CMA CGM / DELMAS TAILORED REEFER OPTIONSGROUP CUSTOMIZES EURONAF SERVICE FOR BANANA PRODUCERS / ATTENDS SEAFOOD EXPO GLOBALFull Story On Page 3

AFRICACOM-WATCH

Cameroon: To Double Cocoa Production Within 5-Years

ISSUE 48 | MAY 2015

Burundi: Aims To Double Coffee Production By 2021

Kenya: 1Yr Extension On Sugar Import Safeguards

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Burundi: Aims To Double Coffee Production By 2021

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CMA CGM / DELMAS Tailored Reefer Options

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Kenya: 1Yr Extension On Sugar Import Safeguards

Cameroon: To Double Cocoa Production Within 5-Years

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AFRICACOM-WATCH

ISSUE 48 | MAY 2015

Contents03 / Corporate

05 / General

06 / Banana

07 / Cashew, Groundnut & Shea

09 / Cocoa

15 / Coffee

17 / Cotton, Textiles & Leather Goods

19 / Foodstuffs & Beverages

24 / Palm Oil

25 / Sugar

27 / Tea

30 / Timber

33 / Tobacco

Top Stories

News Headlines By RegionWestern AfricaBurkina Faso: Support For Sustainability MonitoringCameroon: Future Commodities Exchange / Cameroon To Double Production Within 5-Years / Exports Up 19% / Sic-Cacaos & Chococam Ground 25,370T / SNV Sets Up Cocoa Processing Plant In Konyé / Cotton Processing Rate Very Low / Log Export Quotas To Be Strictly EnforcedCôte d’Ivoire: Prices Rise Buoyed By Demand / Cote d’Ivoire To Cash In On Lucrative Chocolate Trade / Cote d’Ivoire To Launch Cocoa Commercialization Campaign / Rains To Improve Mid-Crop / Cote d’Ivoire To Cultivate New Cocoa Markets, Not Boost Output / Heineken, CFAO To Build US$164 Million Brewery / Ambitious Palm Oil Development PlanCongo: Eco - Oil Energy SAGabon: Smooth Flow Of Production UnderminedGambia: Groundnut Trading Season Ends / 2015 Cashew Marketing Season Commences April 15Ghana: Trade Hub Plans To Boost Cashew-Nut Production / Ghana Targets 1.2 Million Tonnes Of Cocoa This Year / Cocoa Production To Rebound / 2014-15 Cocoa Output To Fall To 730,000-750,000T / COCOBOD Distributes Seedlings / Minister Inaugurates Cotton Board Of Directors / Oil Palm Development Association Launched / Producers To Get Processing Plant / FLEGT Licences Not Far Off / Rapid Response Unit Secure More ResourcesGuinea-Bissau: To Export More Cashews In 2015 Campaign / Cashew Price Up 20% In 2015 / Government Bans Logging For 5-YearsLiberia: First Industrial Rice Processing Facility InauguratedMali: Boosts 2014-2015 Production To 233,000 Tonnes / Government Embargo On Imports Of Potatoes And OnionsNigeria: Nigerian Export Promotion Council Joins ACA Advisory Board / NSEP Strategy Sees Growth In Cocoa Exports / Presco’s Investment Hits US$1 Billion / Dangote Sugar Refinery Declares N4.8b DividendSenegal: Limiting Rice Imports To 500,000 Tons To Boost Domestic ProductionSierra Leone: Timber Investment

Eastern AfricaRegional: Gates Foundation US$13.8 Million Project To Improve Banana CultivationBurundi: Aims To Double Coffee Production By 2021 / Q1 Revenues Up 52% On Lower Kenya OutputEthiopia: Ethiopia To Show At SCAA Event / Joins Sustainable Cotton Made in Africa InitiativeKenya: Coffee Earnings Up 10% / Sales At Auction Rise 12% In 6 Months To March / Wrigley To Build US$60 Million Plant / Kenya Granted 1-Year Extension Of Regional Sugar Import Safeguards / Muhoroni Factories Maybe Sold To Local Investors / Tea Output, Exports Rise In 2014 / Farmers Disagree With Assembly Over Tea Bill / KTDA In Court To Quash Tea Sector Report / Senate Wants Tea Auctioning To Be DigitizedMozambique: Jacaranda Agricola To Increase Plantation / ACA World Cashew Festival and ExpoTanzania: Cashew Nut Board Gets Boss / Dar Envisages Sugar Exports / Deal Signed To Tackle Illegal Timber TradeUganda: Uganda To Revamp Cocoa Farming / Coffee Exports Fall Due To Dry Weather

Southern AfricaMalawi: To Spend US$20 Million On Maize Imports / President Opens Tobacco Auction Market / Regulatory Body Unveils Maximum Tobacco Price / Government To Monitor 2015 Minimum Tobacco Prices / Universal Leaf InvestmentSouth Africa: Citrus Industry Under Pressure From Black Spot Disease – Looks To Asia / Zeder Confirms Full Capespan Buyout Bid / South Africa Looks To Middle East, Asia As New Corn-Export Goals / 13% Increase In Chicken Meat Prices / Illovo Sugar Low FY Earnings / llovo Appoints Chairperson

Cocoa This Year OD Distributes unched / ore Resourcesovernment Bans

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Come And Visit Us!Come and visit us at our stand at the 10th edition of the Foire Internationale de Madagascar (FIM) on May 7-10th in Antananarivo, Madagascar. This import and export conference focuses on areas including Customs, tax, benefits of the Free Trade Zone, and the general Malagasy economy and investments. Business to Business meetings will also be held.

For more information view: www.foire-internationale-de-madagascar.com2

Website: www.delmas.comEmail: lhv.marketing@delmas.netTweet: @DelmasWeDeliver

CMA CGM Marseille Head Offi ce4, Quai d’Arenc 13235 Marseille cedex 02 France

Tel : +33 (0)4 88 91 90 00

www.cmacgm.com

Disclaimer of LiabilityCMA CGM / DELMAS make every effort to provide and maintain usable,

and timely information in this report. No responsibility is accepted for

the accuracy, completeness, or relevance to the user’s purpose, of

the information. Accordingly Delmas denies any liability for any direct,

indirect or consequential loss or damage suffered by any person as a

result of relying on any published information. Conclusions drawn from,

or actions undertaken on the basis of, such data and information are the

sole responsibility of the reader.

THE AFRICAN COMMODITY REPORTBrought to you by CMA CGM / DELMAS Marketing

Rachel Bennett Dominic Rawle

Reconnecting Marseilles To West Africa CMA CGM Customizes EURONAF Service For Banana Producers The Port of Marseilles held a press conference alongside CMA CGM representatives and Canavese, one of the leading fruit and vegetables importers in France to celebrate the return of the first banana containers from Africa. Cavanese, based in Aubagne, owns banana plantations in Ivory Coast. The company had previously used Antwerp port for the transfer of cargo to its ripening centers in Aubagne, Marseilles and Valencia. Today, thanks to improvements at the Port of Marseilles, Cavanese has decided to transit its 2,000 40TEU containers there instead.

To meet customer’s needs and to attract new volumes to Marseilles from Africa, CMA CGM has tailored its service. Bananas will now arrive every Tuesday in Marseilles via EURAF1 from Abidjan to Tangier and via EURONAF from Tangier to Marseilles, at the Med Europe Terminal, subsidiary of the CMA CGM Group.

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COMMODITY NEWSCORPORATE

CMA CGM Group Attends Seafood Expo Global & Seafood Processing Global ExhibitionCMA CGM Group highlighted its modern reefer technology and expertise at the recent ‘Seafood Expo Global & Seafood Processing Global Exhibition’ - the largest event dedicated to global seafood market transport.

The event provided a platform for the Group to showcase its overall quality and reliability of its network and the wide range of solutions it offers from/to Europe covering trades such as Africa.

For more information about the event please view http://www.seafoodexpo.com/global/

Tailored Reefer OptionsCMA CGM / DELMAS has a specialist reefer desk to offer customers total refrigerated transport solutions.

The desk provides one entry point for both our customers and agency network, offering expertise on reefer business and the African market.

According to your needs and those of your merchandise we can offer the following options:

Cold Treatment

Used for some products [mainly fruit] where several probes are applied directly into the container after packing to eliminate certain parasites. It is achieved by maintaining the goods at a low temperature for a predetermined, uninterrupted period, and avoids having to fumigate or use pesticides and meets phytosanitary standards of many countries.

AFAM+ Accurately controls the level of CO2 in a container [certain fruits and vegetables such as avocados, grapes and broccoli].

TRANSFRESHAccurately controls CO2 and O2 levels [fruits that are very sensitive to increases in gases, such as mangoes and blueberries]. It differs from the EVERFRESH system as it involves an injection of gases at the start of the voyage.

EVERFRESHAccurately controls CO2 and O2 levels [fruits that are very sensitive to increases in gases, such as mangoes and blueberries]. There is no initial injection of gas with this system as it generates the required quantities itself.

