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Caobisco The Association Of Chocolate, Biscuit & Confectionery Industries Of Europe

Caobiscocaobisco.eu/public/images/page/caobisco-21122012164028...Didier R. Focking Sabine Nafziger President Secretary General Foreword 4 1 Caobisco, in collaboration with ICA, releases

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CaobiscoThe Association Of Chocolate,

Biscuit & Confectionery Industries

Of Europe

iCaobisco’s mission is to support its member companies’ freedom to market their products in a flexible and responsible manner and to support the development of an innovative, sustainable, competitive and creative chocolate, biscuit and confectionery industry in Europe that represents the values of its member companies.

The Mission Of Caobisco Is To:

• Sustain the safety, quality and taste of their products, whilst maintaining the culture and tradition of their origins;

• Facilitate the development of regulatory framework at national and European level in which all chocolate, biscuit and confectionery manufacturers can operate and compete effectively;

• Ensure that raw materials are sourced and products manufactured in a responsible manner from an economical, environmental and social point of view.

Caobisco’s Commitments To Its Members Are:

• Developing a legal and political environment consistent with the economic interest of our Industry;

• Having a constructive and continuous dialogue with all stakeholders in our business environment;

• Promoting representation at national level across the EU;

• Advising and inspiring policymakers responsible for Community and international legislation, by discussion and debate and developing positions drawn up by experts from the industry;

• Working closely and actively with other organisations on dossiers of common interest, to guarantee a consistent legislative framework, propitious to the development of its industries.

• Promoting the image of its industries as responsible and law abiding and maintaining the confidence of the authorities and our consumers.

• Defending the principles of fair competition and industrial ethics.

• Acting as an effective source of information about our industry and a contact point for the media in Europe and globally.

• Encouraging and promoting the spirit of co-operation and solidarity among our members and national representatives.

Caobisco Mission

2

ii

i Caobisco Mission 2

ii Table Of Contents 3

iii Foreword 4

1 Caobisco In Figures 5 Production 6 Trade 8 Trade Partners 10

2 Caobisco Membership 11

3 Organisation Of Caobisco 13

4 Caobisco Working Partners 15

5 Raw Materials Supplies 16 Common Agricultural Reform 16 EU Sugar Market 18 Dairy Market 20 Cereals Market 22

6 Competitiveness 24 Origin Rules In Preferential Trade Agreements 24

7 Food Information 26 Labelling: Industry Efforts To Better Inform Consumers 26

8 Health & Nutrition 28 Claims: Healthier And Innovative Products 28 Ingredients: Providing Consumer Choice 28

9 Food Safety 30 Raw Materials:Safe, Sustainable And Quality Raw Materials In The Supply Chain 30 Product Safety: Industry Efforts To Mitigate Acrylamide 30

10 Food Taxes 32

11 Sustainability in Cocoa 34 12 Sustainability In Hazelnuts 38

13 Responsible Sourcing Guidelines 39

14 Communication 40

15 Notes 43

16 Caobisco Secretariat 44

Table Of Contents

3

iiiForeword From The President & The Secretary General

2011 has been an intense year of activity for Caobisco. Our efforts have been focused on creating a favourable and clear framework for our industry. Particularly in this period of uncertainty, the business needs a comprehensive and sustainable view on how to further develop. This is why the European policy and regulatory developments have been at the core of Caobisco work programme.

We are pleased to share with our members and stakeholders this annual report which summarises the events, challenges, regulatory and policy developments which have triggered our reactions and inputs.

Our key concern is related to the lack of vision in the proposed policy developments which will affect the competitiveness of our industries in the long term in particular with respect to:

• The access to raw materials in quality and quantity required for the sustainability of our businesses in the EU which is still an issue according to the EU proposals reviewing the CAP (Common Agricultural Policy),

• The need for enhanced support from the EU and national policy makers to research and innovation in our product categories providing the right policy framework for the development of new options and thus consumer choice.

• The acknowledgement that our companies operate within supply chains that are global and thus the need for a strong EU policy approach supporting public/private partnerships in issues related to the social pillar of sustainable development.

We look forward to continuing our constructive dialog with the EU and National authorities on these matters as well as with our partners in the supply chain from the Farm to the Fork.

We would like to take this opportunity to thank the EU decision makers for their openness to listen to our industry whose main endeavour is to bring joy and pleasure into people’s lives whilst being committed to the sustainable development of our society.

As we are operating in a global environment we have also increased our relations with the American association (NCA) with the aim to align and share our views.

We seize the occasion to thank the Chairs of Caobisco committees for their involvement in time and expertise, as well as all committee members. The work of Caobisco strongly relies on your active participation and your engagement in Caobisco actions is much appreciated.

We would also like to thank the whole Caobisco team in Brussels for their dedication and professionalism.

We wish you an interesting read.

Didier R. Focking Sabine NafzigerPresident Secretary General

Foreword

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1

Caobisco, in collaboration with ICA, releases each year a Statistical Bulletin providing key information illustrating the importance of Caobisco sectors on the economic scene of the European Union, an international comparison of production, import/exports and consumption of products of the chocolate, sugar confectionery and biscuit industries for the European Countries and other third countries (EFTA, Turkey, the USA, Australia, Japan and Brazil).

2012 Caobisco Statistical Bulletin

Caobisco In Figures

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1Production

Production Trend (in ‘000 tons)Source: Caobisco Statistical Bulletin 2012

The production in the three sectors of Caobisco seems to have perked up in 2010 in the EU. It is to note that figures of 2010 include the Turkish production, which explains the big step forward of sugar confectionery production. Please also note that the top part of the bars (in lighter tone) give an idea of the production in Australia, Brazil, Japan and USA (except for fine bakery wares, where only figures of Japan are available).

Exception made of Turkish figures, sugar confectionery gained 17.3% in 2010 and reached its highest level since 2005. Chocolate showed a raise of 2.1% but remained below the 2005 level. Biscuits production increased by 2.4% in 2010, which represents a raise of 8.8% compared to 2005.

