ICCO and Afreximbank sign collaboration agreement on cocoa development

London, 5 December 2014—Sealing a wide-ranging international programme of collaboration, the International Cocoa Organization (ICCO) and the African Export-Import Bank (Afreximbank) on 28 November signed a Memorandum of Understanding (MOU) in Cairo, Egypt, where the bank is based.

The MOU aims to boost the development of the cocoa sector in Africa, foster the long-term competitiveness of smallholder cocoa farmers and support the local cocoa and chocolate products industry, to reinforce their capacity to participate in global trade.

Under the terms of the MOU, the ICCO and Afreximbank are to work together to develop activities, secure funding as well as devising and implementing projects.

Activities would include enhancing the sustainability of the cocoa value chain in Africa, increasing the capacity of cocoa farmers to improve their productivity, and supporting value addition in the countries by establishing new cocoa processing facilities and strengthening existing ones. Another significant part of the agreement would see the two organizations promoting cocoa and chocolate products consumption in Africa and in emerging markets, and focussing particularly on China and other Asian markets.

Regarding the huge potential Chinese market for cocoa, the two organizations agreed to examine the feasibility of a promotion campaign, including producing a market study to provide information to African cocoa exporters.

Afreximbank, through its successful African Cocoa Initiative (AFRICOIN) was already involved in many of the activities identified in the MOU, the Bank’s president Jean-Louis Ekra said, confirming that the bank had provided about $350 million in financing to support cocoa processing in the four major African cocoa producing countries. He estimated that another $400 million of funding would available to finance a broad range of cocoa development projects to improve the situation for cocoa stakeholders in the region.

ICCO Executive Director Dr Jean-Marc Anga said that he welcomed the opportunity to collaborate with Afreximbank, and highlighted the importance of supporting the processing of cocoa by indigenous businesses in Africa. He further stressed that the African cocoa sector has a great future and that the possibilities for transformational change in the region are tremendous.

Pictured: Afreximbank’s President Jean-Louis Ekra (left) exchanges documents with ICCO Executive Director Jean-Marc Anga at the signing.

November 2014 Quarterly Bulletin of Cocoa Statistics

London, 28 November 2014–The International Cocoa Organization today releases its revised estimates, summarized below, of world production, grindings and stocks of cocoa beans for the 2013/2014 cocoa year. The data published in Issue No. 4 – Volume XL – Cocoa year 2013/2014 of the Quarterly Bulletin of Cocoa Statistics, reflect the most recent information available to the Secretariat as at the beginning of November 2014.

Summary of revised estimates

 

Cocoa year
(Oct-Sep)		 2012/2013 2013/2014 Year-on-year change
Revised
estimates		 Previous
estimates a/		 Revised
estimates
(thousand tonnes) (Per cent)
World production 3 945 4 345 4 365 + 420 + 10.6%
World grindings 4 128 4 262 4 268 + 140 + 3.4%
Surplus/deficit b/ – 222  + 40  + 53
End-of-season stocks 1 606 1 660 1 659 + 53 + 3.3%
Stocks/Grindings ratio 38.9% 38.9% 38.9%

Notes:
a/   Estimates published in Quarterly Bulletin of Cocoa Statistics, Vol. XL – No. 3 – Cocoa year 2013/2014
b/   Surplus/deficit: net world crop (gross crop adjusted for loss in weight) minus grindings
Totals may differ due to rounding.

This issue of the Bulletin contains the Secretariat’s revised estimates for the 2013/2014 cocoa year as well as data for the past four years of production and grindings of cocoa beans, detailed by country. The main features of the global cocoa market are illustrated in colour charts. In addition, the Bulletin includes comments on crop and demand prospects in the leading countries for the current season, and a review of price developments on international markets for cocoa beans during the 2013/2014 cocoa year.

Statistical information on trade in cocoa beans, cocoa products and chocolate, by country and by region, published in this edition, covers annual data from 2010/2011 to 2012/2013 and quarterly statistics for the period July-September 2012 to January-March 2014. Details of destination of exports and origin of imports for leading cocoa exporting countries are also provided. Historical statistics on cocoa trade and consumption, by country and by region, for the period 2004/2005 to 2012/2013 are presented for reference.