Very Sensitive Cargoes

The nature of some products requires extra special precautions during transportation, as is the case with pharmaceutical products. Before packing, each container undergoes a 48-hour test to make sure the refrigeration and warming up phases are functioning properly. An extra probe is inserted into the middle of the cargo and plugged directly into the container’s data-logger. This allows accurate measurements of the product’s temperature to be taken in relation to the ambient temperature of the container. A special VSC Monitoring procedure is implemented on board the vessel to compensate for any possible incident.

Multi-Temperature System

This system allows you to select several temperatures during a voyage for products that call for a variation. [some potato varieties require the temperature to be gradually lowered during the voyage to prevent them spoiling, while the tomato needs a gradual rise in temperature if it is to reach maturity on delivery]. Up to 6-dfferent temperatures can be programmed for one voyage.

Reefer Monitoring

We offer peace of mind as every reefer consignment is monitored as follows:Modem: All reefers have a modem which is in permanent contact with the ship’s bridge. If there is any problem, an alarm signal alerts staff ensuring a rapid response. GPS/GSM transmitter: Some cargoes require special attention [pharmaceutical products]. We are able to fit a GPS/GSM that transmits information 24 hours a day to a control centre on land. In this way we can monitor conditions inside the container, as well as tracking its position.

For further information about moving your frozen or chilled commodities please view http://www.cma-cgm.com/static/Communication/Attachments/CMACGM_Reefer_Brochure_2014.pdf or Email: ho.reefercontact@cma-cgm.com

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GeneralUTZ Annual Report - Positive ResultsUTZ Certified has released its 2014 Annual Report confirming its ongoing positive impact on close to 1-million people. In 2014, companies sourced more UTZ certified coffee, cocoa and tea than ever before, which includes 9.7 billion milk chocolate bars - up 32%. Among a broad range of challenges faced by the sector, UTZ highlights in the report 3-important areas of action: climate change, productivity and traceability.

[UTZ 16/04/15]

CameroonFuture Commodities ExchangeIn its 2014-2015 roadmap for the creation of the Cameroon Commodities Exchange [CCX], the Eleni LLC firm, which is advising the government on this project, has selected 8-agricultural products to be sold on the platform. Among the commodities to be gradually sold on the CCX over a 4-year period will be cocoa and corn [1st year], sorghum, millet and dry cassava [2nd year], palm oil and rice paddies [3rd year] and cotton [4th year]. What is noticeably absent on the CCX list is coffee. This is due to the general lack of interest in coffee cultivation at this time as prices are hardly profitable [half of those of cocoa] and also the volume of production [30,000 tonnes in 2013-2014 compared to 16,000 tonnes in 2012-2013] has not helped either.

To achieve critical trade volumes necessary to determine real prices, Eleni recommends that the government mandate that all transactions below 5 tonnes be done on the CCX by wholesalers, groups, processers, exporters and any other institutions registered on the stock exchange.

[Business in Cameroon 29/03/15]

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COMMODITY NEWSGENERAL

East AfricaGates Foundation US$13.8 Million Project To Improve Banana CultivationBill & Melinda Gates Foundation has launched a US$13.8 million Seed Farmer Market Consumer [SeFaMaCo] programme to improve banana production in East African countries by developing higher-yielding, disease-resistant varieties. The 5-year programme will help to establish better banana production in parts of Ethiopia, Uganda and Tanzania and also improve food security in the region. According to the International Institute of Tropical Agriculture [IITA], Uganda and Tanzania produce over 50% of all bananas grown in Africa and the region’s yearly banana crop is valued at US$4.3bn. Tanzania produces 2.6mn tonnes of banana per year and is the #2 banana producer in Africa after Uganda and 7th in the world. However, production in both countries achieves just 9% of its potential yield due to pests and diseases.

[African Farming 25/03/15]

MozambiqueJacaranda Agricola To Increase PlantationThe Eráti district, in Mozambique’s Nampula province, is to increase the volume of banana exports to the Asian market and find new markets for its product. The government is to provide Jacarandá Agrícola agricultural company with 6,000 ha in Mirrote for cultivation expansion up from its current 50 ha. Jacaranda Agrícola, a joint venture [JV] established in Eráti district in 2010. The United Arab Emirates which last year imported about 3,000 tons of bananas produced in the Eráti district were the main market.

[Macauhub/MZ 28/03/15]]

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COMMODITY NEWSBANANA

Côte d’IvoirePrices Rise Buoyed By DemandCashew producers in states like l’Odiénné are seeing an increase in demand for the nuts. Prices have increased from a minimum of 275 francs Cfa/Kg to 300-325 francs. This development is seen as a result of on-going sector reforms and an increase in demand. During the last campaign, Côte d’Ivoire recorded a record crop of 560,000 tons that has propelled it to the leading nut-producing African nation and #2 world.

[Ecofin 31/03/15]

GambiaGroundnut Trading Season EndsThe Gambia Groundnut Corporation [GGC] officially closed the buying of groundnut across all the buying centres in the country on 31st March after the deadline was extended from 15th March. The GGC warned all farmers to sell their nuts to the government before the deadline to avoid unnecessary loses.

[Star Africa 31/03/15]

2015 Cashew Marketing Season Commences April 15The Gambia Cashew Alliance [CAG], in consultation with value chain actors and other relevant stakeholders, announced at a pre-marketing season consultative forum that April 15 2015 is to be the start date for the 2015 Cashew Marketing Season. The cashew sector has registered significant developments witnessing the establishment of the CAG as the apex institution of the sector. As well as the initiation of the Cashew Sector Development and Export Strategy 2014-2019 by the Ministry of Trade Industry, Regional Integration and Employment [MOTIE] with the support of the Enhanced Integrated Framework [EIF] project, the international Trade Center [ITC] based in Geneva, Switzerland and other key stakeholders.

[Point 14/04/15]

GhanaTrade Hub Plans To Boost Cashew-Nut ProductionThe West Africa Trade Hub of the USAID has earmarked US$150,000 to help finance processing raw cashew nuts to increase regional trade competitiveness, improve food security, and reduce poverty over the next 5-years. The programme, which is in partnership with Cashew Alliance, is among other objectives aimed at boosting international exports and investments. It will also increase regional trade in key commodities through more value added exports: shea, cashew, mango, rice, maize, millet/sorghum and livestock.

There are over 40,000 MT of raw cashew nuts produced in Ghana with export figures averaging 80,000 MT with inflows from Cote d’Ivoire, Burkina Faso and Benin going to major destinations such as India, Vietnam and Brazil. The country’s production level is expected to triple over the next 10 years if players make a concerted effort to increase production. Ghana has an installed processing capacity of 18,000 MT however, a new large processing plant will increase its capacity by 35,000 MT when it begins operations next year. A cashew-fruit processing plant is expected to be established at Koase near Wenchi in the Brong Ahafo Region.

This increase in processing capacity is expected to position Ghana as the leading cashew processing country in Africa in terms of capacity. This means a longer value chain within the country and, therefore, more gains. Exports of the cashew crop account for 6% of total GDP and 18% of the country’s agricultural GDP.

[Ghana Web 23/03/15]

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COMMODITY NEWSCASHEW, GROUNDNUT & SHEA

Guinea-BissauTo Export More Cashews In 2015 CampaignThe government of Guinea-Bissau intends to increase the export of cashews from 150,000 to 200,000 tons in the annual sales campaign started on 18th April in São Domingos. Minister of Trade, Serifo Embaló, noted the government will focus on markets such as Vietnam and China [beyond the main buyer of cashews, which is India] and is expected to impose added measures to prevent smuggling to neighbouring Senegal where some 60,000 tonnes were smuggled last year. Any operator who is caught illegally exporting cashews will have their truck and merchandise confiscated by the State as well as paying a fine. Four-weigh bridges will be opened in Bissau to avoid queues of trucks in the downtown area of the capital towards the commercial port. Exporters will also be required to submit an export document before loading their product onto a ship.

[Macauhub/GW 20/04/15]

Cashew Price Up 20% In 2015Guinea-Bissau has set 2015 farmgate cashew price paid to farmers at 300 CFA francs/kg [US$0.49] per kg, 20% higher than the previous year, as the government launched a new season aimed at boosting its top export earner. Production accounts for around 90% of Guinea Bissau’s export revenues. Bissau cashew season runs from April to September.

[Reuters 20/04/15]

MozambiqueACA World Cashew Festival and ExpoThe 9th World Cashew Festival & Expo will take place in Maputo, Mozambique on September 21-24, 2015. Mozambique is the 2nd largest producer of raw cashew nut in East Africa, and is presently involved in a national program to reclaim 37 million old trees and has a network of 11-established processing units with a new one coming up this year. The program will be packed with topics focusing on the industry’s challenges and opportunities along with networking opportunities offered by B2B sessions.