Caobisco In Figures

Sugar Confectionery

2008

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

0

1,755,145

2,04

4,225

1,827,655

1,709,4

95

1,923,010

2,227,545

3,298,430

3,102,623

3,137,290

2,204

,835

2,183,275

2,226,410

4,855,4

20

4,775,28

1

4,8

82,8

10

240

,250

242,650

249,0

00

2009 2010 2008 2009 20102008 2009 2010

Chocolate Confectionery Fine Bakery Wares

7,000,000

6

1Caobisco In Figures

Germany - 2.323 Sweeden - 196

34%44%22% 47%31%23%

Spain - 800

58%

13%

29%

Switzerland - 228

21%63%16%

France - 807

49%29%22%

Poland - 400

38%49%14%

United Kingdom - 1.237 Belgium - 451

46%41%46%35%19% 12%

Italy - 983

66%23% 71%22%

Netherlands - 384

11% 7%

Sugar Confectionery Chocolate Confectionery Fine Bakery Wares

Main European Producing Countries Total Production Breakdown.Not Including Cyprus, Luxembourg & Malta Source: Caobisco Statistical Bulletin 2012

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Germany, the UK and Italy confirmed their top-rank position as biggest European producing countries for the three sectors together. The UK maintained its second place despite a slight decrease in production. Positions in the middle of the table remained stable. It is to note that half of the top ten countries have experienced a fall of production in 2010.

As shown in the table, the production of fine bakery wares is dominant in the Netherlands, Italy and Sweden. Switzerland, Poland and Germany produce more chocolate. And the countries where the share of sugar confectionery in total production is highest are Spain, the Netherlands and Germany.

1Trade

Share Of Caobisco Sectors In EU Food & Drink Exports, 2010 (%)Source: Eurostat (comext)

Trade Balance Of Caobisco Products 2005 - 2010 (’000 Euros)Source: Caobisco Statistical Bulletin 2012

After a slight slow down in 2009, exports of Caobisco products have recovered well in 2010 and reached their highest level since 2007 (for EU27). Imports gained 12.4% and continued their up and down pattern.

Caobisco In Figures

Drinks 29%

Meat 12%

Fish & Seafood Products 4%

Prepared Meals & Dishes 4%

Dairy Products 12%

Oils & Fats 5%

Bakery & Farinaceous Products 4%

Grain Mill & Starch Products 3%

Other 12%

Prepared Animal Feeds 3%

Processed Fruits & Vegtables 6%

Chocolate & Confectionery 6%

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

02005 (EU25)

2,227,374

3,278,925

1,00

7,552

2,778,266

3,917,278

1,139,021

2,295,563

4,10

3,585

1,118,022

3,183,0

85

4,383,922

1,200

,837

3,195,929

4,310

,591

1,114,662

3,634,0

87

4,8

86,320

1,252,233

2006 (EU25) 2007 (EU27) 2008 (EU27) 2009 (EU27) 2010 (EU27)

Trade Balance Total Exports Total Imports

8

1

Extra EU Exports 2005 - 2010 (’000 Euros)Source: Caobisco Statistical Bulletin 2012

The three sectors showed an increase of their exports in 2010; Chocolate confectioneries exports experienced the biggest growth (17%), followed by fine bakery wares (13%) and sugar confectionery (3.7%).

Caobisco In Figures

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

0

562,435

1,311,157

1,40

5,333

3,278,925

599,222

1,658,091

1,659,973

3,917,287

607,712

1,835,0

48

1,660,8

24

4,10

3,584

628,290

1,937,139

1,818,4

93

4,383,922

616,940

1,88

1,576

1,812,0

75

4,310

,591

639,681

2,200

,478

2,04

6,161

4,8

86,320

2005 (EU25) 2006 (EU25) 2007 (EU27) 2008 (EU27) 2009 (EU27) 2010 (EU27)

Sugar Confectionery Chocolate Confectionery Fine Bakery Wares Total

9

1Caobisco Trade Partners

The Origins Of Extra EU27 Imports In 2011Source: Eurostat

As in 2009, the EU imports principally came from EFTA, despite a small decrease in the profit of Asia/Australia and Mediterranean countries. Top chart is occupied by Switzerland, Turkey and China.

The Destinations Of Extra EU27 Exports In 2011Source: Eurostat

NAFTA (North American Free Trade Agreement) is the main destination of EU exports – with the USA representing 13.9% of total EU exports. The second top destination is EFTA (European Free Trade Agreement) with Switzerland and Norway occupying respectively the second and third places in the top 10 destinations.

Caobisco In Figures

EFTA 43%

Balkans 4%Asia / Australia 18%

NAFTA 9%

Mediterranean 13%

Latin America / Caribbean 3%

Africa 5%

CIS 5%

Australia / Asia 18%

Latin America / Caribbean 3%

Africa 2%

NAFTA 22%

Mediterranean 9%

Gulf Countries 10%

CIS 10%

Balkans 5%

EFTA 20%

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2Caobisco MembershipFULL MEMBERS

National Associations in Europe

AUSTRIA Fachverband der Nahrungs-u. Genussmittelindustrie Oesterreichs www.dielebensmittel.at

BELGIUM Choprabisco www.choprabisco.be

DENMARK The Chocolate, Confectionery Industries & The Bakery Industries www.foedevareindustrien.di.dk

FINLAND Finnish Food industries’ Federation www.etl.fi

FRANCE L’Alliance 7 www.alliance7.com

GERMANY Bundesverband der Deutschen Süsswarenindustrie e.V. (BDSI) www.bdsi.de

IRELAND Food and Drink Federation www.fdii.ie

ITALY Associazione delle Industrie del Dolce e Della Pasta Italiane (AIDEPI) www.aidepi.it, www.dolceitalia.net

NORWAY The Norwegian Association of Chocolate Manufacturers (NACM)

PORTUGAL Associação dos Industriais de Chocolates e Confeitaria (ACHOC)

SPAIN La Asociación Española del Dulce (PRODULCE) www.produlce.com

SWEDEN Swedish Food Federation www.li.se

SWITZERLAND Chocosuisse-Biscosuisse www.chocosuisse.ch, www.biscosuisse.ch

THE NETHERLANDS Vereniging voor de Bakkerij-en Zoetwarenindustrie (VBZ) www.vbz.nl

UNITED KINGDOM BCCC Sector - Food & Drink Federation www.fdf.org.uk

Direct Member Companies

BARILLA www.barillagroup.com FERRERO www.ferrero.com KRAFT FOODS www.kraftfoodscompany.comMARS www.mars.comNESTLÉ www.nestle.com UNITED BISCUITS www.unitedbiscuits.com

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2Observers Members

HUNGARY HUNBISCO www.hunbisco.hu

POLAND POLBISCO www.polbisco.pl

SLOVENIA Chamber of Commerce and Industry of Slovenia, Food Industries Association www.gzs.si

