A three-day workshop on the outcome of the Pilot Project on Price Risk Management for Cocoa Farmers in Côte d’Ivoire was held from 11-13 May 2010 at the Hotel Ivotel in Abidjan, Côte d’Ivoire.
Funded by the Common Fund for Commodities, the Workshop was organized by the International Cocoa Organization in co-operation with the Comité de Gestion de la Filière Café-Cacao and COFORMEX SARL in Abidjan.
The main objectives of the workshop were to discuss the results of the Pilot Project on Price Risk Management for Cocoa Farmers implemented in Côte d’Ivoire between February 2006 and March 2008, to draw the relevant policy implications and to consider the potential for extending the project to Cameroon and Nigeria, two countries that, in common with Côte d’Ivoire, had liberalized their cocoa sectors.
The workshop attracted approximately 100 participants, with representation from the Common Fund for Commodities, the United Nations Conference on Trade and Development, the International Cocoa Organization, private consultants, organizations based in France, South Africa, the Russian Federation and Ghana as well as experts from cocoa co-operatives from Cameroon, Côte d’Ivoire, Nigeria and Togo.
His Excellency Mr. Calice YAPO YAPO, Minister of Commerce of the Republic of Côte d’Ivoire, was the keynote speaker at the opening ceremony of the workshop, while his counterpart, the Minister of Agriculture, was represented at the closing ceremony of the workshop by his Chief of Staff.
Day 1 of the workshop was dedicated to a review of the implementation of the pilot project, its constraints, results and lessons. Full debate took place among the representatives of local cocoa co-operatives involved in the project and other experts on issues related to training and capacity building in price risk management as well as on technical aspects of the project.
On Day 2, presentations were made by the representatives of the CFC, UNCTAD and other invited speakers on the causes, effects and implications of cocoa price volatility for governments and farmers as well as on the market instruments available to tackle it. Representatives of the cocoa sectors in Cameroon and Nigeria also provided insight on their countries’ problems in trying to address cocoa price fluctuations and the instability of farmers’ incomes. This was followed by an in-depth discussion of the issues concerned by the participants.
The workshop concluded on Day 3 with a field trip for all participants to some cocoa farms and warehouses located outside Abidjan.
The outcome of the Workshop was agreement among the participants on a number of important issues:
- Firstly, that liberalization of the cocoa and coffee sectors had been implemented without the required necessary preparation, leaving both governments and farmers in cocoa producing countries with insufficient tools to manage the (often excessive and damaging) fluctuations of cocoa prices at international level. Hence a solid capacity-building programme would be required to explain to the relevant stakeholders, in particular to farmers’ representatives and government officials, that instruments exist to assist them to cope better with price fluctuations and the resulting instability of their revenues from exports;
- Secondly, that governments should create the appropriate institutional, legal and policy framework to make price risk management tools accessible to cocoa farmers through strong and viable co-operatives; and
- Finally, it was recommended for the governments in cocoa producing countries to consider embracing price risk management as one of an array of options available to them to alleviate the negative effects of the prevailing high levels of instability of world market prices.
French version – Press release on Workshop on price risk management in CIV 20.5.10.doc
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Outcome of the Pilot Project on Price Risk Management for Cocoa Farmers in Côte d’Ivoire
A three-day workshop on the outcome of the Pilot Project on Price Risk Management for Cocoa Farmers in Côte d’Ivoire was held from 11-13 May 2010 at the Hotel Ivotel in Abidjan, Côte d’Ivoire.
Funded by the Common Fund for Commodities, the Workshop was organized by the International Cocoa Organization in co-operation with the Comité de Gestion de la Filière Café-Cacao and COFORMEX SARL in Abidjan.
The main objectives of the workshop were to discuss the results of the Pilot Project on Price Risk Management for Cocoa Farmers implemented in Côte d’Ivoire between February 2006 and March 2008, to draw the relevant policy implications and to consider the potential for extending the project to Cameroon and Nigeria, two countries that, in common with Côte d’Ivoire, had liberalized their cocoa sectors.