[ACA 03/15]

NigeriaNigerian Export Promotion Council Joins ACA Advisory BoardThe African Cashew Alliance [ACA] welcomes its newest member to its Advisory Board: the Nigerian Export Promotion Council [NEPC], represented by its Chief Executive Officer Olusegun Awolowo. The NEPC, whose mission is to make Nigeria’s non-oil export a significant contributor to the country’s GDP, is a strong supporter of the cashew industry. The ACA Advisory Board consists of delegates from organizations providing more than US$50,000 of funding per year. The Board has voting rights regarding the use of the ACA funds, and provides guidance on ACA programming. NEPC is the second African member of ACA’s Advisory Board, alongside Kenya’s Equatorial Nut Processors, which joined in 2015.

[ACA 23/03/15]

TanzaniaCashew Nut Board Gets BossPresident Jakaya Kikwete has appointed Anna Abdallah as the new Chairman of the Cashewnut Board of Directors in Tanzania, effective April 23. Eight other members were also appointed to the Board. New members include Joseph Haule, Thomas Chatanda who will serve as Farmers’ Representative, Mudhihir Mudhihir, Dr Louis Kagusa, Mwinyikondo Lila, Edgar Majogo and Belinda Kyesi.

[Daily News 10/04/15]

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CameroonCameroon To Double Production Within 5-YearsCameroon is to double national cocoa production to 600,000 by 2020 while increasing the amount of locally milled beans. Production currently stands at 240,000 tons. The l’Office National pour le Cacao et le Café [NCCB] also indicated that local processing would be increased from 12% to 40% over 5-years. Cameroon intends to achieve this through a 600 billion Cfa franc national stimulus package.

[Ecofin 30/03/15]

Exports Up 19%Eight months into the 2014-2015 cocoa season which began in August 2014, Cameroon has already exported 177,509 tonnes of cocoa beans.

According to figures from the National Cocoa and Coffee Board [ONCC] exports are up by 19% compared to the same period in 2013-2014. The ONCC indicates that in March, Cameroon shipped 10,810 tonnes of cocoa beans, down from 19,806 tonnes in February but a sharp increase from 3,207 tonnes in the same month a year ago. 21 companies exported beans in March.

Cameroon Marketing Commodities [CAMACO] topped the chart [2,558 tonnes] followed by Olam Cam [1,713 tonnes] and Ets Ndongo Essomba [1,621 tonnes].

However, exports in February 2015 are much lower than the 30,942 tonnes exported in January 2015. Between the 6th and 7th months of the current season, cocoa bean exports declined by 11,000 tonnes. This situation can be attributed to import-export challenges at the port of Douala, Cameroon’s largest port.

[Business in Cameroon 29/03/15 & Reuters 21/04/15]

Sic-Cacaos & Chococam Ground 25,370T Sic-cacaos, Cameroonian subsidiary of the Swiss company, Barry Callebaut, and Chocolateries confiseries du Cameroun [Chococam], run by South Africa-based Tiger Brands, purchased 25,370MT of cocoa beans in the first 7-months of the 2014-2015 cocoa season.

According to the National Cocoa and Coffee Board, this is 515 MT higher than the 24,855 tonnes ground in late January 2015. However, while Sic-cacaos remains the main engine of the local cocoa processing market with 23,769 MT purchased in late February 2015, against only 1,601 MT for Chococam.

The overall volume of ground cocoa is 17% lower than the same period the previous season. Visibly, the 2-processing plants opened last year in Mbalmayo and Douala with the expectation that they would bring national processing production to 50,000 MT in 2015 have not yet reached capacity.

[Business in Cameroon 29/03/15]

SNV Sets Up Cocoa Processing Plant In KonyéThe Dutch Cooperation Agency [SNV] has established a cocoa processing plant to grind cocoa beans into chocolate paste, powder and cocoa butter for the 700 members of the cooperative producers in Konye, in the South West region. The unit should enable cocoa farmers in this part of Cameroon, to better appreciate the 600 tonnes of cocoa produced annually in this locality.

[Cameroon Web 15/04/15]

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COMMODITY NEWSCOCOA

Cote d’IvoireCote d’Ivoire To Cash In On Lucrative Chocolate TradeCote d’Ivoire reigns as the world’s top cocoa producer but it wants to sell more than the beans, turning them into the even more lucrative chocolate. In 2013-4 producers saw a record production of 1.7 million tonnes and profits of US$2.3 billion according to Ivory Coast’s coffee-cocoa council. But those figures were dwarfed by the world’s chocolate earnings, which were nearly 10 times greater that season, according to the International Organisation for Coffee and Cocoa [ICCO].

Ivory Coast has become more stable with an economic growth rate of 9% between 2012 and 2014. According to the ICCO, it is set to become the #1 processor of cocoa beans. Authorities meanwhile have set a goal to process half their cocoa bean crop inside the country by 2020 to gain added value. Abidjan also hopes to become the ICCO’s headquarters, which is currently based in London, in order to increase its influence in the sector.

We are interested in exporting finished and semi-finished products. Ivorian Trade Minister Jean-Louis Billon

Earlier this month, President Alassane Ouattara personally inaugurated in the western city of San Pedro a new factory for converting cocoa beans owned by Olam, a company from Singapore. Olam invested some US$75 million in the construction of the factory with a capacity to handle 75,000 tonnes of cocoa beans each year. And after grinding the cocoa beans, Ivory Coast is making further deals such as with French chocolate-maker Cemoi, which has invested US$6.5 million in a factory to produce chocolate powder, bars and breakfast spread to sell in West Africa. Cemoi will be the first Western company to operate a chocolate factory in Ivory Coast.

[AFP 29/03/15]

Cote d’Ivoire To Launch Cocoa Commercialization CampaignCote d’Ivoire launched its cocoa commercialization campaign for the 2014-2015 season across the country on 1st April 2015. Cote d’Ivoire has 2-cocoa harvesting seasons, with the main one starting from October to March and the intermediate harvesting season running from April to August each year. The intermediate campaign is characterized by small cocoa beans that are less rich in fat content and more difficult to roast, hence a depressed yield, the council explained. The price of cocoa will be fixed with well fermented and dried cocoa paid 850 CFA Francs/kg [US$1.5]. The price adopted by the government is 100 CFA Francs higher than the previous intermediate campaign. During the 2013-2014 farming season, Cote d’Ivoire produced 1.7 million tons of cocoa beans.

[Xinhua 01/04/15]

Rains To Improve Mid-CropRains fell across most of Cote d’Ivoire’s main cocoa growing regions as the world’s top producer emerged from a particularly harsh dry season that farmers said would delay the start for the April-to-September mid-crop harvest. Ivory Coast has seen several weeks of increased rainfall and more wet weather conditions are expected in April.

Cocoa arrivals at ports in top grower Ivory Coast reached around 1,289,000 tonnes by April 12 since the start of the season on October 1, up from 1,263,000 tonnes in the same period of the previous season. Exporters estimated around 22,000 tonnes of beans were delivered to the West African state’s two ports of Abidjan and San Pedro between April 7-12 up from 18,000 tonnes during the same period last year. However, dry conditions and a harsh Harmattan weather phenomenon have hindered mid-crop development. The International Cocoa Organisation is forecasting Ivorian output this season at 1.72 million tonnes, down slightly from last season’s record harvest of around 1.74 million.

[Business Recorder / Reuters 13/04/15]

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Cote d’Ivoire To Cultivate New Cocoa Markets, Not Boost OutputAgriculture minister Mamadou Sangafowa Coulibaly has said that the country must avoid focusing too much on boosting production and seek out new markets to maintain price levels and ensure sustainability.

The nation produced a record 1.74 million tonnes of cocoa beans last season and port arrivals are currently outpacing 2013/14 levels despite a harsh dry season marked by a strong Harmattan. Ivory Coast abandoned a decade of market liberalisation in the 2012/13 season, forward selling the bulk of its anticipated crop in order to fix a minimum price for farmers. In the 2-seasons that followed and amid a general upward global price trend, the Coffee and Cocoa Council [CCC] marketing board has steadily increased the price for farmers. It was set at 850 CFA francs/kg [US$1.40] of beans this season.

However, the head of the International Cocoa Organization [ICCO] last month warned Ivory Coast against potential over-production that could spark a drop in world prices and undermine the CCC’s efforts to improve farmer incomes. In the decade before the 2013/14 season, Ivory Coast recorded average annual production of around 1.4 million tonnes, but the ICCO said output could top 2 million tonnes in the coming years.

In addition to monitoring output, Coulibaly said Ivory Coast must seek out new markets for its cocoa to stimulate demand. The minister also said Ivory Coast needed to do more to process its output locally instead of simply exporting cocoa beans. Already the world’s leading grinder of beans, the country has fixed a goal of processing half of its output. That target that has been made harder to reach by the abolition in 2012 of long-standing tax breaks for processors. However, talks between the government and the processing industry are seeking a fiscal framework that would encourage more domestic processing. [Reuters 07/04/15]

Cote d’Ivoire: Half Cocoa Mid-Crop Allocated To GrindersIvory Coast will allocate half of this year’s cocoa mid-crop to local grinders and is working on the details of tax breaks to take effect in the 2015-2016 season in a bid to stimulate the sector. Ivory Coast withdrew tax benefits for domestic grinders in 2012 but began negotiations with cocoa grinders this month after the companies said the move had made them less competitive.