TURKEY COMART Kurumsal İletişim Hizmetleri www.semad.org

Affiliated Members

GREECE Ion www.ion.gr

MALTA Foster Clarck Products Limited www.fosterclarck.com

Caobisco Membership

12

3Organisation Of Caobisco

Pesticides

Heavy Metals

PAH

Ochratoxin A

STATISTICALNETWORK

Secretariat:S. NAFZIGERM. KORTER

ECONOMICAFFAIRS

Chair: D. Di NATALEDirector: M. KORTER

REGULATORY &SCIENTIFIC AFFAIRS

Chair: R. WOODDirector: P. ALEXANDRE

SUSTAINABILITY& CSR*

Chair: A. CRISTIANOManager: P. BYRNE

COMMUNICATIONNETWORK

Chair: S. PETERS-HALFBRODTManager: L. VICCA

CAP Expert Group

Dairy Expert Group

Sugar Expert Group

Cereals Expert Group

Nuts Expert Group

Hazelnuts Task ForceHealth & Nutrition

Palm Oil Task Force

CEN Task Force

Cocoa Productivity & Quality WG**

Cocoa Research WG**

Child Labour Task Force**

CRS Task Force**

Trade & Development Task Force**

Fusarium ToxinsTask Force

Caobisco/ECA JointCocoa Contaminants WG

Acrylamide Task Force

Residues

Hygiene WG

GENERAL ASSEMBLY

President: D. FOCKINGVice-President: F. CERULLI

Vice-President: T. BACHMÜLLER

GENERAL COUNCIL

President: D. FOCKINGSecretary General: S. NAFZIGER

EXCO

President: D. FOCKINGSecretary General: S. NAFZIGER

* Cocoa Sustainability is one of the main focuses of the joint committee. The committee will be supported by cocoa

technical and communication experts to ensure a long-term sustainable supply of quality cocoa.

** Joint Caobisco/ECA/FCC/WCF bodies

PRESIDENT OF Caobisco | Didier R. FOCKING

SECRETARY GENERAL | Sabine NAFZIGER

VICE-PRESIDENTS | Filippo CERULLI IRELLI | Tobias BACHMÜLLER

TREASURER | Jos LINKENS

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3Caobisco coordinates the work of more than 380 experts through its committees and expert groups. These groups share their broad knowledge and in-depth expertise to establish Caobisco positions and communications.

With the view to encourage the synergies within the supply chain and optimise input some committees are joined with partners organisations.

Organisation Of Caobisco

Caobisco Committees

ECONOMIC AFFAIRS

Chair: Damiano DI NATALEVice-Chairperson: Leonardo MIRONESecretariat: Muriel KORTER

EXPERT GROUPS

CAP Chair: Bert de MEESTER

DAIRY Chair: Leonardo MIRONE

SUGAR Chair: Robert GUICHARD

CEREALS Chair: Filippo CERULLI IRELLI

NUTS Chair: Rossano BARBIERI

Sustainability & CSR*

Chair: Aldo CRISTIANO & Martin GILMOURSecretariat: Paula BYRNE

Expert Groups

HAZELNUTS TF

PALM OIL TF

CEN TF

COCOA PRODUCTIVITY & QUALITY WG*

COCOA RESEARCH WG* Chair: M.GILMOUR

CHILD LABOUR TF*

CSR TF*

TRADE & DEVELOPMENT TF*

Regulatory & Scientific Affairs

Chair: Richard WOODVice-Chair: Robert VAN BREENSecretariat: Pénélope ALEXANDRE

Expert Groups

HEALTH & NUTRITION Chair: Sylvie CHARTRON

RESIDUES Chair: Claudine VANDEMEULEBROECKE

ACRYLAMIDE TF Chair: Richard STADLER

FUSARIUMS TOXINS TF Chair: Robert VAN BREEN

COCOA CONTAMINANTS*Co-Chaired By Caobisco & ECA

PAH TF Chair: Ron HEISTEK

OTA TF

PESTICIDES TF Chair: Marc JONCHEERE

HEAVY METALS TF Chair: Martin GILMOUR

HYGIENE Chair: Gerhard NEUBERGER

Communication

Chair: Sabine PETERS-HALFBRODTVice-Chair: Hilary PARSONSSecretariat: Laurence VICCA

*Joint Caobisco/ECA/FCC/WCF bodies

14

4Caobisco Working PartnersEUROPEAN INSTITUTIONS

Commission, Parliament& EU Council

INTERNATIONAL BODIESWTO, Codex, WHO,

ICCO, Etc.

INTERNATIONAL ACTORSICA, WCF, ICI, Etc.

EU MEDIASCIENTIFIC COMMUNITYCIRAD, INRA, EFSA, Etc.

CIVIL SOCIETYBEUC, Voice, Etc.

INDUSTRY REPRESENTATIONFoodDrinkEurope, CIUS, ECA, ESA,

UNESDA, Eurocommerce, Etc.

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5 Raw Materials SuppliesCommon Agricultural Policy Reform

2011 was the year of the new reform of Europe’s Common Agricultural Policy (CAP), as announced by the European Commission Communication on “CAP reform” in October 2010. The legislative proposals published in October 2011 were preceded by an own-initiative Report on the CAP reform by the European Parliament’s Agriculture Committee which in general pointed at the need to postpone a review of the CAP from 2014 to 2020.

On the basis of its 2010 CAP Reform Position Statement, Caobisco actively prepared its reactions and raised its concerns suggesting further amendments to the Report, which also served as a basis for dialogue in regular meetings with different units of the European Institutions.

Furthermore, Caobisco contributed to the Commission impact assessment of the current CAP through public consultation to well represent the users’ views.

On 12 October 2011, the Commission published its long awaited CAP Reform proposals alongside its impact assessment. The proposals included the following key objectives of the reform:

1. Better targeted income support in order to stimulate growth and employment.2. Tools to address crisis management which are more responsive and better suited to meet new

economic challenges.3. More market orientation.4. Abolition of the sugar quota regime. On the publication of the legislative proposals, Caobisco issued a press release entitled ‘Caobisco welcomes the abolition of production quotas but regrets the lack of ambition in the CAP reform proposal”. Caobisco demonstrated a strong support to the Commission reference on the abolition of sugar production quotas as of 2015 onwards and it also stressed the need for more market orientation.

November ‘s Caobisco event, “The Challenges of future commodity sourcing for Caobisco industries”, focused precisely on the CAP reform and delivering Caobisco key messages to external stakeholders involved directly or indirectly in shaping the Commission proposals on CAP reform into law.

Caobisco Key Objectives

• More market orientation in order to make farming a demand-driven part of the food production chain and ensure manufacturers have access to adequate supplies of raw materials that are safe, of high quality and competitively priced.

• Abolition of dairy and sugar production quotas in the context of an increasing global demand for food.

• Taking into account increased market volatility, the development and use of price risk management.

• Tools

• Private Storage Aid (PSA) schemes to contribute to strategic management of stocks.

• Investment in measures aimed at sustainable intensification of the European agricultural production to meet challenges of food security, resource scarcity and climate change.

