart disease, or have diabetes or kidney disease.



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In a subset of trials, when chocolate or cocoa powder was compared to flavanol-free-products as controls, the beneficial effects were more pronounced (between 3 and 4 mm Hg), whereas the researchers found no significant effect on blood pressure in the second subset with low-flavanol products as control.

The researchers cannot say flavanols are responsible for lowering blood pressure in the study participants, but flavonoids (also found in foods such as green tea, berries and red wine) have been linked to nitric oxide production in the body.

Since most of the studies included in the analysis only followed people over a few weeks, the researchers were not sure what would happen to the blood pressure of a person who ate cocoa or chocolate over months or years. Also, they could not say if eating cocoa or dark chocolate caused study participants to have fewer heart attacks or strokes, both of which are linked to high blood pressure.

In addition, they could not say how much cocoa or chocolate would be best, because each study used different amounts. Moreover, not all cocoa is equivalent because processing can remove flavanols from the finished product.

Prior research findings presented at the Experimental Biology 2012 meeting in San Diego, California, revealed that dark chocolate could reduce one’s risk in cardiovascular disease such as stroke and heart attack by improving glucose and cholesterol levels.

The study follows recent research in Circulation journal, which found that a daily serving of flavanol-rich cocoa could help to protect cells in the brain and reduce the risk of mild cognitive decline.

Nonetheless, researchers have stressed that these protective effects of cocao only apply to dark chocolate with a cocoa content of at least 60 per cent cocoa, and not to milk or white chocolate. This is because dark chocolate has a much higher level of flavonoids.

No doubt, more studies are required to understand the long term effects of regular consumption of flavanol-rich cocoa products such as dark chocolate and to know whether this will translate into a reduction in adverse clinical outcomes such as heart attack and stroke. So, what is the best action to take?

Some experts warned that chocolate is high in fat, calories and sugar and as such should be eaten in moderation. Others suggested substituting dark chocolate with other high-calorie foods or desserts that already include in one’s diet to prevent the overall calories for the day from being higher than normal, thus reducing the likelihood of putting on weight– which is not good for overall health.

In choosing to make hot chocolate, they recommended natural cocoa powder rather than alkalized cocoa power. The natural cocoa power has more of the beneficial flavanols. In avoiding the unhealthy fats in chocolate, other alternative sources of antioxidants such as apples, blackberries, beans, apricots and green tea were also recommended for consumption.

UPDATE 1-I.Coast says duly inspected infested cocoa shipments to BrazilReutersBy Loucoumane CoulibalyAug 24, 2012 ABIDJAN, Aug 24 (Reuters) - Ivory Coast inspected and certified two shipments of cocoa beans totaling 10,000 tonnes for export to Brazil, where import inspectors say they arrived infested with insects, the West African nation's cocoa marketing board said on Friday.

The world's top cocoa grower refuted an accusation by a Brazilian official earlier this month that the shipments,exported in July, lacked documents showing they had been fumigated after loading into the ships' hulls in Ivory Coast.



9

Production & Quality



Brazil's agriculture ministry said last week it would suspend imports from the world's top grower pending an Ivorian investigation. It said on Friday that it sent notification of the ban to Ivorian authorities on Aug. 23. "The Coffee and Cocoa Council (CCC) would like to make clear that the offending shipments were definitely inspected and phytosanitary certificates were issued," Ivory Coast's marketing board said in a statement.

A CCC official, who asked not to be named, confirmed that the documentation for the shipments included fumigation certificates. "All the papers concerning fumigation exist. We really do not know what happened. Only investigations will allow us to determine who was responsible," the official said.

The Brazilian agriculture official who made the claim could not be reached on Friday to respond, but a press official fromthe ministry said regardless of whether documents were supplied, the deliveries violated a bilateral agreement with Ivory Coast.

"What violates the agreement between the two countries is the fact that the cargo came with live insects," the press official said, which would put Brazilian cocoa at risk if the insects turned out to be pests from cocoa plantations, he said.

"Even if fumigation was done, it wasn't done properly. Any insects present should have been dead but there were live insects when it reached here," he said. An inquiry involving the exporting firms, the CCC and Ivorian agriculture ministry as well as Brazilian authorities is currently under way to determine how the shipments became contaminated, the statement said. "The fumigation of cocoa upon exportation is a legal obligation and a commercial necessity for registered coffee and cocoa exporters," the statement read. "Not doing so would endanger not only the Ivorian export image but also their commercial efforts." BRAZIL INQUIRY

Brazil is also carrying out its own inquiry at the northeast port of Ilheus in Bahia state where the cocoa entered thecountry. It hopes to find out why the cocoa was unloaded from the ships when anomalies were detected. The findings will be published in Brazil's official journal, the agriculture ministry press official said, but it could not estimate when.

