Matières Premières > Cocoa

Cocoa News - 2003
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Disease Affects Central Cameroon's '03-04 Main Cocoa Crop - 18/12/03

(OsterDowJones) - A disease, commonly called black pod, is likely to reduce the 2003-04 main cocoa crop in Cameroon's Center Province. The Province accounts for 35%-40% of Cameroon's total cocoa output, which was 155,000 metric tons in 2002-03, up from 125,000 tons in 2001-02. In Cameroon the main crop is harvested between September and March and at least one farmer said the output of his plantation would be reduced by one- third.

"Because of black pod, my maincrop harvest could be slashed by a third from the 13 tons I produced last season," said a cocoa farmer in Mefou-et-Afamba sub-district, some 80 km northeast of Yaounde.

Black pod disease is an infection caused by tiny insects which eat and destroy cocoa pods on the trees. The disease is common during the rainy season. "The black pod disease attacks the pre-mature cocoa pods on the trees and has caused us to loose a considerable amount of our main crop harvest," said Emmanuel-Alphonse Nguile, Vice President of the National Organization of Cameroon Cocoa and Coffee Producers, or ONPCC, which groups over 58,000 cocoa farmers. He attributed the "severe destruction of cocoa pods" to excessive rains but would not estimate how many tons of cocoa could be lost due to the disease.

"There has been too much rainfall in October and November which favored the black pod disease to spread like wildfire," said Nguile. "The disease spread just when the first phase of the main crop cocoa harvest began." The rainy season in Cameroon typically runs from April/May through November, but the rains came in February this year, triggering an earlier midcrop harvest. The rains halted barely two months after, giving way to excessive sunshine that caused cocoa pods to ripen prematurely.

Origins slam EU ochratoxin plans - 15/12/03

Cocoa producing countries have urged the European Union (EU) to reconsider the maximum levels of the carcinogenic compound ochratoxin A that are permitted in beans as the existing proposals are too stringent.

At the recent International Cocoa Organisation (ICCO) meeting held in London, key global cocoa growers such as Ivory Coast and Ghana asked the EU to review its legislation on ochratoxin. Producers fear that the measures which are due to come into effect later this month could threaten exports to the European trading bloc.

Ochratoxin is a mycotoxin produced by certain species of mould and has been detected in a wide range of foods from both temperate and tropical regions, including European cereals, coffee and cocoa. The EU legislation will set maximum permitted levels for ochratoxin content to protect consumers, but analysts said these were likely to be much lower than those found in Ivory Coast's cocoa.

Ivorian cocoa often suffers because of high humidity, which stimulates growth of the mould-producing toxin. It has been estimated that as much as 20% of global cocoa bean production, of which Ivory Coast accounts for around 40%, could be excluded from consumption if the EU's measures are universally adopted.

Ghanaian and Ivorian delegates said the introduction of maximum levels of this potentially carcinogenic substance but which is deemed to be harmless in small quantities, would effectively amount to a non-tariff barrier to cocoa exports. One Ivorian delegate said: "The regulations would have devastating consequences for income levels of cocoa farmers and producing countries' efforts towards poverty reduction."
Of Ivory Coast's average annual cocoa output of between 1m and 1.3m tonnes, around two-thirds is exported to Europe and if the ochratoxin levels are to be applied, it would be a devastating blow to the world's leading producer. Initial research on ochratoxin in cocoa from a variety of origins found it to be present at a detectable level in 67% of tested samples.

However, there have been some doubts regarding the mycotoxin's ability to survive processing whereby the raw beans are made into usable products. The ICCO meeting also established the private sector consultative board.

Nigerian cocoa board - 15/12/03

Nigeria will establish a national cocoa development commission in 2004. The body will set guidelines for cocoa production, marketing, quality and export.

Nigerian cocoa slump - 08/12/03

Nigeria's southeastern Cross River State had a poor 2003/04 main cocoa crop, which led to the revenue earned from cocoa sales over the past two months, falling by 50% to naira1.5m ($10,791).