• Take into consideration the growing volume of research demonstrating the negative impact of first-generation biofuels production on raw materials supply and volatility, the EU Institutions can no longer support the diversion of food crops into fuel.

• Effective market-based mechanisms should be brought in place to correct market imbalances and to guarantee effective access of the food industry to third country raw materials when necessary.

16

“ More market orientation in order to make farming a demand-driven part of the food production chain and ensure manufacturers have access to adequate supplies of raw materials that are safe, of high quality and competitively priced.”

17

5 Raw Materials SuppliesEU Sugar Market

In 2011, sugar users faced great difficulties in finding sugar volumes needed to continue to produce Caobisco products: specialities were hard to find across Europe and suppliers were defaulting on contracts. Import estimations of the Commission had once again dropped in volume, leaving no room but to take other measures to help the situation, which were far from satisfactory. In May, the market reached a very critical stage as regards forecasts of supply for the end of the campaign year and the next one.

Based on its recommendations to ease the sugar supply tightness on the market CIUS/Caobisco achieved the application of the following measures during Marketing Year 10/11:

• Suspension of the decision to export out-of-quota sugar onto the world market (3 times)

• Reduction of the CXL Import Duty to Zero (650,000T)

• Release of out-of-quota sugar onto the market (500,000T)

• Opening of a TRQ at zero import duty (300,000T)

• Opening of second TRQ at Zero import duty (200,000T)

• Tendering system based on 5 tenders opened to users with reduced import duty.

From May 2011 onwards, new market measures were introduced to try and help the supply situation under the impulse of Caobisco via the Sugar Users Association, CIUS. Unfortunately these measures came too late in order to help the supply on the market and postponed the supply issue to the following marketing year starting in October 2011.

Partly taking into consideration our concerns regarding changes in the management of the sugar market, the Commission;

• announced in June 2011 that extraordinary measures taken last year could apply again the next marketing year, in order to encourage beet growers to seed more;

• indicated that the end of stock levels needed to be as high as CIUS users recommended (above 1.8 million tonnes) in order to avoid a supply deficit that could end up being dramatic to users;

• strongly suggested to Member States to apply 2 extraordinary market measures as soon as December 2011: a tendering on out-of-quota sugar reclassification and another import tendering quota at reduced import duty.

Meanwhile and as regards the mid and long-term sugar market organisation, the Commission published its CAP reform proposals. These included the elimination of sugar production quotas as of 2015 onwards and respond positively to the strong request made by CIUS and Caobisco. However, this proposal is only a small element of the overall CAP Reform and chances that the European Parliament and the Council adopt the Commission proposal are not guaranteed.

Since the ratification of the Lisbon Treaty, agricultural policy falls into co-decision procedure with the European Parliament. Discussions on the endorsement of the abolition of production quotas in 2015 will continue throughout 2012, with a view to adopt the whole CAP Reform package through qualified majority in December 2013.

Caobisco activities via CIUS have stepped up as regards the sugar market reform late 2011, with an ambitious outreach programme towards all 27 Member States and members of the European Parliament.

Furthermore, CIUS commissioned a study that would analyse different reform scenarios and its consequences to sugar users. It was used to draft any new communications in the future, backed up by independent factual data and allowed members to understand and anticipate eventual risks generated by different scenarios of the sugar market reform.

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“ There is a clear need to establish market dynamics in the EU sugar market. This will help the whole value chain to meet the many supply and sustainability challenges of the future. Restrictive EU production quotas have little place in meeting the challenges of delivering EU and global food security. Particularly due to the current supply difficulties sugar users are facing.”

19

5 Raw Materials SuppliesDairy Market

The Dairy Reform package proposed by the Commission was published December 9th 2010. It included a transitional growth of production quotas by 1% until the elimination of them in 2015. This was welcomed by dairy users although the measure was not very significant as regards of the increase of dairy supply on the EU market, due to high protection on imports. The CAP reform proposals published October 12th 2011 reiterated the end of production quotas in 2015, which was welcomed by Caobisco. Furthermore the proposed ceiling foreseen for intervention stocks on the dairy market seemed reasonable to users who expressed support to the European Commission.

As regards private storage aid, Caobisco positioned itself on the support of the maintenance of the market measure for SMP and butter. Caobisco approached the Commission, the supply chain and Member States on the extension of the aid to concentrated butter for following reasons:

1. Concentrated butter is more stable than fresh butter and quality does not change during warehousing.

2. Warehousing costs are much lower compared to fresh butter (because storage does not need below zero temperatures).

3. Several industries (chocolate and bakery sectors) need this butter that does not contain water for technological reasons.

4. To produce concentrated butter out of fresh butter instead of fresh cream is very inefficient and expensive: 82% butter has to be warehoused in PSA as frozen, than unpacked when needed, melted, concentrated and then repacked and delivered.

20

“ Caobisco members are significant users of dairy ingredients and support the use of dairy ingredients from EU origin. Like other stakeholders in the dairy supply chain, Caobisco members need a sustainable supply of dairy ingredients.”

21

5 Raw Materials SuppliesCereals Market

The EU cereals market is the most liberalised market in the European Union and prices for cereals are the same as on the world market. Therefore, the European supply of cereals highly depends on the world market situation.

According to public information, average prices on cereal products suddenly sky rocketed in April 2011, showing high volatility on the market. Factors that influenced the price rise were manifold in 2011: the economic crises in US, EU and China, planting in Russia and Argentina, extreme price volatility, investment funds involvement and of course, exchange and interest rates variations.

In October 2011, wheat production and consumption trends were more or less aligned, although due to the increase in maize consumption, world stocks of cereals have experienced a significant downward trend, which required careful monitoring by Caobisco.

The tightness of supply in general has led to a reflection by Caobisco members on the possibility to introduce private storage for wheat in order to limit extreme market volatility (besides Futures and Derivatives Markets) Caobisco has also reacted to the Commission CAP Reform proposals stressing the importance to stimulate efficient productivity for a sustainable supply of high quality cereals.

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23

6 Competitiveness Origin Rules In Preferential Trade Agreements

Preferential rules of origin apply with countries that have a preferential trade agreement with the EU and in this context the rules of origin are fundamental to determine the customs duty to be paid according to the origin and manufacture of the product and its related content/ingredients.

Related to this issue, a new Regulation determining preferential rules of origin under the General System of Preferences (GSP) after numerous modifications and consultations was published on 2010 entering into force from 1 January 2011. According to the Commission, the aim of this new Regulation was to simplify rules and procedures for developing countries wishing to access the EU’s preferential trade arrangements, while ensuring the necessary controls are in place to prevent fraud.

