Bart Van Besien’s Post

The cocoa market is once again very worried about West African supply A tonne of cocoa once again crossed the $10,000 threshold at the end of last week. The supply of beans from Ivory Coast and Ghana, the two leading producing countries, continues to fall. Ivory Coast even banned exports of unprocessed beans in June when the secondary harvest should be in full swing. This is officially to allow local primary processing factories to obtain supplies; they would still have 350,000 tonnes to cover. The ban could be extended into July. “ We are worried ,” a multinational bean crusher operator told us in San Pedro. We meet every two days and we have observed a slowdown for two weeks, production is falling .” The Coffee-Cocoa Council, for its part, would have stopped selling in advance the next campaign at 940,000 tonnes, a third less than last year, because it will be necessary to roll over the contracts, not honored this season, to the next , to the tune of 150,000 tonnes. See more clearly on production and stocks In Ghana, the world's second largest supplier of cocoa, the situation is not much better. Several sources estimate that there will be a shortage of not 250,000 tonnes, but 350,000 tonnes of beans, to honor last year's advance sales, reports Reuters. News that is once again making the cocoa markets shudder. Especially since we do not know the state of stocks at processors. To try to see things more clearly, the International Cocoa Organization is organizing two extraordinary sessions in the coming days on the state of these reserves and on the current year's cocoa production, which is constantly being reassessed. https://lnkd.in/eggTqBEG

The price of cocoa, one of the raw ingredients of chocolate has skyrocketed since the start of the year with this week prices hitting all-time highs of more than $10,000 a tonne for the first time. Ghana and Cote d'Ivoire in West Africa produce more than half of the world's cocoa with smallholder farmers the bedrock of the industry, but they still don't receive a fair price for their beans. It's estimated farmers receive just 6-7% a chocolate product. Quoted in The Guardian, Mighty Earth's Senior Adviser for Africa, Amourlaye Touré says the price hike won't benefit farmers: “Cocoa prices have reached record levels on the international market. Paradoxically, this does not mean higher incomes for producers. The record cocoa prices will benefit the cocoa-producing countries themselves little, as the raw material is transformed into a finished product after being exported.” Read the article by Patrick Greenfield in full⬇️ https://lnkd.in/dcm9fVVP

IVORY COAST: ANGRY COCOA PRODUCERS The latest note from the Coffee-Cocoa Council (CCC) is not to the taste of some cocoa producers. In a press statement delivered this Wednesday, March 13, 2024, they expressed their dissatisfaction and requested the resignation of Director Yves Brahima Koné. Ivory Coast: angry, cocoa producers demand the resignation of Yves Brahima Koné The rag burns between the Director General of and producers gathered within the National Agricultural Union for Progress in Ivory Coast (Synapci) and of the National Association of Producers of Côte d'Ivoire(Anaproci), these cocoa producers protested against the latest note signed by Yves Brahima Koné. In the contested note, the Ivorian cocoa boss called on producers to strictly respect the prices set by the competent authorities. He also issued a formal warning to cocoa projectors who overpay.DG Koné recalled that this maneuver is prohibited and punishable by article 18 of decree no.2012-1008 of October 17, 2012 setting the terms of marketing of coffee and cocoa. For dissatisfied producers, the measures indicated by the CCC constitute a threat to the stakeholders in the sector. These measures would, according to them, keep “intermediaries and producers in precariousness”. “The Council has just shown us that it is not there for us.With this in mind, we demand his departure. We demand his departure pure and simple,” insisted Kanga Koffi, president of the National Association of Producers of Côte d’Ivoire (Anaproci). In turn, the president of Synapci indicates that those responsible for the Coffee-Cocoa Council are preventing producers from winning, while prices have soared on the international market. He asks the Council to update prices to allow cocoa producers and all other stakeholders to benefit from them. It should be remembered that the price of a kilogram of cocoa is currently set at 1000 FCFA in Ivory Coast. In Cameroon, on March 6, 2024, the price of cocoa rose to 4,225 FCFA/KG. https://lnkd.in/gx_eaKME

