Bird’s Eye View of ICCO June meetings

The ICCO hosted the 13th meeting of the Consultative Board on the World Cocoa Economy at its London offices on 4 June 2007.  Under the Chairmanship of Mr Tony Lass, the Board deliberated on the Methodology for the Cocoa Value Chain Analysis Project; the document on Sustainable Cocoa Economy:  A Comprehensive and Participatory Approach; and preparations for the Round Table on a Sustainable World Cocoa Economy.

From 5-7 June, the meetings of the Executive Committee, Promotion Committee, Market Committee and the Expert Working Group on Quality were held in the Board Room of the European Bank for Reconstruction and Development.

At its 133rd meeting, chaired by Ms Irina Medvedeva, the Executive Committee discussed financial, administrative and budgetary matters.  Members also reviewed a progress report on projects and a report of the ICCO action plan on pesticide residues.  The Committee also approved a major project on supply chain management to be submitted to the Common Fund for financing.

Mr Steve Wateridge, chaired the Promotion Committee’s 11th meeting.  Discussions were held on consumption promotion in the Russian Federation and preparations for an international conference on the health and nutritional benefits of cocoa.

The 10th meeting of the Market Committee, under Chairman Mr Tano Kassi Kadio, discussed among other things, the world cocoa market situation, cocoa resources, and fine or flavour cocoa.

Monthly Review of the Cocoa Market Situation — May 2007

The current review reports on price movements on the international markets during the month of May 2007.

In May, the ICCO daily price averaged US$2 005, up by US$28 compared to the average price recorded in the previous month (US$1 977) and ranged between US$1 921 and US$2 070.

June 2007 Quarterly Bulletin of Cocoa Statistics

The latest QBCS contains revised forecasts for the current 2006/07 cocoa year of world production, grindings and stocks of cocoa beans. The data published in this issue, Vol. XXXIII No. 2, Cocoa year 2006/07, reflect the most recent information available to the ICCO Secretariat as at the beginning of May 2007.

Summary of forecasts and revised estimates

Cocoa year (Oct-Sep) 2006/2007 2007/08 Year-on-year change
 Previous estimates a/  Revised estimates  Forecasts
(thousand tonnes)  (Per cent)
World production 3 721  3 472  3 444  -277  -7.4%
World grindings 3 492  3 540  3 555 +63  +1.8%
Surplus/deficit b/ +192 -103  -145
End-of-season stocks  1 882 1 757  1 737  -145  -7.7%
Stocks/Grindings ratio 53.9%  49.6% 48.9%

Notes:
a/ Forecasts published in Quarterly Bulletin of Cocoa Statistics, Vol. XXXIII – No. 1 – Cocoa year 2006/07
b/ Surplus/deficit: net world crop (gross crop adjusted loss in weight) minus grindings
Totals and differences may differ due to rounding.

This issue also contains:

  • Data, by country, for the past four years of production and grindings of cocoa beans
  • Comments on crop and demand prospects in the leading countries for the current season
  • A review of price developments in international markets for cocoa beans during the January-March quarter of 2007
  • Statistical information on trade in cocoa beans, cocoa products and chocolate, by country and by region. This covers annual data from 2003/04 to 2005/06 and quarterly statistics for the period January-March 2005 to July-September 2006
  • Details of destination of export and origin of imports for leading cocoa-exporting countries
  • Historical statistics on cocoa trade and consumption, by country and by region, for the period 1997/98 to 2005/06

Current and back issues of the Bulletin, including Microsoft Excel files and Adobe PDF format for Windows operating system can be ordered from the Secretariat or by clicking on the order form.

International Cocoa Organization
Commonwealth House
1-19 New Oxford Street
London WC1A 1NU
Tel: +44 (0)20 7400 5050
Fax: +44 (0)20 7421 5500
E-mail: info@icco.org

Monthly Review of the Cocoa Market Situation April 2007

The current review of the cocoa market situation reports on cocoa price movements on the international markets during the month of April 2007.

Chart I shows the evolution of the ICCO daily prices in US dollars and in SDRs.  Chart II illustrates ICCO daily prices and cocoa bean prices on the London and New York futures markets from February to April 2007.  Chart III shows the level of volatility of ICCO daily prices since the beginning of the 2005/2006 cocoa season.

Monthly review of the cocoa market situation

We are pleased to announce that the review of the cocoa market situation for March 2007 is currently available.

March 2007 Quarterly Bulletin of Cocoa Statistics

The International Cocoa Organization released its first forecasts for 2006/07 and revised estimates for the 2005/2006 cocoa year of world production grindings and stocks of cocoa beans. The data, summarized below, are published in issue No. 1 – Volume XXXIII – Cocoa year 2006/07 of the Quarterly Bulletin of Cocoa Statistics and reflect the most recent information available to the Secretariat as at end January 2007.

Summary of forecasts and revised estimates

Cocoa year (Oct-Sep) 2006/2007 2007/08 Year-on-year change
 Previous estimates a/  Revised estimates  Forecasts
(thousand tonnes)  (Per cent)
World production 3 592 3 675  3 472 -203 -5.5%
World grindings  3 476 3 462 3 540 +78 +2.3%
Surplus/deficit b/ +80  +176  -103
End-of-season stocks 1 767 1 860 1 757  -103 -5.5%
Stocks/Grindings ratio 50.8% 53.7%  49.6%

Notes:
a/ Estimates published in Quarterly Bulletin of Cocoa Statistics, Vol. XXXII – No. 4 – Cocoa year 2005/06
b/ Surplus/deficit: net world crop (gross crop adjusted loss in weight) minus grindings
Totals and differences may differ due to rounding.