The Regulation took into account the request from nearly all stakeholders and Member States on the need for a sectoral approach in the determination of origin of food products based on weight and no longer on the value criteria. For Caobisco products for instance, it has been determined that the product imported from GSP countries with a preferential trade arrangements could only include a limited percentage in weight of non-originating raw materials (i.e. maximum 40% of the final weight for sugar or dairy and 60% for sugar and dairy combined).

The GSP Regulation concerned only imports from a specific list of developing countries and thus affected only the origin of products imported from these countries. However, since the beginning of 2011, the Commission decided to negotiate reciprocal rules of origin in new bilateral Free Trade negotiations on the basis of the GSP criteria (based on weight and no longer on value), meaning that the determination of origin would also affect products produced in the European Union and exported to Third Countries (if these rules are accepted by both Parties during the FTA negotiations).

Taking into consideration that since the 2006 sugar market reform made the EU dependant on 20% imported sugar supply with the consequence that Caobisco industries are and will be more and more dependant in using non-originating materials in their products, the Commission’s decision could have serious negative consequences on the Caobisco’s export business and competitiveness.

Consequently, on the basis of the above mentioned reasons, Caobisco has requested the maintenance of the current system based on value in all existing agreements otherwise many Caobisco products would fall outside of the rules and they will seriously risk losing the opportunity to benefit from preferential access to third country markets.

Therefore Caobisco actively raised its concerns about this issue asking the Commission:

• To ensure that preferential origin rules on sugar negotiated are as less restrictive as possible in the use of non-originating materials in times of supply deficit on the EU market.

• To discourage the Commission to negotiate in bilateral talks with third countries on the weight criteria for sugar for our products but rather on value as in the past;

• Advocate accounting segregation in order for suppliers to store non-origin sugar with EU sugar without the whole storage being identified as non-originating.

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“ Caobisco’s priority is to maintain and enhance its export competitiveness by prevailing and improving market access opportunities through bilateral trade agreements.”

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8 Food InformationLabelling: Industry Efforts To Better Inform Consumers

The EU Regulation on ‘Food Information to Consumers’ was published. Major changes are proposed to promote better consumer understanding of labelling. Caobisco is committed to supporting improved information. However, the Regulation has the following consequences for Caobisco products:

• Mandatory minimum font size of 1.2 mm.

• Mandatory nutrition labelling.

• Voluntary origin labelling rules but so complex (indicating origin of several ingredients in the case of a statement of [finished] product origin) that it will discourage Industry from declaring origin.

• Highlighting allergens in the ingredients list.

Caobisco remains committed to promoting the labelling of energy per portion front-of-pack and providing more comprehensive nutrition labelling back-of-pack. To this end, Caobisco has developed a brochure, available on the FoodDrinkEurope website, to better understand how portions have been defined by Industry and to help all understand the underlying rationale.

On origin labelling, due to the complex sourcing of ingredients, Caobisco is keen to maintain a flexible and voluntary approach.

Caobisco is working with FoodDrinkEurope on Industry guidance for implementation of this complex legislation.

26

“ Caobisco industries are committed to providing necessary nutrition information and encourage consumers to make informed choices around diet and health through on-pack information and GDA labelling.”

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9 Health & Nutrition Claims: Healthier & Innovative Products

The EU Nutrition and Health Claims Regulation outlines that nutrient profiles should be established and used to evaluate whether a product can bear a claim or not. The latest available Commission proposal for nutrient profiles totally excluded chocolate and cocoa-based products as well as some sugar confectionery. In addition to this, the criteria proposed for Fine Bakery Wares were not appropriate. As a consequence of the proposal, very few Caobisco products would be able to bear claims. Development of nutrient profiles is on hold at Institutional level due to strong opposition from some Industry sectors, as it is felt that the proposal was discriminatory to their food categories.

The ability to innovate and remain competitive is key for our industry. Caobisco sectors would like to be able to inform consumers about new and improved products. Without being able to communicate to consumers the efforts Industry is making to improve the nutritional composition of its products, the incentives to research, develop and innovate in our sector would be significantly reduced.

Caobisco is in continuous dialogue with the EU Commission, National Ministries of Health and Consumer Organisations on this topic and has developed positions which would allow only the healthier products of a food category to bear claims.

Caobisco has been encouraging the EU Commission to introduce in the annex of the Nutrition and Health Claims Regulation the possibility to claim a reduction of at least 15% for Calories, saturated fats, sugars and salt. This type of claim would inform the consumers of efforts made by our Industry to improve the nutritional composition of products.

Ingredients: Providing Consumer Choice Caobisco has been supportive of the recent EU authorisation of the sweetener steviol glycosides (from stevia) in confectionery and Essoblaten. This new authorisation is seen by the sector as an incentive to innovate. Industry is constantly under pressure from authorities to demonstrate efforts to provide consumers with healthier alternatives.

In addition, the EU Commission has been reviewing all additive authorisations. This review could greatly impact Caobisco products, since additives are often an important part of the product composition and affect its characteristics. Deletion of one authorisation could change the nature of a product. For that reason Caobisco and its member associations have been working together with the EU Commission and national authorities to provide data on why particular additives are necessary. Particular focus has been given to colours. Colour is key to providing an appealing appearance to confectionery and help consumers differentiate flavours.

Caobisco is committed to promoting maintained usage of all additives proven to be safe.

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“ Without being able to communicate to consumers the efforts Industry is making to improve the nutritional composition of its products, the incentives to research, develop and innovate in our sector would be significantly reduced.”

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9Raw Materials: Safe, Sustainable & Quality Raw Materials In The Supply Chain

Where raw materials are produced in developing countries, regard should be given to agricultural practices in the production of those raw materials.

For example, Caobisco in conjunction with the cocoa supplier organisations, the European Cocoa Association (ECA), the Federation of Cocoa Commerce (FCC), International Cocoa Organisation (ICCO), and Cocoa-Producing Countries, has been working hard to eliminate any safety or quality issues related to cocoa raw materials by promoting and implementing Good Agricultural Practices on the ground. This coordinated action has ensured that cocoa beans exported to the EU will comply with adopted EU Regulations on contaminants and pesticide residues.

Caobisco has been promoting Recommendations on Good Agricultural Practices for cocoa to cocoa producing countries and will promote them at the next Cocoa Producing Countries Alliance Scientific Conference which will take place in October 2012 in Cameroon.

Caobisco, in conjunction with ECA, has been very active in working with cocoa producing countries, the European Commission and national authorities on an EU Commission proposal setting levels for cadmium, in order to achieve the adoption of legislation which ensures at the same time the highest consumer protection standards and workable levels for cocoa producing countries.

