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Ivory Coast: Guilt-Free Chocolate? Look to Cote d'Ivoire.

Posted by Flora Sawita Labels: , , ,

Source: Reuters
19/10/2009

Abidjan, Oct 19 - Chocolate may never be entirely guilt-free, but more and more of it is likely to come from cocoa farms with sustainable and socially responsible growing methods, according to a U.S. environmental group.

Demand for "certified" agricultural products has already swept the coffee industry, with heavyweights like Starbucks hawking conscience-light beans, and the trend now appears to be taking root in the cocoa sector.

Edouard Millard, head of the West Africa office of New York-based Rainforest Alliance, said certified cocoa output in the world's No. 1 grower Ivory Coast is on track to triple this season to some 15,000 tonnes.

"What we are seeking is a cocoa sector that can play a role in the economy of (Ivory Coast), while on the other hand in 50 years we can still have the forest," Millard told Reuters in an interview.

Chocolate bars made with those beans will bear the organization's symbol, guaranteeing that the plantation adhered to strict rules around growing and employment, and earned a premium for their efforts.

Ivory Coast's cocoa sector, dogged by under-investment following a 2002-03 civil war, has been criticized by human rights and environmental groups in recent years for engaging in child labor, for clearing sensitive forests and for using ecologically harmful pesticides.

Nearly 40 percent of the world's cocoa comes from Ivory Coast's plantations.

But demand for cocoa that can offer chocolate buyers a clear conscience for a price premium is on the rise, and growers are noticing, Millard said.

Under the Rainforest system, major wholesale purchasers agree to pay a premium for certified products and pass aong the cost to consumers. Growers get a portion of this price premium to alter the growing methods.

"Certification in cocoa, as opposed to coffee, is in its infancy such that the volumes are still very small. But there is a market that exists, and this number should grow very quickly," Millard said.

"In 2008, this past season, we reached between 4,000 and 5,000 tonnes (in Ivory Coast). We're hoping during this year's season to reach at least 15,000 tonnes," he said.

"We foresee that in Ivory Coast in three or four years we'll have about 100,000 tonnes of certified cocoa, with half of that coming through the Rainforest system," he said.

Ivory Coast leads global output of cocoa, with some 1.2 million tonnes of total output in the 2008-09 season that ended Oct. 1, and sits near other West African producers like Ghana, Nigeria and Cameroon.

"In five to six years, we will reach around 250,000 tonnes of certified cocoa worldwide. The market is developing and is ready to absorb this quantity," he said.

"Our role is to teach good production practices and insist on respect for the requirement not to employee children in the production of cocoa and to preserve the ecosystem," he said. "(The producers) preserve their forests through sustainable practices and they get a premium as well."

Ivorian Cocoa Export Tax to Fall in 2009/10

Posted by Flora Sawita Labels: , , ,

Source: Reuters 02/07/2009

Abidjan, July 1 - Ivory Coast will cut export taxes on its chief export cocoa from the start of the coming 2009/10 season as it seeks to meet World Bank debt relief terms, its cocoa reform committee said in documents obtained by Reuters on Wednesday.

From next season, the export tax known as DUS (Droit Unique do Sortie) will be cut to 210 CFA francs per kg from this season's 220 francs, and registration tax will be cut to 5 percent from 10 percent of the price of beans, inclusive of cost, insurance and freight.

Shippers said the move would make the immediate export of beans more appealing than hoarding.

Cocoa taxes in Ivory Coast, the world's biggest producer, are among the highest of cocoa-growing countries, and the World Bank has long made their reduction a condition of debt relief.

"The government is committed to reducing taxation to 22 percent of the international price obtained in order to reach achievement point of the HIPC (Highly Indebted Poor Countries) initiative," the government-appointed reform committee said in the document.

DISCOURAGE STOCKPILING

The move would encourage cocoa firms to export beans, whereas in the past they have been able to make money by buying beans and stockpiling them for sale the following season when higher taxes would apply, said an exective with an international shipping firm in Abidjan.

"Normally keeping a stock (of beans) has been logical because taxes would either rise or stay the same, but if they fall, it changes everything because you don't gain anything by having stocks available," he said. Bean exports for the 2008/09 season, which ends in September, were down 20 percent on the previous season by June 23, though semi-finished product shipments were higher, according to customs data.

This season has been disrupted by bad weather, disease and changes in the government's administration of the sector as it responds to accusations of corruption.

The World Bank is pressing Ivory Coast to cut cocoa taxes by around half by 2010. Prices of the bean, which accounts for around 20 percent of Ivorian gross domestic product, have fallen by 7 percent this year.

Benchmark cocoa futures for delivery in September traded around 1,610 pounds per tonne in London on Wednesday, up around 0.3 percent from Tuesday's close.

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