Cocoa Statistics Report 2016 - camcafeperu.com.pe · • Market uptake: sales of UTZ certified cocoa • Program reach: UTZ certified cocoa production, premiums being paid and multi-certification

Cocoa Statistics Report 2016

Introduction

The main goal of this report is to present the scope and scale of the UTZ cocoa program in 2016. The statistics report is written in order to inform our stakeholders and is part of our commitment to transparency.

The statistics report focuses on the key indicators related to:

• Market uptake: sales of UTZ certified cocoa

• Program reach: UTZ certified cocoa production, premiums being paid

and multi-certification of this production

This report is part of the UTZ monitoring and evaluation system. Most of the data in this report is collected via our online traceability system, the Good Inside Portal.

We recognize that there may be shortcomings with the reliability of the data. We look forward to receiving your feedback. For more information, please contact the Monitoring & Evaluation Department at [email protected]

©2017 UTZInformation presented here is for informative purposes only. UTZ grants permission to use information for personal, non-commercial use, without any right to resell or redistribute information or to compile or create derivative works therefrom.

Content

1. Reach

2. First buyer sales

3. Premium

4. Estimated production

5. Supply-demand trend

6. Multi-certification

7. Conclusions

1. Reach The UTZ Cocoa program increased its reach to 20 countries and more than half a million farmers

Farmers in 20 different countries are part of the UTZ Cocoa Program Côte d’Ivoire, Ecuador and Ghana have the most UTZ members In 2016 we expanded our reach to Liberia

1. Reach The UTZ Cocoa program reached more than half a million farmers

The number of farmers increased by 32 percent, the Certified Area increased by 37 percent Largest absolute increase is seen in Côte d’Ivoire Largest growth in % is seen in Cameroon Estimated 11% of the cocoa farmers worldwide are UTZ Certified

614,508

2010 2011 2012 2013 2014 2015 2016

# of farmers

2,096,939

2010 2011 2012 2013 2014 2015 2016

Certified Area (ha)

3,600

6,884

10,539

14,405

18,625 17,645

23,675

2010 2011 2012 2013 2014 2015 2016

# of workers

2.1 Global sales of UTZ certified cocoaUTZ cocoa sales increased by 10% over 2016. Lion’s share of this is coming from West Africa, largest relative growth in Asia (+46%)

17,109 42,704

118,641

295,084

390,416

581,709

639,087

2010 2011 2012 2013 2014 2015 2016

MT

co

coa

bea

n e

qu

ival

ent

49%

32%

10%

‘First Buyer Sales’ are sales from the producer to the first buyer. Years are calendar years.

• Largest absolute growth (+ 32,796 MT) is accounted for by Africa• Largest relative growth (46%) is seen in Asia• Calendar year and crop year are not in parallel. If we compare per crop year,

the growth is stable around 35%

2.1 First buyer sales Per crop year shows stable growth of global first buyers sales

37%

34%

157,253 218,928

300,463

435,187 198,880

270,699

357,577

Oct 2013 - Sept 2014 Oct 2014 - Sept 2015 Oct 2015 - Sept 2016 Oct 2016 - Feb 2017

MT

co

coa

be

an e

qu

ival

ent

Oct - Feb March - Sept

356,133

489,627

658,040

‘First Buyers Sales’ are sales from the producer to the first buyer. Years are calendar years.

345,987

79,034

42,767 39,747 36,705 32,895 28,347 33,606

0

100,000

200,000

300,000

400,000

Côte d’Ivoire Ghana Indonesia Nigeria Ecuador Cameroon Peru Other*

MT

Co

coa

bea

n e

qu

ival

ent

2013

2014

2015

2016

2.2 Sales per origin country Increase in main UTZ producing countries except in Côte d’Ivoire

‘First Buyers Sales’ are sales from the producer to the first buyer.*Other includes Domincan Republic, DR of Congo, Sierra Leone, Uganda, Brazil, Tanzania, Vietnam, Nicaragua, Togo, Mexico, Panama & Colombia

-7% 25% 47% 58% 37% 412% 1% 16%Growth ‘15 – ‘16

2.3 Market uptake The uptake of UTZ cocoa by market continues; amount of new supply chain actors and approved SKU’s grew again

415

610

879

1,184

2013 2014 2015 2016

Number of Cocoa Supply Chain Actors

23%

3.1 Premium Average UTZ premium paid to producers in cash decreased by12%

112

122

102 102

89

2012 2013 2014 2015 2016

Average UTZ Premium in EUR/MT

UTZ premium calculations are based on transactions data recorded in the GIP. Values under 10 and above 350 EUR/MT are excluded from 2016 analysis.