Product Safety:Industry Efforts To Mitigate Acrylamide

Caobisco has been vigorously promoting efforts made by Industry to mitigate acrylamide in Fine Bakery Wares and has participated in the updating of the EU Commission pamphlet promoting mitigation tools for acrylamide reduction in Fine Bakery Wares and in the FoodDrinkEurope “toolbox”, which offers more complete information on those mitigation tools. Those updated Commission pamphlets will be available freely for all companies on the Commission website in all EU languages and vigorously promoted by Caobisco to all its manufacturers including companies which are not members of the organisation such as small enterprises.

The update was based on the outcome of several research, pilot and industrial scale projects that our Industry has conducted since acrylamide was first discovered.

Several Industry workshops have been organised, in conjunction with Caobisco member associations, in various EU countries - to train our Industry, especially on how to reduce acrylamide levels in our products to as low as is achievable.

Food Safety

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“Caobisco industries are committed to provide their consumers with products that are safe and produced in respect of European legislation and other established international standards.”

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Food Taxes In 2011, Denmark, Finland and Hungary decided to impose or increase taxes on confectionery and fine bakery wares.

Such measures were positioned by those governments as tools for promoting healthier diets.

Our Industry has expressed its serious concerns about this alarming trend.

Caobisco members firmly believe that measures such as the so-called “sugar tax” or “fat tax” constitute discriminatory fiscal measures, posing serious problems of compatibility with the good functioning of the EU internal market. In fact, despite the “health benefits” claimed by certain EU Governments, no scientific evidence links such benefits to the introduction of “food taxes”.

On the contrary, what is clear and evident to us is the unfairness of such types of taxes, which:

• are not proven to be effective in reducing food consumption, including consumption of foods high in sugar, salt and saturated fats;

• generate negative economic impacts;

• are economically regressive, since they hit low-income populations the hardest, when lower socio-economic groups are known to spend a larger share of their income on food;

• discourage current and future investments, damaging the competitiveness of EU food industries and generating distortive effects on the functioning of the internal market, such as trade conflicts, cross-border shopping and unfair competition, amongst others.

Caobisco has also called to the attention of EU regulators the likely possibility that the nutrient profiles foreseen by article 4 of EU Regulation 1924/2006 on claims. If implemented, could be freely used by member States Governments as a basis for further “food taxes” or other discriminatory measures and restrictions targeting our products, under the not scientifically proven assumption that this is necessary in order to address “public health concerns”.

Caobisco Members recognize that obesity and other non-communicable diseases are important and complex societal issues and thus have taken the commitment to contribute to being a part of the solution, through a series of concrete actions. At the same time, we firmly believe that a true solution to a multi-factorial issue such as that of obesity can only be based on multiple strategies and positive actions such as increasing consumer information and education about product composition, balanced diets and healthy lifestyles. The solution will not come from abdicating personal and parental responsibility and certainly not from introducing new taxes or new discriminating regulations affecting our products.

Caobisco believes that there are no healthy or unhealthy foods but only healthy and unhealthy diets.

“ Caobisco believes that a true solution to a multi-factorial issue such as obesity can only be based on multiple strategies and positive actions such as increasing consumer information and education about product composition, balanced diets and healthy lifestyles.”

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Sustainability In CocoaAn Enhanced Structure For Caobisco

The top-level position of themes like sustainability and CSR on the agenda of key challenges for European industries has prompted Caobisco to further enhance its structure: the Cocoa Committee has been reshaped into a Sustainability and CSR Committee, charged to address all issues relevant to the sustainability of Caobisco supply-chains, as well as the promotion of good agricultural practices, the quality of supplies or environmental issues when they are specific to the biscuits, chocolate and confectionery sectors. The Caobisco Sustainability Committee is committed to promoting sustainable development of business in economic, social and environmental terms and encourages its suppliers to adopt similar complementary sustainable practices in their operations.

To ensure that sustainability issues in the cocoa supply chain receive the necessary consideration and commitment, Caobisco also promoted more streamlined operations and better coordination of activities – where relevant – with its partners in the supply chain. This is how the Joint Caobisco/ECA/FCC/WCF Cocoa Sustainability Working Group was also born in 2011.

A Broader Perspective To Meet The Needs Of Members & Answer The Public Policy.

Cocoa Sustainability remains at the heart of the Sustainability and CSR committee work.

The challenges remain:

• Deteriorating quality from many countries.

• Pest & Disease issues continue.

• Average yield around 400 kg/ha and dropping.

• Average daily income below $2 per family member – unstable social conditions.

• Deteriorating tree and soil conditions.

• No tolerance for cutting down additional forests.

• Youth not interested or attracted to cocoa farming.

Caobisco in cooperation with other key supply chain actors are working ever closer together to identify solutions along with partners in both governments and civil society. In addition to a host of company-led and collective programmes that aim to address inefficiencies in the supply-chain, Caobisco have engaged at the highest levels to drive improvements in the cocoa supply chain.

New Cocoa Quality & Productivity Working Group

Caobisco, ECA, and FCC share an interest in promoting good quality and highly productive cocoa essential for a sustainable cocoa economy. This new joint group will work to define the problems outlined below and propose ways to tackle them in a way which promotes quality and productivity in the cocoa supply chain.

The group’s goal is to work towards more sustainable cocoa which is safe, good quality and highly productive, for consumer, manufacturer and farmer benefit.

11Sustainability In CocoaTo ensure that cocoa-containing finished products are of good quality, each of these cocoa raw materials has a specification, a number of quality requirements and parameters which are measured to confirm they are within acceptable limits. In addition, current research/discussion on traceability systems, which are also key, will be considered by the group.

The concept of “highly productive” cocoa will involve the rehabilitation of existing cocoa producing land, using improved planting material, use of fertiliser and management of cocoa pests and diseases.

Interaction with third parties is a key component to ensuring alignment and progress on this dossier. These include:

• Regular exchange of information with the World Cocoa Foundation.

• Reach out to and engage more fully with European scientific institutions, eg. CIRAD, KIT, University of Wageningen, University of Reading, CABI, Imperial College.

• Use our links and expertise in producing countries to tackle and solve quality and productivity issues.

• Use our links to the European Commission to leverage support for producing country productivity and quality programmes.

• Use the ICCO Quality Committee and Consultative Board as vehicles to engage and work with producing countries on productivity and quality.

Caobisco and its members are also working with CEN the European Committee for Standardisation to develop a Standard for Sustainable and Traceable Cocoa.

CEN Project On Sustainable & Traceable Cocoa

In 2011 CEN, the European Committee for Standardisation proposed a project to Sustainable and Traceable Cocoa. European Standards Bodies were asked to provide their views on the launch of a new CEN standard on sustainable and traceable cocoa.