Since the end of January 2024, cocoa bean prices have been on a sharp upward trend. As of today, Friday, April 19, 2024, ICCO (International Cocoa Organization) reports the price at USD 10.966,97/Ton, translating to USD 10,96/Kg. Several factors are driving this surge in cocoa bean prices. Natural factors like El Nino have caused drought in West Africa, leading to a significant decline in cocoa bean production in Ivory Coast and Ghana, two of the world’s largest producers. Additionally, the increasingly uncontrolled spread of cocoa plant diseases has further hampered production, resulting in a shortage of supply for the industry. Stay tuned to the Sagococoa blog for further updates on the cocoa market Sagococoa, a leading supplier of cocoa products, is dedicated to supporting our customers navigate this evolving market landscape. Our Products Sagococoa offers a wide range of cocoa products to meet the diverse needs of our customers: 1. Cocoa Powder 2. Cocoa Butter 3. Cocoa Mass Contact Us We are committed to providing our customers with exceptional service and support. Please contact us today to learn more about our products and how we can help you achieve your business goals. Website: www.sagococoa.com Email: [email protected] WhatsApp: +6285323440193 & +6282269905245 Join Us in Making a Difference #cocoaprices #industrychallenges #chocolateopportunities #premiumcocoa #sustainablecocoa #reliablesupply #cocoapowder #cocoabutter #cocoamass #empoweringfarmers #sustainableagriculture #longtermpartnership #sagococoa #cocoabusiness #cocoacompany #indonesiacocoa #chocolateindustry #foodindustry

The small pleasure of chocolate is becoming increasingly expensive, with cocoa bean prices hitting a record $12,000 a tonne – a staggering four times last year’s price. And the forecast? They might soar even higher, spelling smaller bars, pricier treats, and recipe changes for consumers. Behind this chocolate conundrum lies a web of issues, as highlighted in a new report from Oxfam. Bad harvests in West Africa, which produces 70% of the world’s cocoa beans, are just the tip of the iceberg. Climate crisis, low farmer incomes, and environmental degradation are exacerbating an already dire situation. The solution? It's time for systemic change. Stable minimum prices, long-term contracts, and a commitment to sustainable and ethical production are crucial. This isn't just about chocolate; it's about lifting farmers out of poverty, combating child labour, and preserving our planet. #FairTradeChocolate #SustainableFarming #EthicalConsumption

"𝐖𝐡𝐲 𝐆𝐡𝐚𝐧𝐚𝐢𝐚𝐧 𝐅𝐚𝐫𝐦𝐞𝐫𝐬 𝐇𝐚𝐯𝐞 𝐁𝐞𝐞𝐧 𝐔𝐧𝐚𝐛𝐥𝐞 𝐭𝐨 𝐂𝐚𝐩𝐢𝐭𝐚𝐥𝐢𝐬𝐞 𝐨𝐧 𝐑𝐞𝐜𝐨𝐫𝐝 𝐂𝐨𝐜𝐨𝐚 𝐏𝐫𝐢𝐜𝐞𝐬" The world has witnessed a significant surge in international #cocoa prices in 2023 and 2024, driven by tightening global supplies and strong market demand. Yet, despite this windfall, #Ghanaian #cocoa #farmers were constrained from fully benefiting from these record highs. In our latest article for The Conversation UK, Sophie van Huellen and I delve into the reasons behind this paradox. At the heart of the issue lies Ghana's longstanding reliance on the 𝐂𝐨𝐜𝐨𝐚 𝐒𝐲𝐧𝐝𝐢𝐜𝐚𝐭𝐞𝐝 𝐋𝐨𝐚𝐧—𝐚 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐦𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦 𝐭𝐡𝐚𝐭 𝐡𝐚𝐬 𝐟𝐚𝐜𝐢𝐥𝐢𝐭𝐚𝐭𝐞𝐝 𝐨𝐯𝐞𝐫 $28 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐢𝐧 𝐮𝐩𝐟𝐫𝐨𝐧𝐭 𝐟𝐮𝐧𝐝𝐬 𝐟𝐨𝐫 𝐜𝐨𝐜𝐨𝐚 𝐩𝐮𝐫𝐜𝐡𝐚𝐬𝐞𝐬 𝐨𝐯𝐞𝐫 𝐭𝐡𝐫𝐞𝐞 𝐝𝐞𝐜𝐚𝐝𝐞𝐬. While crucial for stabilizing cocoa purchases, this loan constrains the Cocoa Marketing Company's (CMC GH.) flexibility to leverage favorable spot prices in an inverted cocoa market, ultimately sidelining farmers from potential gains. However, change is on the horizon. Ghana’s decision to end its 31-year dependency on the Syndicated Loan from the 2024/25 season marks a pivotal moment for the industry. In this article, we hint at how this shift could redefine Ghana's cocoa value chain, opening pathways for farmer-centric reforms and greater economic benefits. We invite you to read and share your thoughts on this critical discussion shaping the future of Ghana's cocoa industry. Here is the link to the article: https://lnkd.in/eiNik5VT You are encouraged to subscribe to The Conversation UK Newsletter via https://lnkd.in/eWH6x5T9 International Cocoa Organization (ICCO) World Cocoa Foundation The World Bank UN Trade and Development (UNCTAD) Olam Barry Callebaut Group Cargill Touton SA SUCDEN Groupe Sucres & Denrées Solidaridad Network Fairtrade International The Living Income Community of Practice