Group member premium (in cash)

Average of 56 EUR/MT

Management

76% of groups use UTZ premium for their IMS

53% of groups use UTZ

premium to pay for their

external audit

Products & services to the group 78% of groups

use UTZ premium to

provide technical

assistance

62% of groups

use UTZ premium

to provide productive

inputs

31% of groups use UTZ premium for basic

community services

55%

Based on data from 2013/2014 time period

3.2 Premium transparencyOn average 45% of UTZ premium is used to further professionalize at coop level, 55% is paid in cash to group members

UTZ Statistics Report 2016

4. Global Estimated ProductionAfter some stabilization now significant growth of the estimated production of UTZ certified cocoa to over a 1 million MT

70,228

212,690

534,614

691,490

879,771 917,603

1,188,166

2010 2011 2012 2013 2014 2015 2016

MT

29%

4%

27%

Estimated production is based on license information from licenses valid on December 31st 2016

661,876

181,365

72,955 59,626 58,018 47,871 35,526 70,930

0

200,000

400,000

600,000

800,000

Côte d’Ivoire Ghana Nigeria Ecuador Indonesia Peru Cameroon Other*

MT

2013

2014

2015

2016

4.1 Estimated production per origin countryIncrease in estimated production in main origin countries

36% 7% 3% 49% 10% 49% 226% 12%Growth ‘15 – ‘16

Estimated production is based on license information from licenses valid on December 31st 2016*Other includes Dominican Republic, Sierra Leone, DR of Congo, Uganda, Tanzania, Brazil, Vietnam, Liberia, Colombia, Togo, Nicaragua, Mexico & Panama

5. Supply-demand trendsDecrease in supply/demand ratio to 54%, because foreseen supplygrew faster than demand for certified cocoa over the calendaryear

30% 32%

43% 44%

63%

54%

2011 2012 2013 2014 2015 2016

% of estimated production sold as UTZ

52%58%

72%

Africa Latin America Asia

Supply demand: 2016

Supply Demand is based on first buyers sales and estimated production 2016. It indicates a trend but not an absolute number.

6. Multi-certificationIncrease in multi-certification due to increase in Africa

51%

10%

40%

11%

34%

8%

24%

10%

25%

7%

16%

8%

33%

10%

22%

8%

Multi-Certified Fair Trade RFA Organic

2013 2014 2015 2016

Multi-certification represents the volume of estimated production that was UTZ certified as well certified for one or more other schemes Multi –Certified includes both FT, RFA, Organic certification as other schemes such as SPP, SASSANDRA, PROJET QPP, HACCP, FERMICOA, CROP LIFE, CP, COSTCO, coco life & COCOA TRACERFA = Rainforest Alliance

7. Conclusions

We see a growing demand and interest

in UTZ Certified cocoa:

100% commitment to sustainable

sourcing by 2020 of leading

retailers & brands main reason for

growth in volumes

New markets opened by new

member and companies

Continuous growth of market commitments for UTZ Certified

New insights in premium distribution

Higher reach of UTZ cocoa program

The UTZ cocoa program has been able

to grow and increase its reach:

32% more certified farmers

29% higher estimated production

The top UTZ producing cocoa

countries reflect the world

distribution of cocoa production

New and increased investments in

Nigeria and Cameroon contribute

to a broader supply base

11% or more than half a million of

cocoa farmers worldwide are part

of the UTZ cocoa program

Within a farmer group, the UTZ premium is split across different types of costs:

Farmer premium: On average 55%

is paid in cash to group members.

Group management: eg. 76% of

groups use UTZ premium for their

IMS

Products and services used for the

group: eg. 78% of groups use UTZ

premium to provide technical

assistance