Neither Ivory Coast nor Brazil has released the names of the export and shipping companies involved. Ivory Coast, which exported more than 1.5 million tonnes of cocoa during a record 2010/11 season, has called the infestation of the two shipments an "exceptional case".

Brazilian officials have also said there is no record that any previous shipments imported from Ivory Coast contained insects.

The CCC said on Friday that trade relations between the two countries had not been damaged by the incident.Brazil's cocoa development agency, Ceplac, said there were four or five kinds of insects found in samples from the shipments, all of which were also common in Brazil. None were pests found on cocoa plantations or a threat to Brazil's own production.

The shipments have since been fumigated and were awaiting further testing to determine whether the level of infestation was below the threshold that restricts the cocoa's use or requires it to be incinerated.

Local media in Brazil reported that Nestle's Brazilian division was the buyer of 4,000 tonnes of the infestedcocoa, while the remaining 6,000 tonnes had been purchased by U.S.-based food processor Cargill.

Brazil, the world's sixth-ranked cocoa producer, also imports around 60,000 tonnes of beans annually for processing into products for local consumption and export. The country was the No. 2 ranked producer until the early 1990s, when a fungal disease decimated production.



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Cocoa costs expected to increase through 2012RedOrbitAugust 24, 2012After news was recently released announcing a potential hike in cocoa bean costs due to decreased production in West Africa, Massage School San Diego has released its top 5 health benefits of raw chocolate, in hopes it will encourage growth of the raw chocolate industry despite the increase in cocoa prices.

San Diego, CA (PRWEB) August 23, 2012

The announcement that the world may soon see an increase in cocoa prices due to a hindered crop production in Africa was released earlier this week. In response, MSSD, which promotes healthy living by helping people find massage schools in San Diego, has released a tip sheet, detailing the top five healthy benefits of raw chocolate, in hopes it will encourage the continued growth of the natural food and raw chocolate movements despite expected price increases. MSSD, an authority on healthy living, provides helpful tips on healthy eating, holistic approaches to medicine, educational guidance, and news on all things natural.

Because of dry conditions in West Africa, which supplies two-thirds of the world’s cocoa, U.S. suppliers may soon see a hike in cocoa bean prices that is expected to last through the beginning of 2013. In August, West Africa’s Ghana region has only received .2 inches of rain, compared to nearly 1.4 last year. This has affected crop output negatively. So far, the prices of cocoa have climbed 16 percent on the New York Stock Exchange according to Bloomberg Businessweek.

In hopes of continuing growth of the raw chocolate movement despite these expected hikes in prices, MSSD has released its top 5 list of raw chocolate health benefits:

1. It can improve circulation and lowers blood pressure.

2. It can improve digestion.

3. It can promote cardiovascular health and prevent blood clotting.

4. It has loads of antioxidants.

5. It’s high nutrients, like iron, magnesium, potassium and zinc

Cocoa, also called cacao, is a seed from a cocoa tree, dried and fermented. The seed is found in a leathery pod, which is filled with pulp and anywhere from 30 to 50 other seeds. A whopping 70 percent of the world’s cocoa production comes from West Africa, as the trees typically only grow in areas within 20 degrees of the Equator. Cocoas beans are most commonly used in manufacturing chocolate and are thought to have some cardiovascular benefits due to their high level of flavonoids.

West Africa is a region on the continent of Africa encompassing about 5 million square miles. There are 16 distinct countries within the West Africa region, which is bordered by the Atlantic Ocean, the Sahara Desert and the Benue Trough.

Ghana, a country in the West Africa region, is home to more than 24 million people. Bordered by Burkina Faso, Togo, Cote d’Ivoire and the Gulf of Guinea, Ghana was formerly known as the Gold Coast Crown Colony under European rule. The country became independent in 1957, taking on the name Ghana, which means “warrior king.”

New York Stock Exchange, located on Wall Street in New York City, is the world’s largest stock exchange. In December of 2011, its approximate market capitalization was $14.2 trillion dollars. The NYSE began in 1792



11

The Market



out of a small rented room on Wall Street. The exchange has since grown to list more than 2,300 publicly traded companies.In response to recent news that production of cocoa beans is expected to decrease and their prices in the U.S. to increase, Massage School San Diego has expressed its displeasure, noting that these increased prices will hinder the raw chocolate and healthy living industries.

