Com-Watch - Issue 37 - June 2014

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COMMODITY NEWS COCOA Ghana Cocobod To Seek Almost US$2 Billion For Next Loan The Governor of the Bank of Ghana [BoG] Dr Henry Kofi Wampah has hinted that the country’s cocoa industry regulator, Cocobod will this year go for about US$1.8 billion for its syndicated loan. Last year Cocobod signed a US$1.2 billion syndicated loan from international banks for the 2013/14 cocoa crop purchases as against US$1.5 billion for 2012/13. The credit facility between Cocobod and a consortium of international and local banks was led by French lender Societe General. The Cocobod syndicated loan is used to purchase cocoa beans from farmers. Last year the offer was oversubscribed by 75%. The increased figure is as a result of a higher projection of cocoa yield this year. Ghana aims to raise its production to an average of 1 million tonnes annually from 800,000 tonnes through improved farming methods and better incentives. [Ghanaweb 08/05/14] 9
Ghana Cocoa Main Crop Purchases Reach 750,122T By May 1 Cocoa purchases declared to Cocobod Ghana’s industry regulator reached 750,122 tonnes by May 1, since the start of the main crop on Oct. 18, up 17.45 % on the previous year. The purchases, which covered 28 weeks of the 33-week main crop season, were up from 638,654 tonnes declared in the same period last year. Ghana is hoping to buy around 850,000 tonnes of cocoa during its October-May main crop harvest. Total purchases for the 28th week rose to 17,170 tonnes from an average of 10,000 tonnes in the past 3-weeks. Buyers say the rise in the latest output figure indicated that purchases were on target as projected. [Reuters 15/05/14] Currency Fall Deepens Ghana’s Cocoa Smuggling Troubles Cedi has slipped 23% against dollar this year Farmers seeking to cash in on I. Coast's higher price Trafficking likely to continue Ghana’s falling currency has fuelled smuggling of as much as 100,000 tonnes of cocoa into neighbouring Ivory Coast since October, reversing a trend. Cocoa smuggling between the world’s 2-biggest cocoa producers is common, but over the past decade it has mainly involved Ivorian beans being taken illegally to Ghana. That has changed this season. Ghana’s cedi currency, which the government has struggled to prop up, has fallen nearly 23% against the dollar so far this year, while Ivory Coast’s europegged CFA franc has remained stable, making the country’s official farmer price around 24% higher than Ghana’s. Exporters said the Ivorian price is now seen as more attractive by Ghanaian farmers, who can make bigger profits selling their output to smugglers. Estimates of smuggled volumes rang from 40,000 to 80,000 tonnes of beans, while exporters in Ivory Coast put the figure at between 50,000 and 60,000 tonnes. Bean arrivals at Ivorian ports reached around 1.3 million tonnes by May 11, according to exporters’ estimates, up more than 10% from the same time last season. Ivory Coast’s October-to-March main crop opened on Oct. 2 with its sector regulator, the CCC, fixing a minimum guaranteed farmer price of 750 CFA F/kg [US$1.59]. Ghana’s price of 3,392 cedis per tonne was roughly on par with Ivory Coast’s at the time. Despite the beans lost to smuggling, Ghanaian cocoa output still remains more than 15% ahead of last year’s levels with purchases reaching 704,266 tonnes by April 8 since the start of the main crop. But Ivory Coast decided to maintain its farmer price at the main crop level of 750 CFA F/kg for April-to-September mid-crop cocoa, which is usually sold at a discount. This in turn could further fuel illegal trafficking as Ghana heads towards its light crop in July unless they raise the price. [Reuters 12/05/14] Processing <strong>Com</strong>panies Owe COCOBOD US$250 Million Five out of the 10 indigenous cocoa processing companies in the country owe the Ghana Cocoa Board [COCOBOD] US$250 million in unpaid bills under the Old Beans Supply Agreement. This has compelled COCOBOD to take drastic measures to halt the continued supply of cocoa beans to the companies to save the board from going bankrupt. The move is likely to affect more than 6,000 workers of the companies and their outsource service providers. The amount owed COCOBOD ranges from US$3 million to more than $50 million per company since 2010. Cocoa Farmers To Receive Payments From E-Zwich Cocoa farmers would from the beginning of this year’s light crop season receive payments for cocoa sold to the licensed buying companies [LBCs] only from e-zwich and by cheque. The use of cash, the authorities say, would no longer be permitted. apart from the flexibility the e-zwich offered in terms of money withdrawal from all banks, savings and loans companies, it would provide accurate records on the number of cocoa bags sold by every farmer. That would make it easier for the determination of bonuses payable to them. [Ghanaweb 23/05/14] 10
Page 1 and 2: COM-WATCH AFRICA ISSUE 37 | JUNE 20
Page 3 and 4: THE AFRICAN COMMODITY REPORT Brough
Page 5 and 6: COMMODITY NEWS CASHEW / GROUNDNUT G
Page 7 and 8: COMMODITY NEWS COCOA General Higher
Page 9: Cote d’Ivoire Oct-Apr Cocoa Produ
Page 13 and 14: Daily Spot Price [ICCO] These are t
Page 15 and 16: Cameroon Dec-Feb Robusta Exports Do
Page 17 and 18: Tanzania Dar’s New Coffee Season
Page 19 and 20: Senegal Senegal’s SODEFITEX Plans
Page 21 and 22: Group Focus CMA CGM At ‘Seafood E
Page 23 and 24: Guinea Guinea Will Invest US$21 Mil
Page 25 and 26: South Africa EU Citrus Ban Under De
Page 28 and 29: COMMODITY NEWS SUGAR Ghana Omnicane
Page 30 and 31: COMMODITY NEWS SUGAR Government To
Page 32 and 33: COMMODITY NEWS TEA Kenya Top Tea Pr
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Page 36 and 37: COMMODITY NEWS TIMBER Revival Of Tr
Page 38 and 39: COMMODITY NEWS TIMBER Ghana Ghana T
Page 40: COMMODITY NEWS TOBACCO Kenya BAT Ke

Com-Watch - Issue 37 - June 2014

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