The 12 grinders - of which the largest include Barry Callebaut, Cargill, Olam and ADM Cocoa - can process more than 33% of the country’s 1.7 million tonnes a year of cocoa production. President Ouattara’s government aims to increase that to 50% by 2020, but grinders say the withdrawal of tax benefits has made it more attractive to process cocoa in Asian countries such as Indonesia and Malaysia. The tax benefits for grinders withdrawn in 2012 - which exporters had argued made it impossible for them to compete fairly in the market - were worth around 70 CFA francs per kg.

[Reuters 08/04/15]

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COMMODITY NEWSCOCOA

GhanaGhana Targets 1.2 Million Tonnes Of Cocoa This YearGhana will hit the target of 1.2 million MT of cocoa beans by the end of the 2014/15 cocoa season. COCOBOD statistics indicate that the nation’s production is currently below 1-million MT, but that by the end of the lean season Ghana should achieve its target. The government is working hard to achieve the target and to sustain it, to ensure that the country becomes the world leader in cocoa production by next year.

[GNA 06/04/15]

Cocoa Production To ReboundExpectations are high among farmers that production will hit its peak in the mid-crop season on the back of favourable weather and improved farming practices. So far bean output in the main crop season [September- March] has been disappointing - falling below the target of 600,000 MT and raising concerns that Ghana could miss its annual production target of 810,000 MT as production in the mid-crop season [May- August] has over the years accounted for just about 15-20% of the total harvest. Yet Ghana is optimistic it will record a mid-season bumper harvest as farmers have recovered from the menace of black pod disease and low rainfall experienced in the main crop season. It hopes to produce almost 1-million MT this year.

[Ghana Web 15/04//15]

2014-15 Cocoa Output To Fall To 730,000-750,000TGhana’s cocoa production for the 2014/15 season will fall to between 730,000 and 750,000 tonnes following an outbreak of fungal black pod disease, according to Ecobank. Ghana is the world’s second biggest cocoa exporter behind Ivory Coast and produced 900,000 tonnes of cocoa last season, according to its industry regulator, Cocobod. A fall in Ghana’s cocoa production could drive the world market into deficit after several years of surpluses. Farmers have struggled to get access to fungicides to treat disease infected crops while shortages of financing and fertilisers have also hurt production.

Cocobod is maintaining its forecast for the current season at 850,000 tonnes, though it said it could revise that figure in the weeks ahead. Cocobod had initially predicted output of around 1 million tonnes of cocoa at the start of this season in October. The International Cocoa Organization [ICCO] has forecast Ghana’s output this season at 810,000 tonnes.

[Ecobank 17/04/15]

COCOBOD Distributes Seedlings The Ghana Cocoa Board [COCOBOD] has begun free distribution of 50 million cocoa seedlings to farmers. The exercise will run between April and July to ensure that all registered cocoa farmers receive free hybrid seedlings as part of efforts to raise output from 850,000 tonnes to 1.5 million tonnes and overtake that of Cote d’Ivoire. The seedlings, produced by the SPU and the Cocoa Health and Extension Division [CHED], have been treated for swollen shoot disease. Currently yield levels are 450-500/kg per ha but with the new seedlings this is raised to between 1,000-1,500kg per ha.

[Ghanaweb 20/04/15]

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NigeriaNSEP Strategy Sees Growth In Cocoa ExportsNigeria has recorded an unprecedented exportation of cocoa and its products worth over N131.2 billion for the year 2014, according to statistics from the Nigerian Export Promotion Council [NEPC]. Officials claim this development stemmed from efforts put in place by government to bolster market opportunities for the non-oil export sector through the National Strategy Export Products [NSEP]. In January the Federal Government had identified 13 NSEPs to replace overdependence on petroleum products in the light of dwindling global crude oil prices. Furthermore the United States Agency for International Development [USAID] this month restated its commitment to support Nigerian farmers in boosting cocoa production towards diversification of the nation’s economy.

[Street Journal 26/03/15]

UgandaUganda To Revamp Cocoa FarmingCocoa production in Uganda is lagging behind other producers because of the small acreage currently under cultivation due to inadequate access to planting materials and limited knowhow. Uganda exported 19,439 tonnes of cocoa worth US$ 46.6 million in 2013 compared to 17,935 tonnes worth US$ 43 million during 2012. But these are very small quantities when measured against other African producers like Cote d’Ivoire and Ghana.

Through the Cocoa Development Project [CDP], the Ministry of Agriculture is to give out over 1-million seedlings to farmers to boost production. Distribution is expected to start in May and then repeated during the second season between September and December. The seedlings will be distributed in the districts of Mukono and Buikwe, east of Kampala. Also in western Uganda districts of Bundibugyo and Masindi where the conditions are suitable for cultivation. Production stands at an estimated 22,000 tonnes however Uganda has the capacity to produce 50,000 tonnes. Only 20,000 hectares are being farmed however. Farmgate prices for unprocessed beans is Ush5,000/kg [US$1.7] to Ush6,000 [US$2] depending on location and grade of the beans.

[EA Business Week 29/03/15]

13

COMMODITY NEWSCOCOA

Daily Spot Price [ICCO]These are the average of the quotations of the nearest three active futures trading months on NYSE Liffe Futures and Options and ICE Futures US at the time of London close.

Date ICCO daily price (SDRs/tonne)

ICCO daily price (US$/tonne)

London futures (£ sterling/tonne)

New York futures (US$/tonne)

1 Apr 15 2026.37 2795.90 1923.33 2742.00

2 Apr 15 2037.59 2817.78 1942.00 2758.00

6 Apr 15 2036.34 2837.15 1944.50 2784.00

7 Apr 15 2044.59 2832.72 1947.00 2776.67

8 Apr 15 2050.68 2844.03 1949.00 2782.00

9 Apr 15 2048.34 2828.15 1953.00 2783.33

10 Apr 15 2053.18 2814.17 1950.67 2775.00

13 Apr 15 2073.38 2835.54 1962.33 2794.00

14 Apr 15 2100.51 2879.73 1974.67 2843.67

15 Apr 15 2072.65 2844.94 1953.00 2808.33

16 Apr 15 2097.43 2895.12 1973.00 2850.67

17 Apr 15 2069.27 2868.87 1952.33 2824.67

20 Apr 15 2043.72 2822.19 1925.00 2777.67

21 Apr 15 2046.16 2820.24 1922.67 2771.67

22 Apr 15 2042.92 2826.91 1919.33 2773.00

23 Apr 15 2058.96 2844.97 1929.33 2789.67

14

BurundiAims To Double Coffee Production By 2021Burundi has launched a new sector development strategy aiming to increase its annual coffee production to between 30,000 and 60,000 tons per season in the next 6-years by replacing ageing trees with a newer and higher yielding variety. Some 32 million bushes planted in the 1930s during the colonial period are to be replaced in a process which is underway. Burundi also wants to position itself as a specialty coffee producing nation with 75% of production as premium coffee [fully washed]. Coffee generates 70% of the country’s foreign exchange earnings.

[Medafrica 28/03/15]

EthiopiaEthiopia To Show At SCAA EventEthiopia has been selected as a portrait country at the 2015 Specialty Coffee Association of America’s [SCAA] annual event to be held in Seattle, USA. The event is expected to bring 8,000 visitors and 2,700 exhibitors to connect buyers and sellers at one location. Ethiopian participation will be represented by 40 delegates led by officials at ministerial level to include exporters, the Ethiopian Coffee Exporters Association [ECEA] and the Fine Coffee Association of Africa [FCAA]. The 4-day event will run from April 9, 2015 with the theme ‘Origin and Diversity’, and will place more emphasis on the country as the origin of coffee.

[Addis Fortune 06/04/15]

KenyaCoffee Earnings Up 10%Coffee earnings for H1 2014/15 crop year increased by 10.3% to Sh8.5 billion compared to Sh7.7 billion registered the same period in 2013/14 year. Data from the Nairobi Coffee Exchange [NCE] indicates that starting October 1, 2014 to the end of March this year, farmers sold 328,401 bags of clean coffee worth Sh8.5 billion [US$93.2 million]. Total weight sold during the same period increased to 20.05 million kilos compared to the 19.7 million traded between October 2013 and March 2014. The average price increased 10.04% to US$232.40, compared to US$211.19 per 60kg bag of coffee traded the same period in the 2013/14 coffee year. With highest prices realised on February 17 fetching US$281.44 while the lowest average price realised US$168.45 on March 31. Since the beginning of the crop year, prices have been declining locally attributed to a decline in international prices and by low quality coffee beans being traded in the last 3-months. At the end of H1 of the current coffee year, prices dropped to US$168.45, while average prices as at end of March 2014 to the 2013/14 increased to US$211.19.

