Com-Watch - Issue 37 - June 2014

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COMMODITY NEWS COCOA ADM Names Grain Chief To Run Cocoa Unit After Dropping Sale Plan Archer Daniels Midland Co has appointed a veteran grains trader to run its niche cocoa operations in a management reshuffle just weeks after the U.S. agribusiness scrapped plans to sell the business. Ian Pinner has been named president of global cocoa, where he will oversee the cocoa press operations which extend from Ivory Coast to Germany to Brazil. He is replacing Scott Walker who will become vice president of oilseeds portfolio optimization. The changes come as ADM prepares to divest its chocolate manufacturing operations after ditching plans to sell the cocoa business in its entirety following the collapse of longrunning talks. [Reuters 07/05/14] Hershey Joins CocoaAction Initiative The Hershey Company will become a founding member of CocoaAction, a new strategy to align the cocoa sustainability efforts of the world’s largest cocoa and chocolate companies. CocoaAction creates a new level of coordination and commitment to promote cocoa sustainability in West Africa. Under the auspices of the World Cocoa Foundation, which will facilitate the implementation of the industry-wide strategy, CocoaAction seeks to build a rejuvenated and economically viable cocoa sector for at least 300,000 cocoa farmers - 200,000 in Côte d’Ivoire and 100,000 in Ghana - by 2020. By voluntarily working together as an industry, the strategy aims to increase of the impact of the cocoa industry’s numerous sustainability programs. Participating companies have committed to providing the necessary means to achieve a transformation of the cocoa sector. The governments of Ghana and Côte d’Ivoire have formally endorsed CocoaAction as the industry’s aligned effort to support their national cocoa sustainability plans. [Hershey 21/05/14] More details on the CocoaAction strategy are available at the World Cocoa Foundation website: http://worldcocoafoundation.org/wp-content/uploads/FINAL-CocoaAction-CDI-Press-Release-English_05202014.pdf Cameroon Cocoa Exports Drop 48% In April CocoaAction Companies ADM; Armajaro; Barry Callebaut; Blommer; Cargill; Ecom; Ferrero; Hershey Company; Mars, Incorporated; Mondelz International; Nestlé; Olam. Cameroon had exported 146,417 T of cocoa beans by end-April since the start of the 2013/14 season in August, down from 199,147 T during the same period the previous season, according to National Cocoa and Coffee Board [NCCB] data. Cameroon shipped 3,043 T of beans in April, down from 3,207 T in March and 5,849 T in the same month a year ago. 10-companies exported beans in April, up from 7 in March. Producam topped the list with 1,003 tonnes, followed by Olam Cam with 860 T, and Ets Ndongo Essomba with 301 T. For the 2nd consecutive month, Sic-Cacaos and Chocolaterie Confiserie du Cameroun [CHOCOCAM] made no purchases. Cameroon’s cocoa season runs from August 1 to July 31, with the main crop harvest period from October to January/February and the light crop harvest from April/May to July. National output hit a record of 240,000 T in the 2010/11 season before dropping to 220,000 T in 2011/12 due to attacks by pests and diseases and a prolonged dry season. It rose to 228,948 T in 2012/13. [Reuters 25/05/14] Magnetised Cards For Cocoa / Coffee Exporters To Limit Fraud To clean-up cocoa and coffee sales in Cameroon, the CICC announced it will from next season be providing exporters with magnetised cards. The move aims to limit fraud. The new IDs will be provided to exporters at the start of the next season and will be the only proof of regularised status for cocoa-coffee buyers, authorising them to engage in the purchase of beans in Cameroon. [Business in Cameroon 22/05/14] 7
Cote d’Ivoire Oct-Apr Cocoa Product Exports Up Over 4% Exports of semi-finished cocoa products from Ivory Coast were 238,598 tonnes from October to April of the 2013/14 season, up more than 4% compared with the same period last year. Investments in cocoa processing facilities in Ivory Coast have increased local grindings since 2008. In 2010, the nation overtook the Netherlands to become the world’s top cocoa grinder with a capacity of 532,000 tonnes of beans, which are transformed mainly into cocoa butter and powder. Ivory Coast grinds around 35%^ of its beans locally but aims to process half of its average annual production of roughly 1.4 million tonnes domestically as part of reforms launched last season. The following are official figures for cocoa product exports in tonnes, including a breakdown of cocoa powder, butter and chocolate. [Reuters 26/05/14] Apr 2014 Mar 2014 Apr 2013 Abidjan 12,522 22,559 20,488 San Pedro 11,903 13,359 10,495 Total 24,425 35,918 30,983 Cumulative from Oct 238,598 214,173 228,773 Powder - Abidjan 939 2,597 4,452 Butter - Abidjan 2,370 6,159 5,005 Chocolate - San Pedro nil nil nil Cocoa Farmer Price Falls Despite Heavy Grinder Demand Cocoa merchants in several of Ivory Coast’s main growing regions have begun paying farmers less than the government guaranteed minimum price amid complaints of small bean size and poor road conditions. Grinders, however, continued to pay bonuses for shipments arriving at the country’s two ports of Abidjan and San Pedro in order to ensure supplies. The mid-crop marketing season in Ivory Coast opened on April 1, with the government maintaining the minimum farmgate price of 750 CFA F/kg [US$1.59] set at the start of the main crop in October. Buyers say that the beans are too small and often buy at 700-725 CFA F/kg. A lack of merchants operating in the bush has also driven down prices as little competition for the growing volumes of beans now being harvested. Traders are expecting a strong mid-crop harvest in Ivory Coast. Earlier concerns over poor weather have been dispelled with the arrival the rainy season’s regular showers which in turn damaged roads, making it harder for merchants to reach plantations deep in the bush. Analysts now predict a better than expected crop in West Africa after forecasts of a supply deficit boosted prices 20% last year. Meanwhile cocoa with a bean count above 120 beans/100g is not allowed to be exported as beans. And since the mid-crop produces smaller beans than the main crop, the lion’s share of total volumes is typically purchased by local processors. Ivory Coast set a minimum price port entry price of 830 CFA F/kg this season with a price ceiling of 845 CFA / kg. However some large grinders are now paying above the maximum price allowed offering up to 860 CFA F because the bean quality is good. [Reuters 07/05/14] Rains Complicate Cocoa Bean Drying Abundant rains occurred in most of Ivory Coast’s main cocoa-growing regions which should help mid-crop development, but growers are struggling to dry their beans. Farmers noted harvesting was intensifying with large stocks of beans waiting to be collected from plantations. In the coastal region of San Pedro, farmers said that while 2-weeks of heavy showers were helping their trees, they were struggling to prepare their beans for pick-up by merchants and worried there would be a lot of mould in the shipments. In western Duekou farmers were certain they would have problems to properly ferment and stock their beans in the bush. Ivory Coast introduced stricter quality standards, including for mould and moisture levels, as part of a drive implemented last season that exporters have credited with improving the reputation of the country’s cocoa. [Reuters 29/04/14] 8
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: COMMODITY NEWS COCOA General Higher
Page 11 and 12: Ghana Cocoa Main Crop Purchases Rea
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
Page 34 and 35: COMMODITY NEWS TIMBER General EU Tr
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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