Ivorian cocoa crop still looks big - 08/12/03

Cocoa analysts still expect Ivory Coast's 2003/04 main crop to total more than 1m tonnes despite the labour shortages and decaying infrastructure caused by the ongoing civil war in the country. Over the last year, Ivory Coast has been wracked by civil war, with rival factions controlling different parts of the country. Last week, there were demonstrations across the country, as protesters demanded the withdrawal of French peacekeepers, which they claimed were fuelling rebel activity.

According to London soft commodities brokers Credit Lyonnais Rouse (CLR), the world's leading cocoa producer is still on course to meet the initial main crop estimate of 1.03m tonnes this season, although the firm has reduced its forecast for the rate of monthly arrivals. CLR pegged monthly main crop arrivals at 120,000 tonnes in October, 200,000 tonnes in November and 250,000 tonnes in December. Last year, monthly arrivals were 161,000 tonnes, 270,000 tonnes and 278,000 tonnes respectively. The main crop production figure of 1.03m tonnes does not include losses due to smuggling and, this together with inefficient harvesting and transportation, could compromise crop potential. However, Jonathan Parkman, CLR's research analyst, said that further data was needed in order to revise estimates.

Ivorian president Laurent Gbagbo recently fuelled the situation by asking French peacekeeping troops to remain in the country despite violent protests in Abidjan last week that demanded their exit. Since February 2003, the global cocoa market has been in decline but dealers said the potential for a rally was large if arrivals remained low during the peak of the harvest this month and January or if political tensions heightened.

ICCO raises world 2002 cocoa surplus to 75,000 T - 01/12/03

World cocoa production should exceed consumption by 75,000 tonnes in the 2002/03 season, the International Cocoa Organization(ICCO) said on Wednesday in an upward revision of its previous forecast of a 30,000 tonnes surplus. World production was pegged at 3.102 million tonnes, versus a previous estimate of 3.056 million tonnes, it said in a press release. This figure compares to a revised estimate of 2.861 million tonnes for 2001/02 output. Global grindings, considered as a measure of consumption, should be at 2.996 million tonnes, in comparison to its previous estimate of 2.995 million tonnes. The surplus figure is in line with most estimates of most analysts, who have been forecasting a surplus after two consecutive deficits and with Ivory Coast producing a bumper 2002/03 crop of around 1.3 million despite a civil war. The ICCO estimated 2.877 million tonnes were ground the previous season, which led to an estimated deficit of 45,000 tonnes in 2001/02. It said the deficit and surplus figures are calculated from the net world crop minus grindings. The net world crop is the gross crop adjusted by subtracting one percent for loss in weight.
Source:Reuters

ICCO forecasts significantly larger surplus - 01/12/03

There should be a global cocoa surplus of about 75,000 tonnes following the end of the 2002/03 season according to the latest figures from the International Cocoa Organisation (ICCO).

According to ICCO's report, global production rose to 3.1m tonnes in the 2002/03 season from 2.86m tonnes in 2001/02. World grindings are estimated to have increased to 2.99m tonnes from 2.877m tonnes previously.

ICO's surplus figure compares with an estimated 68,000 tonne surplus by ED&F Man in October. However, some other analysts have claimed that there was a substantial deficit in the trade for the third year running, due to the civil conflict in Ivory Coast, declining world stocks and limited increases in production in the world's top three cocoa growing regions.

One London analyst added that West Africa continues to lead global production, accounting for roughly 68% of the world's crop. According to the analyst, the region should have witnessed a 4.8% increase in its crop over the 2002/03 season.

He added that the Americas account for 14% of world supply and the crop there is thought to have risen by 9.5% in 2002/03, while in Asia where 18% of the world's crop is produced, no growth was expected to have taken place.

Prices expected to decline from next month - 17/11/03

Cocoa prices are expected to fall this winter as the substantial new crops from Ivory Coast and Ghana begin to weigh on the market and dispel supply worries.

Over the last month, cocoa prices, particularly on the New York Board of Trade (Nybot), have rallied after a sustained dip. This followed news that the civil war in Ivory Coast, which erupted in September 2002 and sent prices soaring, had little effect on the harvest.

Since then, however, the new 2003/04 Ivorian main crop has been running late and this, in conjunction with some speculative buying and some short covering, has firmed prices. However, analysts expect prices to fall once this current phase passes.