The workshop attracted approximately 100 participants, with representation from the Common Fund for Commodities, the United Nations Conference on Trade and Development, the International Cocoa Organization, private consultants, organizations based in France, South Africa, the Russian Federation and Ghana as well as experts from cocoa co-operatives from Cameroon, Côte d’Ivoire, Nigeria and Togo.
His Excellency Mr. Calice YAPO YAPO, Minister of Commerce of the Republic of Côte d’Ivoire, was the keynote speaker at the opening ceremony of the workshop, while his counterpart, the Minister of Agriculture, was represented at the closing ceremony of the workshop by his Chief of Staff.
Day 1 of the workshop was dedicated to a review of the implementation of the pilot project, its constraints, results and lessons. Full debate took place among the representatives of local cocoa co-operatives involved in the project and other experts on issues related to training and capacity building in price risk management as well as on technical aspects of the project.
On Day 2, presentations were made by the representatives of the CFC, UNCTAD and other invited speakers on the causes, effects and implications of cocoa price volatility for governments and farmers as well as on the market instruments available to tackle it. Representatives of the cocoa sectors in Cameroon and Nigeria also provided insight on their countries’ problems in trying to address cocoa price fluctuations and the instability of farmers’ incomes. This was followed by an in-depth discussion of the issues concerned by the participants.
The workshop concluded on Day 3 with a field trip for all participants to some cocoa farms and warehouses located outside Abidjan.
The outcome of the Workshop was agreement among the participants on a number of important issues:
Decisions of the Meetings of the International Cocoa Council and Subsidiary Bodies, 22-26 March 2010
The 81st regular session of the International Cocoa Council, the 141st meeting of the Executive Committee, the 21st meeting of the Consultative Board on the World Cocoa Economy and the 10th meeting of the Working Group for a future International Cocoa Agreement took place in Yaoundé, Cameroon from 22-26 March 2010 at the generous invitation of the Government of Cameroon.
The main decisions emanating from the meetings were:
Extension of the International Cocoa Agreement, 2001
At the 81st regular session of the International Cocoa Council, which was held in Yaoundé, Cameroon from 23-26 March 2010 at the generous invitation of the Government of the Republic of Cameroon, the Council approved the extension of the International Cocoa Agreement, 2001.
The text of the decision agreed by the Council is as follows:
The International Cocoa Council
Observing that the International Cocoa Agreement, 2001 entered into force on 1 October 2003 and that, on 30 September 2010, it will have reached the end of the first period of the two year extension following the fifth year of its entry into force;
Noting further that, in accordance with the provisions of Article 63, paragraph 3, the Council may extend the Agreement in whole or in part for two periods not exceeding two cocoa years each;
DECIDES
To extend the International Cocoa Agreement, 2001, in whole, for a period of two years from 1 October 2010, in accordance with the provisions of Article 63;
To request the Executive Director to transmit the present decision to the Secretary-General of the United Nations who acts as depository of the International Cocoa Agreement.”
Appointment of Dr. Jean-Marc Anga to serve as Acting Executive Director with effect from 1 October 2010
Dr. Jan Vingerhoets, the incumbent Executive Director of the International Cocoa Organization announced to the 81st regular session of the Council that he would not be available for a renewal of his contract after 30 September 2010 for personal reasons.
The Council expressed its sincere gratitude to Dr. Vingerhoets for his excellent and hard working service to the Organization over many years and agreed that Dr. Jean-Marc Anga, the incumbent Director of the Economics and Statistics Division of the Organization, would serve as Acting Executive Director for the duration of the current International Cocoa Agreement with effect from 1 October 2010. The full text of the decision taken by the Council in this respect is as follows:
The International Cocoa Council
Observing that the mandate of the incumbent Executive Director expires on 30 September 2010, and that the latter has indicated that he is not available for an extension of his mandate;
Noting further that the current International Cocoa Agreement, 2001 has been extended, in whole, for a period of two years from 1 October 2010, in accordance with the provisions of Article 63;
Considering that, in accordance with the provisions of Article 62, the mandate of the Executive Director may not exceed the duration of the current International Cocoa Agreement, 2001.