Copies of the Quarterly Bulletin of Cocoa Statistics, including Microsoft Excel files and Adobe PDF format, can be ordered by completing and returning this form, or from the ICCO Secretariat at the address below:

International Cocoa Organization
Westgate House
Ealing
London W5 1YY
United Kingdom

Tel:             +44 (0)20 8991 6000
Fax:            +44 (0)20 8997 4372
E-mail:        registry@icco.org or info@icco.org

ICCO Statement on Reports of a Cocoa Supply Deficit in 2020

London, 21 November 2014–The  International Cocoa Organization (ICCO) has noted numerous press reports this week identifying potential deficits in the supply of cocoa in the years to come, possibly reaching a level of one million tonnes in the year 2020, and would like to emphasize that its projections in no way bear out this fear, which it finds to be overstated in the extreme.

The ICCO would like to recall the following facts to ensure, as far as possible, an informed assessment of the current situation and future prospects for the supply of cocoa to the chocolate confectionery market and to other cocoa ingredient applications:

  • In the past ten years, the cocoa market experienced five years with production surplus and five years with production deficit. The last cocoa season (2013/2014), just ended in September 2014, experienced a production surplus, with the two leading producing countries, Côte d’Ivoire and Ghana, each posting record production;
  • The price for cocoa beans has varied widely over the years and is currently below the historical (1850 – 2014) median level in real terms (adjusted for inflation);
  • Cocoa production responds to changing price and therefore it cannot be assumed that, in the medium term (taking into consideration the lag between planting new trees and harvesting beans), demand will continue to grow and supply will either remain flat or decline. Cocoa, like any other agricultural commodity, is a renewable resource, so, when the cocoa price goes up, farmers will be incentivised to produce more cocoa beans by increasing their use of inputs and investing in new plantations.

As far as the ICCO’s current projections are concerned, there is no immediate cause for concern about the supply of cocoa for the next five years. There has been a tight relationship between supply and demand over the years and, while our projections show that supply deficits are likely to occur during the next several years, stocks of cocoa beans should cushion this development before production growth accelerates. There is no threat to the supply of cocoa for chocolate manufacture.

A number of the media reports highlighted many of the problems – sustainability, pests and diseases and especially the disadvantaged situation in which many cocoa farmers find themselves – which are at the heart of the work of the ICCO, its member countries and its partners worldwide. The ICCO’s ongoing process, identified in the Global Cocoa Agenda, seeks to deal with these serious issues. The Organization and its partners most recently reviewed progress in these areas at its World Cocoa Conference in Amsterdam in June. (A report of the Conference and many of the presentations made there can be found here).

The ICCO continues to make projections and forecasts based on the actual supply situation in the cocoa producing countries and the ongoing demand from the cocoa consuming nations, and will report on any significant change if and when it occurs. In the meantime, it believes that there is no cause for alarm regarding the availability of chocolate for consumers to enjoy.

ICCO Statement on Ebola and the West African cocoa sector

London, 17 October 2014—The International Cocoa Organization (ICCO) would like to emphasize that its thoughts and prayers are with the citizens and the governments of three of its member countries, Guinea, Liberia and Sierra Leone, who are most affected by the Ebola outbreak in West Africa. In this difficult time, the Organization is firmly supportive of all ongoing efforts, at local, national and global levels, in the prevention and eradication of this disease in the region.

Regarding the impact of Ebola on the international cocoa sector, it is noted that harvesting and shipping of cocoa in Guinea, Liberia and Sierra Leone have been seriously curtailed. However, combined cocoa production in these three countries represents about 0.7% of global output and is likely to have a minor bearing on the global cocoa market.

The total West African region supplies about 70% of the world’s cocoa and Côte d’Ivoire, which shares its western border with Liberia and Guinea, contributes almost 40%. While there have been some concerns that Ebola could reach Côte d’Ivoire, the rapid and strong reaction of its Government has kept the disease at bay so far, and the country has yet to register a single case. The main harvest for cocoa, which runs from October to March in Côte d’Ivoire, is currently well under way, and stakeholders are making all efforts to ship cocoa from the country as soon as it is available.