[Standard Digital 14/04/15]

Sales At Auction Rise 12% In 6 Months To MarchThe value of coffee sold at Kenya’s auction climbed 12% to US$93.2 million in the half-year to March compared with the same period in the previous season after prices rose. Kenya sold coffee worth US$83.5 million in the H1 of 2013/14 season that runs October to September. Kenya exports about 90% of its coffee through the exchange, and the remainder is sold to foreign buyers directly. Uncertainty over the performance of the crop in leading producer, Brazil following a prolonged drought, has helped prop up global prices of the commodity in 2014. Officials said 328,401 60-kg bags were sold in the 6-months to March compared with 324,247 the previous year. The average price climbed to US$232.4 per 50-kg bag compared with US$211.1 in the previous year. Better average prices are expected even though the crop output may be flat because of the effects of the drought.

Coffee exports were at one time Kenya’s leading foreign exchange earner but have slipped to under 50,000 tonnes. Many smaller coffee farmers, disillusioned with poor earnings, switched to other crops or sold land for real estate. The area of coffee plantations in Kenya has fallen to 109,000 ha from the average of 150,000 ha in 1980s and 1990s. Kenya’s overall coffee export earnings for the year ended 2013/14 [Oct-Sept] season jumped 17% to US$254.2 million, buoyed by improved production volumes and stronger prices. Projections by the regulator showed Kenya is expected to produce 750,000 60-kg bags of coffee weighing 45,000 MT in 2014/15 and fetch US$150 million from an estimated average price of US$200 per bag.

[Reuters 21/04/15]

15

COMMODITY NEWSCOFFEE

UgandaCoffee Exports Fall Due To Dry WeatherCoffee shipments in March could drop to 260,000 60kg bags compared with 348,423 bags exported in the same month last year, depressed by low international prices. Coffee is a major source of foreign exchange for the country, which is Africa’s #1 exporter of coffee and predominantly cultivates the robusta variety. The Uganda Coffee Development Authority [UCDA] said bean shipments fell 10% to 311,747 60-kg bags in March from 348,423 bags shipped in the same period last year, after harsh weather depressed yields. Dry weather has forced Uganda to lower its export forecast for the 2014/2015 [Oct-Sept] season by 8.6%. Uganda now expects to ship 3.2 million bags of coffee, down from an earlier projection of 3.5 million bags. Uganda exported 3.5 million bags of coffee last year.

[New Vision 25/03/15] 16

GeneralImplementation Progress Of Pan African Cotton Road MapUNCTAD has participated in a series of meetings held in Cotonou, Benin from 9-11 March 2015, to mark the 10th anniversary of the European Union-Africa Partnership on Cotton and discuss implementation of the Pan African Cotton Road Map.

The Partnership was established in July 2004 at a time when the price of cotton had been following a historic downward trend since 2000. As a long term objective, the Partnership aims to contribute to fighting poverty in African cotton-producing areas by increasing the competitiveness, added value and sustainability of African cotton sectors and consequently optimise their impact on producers’ incomes. The meetings were organized by COS Coton, the Steering and Monitoring Committee of the Partnership, of which UNCTAD is an observer. The meetings were attended by representatives of the “Cotton 4” countries of Benin, Burkina Faso, Chad, and Mali; the African Union; regional economic organisations; as well as stakeholders from the cotton value chain. Held under the theme “African Cotton at a Crossroads”, it included the 3rd Steering Committee meeting of the Support Programme for the consolidation of the Action Framework under the EU-Africa Partnership on Cotton; Technical workshops; and the 20th COS-cotton meeting. Two half-day sessions were devoted to the Pan African Cotton Road Map, focusing on identifying the way forward for its full implementation. UNCTAD played a lead role in the production of the Pan African Cotton Road Map, which was the result of a comprehensive multi-stakeholder consultation process. The Road Map makes a thorough diagnostic of the challenges facing the African cotton sector and lays out a continental strategy along 3-areas:

- Raising productivity - Improving marketing and trade - Increasing value-addition

It also aims to strengthen coordination mechanisms and coherence across all policies and actions at the national and regional level, in particular between regional cotton-textile-clothing strategies and the need for a fast resolution of the cotton issue in WTO negotiations.

The meeting concluded with a timeline for an updated version of the Road Map, highlighting its full alignment with new policy developments at the Pan African level as well as incorporating new emerging challenges and opportunities for the African cotton sector. It is hoped the implementation plan of the Pan African Cotton Road Map will be finalized on time for ‘ORIGIN Africa’ later this year. The “Origin Africa” campaign is intended to help Africa make its position as a sourcing destination on the world’s cotton map. Its next edition will held in Addis Ababa, Ethiopia, on 21-23 October 2015. In this regard, cotton issues will be discussed at UNCTAD’s Global Commodities Forum in Geneva on 13-14 April 2015 and will also feature in the forthcoming Commodities and Development Report: Smallholder Farmers and Sustainable Commodity Development.

[UNCTAD 25/03/15]

17

COMMODITY NEWSCOTTON, TEXTILES & LEATHER GOODS

CameroonCotton Processing Rate Very LowThe rate of processing cotton in Cameroon is still very low according to a joint study by the World Bank and the German Cooperation. The industrial study suggests only 2% of cotton produced in Cameroon is processed locally. Processing is managed by the Cotonnière Industrielle du Cameroun’ [CICAM], the only cotton ginning company in the country. CICAM, a state-run company, is currently implementing an investment program of CFA 5.5 billion to rekindle its activities.

[APA 02/04/15]

GhanaMinister Inaugurates Cotton Board Of Directors The Minister of Food and Agriculture inaugurated a 9-member Board of Directors of the Cotton Development Authority [CDA] in Tamale on 31st March with a call on members to commit themselves towards revamping the cotton industry. The functions of the Board among other things are to assist the CDA in pursuit of its functions as stated in section two of the CDA Act of 1969 [NLCD 353]. With the support of the World Bank in 2010, the Ministry developed and launched the cotton revival strategy with the objective of revamping the cotton industry. Dr Abdulai Baba Salifu, a former Director General of the Centre for Scientific and Industrial Research [CSIR], chairs the board.

[GNA 01/04/15]

EthiopiaJoins Sustainable Cotton Made in Africa InitiativeSustainable cotton will soon be cultivated in North-Western Ethiopia as the nation has been verified in accordance with the Cotton made in Africa [CmiA] sustainability standard. The Aid by Trade Foundation [AbTF], which is responsible for the CmiA initiative, will now be involved in sustainable cotton farming, supporting more than 9,000 smallholder farmers. Through the initiative, African smallholders learn about efficient, environmentally friendly methods for cultivation through expert agricultural training. CmiA has also established an alliance of companies that purchase its sustainable raw material, and pay a licensing fee to use a seal that says so. Proceeds from the fees are reinvested for cotton projects in the region.

[Sourcing Journal 25/03/15]

MaliBoosts 2014-2015 Production To 233,000 TonnesMali ended its 2014-2015 season with record production of 233,000 tonnes of cotton fibre versus 185,000 tonnes the previous year. Mali produced roughly 550,000 tonnes of raw cotton fibre in the 2014-2015 season, well above the 400,000 tonnes produced the previous year. The season includes a growing phase from around May to October, and a harvesting and sales period from roughly November to end-March. Mali has more than 3.5 million cotton farmers, and 17 processing factories.

[Reuters 08/04/15]

18

General Bird Flu Outbreak

The government of Burkina Faso has confirmed that an outbreak of H5N1 avian flu was responsible for the deaths of over 202,000 chickens in 2-regions in recent weeks at an estimated losses of over US$5 million. Jean Paul Rouamba, minister for livestock, said tests had been carried out by the United Nations experts after a wave of deaths in traditional and modern poultry farms in February and March in Kadiogo province in Centre region and Sanguie in Centre-West region. Burkina Faso last battled an outbreak of avian flu in 2006. Close to 11.4 million poultry are exposed to the disease.

Meanwhile Niger has identified a suspected outbreak of H5N1 bird flu on a chicken farm in the southern town of Maradi, near the border with Nigeria which has also confirmed cases of the virus in several northern states. Bangana Ibrahim, Niger’s livestock minister, said authorities suspected bird flu on the Maradi farm after more than half of the 2,440 chickens on it died. Ibrahim said that all poultry imports from any nation that had confirmed bird flu had been banned as of April 7. Ivory Coast and Mali have imposed similar preventative measures.

Already the Hong Kong Centre for Food Safety [CFS] of the Food and Environmental Hygiene Department announced on April 21 a ban on the import of poultry meat and products including poultry eggs. It is expected other countries will follow.

Greenyard Foods Merges With Univeg & PeatinvestBelgian frozen vegetable group Greenyard Foods will merge with fresh fruit company Univeg and gardening company Peatinvest to form a global fruit and vegetable group with US$3.9 billion in annual sales. The companies, in which the family of chairman Hein Deprez has major stakes, will then be listed on the Brussels stock exchange through Greenyard Foods as a parent company. The deal is subject to regulatory approvals and due diligence.

[Reuters 13/04/15]

Cote d’IvoireHeineken / CFAO To Build US$164 Million BreweryHeineken NV and Africa-focused trading firm CFAO will invest US$163.52m to build a brewery in Ivory Coast with completion aimed for December 2016. Production capacity will be 1,000,000 hl.