Caobisco and its members joined with FCC and ECA to draft and defend a common position on the CEN Proposal for Project sustainable and traceable cocoa. In addition actions included coordinated lobby outreach in National standardisation bodies, informing stakeholders on industry requirements with regards to certification i.e. transparency, coherence, quality in the cocoa supply chain at a pre-competitive level.

In November 2011, the CEN Standing Committee approved the Project Committee on Sustainable and Traceable Cocoa” with Dansk Standard (DS) Denmark as secretariat. In order to address the international aspect, they have invited International Standardisation Organisation (ISO) to consider the proposal on sustainable cocoa.

This standard will serve as a strong framework to promote production practices which recognise the continually evolving needs of both producers and consumers and will play an important role in our collective efforts to protect children from the dangers of child labour.

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Sustainability In CocoaCaobisco Objectives In The CEN Process

Inclusivity

The consultation/dialogue process should be inclusive of all stakeholders cocoa producing countries

Recognition Of Existing Private Scheme

The standard and its application at farm level must support and enable the critical efforts of private voluntary standard initiatives and certification schemes. The standard creation process should be complementary to these schemes’ ability to continue to provide stakeholder value.

Raising The Standard For The Whole Supply Chain

The criteria of the standard should be credible and sufficiently robust while being realistically attainable for ALL cocoa farmers in order to meet the long term needs of sustainable production and rural livelihoods. The standard should have economic, social and environmental criteria.

Cocoa farming productivity and quality should be addressed through good agricultural practices, rehabilitation of tree stock with improved cocoa varieties and replenishment of soil nutrients. Improvements to ensure appropriate and safe working conditions for all involved with cocoa farming to support societal development, and natural resource protection to preserve the environment for future generations, should be included.

Capacity Building

The new standard should be linked to building capacity across the global cocoa sector in conjunction with the relevant and diverse range of stakeholders.

Efficiency

The standard should be delivered in a timely manner to meet supply chain demands without adding unnecessary complexity to certified cocoa supply chains, prioritising above all the needs of and impact on cocoa farmers.

Côte D’ivoire - From Crisis To New Dawn

On 14 January 2011, the EU adopted restrictive measures against Côte d’Ivoire (Council Regulation No 25/2011 amending Regulation No 56/2005. Further measures were taken on 31 January (EU Council Regulation 85/2011).

Côte d’Ivoire is the world’s largest cocoa producer, accounting for nearly 40% of the global crop. The cocoa sector is the economic and social backbone of the Ivorian economy, an estimated 800.000 small holder farmers derive approximately 50% of their income from growing cocoa on farms. In the vast majority of cases, cocoa is grown on farms less than 5 hectares in size.

The cocoa trade and industry represented by Caobisco, ECA and FCC jointly appealed for a speedy restoration of peace in the country and remained committed to working with the people of Côte d’Ivoire for the long term viability of the cocoa sector.

The EU lifted the EU sanctions on the ports of Abidjan, San Pedro, and the CGFCC. Caobisco, FCC and ECA paid tribute to the people of Côte d’Ivoire for their endurance of the many difficult days and weeks since the November 2010 elections and the suffering and hardship that they had sustained. Tribute was also paid to members and especially their employees based in Côte d’Ivoire who continued to work in a most difficult environment to ensure the future of the Cote d’Ivoire cocoa sector.

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SustainabilityIn Cocoa

Sustainability In CocoaPost Crisis

The combination of a new government, renewed international attention for the various challenges facing the country, and commitment for substantial recovery programs provided a unique opportunity to conduct an in-depth assessment of the factors that have been hampering the sustainable development of the Ivorian cocoa sector for many years now.

Caobisco in cooperation with other supply chain representatives met with high level officials in the European Commission Directorate Generals as well as national development agencies, the ACP secretariat and the International Cocoa Organisation. Caobisco called for careful analysis and definition of the needs, competences, knowledge, existing plans and programs and ways for working together, including via PPP’s. This also included strong support for the organisation of a high level meeting hosted by the European Commission and Ivorian government bringing in which all stakeholders are represented for the planning and coordination of investments, reconstruction and strengthening of the Ivorian cocoa sector.

This culminated in a meeting hosted by the International Cocoa Organization headquarters in London in November 2011. Caobisco joined officials from Côte d’Ivoire, the European Union, research and development agencies and other cocoa supply chain organizations to define a roadmap for 2012.

Efforts continued in Abidjan to carry this work on. The EU and Côte d’Ivoire concluded that this work should fall under the preparations for a World Cocoa Conference, to take place in Abidjan, Côte d’Ivoire from the 19th to 23rd November 2012.

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12 Sustainability In HazelnutsCaobisco condemns the use of unlawful child labour and take the concerns about working conditions in hazelnut orchards in Turkey very seriously. Caobisco and its members are playing an active role in coordinating with the Turkish government, supply chain partners and all relevant stakeholders to help address the issue of unacceptable labour practices including the worst forms of child labour and its root causes in hazelnut orchards.

The proper legal and policy framework is in place in Turkey including the relevant International Labour Organisation (ILO) conventions. Caobisco and its members together with major exporters and buyers support the long-lasting, legitimate and comprehensive approach directed and executed by the Turkish government.

Caobisco have developed industry-wide Responsible Sourcing Guidelines which encourage and support all members to:

• aim to ensure that products and notably hazelnuts acquired through their suppliers have been obtained and transformed in full compliance with all local and other applicable laws, regulations and norms, as well as with the requirements established by the applicable International Conventions, Agreements and/or Declarations (ILO and UN Conventions and Human Rights Declaration);

• verify what concrete steps their suppliers have taken, work with suppliers to achieve the respect of the above clause and on improvements that need to be made throughout the supply chain;

• in the case there is undisputed evidence of non respect of the above clause act together with the relevant local and/or national authority in order to resolve the issue.

Caobisco will continue to stimulate constructive dialogue, build awareness of the improvements that need to be made and will keep pressing for effective implementation and concrete results in the long term.

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Sustainability

Caobisco and its members are committed to making every effort possible, at our level, to help improve the situation down the supply chain and especially at farm level in the long term. In 2011, Caobisco developed Responsible Sourcing Guidelines with the aim of building awareness throughout the supply chain among suppliers, their suppliers etc to Farm level until all applicable laws, regulations and norms are recognised and implemented throughout the supply chain.

The purpose of the Caobisco Responsible Sourcing Guidelines is to serve as a useful and practical tool to the Caobisco membership and will help to align demands and improve compliance at European level.