Ghana and Nigeria are the other two major cocoa producing countries in the region. No case has been declared in Ghana and, after a handful of initial cases decisively handled by its Government, Nigeria is on its way to being declared Ebola-free.

Current international cocoa prices seem to have factored in the Ebola issue and in the absence of a major negative development, we do not expect significant disruption of the market in the medium term. Nevertheless, in addition to concern over Ebola, many other factors affect cocoa prices on the market and these should be taken into account.

The ICCO continues to monitor the situation in the affected regions, and will report on any significant change if and when it occurs.

Russian Federation joins the International Cocoa Agreement 2010

The Russian Federation on 1 October 2010 signed the International Cocoa Agreement 2010, the United Nations Treaty Section has confirmed.

Click here to see the official notification of signature to the Agreement from the United Nations.

Pictured: Mr. Vladimir Tkachenko, Director of the Department of International Organizations of the Ministry of Economic Development of the Russian Federation, signs the Agreement at the UN Headquarters in New York

Capacity building on price risk management strategy for cocoa smallholder farmers in Africa

DURATION:
 18 months
LOCATION:
 Cameroon, Nigeria, Sierra Leone and Togo
NATURE OF PROJECT:
 Price Risk Management
ESTIMATED TOTAL COST:
 US$ 654,217
FINANCING COMMITED BY CFC:
 US$ 313,828 – Common Fund for Commodities (CFC)
CO-FINANCING
 US$ 87,444 – AFD and others
COUNTERPART FINANCING
 US$ 252,945
PROJECT EXECUTING AGENCY (PEA):
  TWIN
PROJECT SUPERVISORY BODY:
 International Cocoa Organization (ICCO)
PROJECT STARTING DATE:
  October 2014
COMPLETION DATE:
  April 2016

 

 

Brief Description:

The overall objective of the project is to implement a major programme of awareness-raising and capacity building in Africa to assist smallholder cocoa farmers in mitigating the negative impact of intra-seasonal cocoa price volatility and securing more predictable and ultimately better incomes from cocoa growing.
The project will broadly identify the specific impacts of cocoa price volatility and the strategies in place to cope with them in other to develop policy recommendations to improve strategies for price risk management. More importantly, the project will assess and select appropriate price risk management strategies and enhance the capacity of cocoa farmers and traders to use them.
.

 

 

Project Status:

The project was completed and closed in March 2018.

 
Project Results:

Please click here to download the Project Completion Report (PCR)

Range of issues discussed at September’s 90th Council meetings in Wembley

London, 30 September 2014 — Graced by the presence of the Ivorian Minister of Trade, the Ecuadorian Vice Minister of Agriculture and Ambassadors from Brazil, Côte d’Ivoire, the Dominican Republic and Ecuador, the 90thmeetings of the World Cocoa Council and its subsidiary bodies addressed a number of issues of relevance to the future of the cocoa sector and of the ICCO itself, at the Holiday Inn, Wembley, London, 15-18 September 2014.

A meeting of the recently expanded Consultative Board on the World Cocoa Economy initiated proceedings, with private sector and civil society representatives tackling subjects as varied as the recent World Cocoa Conference in Amsterdam, the need for a global cocoa resource base and the necessity for openness and transparency in addressing the issues of the Global Cocoa Agenda.

The Board meeting also included a live presentation relayed from Agrocalidad in Ecuador by Mr. Rommel Betancourt, updating members on continuing talks aimed at setting safe and practical limits for cadmium content in cocoa and chocolate. Another report, from Dr. Philippe Bastide of French research agency CIRAD, looked at cocoa-based farm models.

The main Council’s work began with the election of spokespersons for both the exporting and importing countries. As a result, Mr. Aly Toure of Côte d’Ivoire now represents the producing countries, while Mr. Conradin Rasi of Switzerland speaks for the consuming nations.

The Council was shown a film of the facilities of the venue in Bávaro, Dominican Republic, which is to be put at the disposal of the ICCO for the third edition of the World Cocoa Conference, and the representative of the Dominican Republic, Dr. Jose Antonio Martinez, explained that, among other highlights, the President of his country, H.E. Mr. Danilo Medina, would give the inaugural address. The Council agreed with the proposal that the Conference would be held alongside the March 2016 meetings of the Council, its subsidiary bodies and of the Consultative Board, and the dates have now been set at 14 – 19 March 2016. Speaking on behalf of the government of the host country, H.E. Dr. Federico Cuello, Ambassador to the UK of the Dominican Republic, said that the third edition of the Conference would be a positive and memorable event for the whole sector.