KenyaWrigley To Build US$60 Million Plant The Wrigley Company, an American chewing gum manufacturer, has broken ground for a US$63 million manufacturing plant, in Machakos County, in an effort to double its production capacity and meet up with increased demand in its African markets. The Chicago-based firm, which produces brands like Big G, PK, Doublemint, Juicy Fruit and Orbit, says the plant will be completed in Q1 2017 and will produce 7.84 billion pellets of chewing gum annually when functional.

[Forbes 09/04/15]

19

COMMODITY NEWSFOODSTUFFS & BEVERAGES

LiberiaFirst Industrial Rice Processing Facility InauguratedPresident Ellen Johnson Sirleaf and U.S. Ambassador to Liberia Deborah R. Malac officially inaugurated Liberia’s first industrial rice processing and warehousing facility, Fabrar Liberia Inc. in Kakata, Margibi County on April 9th. Fabrar is a Liberian-owned and operated agriculture holding firm created in 2009 to tackle food insecurity. In 2014, with financial and technical support from the U.S. Government, through the USAID Food and Enterprise Development [USAID FED] program, and private equity financing from West Africa Venture Fund, the company was able to procure an automated rice processing plant, expand and renovate its facilities. The newly industrialized facility, now with double its previous capacity, can mill 30 MT of rice each day and store 1,000 MT with proper ventilation and protection from pests, mold, fungus and mildew.

[Front Page Africa 15/04/15]

MalawiTo Spend US$20 Million On Maize ImportsMalawi plans to spend about US$20 million on maize imports due to an expected drop in the harvest this year.

[Reuters 01/04/15]

MaliGovernment Embargo On Imports Of Potatoes And Onions The Minister of Trade and Industry has suspended onion and potato imports until local production has been sold. This embargo will remain until the end of the harvest and marketing season. This unique measure is the first of its kind in the country and is part of the effort to protect farmers interests and the national economy.

[Fresh Plaza 08/04/15]

SenegalLimiting Rice Imports To 500,000 Tons To Boost Domestic ProductionSenegal is planning to limit annual rice imports at 500,000 tons as part of its efforts to boost domestic production and achieve rice self-sufficiency.

Senegal is a net importer of rice and imports over 1-million tons of rice or about 80% of around 1.4 million tons of rice needed for its domestic consumption. The government has been keen on reducing dependence on imports by increasing rice production. In this direction, the President had recently launched an ambitious US$148 million program to achieve self-sufficiency in rice production by 2017.

The Prime Minister also hinted at imposing taxes and duties on rice imports to protect local rice sector. USDA estimates Senegal is to produce about 289,000 tons of rice and import around 1.15 million tons in MY 2014-15 [October - September] to meet a consumption demand of around 1.45 million tons.

[Oryza 06/04/15]

20

South AfricaCitrus Industry Under Pressure From Black Spot Disease – Looks To AsiaThe multi-billion rand citrus industry in South Africa has been hit severely since Citrus Black Spot disease has been the cause of declining EU exports. To add to the industry’s woes the South African citrus growers have recently taken the decision to cut exports to Spain for the rest of 2015 due to their protectionist approach which has strained trade relations.

This comes as the head of the EU agricultural organization Copa Cogeca is calling for more to be done to combat the dangers of citrus black spot disease spreading into Europe from South Africa, saying “we cannot take the risk”. General Secretary Pekka Pesonen’s warning comes just as the new import season for citrus from South Africa begins and includes a call for the EU to establish greater phytosanitary controls at ports. Last year about 35,000 tons of South African citrus imports were impounded on suspicion of bearing the black spot disease.

Given the South African sector’s attitude and the experience gained in 2013 and 2014 when 35 and 28 interceptions respectively were recorded, the EU should take new measures and enforce its Implementing Decision from 2nd July 2014, to establish greater phytosanitary controls at ports of entry and especially where the main imports come into the EU – the Netherlands and the United Kingdom.

Pekka Pesonen, General Secretary Copa Cogeca

Citrus exporters will therefore focus their attention on growing citrus exports into the Middle East and south-east Asian markets to take up the citrus exports meant for the Spanish and southern European markets. Usually 15% of the local citrus crop is usually exported to these markets. The 2015 crop is estimated at 1.2 million cartons, a significant growth from last year’s 680 000 cartons.

[Business Report/Fresh Fruit Portal/CNBC 09/04/15]

“

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21

COMMODITY NEWSFOODSTUFFS & BEVERAGES

22

Zeder Confirms Full Capespan Buyout BidSouth African agribusiness investor Zeder has confirmed its ‘firm intention’ to buy out the minority shareholders in fresh produce firm produce company Capespan, in which it already holds a majority shareholding.

[Fruitnet 09/04/15]

South Africa Looks To Middle East, Asia As New Corn-Export GoalsSouth Africa is seeking new markets for its grains even after the continent’s biggest corn producer started importing the yellow variety following the nation’s worst drought since 1992, and as transport constraints hamper delivery. Local farmers want to increase sales to Middle Eastern nations, such as Saudi Arabia, and to Asian countries including Vietnam. According to Grain SA, the country’s largest cereal and oil seed lobby, growers exported an average of 1.9 million MT a year for past 7-years. Last year’s intake was 14.3 million tons, the largest in 33 years. South Africa signed a supply agreement with China in December and new markets sourced in 2014 include South Korea, Italy and Mexico. However this season’s crop may shrink 32% due to drought in key harvest areas.

[Moneyweb 16/04/15]

South Africa Working Towards Conclusion Of Poultry Discussions South Africa and the United States have agreed to strengthen and deepen their bilateral trade and investment relations following the Trade and Investment Framework Agreement [TIFA] Council meeting in Washington DC. South Africa is to work towards concluding poultry discussions soon. Under the proposed deal, US chicken bone-in cuts exports to South Africa would be restored to their value prior to 2000 with a growth factor that takes into account current dynamics in the South African market. The outstanding issue is for the poultry associations from both sides to agree on the quantity of US chicken on which anti-dumping duties would be excluded. The South African and US poultry associations met this month on the margins of International Egg and Poultry meetings in Europe and the Department of Trade and Industry expected the South African Poultry Association to table an improved offer that may lead to a deal being finalised.

[SA Department of Trade and Industry 21/04/15]

13% Increase In Chicken Meat PricesSince 2013, chicken meat prices in South Africa increased by 13% and in the past year by more than 8%, as increased import tariffs of chicken meat, coupled with anti-dumping duties, escalate local prices.

[Poultry Site 15/04/15]

23

COMMODITY NEWSFOODSTUFFS & BEVERAGES

CongoEco - Oil Energy SAEco-Oil Energy SA through Sangha Palm and the Régie Nationale des Palmeraies du Congo [RNPC] has reached an annual production of 20 million litres of palm oil. Eco - Oil Energy SA, in Congo since 2013, has 3-industrial mills able to process 86,400 tons of palm. Eco-Oil Energy has signed an operation agreement with the Government to manage 50,000 ha over 25 years devoting 45,000 hectares for the production of biodiesel destined for export at an investment of CFAF351 billion.

[Ecofin 16/04/15]

Côte d’IvoireAmbitious Palm Oil Development Plan On the side-lines of the international SARA agricultural exhibition Cote d’Ivoire reviewed its palm oil development strategy for 2015-2025. It aims to create and restore 200,000 ha of plantations across 8 regions.

[Ecofin 12/04/15]

GhanaOil Palm Development Association LaunchedThe Oil Palm Development Association For Ghana [OPDAG] has been revived in Accra this month which saw the Minister of Trade and Industry, Dr Ekwow Spio-Garbrah, calling for the establishment of a Palm Oil Development Board [PODB] to oversee policies, regulations, and possible legislation’s in the industry.

Oil palm supply chain production if developed will see increased production and productivity; that will promote investment and increase processing capacities; improve marketing; promote sustainable practices for environmental protection; and support research and development. Association members comprise of all relevant national stakeholders and value chain actors in the oil palm industry.

[Ghanaweb 17/04/15]

Producers To Get Processing PlantA sod-cutting ceremony has been performed at Onwane in the Ajumako-Enyan-Essiam District of the Central Region for the construction of a facility to house a palm oil processing plant. The project is being financed by the German government in collaboration with the African Union in Ostfriesland, Germany, the Centre for International Migration [CIM], the German Development Agency [GIZ] and Women and Youth Development Association Ghana, a local Ghanaian partner.

[Ghana Web 12/04/15]

NigeriaPresco’s Investment Hits US$1 BillionInvestment injected into the Nigeria economy by Presco Oil Palm plc in the past decade has hit US$1 billion. Investments include procuring state-of-the-art equipment, automated steam turbines and a biogas plant for power generation, oil palm processing mills, refineries and plants and machineries. Next Presco will build a new US$30 million refinery and oil mill to boost oil palm production in Nigeria. Furthermore Presco is to plant cloned rubber trees in Ivory Coast and Ghana to increase rubber yields by 30% to 3 tonnes per ha.