DECIDES
To appoint the incumbent Director of the Economics and Statistics Division to serve as Acting Executive Director on an interim basis, with effect from 1 October 2010, for the duration of the current International Cocoa Agreement. This appointment is without prejudice to the incumbent’s existing permanent contract as Director of the Economics and Statistics Division;
To launch, on 1 October 2011, the formal procedure to recruit and select a new Executive Director in accordance with Rule 67 of the Administrative Rules.”
March 2010 Quarterly Bulletin of Cocoa Statistics
The International Cocoa Organization today releases its first forecasts for the 2009/2010 cocoa year and revised estimates of world production, grindings and stocks of cocoa beans for the 2008/2009 cocoa year, as summarized below. The data published in issue No. 1 – Volume XXXVI – Cocoa year 2009/2010 of the Quarterly Bulletin of Cocoa Statistics reflect the most recent information available to the Secretariat as at the beginning of February 2010.
Summary of forecasts and revised estimates
Notes:
a/ Estimates published in Quarterly Bulletin of Cocoa Statistics, Vol. XXXV – No. 4 – Cocoa year 2008/09
b/ Surplus/deficit: net world crop (gross crop adjusted for loss in weight) minus grindings
Totals and differences may differ due to rounding.
This issue of the Bulletin contains the Secretariat’s first forecasts for the 2009/2010 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 October – December quarter of 2009.
Statistical information on trade in cocoa beans, cocoa products and chocolate, by country and by region, published in this edition, covers annual data from 2005/2006 to 2007/2008 and quarterly statistics for the period from October-December 2007 to April-June 2009. 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 from 1999/2000 to 2007/2008 are presented for reference.
Copies of the Quarterly Bulletin of Cocoa Statistics, including Microsoft Excel files and Adobe PDF format can be ordered from the ICCO Secretariat at the address below:
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
Meeting of the Working Group for a Future International Cocoa Agreement, 11-15 January 2010
The meeting of the Working Group for a future International Cocoa Agreement will take place in London from 11-15 January 2010, at the ICCO headquarters, Commonwealth House, 1-19 New Oxford Street, London WC1A 1NU. This meeting will be chaired by Dr Victor Iyama from Nigeria
Monday 11 January 2010
09.30-11.00 hrs Working Group for a future International Cocoa Agreement
11.00-11.15 hrs Cocoa Break
11.15-13.00 hrs Working Group for a future International Cocoa Agreement
15.00-16.15 hrs Group meetings
16.15-16.30 hrs Cocoa Break
16.30-18.00 hrs Working Group for a future International Cocoa Agreement
Tuesday 12 January 2010
09.00-11.00 hrs Working Group for a future International Cocoa Agreement
11.00-11.15 hrs Cocoa Break
11.15-13.00 hrs Working Group for a future International Cocoa Agreement
15.00-16.15 hrs Group meetings
16.15-16.30 hrs Cocoa Break
16.30-18.00 hrs Working Group for a future International Cocoa Agreement
Wednesday 13 January 2010
09.00-11.00 hrs Working Group for a future International Cocoa Agreement
11.00-11.15 hrs Cocoa Break
11.15-13.00 hrs Working Group for a future International Cocoa Agreement
15.00-16.15 hrs Group meetings
16.15-16.30 hrs Cocoa Break
16.30-17.30 hrs Working Group for a future International Cocoa Agreement
Thursday, 14 January 2010
09.00-11.00 hrs Working Group for a future International Cocoa Agreement
11.00-11.15 hrs Cocoa Break
11.15-13.00 hrs Working Group for a future International Cocoa Agreement
15.00-16.30 hrs Group meetings
16.30-16.45 hrs Cocoa Break
16.45-18.00 hrs Working Group for a future International Cocoa Agreement
Friday, 15 January 2010
09.00-11.00 hrs Working Group for a future International Cocoa Agreement
11.00-11.15 hrs Cocoa Break
11.15-13.00 hrs Working Group for a future International Cocoa Agreement
15.00-16.30 hrs Group meetings
16.30-16.45 hrs Cocoa Break
16.45-18.00 hrs Working Group for a future International Cocoa Agreement
Meetings of the International Cocoa Council and its subsidiary bodies, Yaounde, Cameroon, 22-26 March 2010
The meetings of the International Cocoa Council, the Consultative Board on the World Cocoa Economy, the Executive Committee and the Working Group for a future International Cocoa Agreement will take place in Yaounde, Cameroon, 22-26 March 2010
Capacity building programme on pesticides residues and other harmful substances in cocoa in Africa
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Brief Description
The methodology used for the review was the administration of structured questionnaires to establish the current situation regarding SPS in the participating countries. This was followed by the visit of a consultant to the countries to discuss with the various stakeholders on the measures for improving SPS practices. A workshop was organized in Douala, Cameroon to discuss and finalize the proposed project on building capacity for effective SPS practices in the participating countries.
