Archive for the ‘cocoa’ Category

Uganda Aims to Expand Cocoa Production

Thursday, September 30th, 2010

More and more countries situated in the magic band of 20 degrees north and south of the equator are giving cocoa another look. The high prices of the moment are probably an important factor.

Uganda is not a name usually associated with cocoa. But the country has been busy expanding its cocoa acreage over the past eight years. According to Bloomberg, the state-run Cocoa Development Project expects next year’s harvest to increase by 13 percent. The expansion of cocoa is an attempt to diversify its agricultural exports that currently depend mostly on coffee and tea. These commodities contribute 22% to the GDP.

The total is still a miniscule 17,000 tons. But the trend is upward and the country expects to reach 50,000 tons by 2015/16. By comparison, the Côte d’Ivoire exported 1.2 million tons last season.

Ghana Secures $1.5 Billion for 2010/11 Cocoa Harvest

Tuesday, September 28th, 2010

In what has become an annual ritual, Ghana’s Cocoa Board (COCOBOD) managed to secure a $1.5 billion financing facility for the 2010/11 cocoa harvest. In a sign that international credit markets have eased up, the financing facility was oversubscribed. Banks from around the world actually offered $1.8 billion while COCOBOD was only seeking $1.2 billion. In light of the easy credit, COCOBOD increased the facility to $1.5 billion. In another piece of good news, the interest rate dropped from 250 points to 90 points over LIBOR.

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Hershey and Social Responsibility

Monday, September 20th, 2010

Last week, the Hershey company released its Corporate Social Responsibility Report. Like many of such reports, it’s full of pretty pictures and statistics. What it does not mention is that Hershey is the only large chocolate maker in the US which has not yet participated in some form of third party certification for sourcing its cocoa. I’m not talking fair trade here, I’m talking any form of third party certification.

The folks at the International Labor Rights Forum have released their own report and it highlights four areas in which Hershey should make dramatic changes:

  • Sourcing – Hershey has no system in place to ensure that its cocoa is not produced with abusive child labor;
  • Transparency – Hershey does not reveal its cocoa suppliers, making verification impossible;
  • Greenwashing – Hershey points to is donations, but, again, there’s not system in place to address child labor;
  • Certification – Hershey has refused to enter into any certification, only a few of its Dagoba line bars are certified.

Given its long history of concern for  working people and the social conscience of its founder, it remains a puzzle why Hershey is not doing the right thing when it comes to sourcing cocoa from certified reputable sources.

“Choc Finger” Got Fingered

Friday, September 17th, 2010

In July, I posted several comments on the attempt by Anthony Ward of Armajaro to corner the cocoa futures market by purchasing seven percent of the world supply of cocoa beans. Well, it turns out that he lost his bet. Rather than continue to increase, cocoa futures prices are down. Dramatically down, to be specific. When Ward bought his 240,410 tons, he paid about £2,700/ton. As of September 13, the London price of cocoa has dropped to £1,847. His stocks of cocoa have therefore lost about £205 million in value since July.

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Cocoa DNA Unravelled

Thursday, September 16th, 2010

It was only a question of time before it would happen, but on Wednesday, the New York Times (and many other news outlets) announced that two teams of scientists had sequenced the complete DNA chain of the cocoa tree. Most appropriately, the news appeared in the business section, not the science section. The two rival teams, one financed by Mars, the other a collaboration between French government laboratories and the University of Pennsylvania backed by Hershey, were quick to dispel any worries that the DNA sequence would become private property. The information will be freely available. The Mars project can be found at the Cocoa Genome Project website.

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