This issue of the Bulletin also contains statistical information for the past four years of production and grindings of cocoa beans, detailed by country. In addition, it comments on crop and demand prospects in the leading countries for the current season and provides a review of the price developments in international markets for cocoa beans during the October – December quarter of 2006.

Statistical information on trade in cocoa beans, cocoa products and chocolate, by country and region, published in this edition covers annual data from 2002/03 to 2004/05 and quarterly statistics for the period October – December 2004 to April – June 2006. 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 region, for the period 1996/97 to 2004/05 are presented for reference.

Copies of the Quarterly Bulletin of Cocoa Statistics, including Microsoft Excel files and Adobe PDF format for Windows operating system can be ordered from the ICCO secretariat at the address below or by clicking on the order form.

International Cocoa Organization
Commonwealth House
1-19 New Oxford Street
London WC1A 1NU
Tel: +44 (0)20 7400 5050
Fax: +44 (0)20 7421 5500
E-mail: info@icco.org

Monthly review of the cocoa market situation 2007

We are pleased to announce you that the review of the cocoa market situation for February 2007 is currently available.  As from now, the ICCO Secretariat will be releasing monthly reports on cocoa price movements on international markets.

Monthly review of the cocoa market situation Jan 2007

We are pleased to announce you that the review of the cocoa market situation for January 2007 is currently available.  As from now, the ICCO Secretariat will be releasing monthly reports on cocoa price movements on international markets.

Pilot project on price risk management for cocoa farmers

DURATION:
 Two years
LOCATION:
 COTE D’IVOIRE
NATURE OF PROJECT:
 Risk Management
ESTIMATED TOTAL COST:
 US$ 384,762
FINANCING COMMITED BY CFC:
 US$ 272,622
CO-FINANCING
 US$ 10,500
COUNTERPART FINANCING
 US$ 101,640
PROJECT EXECUTING AGENCY (PEA):
 Bourse du Café et du Cacao (BCC)
PROJECT SUPERVISORY BODY:
 International Cocoa Organization (ICCO)
PROJECT STARTING DATE:
 February 2006
COMPLETION DATE:
 March 2008

 

Brief Description

The main activities of the project were identification and training of staff of cooperatives and banks to participate in the project; preparation and implementation of pilot operations on hedging strategies; and evaluation of the results of the pilot operations.

 
Project Objectives

The overall objective of the project was to develop and implement a price risk management strategy for cocoa farmers in Côte d’Ivoire. This would reduce the exposure of smallholder cocoa farmers to price fluctuations on the international market. It would also help to develop capacity to enable farmers and their organizations to make more rational production and investment decisions, based on more realistic assumptions and price expectations.

 
Project Results

Training materials on price risk management were developed. Representatives of local institutions and cooperatives were trained on price risk management strategies. Sources of price risk at farm-gate were identified. Hedging instruments (POPS and Puts) mitigating these sources of risk were adequately selected. Hedging contracts were drafted and approved by all parties involved. Hedging strategies were implemented on the London and New York cocoa option markets.

Click here to download the Project Completion report (PCR)

 

Cocoa productivity and quality improvement: a participatory approach

DURATION:
 Six years
LOCATION:
 BRAZIL,
CAMEROON,
COSTA RICA,
COTE D’IVOIRE,
ECUADOR,
GHANA,
MALAYSIA,
NIGERIA,
PAPUA NEW GUINEA,
PERU,
TRINIDAD AND TOBAGO,
VENEZUELA
NATURE OF PROJECT:
 Sustainable cocoa production
ESTIMATED TOTAL COST:
 US$ 10,504,553
FINANCING COMMITED BY CFC:
 US$ 3,916,120
CO-FINANCING:
 US$ 3,338,443
COUNTERPART FINANCING:
 US$ 3,249,990
PROJECT EXECUTING AGENCY (PEA):
 Bioversity International
PROJECT SUPERVISORY BODY:
 International Cocoa Organization (ICCO)
PROJECT STARTING DATE:
 March 2004
COMPLETION DATE:
 December 2010

 

Brief Description

The main project activities were distribution and validation of promising planting materials on-farm through participatory approach; validation and dissemination of promising cocoa varieties through enhanced international collaboration; and exchange of information and dissemination of results.

 
Project Objectives

The overall objective of the project was to improve the welfare of smallholder cocoa farmers through higher and more sustainable productivity levels of good quality cocoa at lower production costs. The project aimed to contribute to this objective through the selection, distribution and use of new cocoa varieties with improved yield capacity, resistance to pests and pathogens and good quality traits.

 
Project Results

Approximately 2000 farms were surveyed in ten different countries and about 1,500 farm selections were established in on-station observation plots or in on-farm trial plots in eight countries. In addition, about 240 on-farm selection plots were established.

About 85 ha of variety trials established in the earlier project were evaluated and several new varieties were selected or confirmed for commercial distribution to farmers. International clone trials were established and evaluated. The average of the local clones yielded substantially more than the average of the international clones. A large germplasm enhancement programme for resistance to Phytophthora pod rot was carried out where about 70% of resistant or moderately resistant trees were obtained.

The project had significantly achieved its objectives. In particular, a number of cocoa varieties that are high yielding and pests and disease resistant have been released to cocoa farmers. In addition, a number of new and improved cocoa planting materials were being tested and validated on research fields for eventual release to farmers.

Click here to download the Project Completion Report (PCR)