[This Day 21/04/15]

24

COMMODITY NEWSPALM OIL

Pan AfricaAfrican Sugar Producers Should Eye Regional MarketsAfrican sugar producers will have to focus on growing regional markets before the European Union dismantles production quotas from 2017. The EU has been a net importer under its protected sugar regime, but the EU beet sector is expected to become more competitive and could become a net exporter of white sugar when Brussels dismantles production quotas in October 2017. Africa needs to lower trade barriers so that sugar can move within Africa thus opening new regional markets to African sugar producers. Kenya, Uganda and Sudan are all doing well in sugar production, but the continent overall needs more investment in the industry. Africa also needs to expand its refining capacity to move up the global commodities value chain as well as investing in infrastructure.

[Reuters 22/04/15]

KenyaKenya Granted 1-Year Extension Of Regional Sugar Import SafeguardsKenya has been granted a 1-year extension of sugar import limits from the regional trade bloc Common Market for Eastern and Southern Africa [COMESA] to revamp its ailing sugar industry. The arrangement limiting imports expired at the end of February but Kenya requested for a 2-year extension saying increased imports could smother the nation’s sugar business which is not competitive and has a number of loss-making companies that are struggling to stay afloat. Kenya is struggling to improve output due to relatively high production costs and loss-making sugar factories, which produce a total of 600,000 tonnes of sugar a year, below the annual consumption of 800,000 tonnes. The deficit is covered through strict import quotas from COMESA.

[Standard Digital 27/03/15]

Muhoroni Factories Maybe Sold To Local InvestorsState-owned sugar factories in Muhoroni should be sold to local investors after privatization according to local ministers. Once Muhoroni, Miwani and Chemelil factories are privatized, the first priority should be given to local investors. Privatization of factories is looming and potential local investors should be identified to take over to ensure the companies do not collapse. They claimed farmers will lose out if the mills are bought by international investors or those from outside the county and urged farmers to strengthen their co-operative saccos to raise enough funds to buy shares in the factories.

[The Star 01/04/15]

25

COMMODITY NEWSSUGAR

NigeriaDangote Sugar Refinery Declares N4.8b DividendShareholders of Dangote Sugar Refinery [DSR] Plc will share about N4.8 billion as cash dividends for the past business year. Audited report and accounts showed mixed performance. Turnover dropped from N103.15 billion in 2013 to N94.86 billion in 2014. Profit before tax also slipped from N16.27 billion in 2013 to N15.27 billion in 2014. However, with reduction in tax provisions, net profit increased from N10.85 billion to N11.64 billion.

Chairman, Dangote Sugar Refinery [DSR] Plc, Aliko Dangote, had assured that the company’s 10-year growth plan would deliver better returns to shareholders and consolidate its position as the largest sugar company in West Africa. Pursuant to the introduction of the Government’s National Sugar Master Plan, DSR has begun its own development plan which would lead to capacity growth over the next 5-10 years from 1.5 million to 2 million tonnes of sugar p.a. [Nation 20/04/15]

South AfricaIllovo Sugar Low FY EarningsIllovo Sugar, Africa’s biggest producer of the sweetener, noted that its full-year profits would fall due to depressed global prices and drought that has ravaged some of its crops in South Africa. Headline earnings per share for the year to end-March will decrease by up to 12% denting the firm’s stock.

Illovo also operates in Malawi, Swaziland, Mozambique, Zambia and Tanzania. It said it was forced to close its Umzikulu mill for the current season due to lower production after severe drought and frost in South Africa’s sugar belt in the KwaZulu-Natal province slashed sugar cane output. Illovo said the economic downturn in the European Union zone, including a sharp weakening in the euro, had affected one of its key markets, while a softer Brazilian real drove the sugar price lower.

Banks including Goldman Sachs and Citi have slashed their forecasts for coffee and sugar prices by as much as 31% in the past month as the value of Brazil currency slumped to its lowest in 12 years. Illovo expects some relief from a rise in demand in its African market, and a favourable rand exchange which may positively impact export revenue.

[Reuters 15/04/15]

Illovo Appoints ChairpersonIllovo Sugar has appointed Trevor Munday as its new chairperson, effective on the close of the sugar producer’s Annual General Meeting [AGM] on July 15. He succeeds Don MacLoed, who is retiring as director and chairperson.

[Engineering News 25/03/15]

TanzaniaDar Envisages Sugar ExportsA multi-billion sugar plantation and processing project, which has been planned for Coast region’s Bagamoyo district is expected to turn the country into a net sugar exporter by 2030. The project is part of the Big Results Now [BRN] initiative which aims to have 10 new sugar projects in the country by 2030 to produce 150,000 tonnes of sugar per year. The project is part of the Southern Agricultural Growth Corridor of Tanzania [SAGCOT], an inclusive, multistakeholder partnership to rapidly develop the country’s agricultural potential.

[Daily News 22/04/15]

26

27

COMMODITY NEWSTEA

BurundiQ1 Revenues Up 52% On Lower Kenya OutputBurundi’s tea export revenues rose 52% in Q1 2015 from a year before, after a fall in Kenyan tea production helped boost prices in the regional market. Kenya is the biggest east Africa producer and world’s top exporter of black tea, and its production, whether higher or lower, influences prices in the region. Burundi’s state-run tea board [OTB] collected US$8.2 million between January and March, up from US$5.4 million earned in the same period in 2014. Prices were up thanks partly to a decline in Kenya tea output in the first 3-months of the year, which has also had a positive impact on the revenues.

Higher exported volumes of Burundi’s tea also contributed to increase revenues. Cumulative sales from January to March climbed to 3,197,534 kg from 2,306,702 kg in 2014, while the export average price per kg jumped to US$2.57 from US$2.34 last year. Burundi exports 80% of its tea through a regional weekly auction held in the Kenyan port city of Mombasa. Tea generated US$21.3 million last year versus US$20.8 million in 2013.

[Reuters 14/04/15]

28

KenyaTea Output, Exports Rise In 2014Kenya’s tea output and exports rose in 2014 from a year before. Data from the regulator Tea Board of Kenya [KTDA] showed that output rose to 444.8 million kg in 2014 compared with 432.2 million kg a year earlier, pulling in US$1.3 billion. Kenya also exported 499 million kg up from 494.4 million kg in 2013. The difference in export and production figures usually arise from unsold tea carried over from the previous year.

Drought earlier in the year is driving down output and processing factories are receiving fewer deliveries from fields each week. 2015 tea volumes could see a drop for a third straight month after volumes dropped 28% to 24.2 million kilos in February compared to 33.7 million kilos during the same period last year.

In January volumes dropped by 7% to 41.6 million kilos compared with 44.9 million kilos processed over the same period last year. According to KTDA, the same trend is expected to be witnessed in the yet to be released March figures.

[Reuters 25/03/15 & Star 24/04/15]

Farmers Disagree With Assembly Over Tea BillAssembly members have met resistance from tea farmers over the anticipated Tea Bill. At a public forum members of the Agriculture Committee met strong opposition from tea factories and farmers who are against the formation of a tea directorate. The directorate, if formed, will manage and control the marketing of tea in the county. The directors argue that the marketing of tea is a function of the Tea Board of Kenya.

[Standard Digital 30/03/15]

KTDA In Court To Quash Tea Sector ReportKenya Tea Development Agency [KTDA] has gone to court seeking to quash a report titled ‘Market Inquiry for the Tea Sector’ by Deloitte on the tea sector in Kenya. KTDA says that the report was obtained through a flawed process. The report by Deloitte Consulting was prepared for the Competitions Authority of Kenya [CAK]. KTDA said that the findings of the report will lead to recommendations that may jeopardise its operations.

“If the report is relied on by the competition regulator and acted upon within the statutory mandate of the respondent, it’s likely to lead to serious market distortions, grave harm and prejudice to KTDA and the small-holder tea farmers that the applicant represents.” KTDA said in the filed court documents.

[Standard Media 07/05/15]

Senate Wants Tea Auctioning To Be DigitizedTea auctioning should be automated to cut off cartels and brokers making a fortune from farmers, the Senate Committee on Agriculture has said. Members said the auction is not transparent and farmers are complaining that brokers and cartels are earning millions at their expense. They said the auction should be digitized to enable farmers sell their products online.

Meanwhile operations of the auction have been brought to question with the Senate’s Agriculture, Fisheries and Livestock committee asking the Government to ensure transparency in appointing brokers. Currently there are only 10-brokers who have been controlling the auction for decades. The committee called for the review of regulations to ensure a more transparent system of appointing brokers.

[Star 16/04/15 & Standard Digital 20/04/15]

29

COMMODITY NEWSTEA

GeneralSentiment Improves As Buyers Slowly ReturnProducers report a slow but steady improvement in demand that has lifted sentiment and brought some stability back to the trade. With the exception of the continued weakness in prices for sapele and Okoume, prices for other timbers which had eased in recent weeks are now holding firm such that it appears the downward trend in prices has come to a halt. While demand for sawnwood has improved slightly log prices remain largely unchanged except for the weakness in Okoume. Analysts report this is likely to continue until buyers for the Chinese market resume purchases at levels seen at the end of 2014. News is emerging of a limited resumption of log and sawnwood exports of sapele and sipo from the Central African Republic. While volumes are not big this has been welcomed as a sign that the trading environment in the country is becoming more stable.