About Massage School San Diego:

A long-standing resource to the San Diego massage education community, MassageSchoolSanDiego.com provides guidance and assistance to incoming massage students, incoming attendees, and the massage schools of San Diego themselves. MSSD is also a purveyor of health news, healthy living tips, and healthy eating advice for man and animal alike.

Top UK Chocolatier wants to invest in cocoa farmGovernment of Jamaica, Jamaica Information ServiceBy Chris Patterson21 August 2012 16:55Minister of Agriculture and Fisheries, Hon. Roger Clarke, has informed that discussions are underway with chocolatier, Charbonnel et Walker Limited, to invest in a local company, which will lead to an expansion of the cocoa industry in the medium-term.

Mr. Clarke made the disclosure at a press conference on August 20 at Jamaica House, to provide details about investment prospects coming out of the Government’s recent trade mission to the United Kingdom (UK), to coincide with the London Olympic Games and the Jamaica 50 celebrations.

Minister Clarke said the company, which has among its clients, Her Majesty the Queen, expressed significant interest in increasing its supply of Jamaican fine-flavoured chocolate by investing in production and value-added activities. He informed that following these discussions, the company presented a proposal to purchase a Jamaican cocoa farm of 50 to 80 acres, and to rehabilitate it in order to secure its own supplies.

He informed that the Ministry has already identified a cocoa farm in St. Mary and has had initial discussions with the owners. "Over the medium-term, this company further wishes to establish a fermentary on the farm or outsource their fermenting process to the Cocoa Industry Board (CIB). In the longer-term, their intent is to process chocolate here in Jamaica for their markets in Europe," Minister Clarke indicated.

He informed that the team also had talks with an entity called Black River Chocolate. “This company sources Jamaican fine flavoured cocoa from the CIB, makes single origin luxury chocolate, and distributes it to several European countries. This company is interested in securing a dedicated supply of Jamaican cocoa, “he said.

He noted that Black River also expressed “significant interest” in participating in the process to divest the commercial assets of the CIB, now underway, and more importantly, to work with Jamaican farmers to increase their production so as to secure their supplies.

Minister Clarke informed that contact was also made with the membership of the “fresh produce consortium” and will collaborate with local exporters to overcome specific product challenges to leverage this association in order to increase the exports of Jamaican fresh produce to the UK. The Ministry will shortly commission a taskforce to address the product specific opportunities and constraints.

Lindt says can source cocoa from around the world



12

Business & Economy

Processing & Manufacturing



ReutersBy Catherine Bosley Aug 25, 2012(Reuters) - Lindt & Spruengli can source cocoa from a variety of places around the world if one country's yield suffers due to rainfall, the gourmet chocolate maker's chief executive said.

Ernst Tanner, at Lindt since 1993, also told the newspaper Le Temps on Saturday that acquisitions were not imminent.

"Those that we'd like to buy aren't for sale and those that are for sale we don't want," he said.

Prolonged dry weather and heavy rains that followed, coupled with pest attacks, have curbed cocoa output this year in most of Africa's West coast countries, including in Ivory Coast and Ghana, the world two top producers.

Although Tanner said Lind gets about 50 percent of its cocoa beans from Ghana, bad weather there was not a big problem because the firm could buy cocoa in countries such as Ecuador or Madagascar.

"We can also turn towards producers in Indonesia and thus offset the effects of bad weather in Ghana," Tanner said.

In response to a question about where Lindt may look for a successor when Tanner retires, the CEO said he would prefer a replacement from inside the company

Barry Callebaut pays CHF 2.8 million in premiums to Côte d'Ivoire cooperativesfor Rainforest Alliance Certified(TM) cocoaReutersAug 24, 2012 Zurich/Switzerland, Yamoussoukro/Côte d'Ivoire, August 24, 2012 - Barry Callebaut, the world's leading manufacturer of high-quality cocoa and chocolate products, paid premiums totaling CHF 2.8 million (EUR 2.4 million/USD 2.9 million) to 45 cocoa cooperatives and more than 12,000 farmers in Côte d'Ivoire for Rainforest Alliance Certified(TM) cocoa.

Farmers receive half of the premium while the other half is retained by the cooperative and used to provide services to its farmer members or for community facilities. The farmers and cooperatives received the premium payments for the delivery of more than 15,000 metric tonnes of certified cocoa during the 2011/12 cocoa season.

The premium payments were presented at a celebration in Yamoussoukro on August 23 attended by local officials and dignitaries, representatives from government ministries, cooperative leaders and farmers.

"This event marks another important milestone in Barry Callebaut's long history of working in partnership with farmers in Côte d'Ivoire to improve yields and quality while growing cocoa in a sustainable way," said Steven Retzlaff, President Global Sourcing & Cocoa, Barry Callebaut.