The Council also reminded its members of the existing ICCO initiative promoting of 1 October as World Cocoa and Chocolate Day, when the sector is celebrated worldwide. Indeed, a number of ICCO members, including Côte d’Ivoire, Ghana, Indonesia, Malaysia and Nigeria announced their own celebrations due, or already taking place on or around that day, to complement the events already scheduled in consuming country nations including France and the UK.

A number of internal and housekeeping matters occupied the Council during the meetings, but the week also saw meetings of the Organization’s Economic and Administration and Finance Committees and a number of new officers were elected.

The International Cocoa Council itself named Mr. Enselme Gouthon of Togo as its Chairman, with H.E. Mr. Luis Valverde of Ecuador as Vice Chairman, both for the cocoa year 2014/2015 beginning on 1 October.

Mrs. Miriam Okwabi of Ghana is to take over as Chairman of the Administration and Finance Committee, with Mr. Odon Pallaof Spain as Vice Chairman, both to serve for the 2014/2015 and 2015/2016 cocoa years.

On the Economics Committee, Mr. Henk de Jong of the Netherlands is the new Chairman, while Mr. Corneille Tabalo of the Democratic Republic of Congo is Vice Chairman, also both to serve for the 2014/2015 and 2015/2016 cocoa years.

The expanded Consultative Board of the World Cocoa Economy also released a list of its members for the 2014/15 and 2015/16 cocoa years (available to download here), and a Chairman and Vice Chairman of that body will be elected in due course.

The next ICCO Council and subsidiary meetings, including that of the Consultative Board, are to take place in Abidjan, Côte d’Ivoire, 23 – 27 March 2015. The Ivorian Minister of Trade, H.E. Mr. Jean-Luc Billon (right), told the Council that his government attached great importance to the international cocoa economy, and that his country would be pleased to welcome the Council members to Abidjan next March 2015, and to ensure that the meetings would be a great success.

A cocktail reception was kindly offered by the Government of Côte d’Ivoire for the Council members, while the Ambassador of Sweden, H.E. Ms. Nicola Clase, kindly welcomed the Council members to her Residence for a reception in honour of outgoing Council Chairman Ms. Anna Tofftén (left). At the reception, ICCO Executive Director Dr. Jean-Marc Anga thanked Ms. Tofftén and presented her with the ICCO’s traditional commemorative golden cocoa pod to mark her year of service to the Organization.

Presentations made at the Meetings (click to download):

Consultative Board on the World Cocoa Economy:

CB Item 04 – Report on WCC2

CB – Item 05 – NCDP & PPP

CB – Item 08 – CB Farm Models 20140915v3

CB – Item 09 – ICCO Ochratoxin A 29th CB Takrama-v3

CB – Item 09 – Codex Cd

CB – Item 10 – ECA CAO FCC Joint Quality Productivity Group Update

Economics Committee:

EC – Item 03 – The Cocoa Market Situation – Sept 2014

Capacity Building on Price Risk Management Strategy for Cocoa Smallholder Farmers in Africa

DURATION:
 18 months
LOCATION:
 Cameroon, Nigeria, Sierra Leone and Togo
NATURE OF PROJECT:
 Price Risk Management
ESTIMATED TOTAL COST:
 US$ 654,217
FINANCING COMMITED BY CFC:
 US$ 313,828
CO-FINANCING
 US$ 87,444
COUNTERPART FINANCING
 US$ 252,945
PROJECT EXECUTING AGENCY (PEA):
  TWIN
PROJECT SUPERVISORY BODY:
 International Cocoa Organization (ICCO)
PROJECT STARTING DATE:
  October 2014
COMPLETION DATE:
  April 2016

 

 

Brief Description:

The project will implement a major programme of awareness-raising, training and capacity building in Africa so as to assist cocoa smallholder farmers to mitigate the negative impact of intra-seasonal cocoa price volatility and secure more predictable and ultimately better incomes from cocoa growing, contributing to a more sustainable cocoa economy..