[ITTO 15/04/15]

Timber OutlookOverall, with the modest improvement in demand, producers are now feeling more confident that market conditions have stabilised providing a footing for a recovery in demand. Indian companies are actively seeking new sources of raw material supplies but few West African producers have taken up the challenge of the Indian market where Malaysia log exporters have a firm footing.

[ITTO 15/04/15]

FLEGT WeekIn March, the Forest Law Enforcement, Governance and Trade [FLEGT] Week was held in Brussels, an event which attracted over 300 invited delegates representing a wide spectrum of interests including private sector, governments and civil society from about 40 timber producing and consuming countries. Again, and unlike previous years, there was significant participation from trade and industry, the African contingent being particularly well represented.

[ITTO 15/04/15]

For more about the FLEGT facility please view http://www.euflegt.efi.int/about-flegt

Burkina FasoSupport For Sustainability MonitoringThe Forest Investment Program [FIP] was approved on April 16 in Washington, DC. The move provides US $101,000 for Burkina Faso to ramp up its monitoring and reporting on its Gazetted Forests Participatory Management Project for REDD+ and the Decentralized Forest and Woodland Management Project. The new funding will allow the country, with AfDB support coordinated with the World Bank, to carry out a series of agreed activities to advance effective monitoring of the projects on the ground as they develop to include data collection and workshops.

[AFDB 20/04/15]

INFORMATION ON REDD+REDD+ is the reduction of emissions from deforestation and forest degradation in developing countries; and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries.

For more information about REDD+ please view http://www.un-redd.org/aboutredd

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COMMODITY NEWSTIMBER

Cameroon/CongoLog Export Quotas To Be Strictly EnforcedAuthorities in Cameroon have announced that log export quotas will be fully and stringently applied which has been welcomed by millers in the country which suffer from an inadequate supply of the major species. In related news, authorities in Congo Brazzaville are also strictly enforcing their log export quotas. Producers in Congo Brazzaville are cutting back on production of okoume and switching production to the redwood species for which demand at present is better.

[ITTO 15/04/15]

GabonSmooth Flow Of Production Undermined In Gabon a number of strikes by public sector employees and the resignation of Director General of the Forest Ministry has created uncertainty. The timber trade is calling for an urgent replacement of the DG in order to maintain stability in this important sector of the economy. The mood in the trade in Gabon is currently very despondent as the industry has to contend with labour disputes in other sectors which are affecting the smooth flow of production and the industry is still waiting for the tax refunds due from government.

[ITTO 15/04/15]

GhanaFLEGT Licences Not Far OffThe Ghanaian Forestry Commission noted that the Timber Legality Assurance Systems [TLAS] in Ghana is nearing completion and Forest Law Enforcement, Governance and Trade [FLEGT] licences are “almost there”. It expects FLEGT licences to be issued either later this year or the first half of 2016.

[ITTO 15/04/15]

Rapid Response Unit Secure More ResourcesThe Rapid Response Unit of the Ghana Forestry Commission [GFC] continues its fight against illegal timber activities. The Unit was set up few years ago to track and trace illegal activities in the forest and in the wood product manufacturing sector. Over the years the Unit has succeeded in arresting, impounding and confiscating illegally harvested or manufactured timber mainly from illegal chainsaw operations. To improve the performance the GFC recently presented the Rapid Response Unit with 6-extra vehicles purchased from the Commission’s funds.

[ITTO 15/04/15]

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COMMODITY NEWSTIMBER

Guinea-BissauGovernment Bans Logging For 5-YearsThe government has called a 5-year moratorium on felling trees across the country, according to a statement from the Council of Ministers. The government describes the situation as “very serious” and that current exploration of these resources “is a blatant threat to environmental equilibrium.”

Relevant State structures were charged with sending all logs that have already been cut to Bissau, which will be confiscated and the fate of which will be determined at a future meeting of the Council of Ministers. Official figures point to over 140,000 illegally felled logs in the past 2-years. Figures showed that in February and March of this year exported more than 26,000 tons of wood, which provided tax revenue of 5.7 billion CFA francs.

[Macauhub 10/04/15]

Sierra LeoneTimber InvestmentThe CDC Group is investing US$15 million into London-based Miro Forestry to expand its current timber operations from 1,700 to 8,700 ha in Sierra Leone and Ghana. This is the equivalent of nearly quadrupling the number of eucalyptus and teak trees it can plant for timber to around 11.3 million.

Tanzania/KenyaDeal Signed To Tackle Illegal Timber TradeA Memorandum of Understanding [MOU] between the Tanzanian and Kenyan governments through their respective forest agencies was signed in Arusha, Tanzania. The Tanzania Forest Service [TFS] and the Kenya Forest Service [KFS] signed the agreement which outlines cooperative measures to improve the management of critical forest resources in the 2-countries. The MOU would, over the next 5-years, focus on trans-boundary collaboration around law enforcement to reduce illegal trade in forest resources such as timber and charcoal.

The agreement is the result of several years’ work by the World Wildlife Fund [WWF] and TRAFFIC. In recent years, concern has been growing over the expansion of illegal trade in forest products across the borders between Tanzania and Kenya. A study carried out by the East Africa Wildlife Society in partnership with the Tanzania Natural Resources Forum revealed that Tanzania may have lost revenues estimated at US$8.33 million annually due to inaccurate recording of volumes of forest products, under-valuation of timber and poles, illegal charcoal business and illegal harvesting and sales of logs moving across borders. The study also noted smuggling across the border at Horohoro/Lunga Lunga, Holili/Taveta and Namanga amongst others.

[Xinhua 24/03/15]

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MalawiPresident Opens Tobacco Auction MarketPresident Mutharika opened the 2015 Tobacco Auction Market on April 8 to kick-start tobacco leaf sales at Kanengo Auction Floors, in Lilongwe. Following the opening of the Kanengo Market, other markets like Limbe Auction Floors in Blantyre, Chinkhoma Market in Kasungu district and Mzuzu Auction Floors in the north will be opened throughout April. Within just 3-days of opening earnings hit US$2.5million.

So far the general pricing has been higher compared to last year. The prices at the market have been doubled showing that we are moving in the right direction.

Chief Executive Officer, Bruce Munthali, Tobacco Control Commission [TCC]

The average price is at US$2.32/kg compared to last year’s US$1.11/kg. Tobacco is the major foreign exchange earner and contributes to about 60% to the economy.

[APA & Star Africa 17/04/15]

Regulatory Body Unveils Maximum Tobacco PriceMalawi’s Tobacco Control Commission [TCC], the country’s tobacco regulatory body has released minimum and maximum buying prices for tobacco leaf at the Auction Floors.

- Burley tobacco minimum price: MK379 [85 cents] to MK2 007 [US$4.50] per kilogram [kg] - Flue-cured tobacco buying price: MK129 [25 cents] to MK1,784 [US$4] per kg - Dark fire: MK446 [US$1] to MK1,516 [US$3.40] per kg

Tobacco output has dropped by 10 million kilograms to 181 million compared to last year’s 191 million kg mainly due to dry spells and heavy rains experienced in the country. However the quality of the leaf is still good so farmers should expect a good price. The tobacco market opened on April 8th.

[Star Africa 31/03/15]

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33

COMMODITY NEWSTOBACCO

Government To Monitor 2015 Minimum Tobacco PricesPresident Peter Mutharika has assured tobacco growers that government will monitor the set minimum prices of 2015 tobacco marketing season. He said the minimum prices have been set by government but they might go higher than expected and urged tobacco growers to remain calm as the market season starts.

This year’s minimum price for burley is US$0.85 for the lowest grade while the highest grade is expected to attract US$2.50/kg. Flue cured tobacco has the minimum price of US$0.35/kg while the highest is expected to attract US$4/kg. Dark fired tobacco has a minimum price of US$0.25/kg for the low grade and US$3.40/kg for the highest grade.

With the World Health Organization’s [WHO] anti-smoking lobbying campaign, demand for tobacco is lower than in past years and advised crop diversification. The government will hold talks with foreign investors to continue buying Malawi tobacco. A number of foreign companies have already shown interest to invest in the tobacco industry. Latest projections show that the country has this year produced 181 million kg of all types of tobacco down 191 million kg in 2014.

[Malawi News Agency 09/04/15]

Universal Leaf InvestmentOne of Malawi’s major tobacco buyers Universal Leaf has promised to increase investment following a Presidential request for tobacco buying companies to raise levels. It will embark on research to identify problem areas and to ensure that the leaf is of the highest quality. President Mutharika has also requested for an increased quota on the US market. The 2014-2015 tobacco marketing season is currently in progress and the country expects to produce 181,000,000 kg of tobacco, of which 154,000,000 kg is burley, 25,800,000 kg is flue cured and 1,600,000 kg is dark fire cured tobacco.

[Nairobi Post 18/04/15]

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