The more than12,000 farmers from the 45 cooperatives have been trained in sustainable cocoa production by Barry Callebaut's in-house certification team based in Côte d'Ivoire. Agricultural training is a core component of the company's "Cocoa Horizons" cocoa sustainability initiative designed to boost farm productivity, increase quality and improve family livelihoods in key cocoa producing countries.

"We congratulate the producers and cooperatives on their accomplishments, and commend them for making the commitment to apply sound and responsible agricultural practices that are good for their cocoa trees, good for their farms and good for their families," said Bart Willems, General Manager of Barry Callebaut's subsidiary in Côte d'Ivoire, Societé Africaine de Cacao (SACO).



13

Labour Issues



The cooperatives honored at the event are located throughout Côte d'Ivoire's cocoa production belt, with the majority located in Bas-Sassandra, the country's biggest cocoa producing region today.

"We are proud to recognize these cocoa farmers and cooperatives in Côte d'Ivoire who are working to conserve biodiversity, to prevent soil erosion and water contamination, and thereby safeguard their land and natural resources for future generations," said Mercedes Tallo, Director of Sustainable Value Chains at the Rainforest Alliance. "With the continued engagement of growers, cooperatives and companies like Barry Callebaut in promoting and applying sound land-use practices, we can together make important strides towards ensuring sustainable livelihoods for cocoa farmers and their families."

The Rainforest Alliance certification standard includes economic, social and environmental criteria, with an emphasis on environmental issues, including protection of natural resources and the management of chemical inputs such as fertilizer and pesticide. Last week, Barry Callebaut announced its first collaboration with the Rainforest Alliance in Cameroon. For more information, see www.rainforestalliance.org.

El Niño threat warms cocoaBarron'sBy ALEXANDRA WEXLER 25th August, 2012A dry, hot summer in West Africa is fueling a rally in the cocoa futures market, and the weather could get worse.

Prices of cocoa beans, the key ingredient in chocolate, soared to a six-month high of $2,500 a metric ton (2,204.62 pounds) on Aug. 17 before slipping a bit last week. Weather in the world's top cocoa-producing region has been drier than normal, reducing the quality of the crop as well as its size.

And now an El Niño appears to be forming, which should push prices even higher.

"We know from history that El Niño weather patterns tend to be very treacherous to cocoa," says Shawn Hackett, president of Hackett Financial Advisors, a brokerage and consultancy.[image]

El Niño is characterized by warmer-than-usual temperatures across the central Pacific Ocean, which affect tropical rainfall patterns and weather around the world. Meteorologists say the weather phenomenon, which has occurred an average of three times a decade since the 1950s, is likely to form in September.

The International Cocoa Organization, a trade group, says El Niño reduces global production by an average of 2.4% due to dry weather and drought in seasons when it occurs. In such circumstances, output in Ivory Coast and Ghana, the two top producers, declines by an average of 2% and 1.7%, respectively.

Rabobank expects a 133,000-metric-ton deficit of cocoa beans in the 2012-13 crop year that begins Oct. 1. "If a 2.4% reduction in output is assumed, the average drop in El Niño years, then the deficit increases to 270,000 [metric tons]," the bank says in a note. "The last deficit of this magnitude, during the 2007-08 season, resulted in prices rallying 77%."

"The [speculators] are going to come in and charge the market higher" if an El Niño hits and damages beans, says Drew Geraghty, a broker at ICAP Futures in New Jersey.

And some speculators already are betting that futures will climb further. In the Commodity Futures Trading Commission's latest commitments of traders report through Aug. 14, managed money held the biggest net-long position in cocoa since September 2011.



14

Environmental Issues



http://www.rainforestalliance.org/

The December cocoa futures contract, the most actively traded one on the ICE Futures U.S. exchange, was down 1.8% at $2,397 a metric ton for the week ended Friday. "I see the market possibly testing $3,000 by the end of the year," says Jimmy Tintle, market analyst at Florida-based GreenKey Asset Management, citing the potential for drought in West Africa. "I think the late October, November harvest is going to be dismal at best."

El Niño, like other weather events, isn't a given. But the National Oceanic and Atmospheric Administration says "nearly all" of its models predict a transition to El Niño by September. El Niño is "favored" to continue through the northern hemisphere winter into 2013, NOAA says in a report.

There is definitely room to rally. Front-month cocoa futures are off 36% from the 32-year high of $3,826 a metric ton that they hit in March 2011. "It's a pretty simple story," Mr. Hackett says. "We could be looking at record-high prices" over the next 12 months.

Ivory Coast seeks funds to stop



15

Research & Development

Promotion & Consumption

Others



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