Caobisco and its member associations recommend to their member companies to aspire towards implementing the points outlined in the guidelines throughout their entire supply chain and to strive honestly and ambitiously to achieve this aim. Caobisco and its members are aware that this is long term commitment. This industry push for improvement should always be combined with well-implemented legislation and policy.

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“ Caobisco will continue to stimulate constructive dialogue, build awareness of the improvements that need to be made and will keep pressing for effective implementation and concrete results in the long term.”

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Responsible Sourcing Guidelines

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Communication

More specifically, Caobisco organised an Easter cocktail at the European Parliament in April 2011, which provided an ideal opportunity to nourish contacts with the Members of the European Parliament. Caobisco was honoured to have Mr. Bela Glattfelder, MEP, as host for the cocktail.

Caobisco Secretary General, Sabine Nafziger, spoke at the event and highlighted the importance of the traditions and culture carried on by Caobisco industries across Europe. She reminded the attendance that our industry

is narrowly linked to all Europeans and that our products derive from longstanding and very enjoyable European traditions. Caobisco products unite Europe in celebration while also highlighting the diversity of ideas and tastes across Europe.

The attendance had the privilege to eat delicious pralines prepared on-the-spot by Mr Olivier Demol, Maître Chocolatier for Neuhaus as well as a variety of other fine traditional and famous confectionery products from all over Europe.

In November, Caobisco organised a dinner-debate on “The Challenges of future commodity sourcing for Caobisco industries”. Key note speakers at the dinner were Paolo de Castro (Chair of the EP Committee on Agriculture and Rural Development), Andrzej Babuchowski (Minister-Counsellor for Agriculture, Polish Permanent Representation), João Pacheco (Deputy Director General, DG Agriculture of the European Commission) and Tobias Bachmüller (CEO, Katjes and Vice-President of Caobisco).

Participants were coming from the European institutions, Missions and Permanent representations to the EU (among which United States, Australia and Poland), as well as partners in the supply chains (CIBE, ASSUC, COPA-COGECA, CEFS, TEREOS), NGOs (Fair Trade Advocacy Office), and others.

A Year Of Events!

Caobisco is pro-actively engaged with its stakeholders all year round on a broad range of issues affecting the chocolate, biscuit and confectionery industries.

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The open discussions with the speakers (representing the three EU institutions) have enabled Caobisco, a key player in the food supply chain, to make its voice heard and to express its concerns regarding food security and competitiveness.

These messages have also received an echo in the press (Reuters and ConfectioneryNews.com). This event opened the door to dialogue with the institutions and within the supply chain. We now need to work together, as a supply chain (from the farmer to the table) in order to build the path on areas of common understanding, improve the Commission proposals and find solutions convenient for all.

Representing Caobisco...

In January, Caobisco Secretariat participated in the International Workshop on the Safe Use of Pesticides in Cocoa and Harmonized Legislation For Food Safety in Kuala Lumpur. Marc Joncheere, Chair of the Joint Caobisco/ECA Pesticides Task Force, made a presentation on the industry efforts to mitigate pesticide residues and promoted a safe & rationale use of pesticides.

On a similar subject, Sabine Nafziger made a presentation on the “Recent EU developments regarding contaminants and pesticides residues in cocoa” in front of ICCO in London in September.

With the CAP proposals to be published in October 2011 and given the difficult situation of raw materials supplies (in particular sugar) and its consequences on the competitiveness of our industries in Europe, many events have been organised on these hot issues in 2011. Caobisco attended many of them to make its voice heard, often through CIUS, the Committee of European Users of Sugar. For instance, CIUS was invited to speak at the Kingsmann Conference on Sugar Procurement in March 2011 and has become a regular invitee of the annual International Sugar Organisation Conference. Caobisco and CIUS also met with Commissioner Ciolos’ Cabinet in June to express their concern on the raw materials situation.

Eager to support its national members, Caobisco Secretariat participated in several national workshops (in France and Belgium).

Pénélope Alexandre, Regulatory & Scientific Director, presented the Caobisco Toolbox for Acrylamide mitigation in Fine Bakery wares and Crisp bread in workshops organised to explain SMEs the issue of acrylamide, better understand its formation and show the mitigation tools. On her side, Muriel Korter presented Caobisco/CIUS activities on sugar to the Choprabisco Board meeting in May.

Dedicated to its engagement with its stakeholders to ensure responsible and sustainable supplies, Caobisco has closely worked with its Turkish national association and the Turkish Government to define an action plan to reduce unacceptable Forms of Child Labour in the Hazelnuts supply chain. Caobisco also renewed its commitment in the EU-Turkey Hazelnuts Cooperation scheme and attended the annual meeting in Istanbul.

In June, Caobisco was represented by Sabine Nafziger during an FCC Conference in Rashleighs. She made a presentation on “The chocolate end of the supply chain”, introducing chocolate & its policy and regulatory environment.

In November, Paula Byrne spoke at ConfectionExpo, a meeting and networking event for the chocolate industry organised by Kennedy’s Confection. She made a presentation on the role of Caobisco on sustainability and the importance to adopt a holistic approach in the three pillars to meet the challenges the industry is and will be facing in the future.

Looking forward...In 2012, Caobisco will continue to raise the profile of the organisation. The change initiated this year with, for instance, the renovated format of its annual report will continue in 2012 with the rejuvenation of its website, its main communication tool, and its identity so as to provide a modern platform to promote the activities and the agenda of the chocolate, biscuits and confectionery manufacturers in Europe.

Proactive stakeholder engagement and targeted events will continue feature in the organisation’s communications activities in an effort to position Caobisco in the European panorama and to promote members’ activities.

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15 Notes

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16Caobisco Secretariat

ECONOMIC AFFAIRSDirector: Muriel KORTER

E: [email protected]: +32 2 533.94.63

REGULATORY & SCIENTIFIC AFFAIRSDirector: Pénélope ALEXANDRE

E: [email protected]: +32 2 533.94.67

SUSTAINABILITY& CSRManager: Paula BYRNE

E: [email protected]: +32 2 533.94.61

COMMUNICATIONManager: Laurence VICCA

E: [email protected]: +32 2 533.94.66

SECRETARIAT GENERALSabine NAFZIGER

Email: [email protected]: +32 2 533.94.65

OFFICE MANAGEMENTVerda MEHMET ALI

E: [email protected]: +32 2 533.94.60

Caobisco

Rue Defacqz 1

B-1000 Brussels

Belgium

TEL +32 2 539.18.00

FAX +32 2 539.15.75

EMAIL [email protected]

WEB www.caobisco.com

CaobiscoThe Association Of Chocolate,

Biscuit & Confectionery Industries

Of Europe