Elizabeth Miller, of Scottish technical analysts Redtower Research, told The Public Ledger: "The main crop harvest is running around three weeks late and, as a rule of thumb, late harvests tend to be smaller harvests. Also, some of the move is probably due to the ongoing effects of the minimum farmgate price saga."

"Now that the farmers and exporters are no longer on strike, they've started to do business again but the whole situation did allow supplies to get a bit tighter. It's ironic that prices have started to push higher almost exactly to the day since the Ivory Coast government decided to lift the minimum price."

Last week, the benchmark December contract on Nybot was trading at around $1,500 a tonne. Mrs Miller predicted that cocoa prices would rise still further in the short term before taking a plunge again later.

She said: "We are forecasting a decline to around $1,250 a tonne this winter as supplies step up despite the probability of a smaller crop, but probably from higher levels. We'll probably see the bounce extend to $1,560, even $1,600 at a stretch, before the bears step in and smash it lower again."

Cocoa Futures - 10/11/03

Cocoa futures posted gains last week, reacting to reports of Ivory Coast farmers withholding their beans because they feel that prices are too low. Technically, the Nybot December contract rebounded from lows set in mid-October.

Nybot's December contract closed the November 5 session at $1,471 a tonne after hitting a three-week high. However, Mr Wyckoff said that the bears had the overall edge in cocoa, pointing out that a close below the October low of $1,360 a tonne would open the door to further downside potential.

He added: "Contracts will need to close above $1,650 a tonne to really give the bulls any solid upside momentum in the cocoa market." According to Mr Wyckoff, a lack of additional unrest in the Ivory Coast, will limit any advances.

Ivorian farmers withhold cocoa - 10/11/03

Cocoa exports from Ivory Coast have come under renewed threat after farmers in the east of the country began holding back beans in the hope of earning higher farmgate prices.

Farmers in the region were said to be unwilling to sell their 2003/04 main crop beans until prices rose to CFA450 (78¢) a kg, while buyers were only offering CFA350 a kg. Bean purchases in Ivory Coast have been slow since the beginning of the season due to a row over the fixed minimum price set by the Cocoa and Coffee Bourse (BCC).

Last month, the BCC eventually abandoned its insistence that buyers pay a set price and the CFA385 a kg farmgate price is now an indicative one. However, buyers and exporters claimed that the prices that farmers are asking are too high in relation to world market prices and few beans have arrived in ports more than six weeks after the start of the season.

One leading exporter said that he had bought less than 15% of their usual October purchases. While this has been going on, some Ivorian farmers were said to be unable to resist the urge to smuggle their beans into Ghana, where the fixed minimum price paid to farmers is cedi9,000 ($1.03) a kg.

Ghanaian prices are roughly double those paid in Ivory Coast. Despite Ghana clamping down on smuggling after losing around one-fifth of its crop in 2001/02, it has been reported that trucks came into Ghana with Ivorian beans.

One London cocoa analyst said: "In US dollar terms, the Ghana farmgate price is almost identical to last year at a time when the futures market has fallen by more than 40%. It provides a powerful incentive for farmers to smuggle cocoa from Ivory Coast - unless the government in Ghana maintains strict control over cross-border activity, smuggling into Ghana may reach unprecedented levels."

Meanwhile, there were fears that a significant amount of cocoa would stay in the bush after some 300 Burkinabe workers were being driven away from their plantations near the western town of Gagnoa because they had refused to sell their beans to newly created regional authorities. Burkinabe farmers have long established relationships with other buyers to whom they felt loyal and resented being forced to the tribal co-operatives set up at the beginning of the current season.

Cocoa programme - 10/11/03

Nigeria has started a cocoa communications programme to promote the activities of the National Cocoa Development Committee and extensive training for local farmers at a cost of naira32m ($210,679).

Ivorian beans start arriving at port - 03/11/03

Cocoa beans from Ivory Coast's main crop have begun flowing into port after the Cocoa and Coffee Bourse (BCC) abandoned its insistence that grinders pay a pre-determined fixed price to farmers.

Last month, cocoa buyers stopped purchasing beans in Ivory Coast in protest at the BCC fixing the farmgate price at CAFFr385 (68¢) a kg. In response to the lull in purchases, the marketing body decided to make the price indicative rather than compulsory and as a result, beans have begun to flow again.