 
Project Objectives:

The overall objective of the project is to provide cocoa smallholder farmers with the capacity to tackle appropriately their exposure to cocoa price risk.

 
Project Status:

The project agreement was signed by CFC, ICCO and TWIN (the PEA) in March 2014 and the PEA signed the contractual agreement with each National Project Implementing Agency (NPIA) for the project implementation. The conditions for the release of the funds by CFC have been met for all countries except Togo. The first tranche of the project grant is to be disbursed to enable the project to commence. The recent policy changes in Togo regarding cocoa prices are currently being reviewed to determine the required amendments to planned project activities. The ICCO is in consultations with the CFC and the authorities in Togo in this respect.

August 2014 Quarterly Bulletin of Cocoa Statistics

London, 29 August 2014–The International Cocoa Organization today releases its revised forecasts for the current 2013/2014 cocoa year and revised estimates of world production, grindings and stocks of cocoa beans for 2012/2013, as summarized below. The data published in Issue No. 3 – Volume XL – Cocoa year 2013/2014 of the Quarterly Bulletin of Cocoa Statistics, reflect the most recent information available to the Secretariat as at the end of July 2014.

Summary of revised forecasts and estimates

 

Cocoa year
(Oct-Sep)		 2012/2013 2013/2014 Year-on-year change
Revised
estimates		 Previous
forecasts a/		 Revised
forecasts
(thousand tonnes) (Per cent)
World production 3 942 4 162 4 345 + 403 + 10.2%
World grindings 4 111 4 195 4 262 + 151 + 3.7%
Surplus/deficit b/ – 208   – 75  + 40
End-of-season stocks 1 620 1 565 1 660 + 40 + 2.5%
Stocks/Grindings ratio 39.4% 37.3% 38.9%

Notes:
a/   Estimates published in Quarterly Bulletin of Cocoa Statistics, Vol. XL – No. 2 – Cocoa year 2013/2014
b/   Surplus/deficit: net world crop (gross crop adjusted for loss in weight) minus grindings
Totals may differ due to rounding.

This issue of the Bulletin contains the Secretariat’s revised forecasts for the 2013/2014 cocoa year as well as data for the past four years of production and grindings of cocoa beans, detailed by country. The main features of the global cocoa market are illustrated in colour charts. In addition, the Bulletin includes comments on crop and demand prospects in the leading countries for the current season, and a review of price developments on international markets for cocoa beans during the April-June quarter of 2014.

Statistical information on trade in cocoa beans, cocoa products and chocolate, by country and by region, published in this edition, covers annual data from 2010/2011 to 2012/2013 and quarterly statistics for the period April-June 2012 to October-December 2013. Details of origin of imports and destination of exports for leading cocoa importing countries are also provided. Historical statistics on cocoa trade and consumption, by country and by region, for the period 2004/2005 to 2012/2013 are presented for reference.

Copies of the Quarterly Bulletin of Cocoa Statistics, including in Microsoft Excel files and in Adobe PDF format versions, can be ordered by completing and returning this form or from the ICCO Secretariat at the address below:

International Cocoa Organization
Westgate House
Ealing
London W5 1YY, UK
Tel: +44 (0)20 8991 6000
Fax: +44 (0)20 8997 4372
E-mail: registry@icco.org or info@icco.org

International Cocoa Council and subsdiary bodies, 23-27 September 2013, Wembley

The International Cocoa Council and subsidiary bodies, including the Economics and Administration and Finance Committees, as well as the expanded Consultative Board on the World Cocoa Economy, will meet at the Holiday Inn, Empire Way, Wembley, London 23 – 27, September 2013.

Provisional Timetable of Meetings, 23-27 September, Wembley, London, UK

ED(MEM) 954-Rev.1
English French Spanish Russian

 

ICC-88-1-Rev.1
English French Spanish Russian

Administration and Finance Committee: Draft Agenda

AF-2-1-Rev.1
English French Spanish Russian

Economics Committee: Draft Agenda

EC-2-1-Rev.1
English French Spanish Russian

Consultative Board on the World Cocoa Economy: Draft Agenda

CB-27-1-Rev.1
English French Spanish Russian