Cocoa growers in western Africa and Latin America too need a guaranteed Minimum Support Price (MSP) for their produce. Last week, I had talked about how Ivory Coast and Ghana, which provide 60 per cent of cocoa beans to the chocolate giants, receive only 6 per cent of the total revenue of $160 billion that the industry makes. Sometimes back, a Cocoa Barometer study had shown that most cocoa growers, on an average, earn a daily income that equals what you pay to buy a bar (standard size) chocolate in the market. Now, another media advisory by Oxfam (link here: https://lnkd.in/gdHb-TCD) shows that last year just four chocolate majors -- Lindt, Mondelez, Nestle and Hershey's made $ 6 billion in profit in 2023, and paid out 97 per cent of their profits to shareholders, but not to farmers who live in extreme poverty. This is how the markets treat farmers. That is why when farmers demand a legally guaranteed price, economist and agribusiness professionals cry hoarse that paying a fair price to growers will distort markets. But when the huge profits companies earn by exploiting farmers is distributed to shareholders, everyone is happy. Now you know why economists shout about markets being distorted whenever farmers demand fair prices. #msp #cocoa #ghana #ivorycoast #oxfam #

Ghana: Cocobod in discussions to postpone the delivery of 150,000 to 250,000 tonnes of cocoa in 2024/2025 The drops in cocoa production expected in 2023/2024 in Ivory Coast and Ghana are putting marketing systems that have been well established for several decades to the test. In both countries, sector regulators are trying to adapt to this situation. In Ghana, Cocobod is currently in talks with traders to postpone the delivery of a stock of cocoa beans of between 150,000 tonnes and 250,000 tonnes until the 2024/2025 campaign. The information reported by Bloomberg on April 11, comes in a context where the regulator forecasts less than 500,000 tonnes of cocoa this season compared to a volume of 650,000 tonnes initially expected due to climatic problems, cocoa tree diseases and illegal mining. According to sources who spoke to the economic media, the operators concerned would request discounts on the purchase prices of beans which were supposed to be delivered during the main harvest ending on June 30. In the country, the world's second largest producer of cocoa, the government has in fact increased for the second time during the main campaign, the price guaranteed to farmers by 58% to 33,120 cedis ($2,462) per tonne with the rise in world prices. brown gold in New York and London. It should be noted that, like Cocobod, the Coffee-Cocoa Council (CCC) also decided to postpone until later, the cocoa export contracts which could not be honored by the main harvest which was completed last March. In this case, the regulator plans to satisfy operators during the small milking period from April to September.

https://lnkd.in/gM_iVz_W LONDON/ACCRA, March 13 (Reuters) - Major African cocoa plants in Ivory Coast and Ghana have stopped or cut processing because they cannot afford to buy beans, four trading sources said, meaning chocolate prices around the world are likely to soar.Chocolate-makers have already increased prices to consumers, after three years of poor cocoa harvests, with a fourth expected, in the two countries that produce nearly 60% of the world's cocoa.

A necessary step towards a better direction?