Although the levels shipped to port still remain far below expectations during a traditionally busy phase of the season, analysts said that the fact that they had resumed was a good sign. Exporters said that 5,000 tonnes of beans from the new 2003/04 season arrived at the southwest port of San Pedro last week but this was only around half the usual amount expected at this stage of the October to September season.

Official data showed that cocoa arrivals at San Pedro totalled 24,086 tonnes between October 1 and 19, compared with 43,392 tonnes in 2002. Co-operatives said that arrivals were still limited because farmers were reluctant to sell their cocoa beans at prices lower than last year.

Last year, Ivory Coast's civil war and the fear of supply disruption pushed world prices up to levels not seen in nearly two decades. However, since the end of the 2002/03 season, prices have plummeted again due to expectations of better harvests after a bumper crop of 1.3m tonnes was achieved despite the civil strife.

One London cocoa analyst said: "With world prices so low at the moment and the taxes so high, the farmgate price has become quite a big issue. The cost of evacuation of the beans has gone up as the informal taxes - i.e. bribes at roadblocks -and formal taxes increase. The farmers' incentives are being erased."

Ghana investigates corruption allegations - 03/11/03

Ghana has launched an investigation into allegations of corruption surrounding the implementation of the government's mass spraying exercise after farmers accused some officials of extortion and diverting chemicals to Ivory Coast.

According to one finance ministry official, Accra's Bureau of National Investigation (BNI) has been called to look into allegations that government agents in Ghana's Western Region demanded money from cocoa farmers for the services which had already been paid for by the state. Officials were also accused of smuggling chemicals to neighbouring Ivory Coast.

Yaw Osafo-Maafo, Ghana's financial and economic planning minister, said: "For the recent report in the Western Region, we have asked the BNI to move in and they have moved in. If we find out people have cheated, they will be punished according to the law."

Accra introduced the mass cocoa spraying exercise in 2001 to assist farmers suffering from the impact of black pod disease. As part of the exercise, the government, through the Ghana Cocoa Board (Cocobod), put aside cedis341bn ($38.9m) to purchase chemicals for the project.

Meanwhile, critics have derided the recent statement by Ghana's president John Kufuor that the country would process 40% of its raw cocoa through foreign direct investment within the short to medium term. One Ghanaian farmer said: "It will take about 50 years to achieve that.

UN plans to help cut West African harvest losses - 03/11/03

West African cocoa farmers are soon to benefit from a United Nations (UN) sponsorship scheme designed to reduce the amount of the harvest that is destroyed by pests and disease.

Under the programme, the UN plans to assist the growers to adopt better farming techniques which will enable them to fight pests and disease that cost them as much as 30% of their harvests. At a recent workshop in Washington, the United Nations Development Programme, in partnership with Conservation International and the World Cocoa Foundation, told key members of the industry that current farming methods encourage crop destruction.

Delegates heard that growing only cocoa rather than rotating crops and the heavy use of chemicals also lead to environmental degradation and destruction of critical ecosystems. The partners, in co-operation with other environmental and development groups, aim to promote crop diversification, rehabilitation of low grade land and better access to technology and training for farmers.

Cocoa Futures - 03/11/03

Nybot cocoa futures generally gained ground during the week as a combination of short-covering and some fresh demand resulted in values moving up. Mr Cruel said: "Activity has been consolidative in nature and there's little reason to think that's going to change in the immediate future, as long as things remain calm in Ivory Coast."

Ivorian farmers have called for a general revolt if the government does not reduce taxes on cocoa beans and reinstate a minimum guaranteed farmgate price. However, in the past four years these same farm groups have threatened at least a dozen times to halt marketing, burn beans and block the ports but so far they have only disrupted marketing once, for one week in November 1999.

High prices set to boost Nigerian cocoa crop - May 2003

Nigerian cocoa output is expected to rise significantly next year as highly remunerative world prices have caused farmers to rehabilitate abandoned farms.

According to a recent US Department of Agriculture (USDA) report, Nigerian cocoa production for 2003/04 is forecast at 180,000 tonnes, up from 160,000 tonnes this year. The increase is attributed to anticipated favourable weather conditions in the cocoa belt and record high farmgate prices. Growers' returns have risen as the civil war in the Ivory Coast caused world prices to increase.