Project Objectives
The objective of the project was to review the existing Sanitary and Phytosanitary Standards (SPS) practices along the cocoa supply chain and to establish the capacity of cocoa producing countries in Africa to meet the food safety regulations of cocoa consuming countries. This would help to identify areas of weaknesses for improvement and to develop a project proposal to assist the countries concerned to comply with the food safety requirements of importing countries, thus ensuring a continued market access for cocoa export.
Project Results
The review identified three major areas to be addressed immediately to enhance the capacity of cocoa producing countries to meet international standards. These were quantification of the levels of risk from contaminants affecting the cocoa supply chain; provision of specific information on pesticide science, at all levels in producing countries; and infrastructure to monitor and enforce SPS standards.
A project proposal on “SPS Capacity Building in Africa to Mitigate the Harmful Effects of Pesticide Residues in Cocoa and to Maintain Market Access” was developed and submitted to potential donors for financing.
Click here to download the Project ReportCocoa of excellence: promoting diverse high quality cocoa origins
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Brief Description
The main project activities were: identification and acquisition of samples of promising cocoa origins; cocoa liquor, chocolate production and sample evaluation; cocoa flavour diversity celebration and attribution of awards at the Salon du Chocolat in Paris; and establishment of a global “Cocoa of Excellence) platform and dissemination of project results.
Project Objectives
The main objective of the project is to contribute towards greater diversification of cocoa markets through the identification of speciality cocoa origins with recognized or newly discovered flavour attributes. This will increase awareness along the cocoa supply chain of the diversity and complexity of cocoa flavours from diverse genetic and geographic sources.
Project Results
A total of 147 samples from 19 countries were received and analyzed out of which the Sensorial Technical Committee selected 50 samples with promising flavour attributes and processed into cocoa liquor. The liquor samples were subjected to sensorial evaluation by three international experts according to 12 flavour characteristics as well as global preference. These samples were processed into chocolate by chocolate manufacturers in line with agreed working procedures.
Chocolate prepared from the 50 samples of the cocoa liquor were evaluated by professionals for International Cocoa Award at the 2010 Salon du Chocolat in Paris, France. Three prizes were awarded for each of the four cocoa growing regions.
Click here to download the Project Completion Report (PCR)Feasbility study on opportunities in organic cocoa production in Africa
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Brief Description
The feasibility study involved the analysis of the cocoa value chain; assessment of the current status and the opportunities for organic cocoa export including cost-benefit analysis of organic production and certification; and development of action plan for supporting organic export in selected areas, with selected producer groups and other stakeholders.
Project Objectives
The objective of the project was to analyse the opportunities in organic cocoa production and to identify the best production areas, producer organization and support activities for organic cocoa production in Cameroon and Togo.
Project Results
The study established that the conversion from conventional cocoa (organic by default) to certified organic cocoa production was both feasible and financially viable in both countries, but under different conditions. In Cameroon, it was recommended to build upon existing multi-stakeholder partnerships, while in the case of Togo, there was a need to first strengthen the cocoa supply chain, and then build new partnerships. In addition, for Togo, a problem of availability of improved planting material was identified, while in both countries, the incidence of pests and diseases, which could require the use of pesticides, was seen as a major bottleneck. The study also demonstrated that the financial viability of organic cocoa production depended on a number of variables, such as the number of farmers involved, their yields, and their loyalty in selling their cocoa to their organizations.
Click here to download the Feasibility study