Cocoa Annual Report 2018
UTZ Program
May 2019
Following the 2018 merger of UTZ and the
Rainforest Alliance, the new organization
adopted the Rainforest Alliance name.
The UTZ certification program is now part of the Rainforest Alliance and will continue to run in
parallel with the Rainforest Alliance certification
program until the publication of a new, unified
certification standard at the end of 2019.
2Cocoa Annual Report 2018 - UTZ Program
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Introduction
The main goal of this report is to present the scope and scale of the UTZ cocoa program in 2018 – calendar year. The report is written in order to inform our stakeholders and is part of our commitment to transparency.
The 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 Rainforest Alliance monitoring and evaluation system. Most of the data in this report is collected via our online traceability systems, the Good Inside Portal.
We do our best to make sure that all of the information in this report is accurate and reliable, but as much of the data is collected by third parties, we are aware that there may be some shortcomings.
We look forward to receiving your feedback. For more information, please contact the Farm & Supply Chain Intelligence Department at [email protected]
Cocoa Annual Report 2018 - UTZ Program
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Summary
In 2018 we saw further strengthening of our existing certified
supply chains. Supply and demand are stabilizing, creating
ideal conditions to push forward with our ambitious plans around the new Rainforest Alliance certification program.
Cocoa Annual Report 2018 - UTZ Program
Reach UTZ cocoa program
Global Sales
Premium
Estimated production
Supply and Demand ratio
Multi-certification
Reach UTZ cocoa program
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Geographical reach
Latin AmericaBrazil
Costa Rica
Dominican Republic
Ecuador
Mexico
Nicaragua
Panama
Peru
AfricaCameroon
DR Congo
Ivory Coast
Ghana
Nigeria
Sierra Leone
Tanzania
Uganda
AsiaIndonesia
Vietnam
*Based on Cocoa Barometer, 2015
The UTZ Cocoa program is reaching 18 countries and more than 800,000 farmers
which represent 15% of the cocoa farmers worldwide*
Cocoa Annual Report 2018 - UTZ Program
9%Relative growth 2017-2018
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Program reach
# of group members
and estates
807,880 # of workers
(seasonal and
permanent)
22,176 Area (hectare)
3,007,123
▪ Number of group members and estates increased by 9%▪ Largest absolute increase is seen in Côte d’Ivoire▪ Largest relative growth is seen in Brazil
2%Relative growth 2017-2018
9%Relative growth 2017-2018
Certified area = Estimated production area Group members as included in group and multi-group licenses - Estates = Number of sites in individual and multi-site licensesWorkers as hired at group level or at estate level
Cocoa Annual Report 2018 - UTZ Program
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Program Reach
Cocoa Annual Report 2018 - UTZ Program
Number of group
members and estatesArea (ha) Number of workers (seasonal and
permanent)
▪ Number of group members and estates increased by 9%▪ Largest absolute increase is seen in Côte d’Ivoire▪ Largest relative growth is seen in Brazil
Relative growth
2017-2018:
+ 9% + 9% + 2%
Certified area = Estimated production area Group members as included in group and multi-group licenses - Estates = Number of sites in individual and multi-site licensesWorkers as hired at group level or at estate level
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Number of producers per country
Producer = holder of a group or individual certificate’Others' includes : Peru, Nigeria, Congo, Dominican Republic, Cameroon, Uganda, Sierra Leone, Nicaragua, Vietnam, Tanzania, Colombia, Panama
▪ Global increase of 13% in the number of producers▪ Largest absolute increase is seen in Côte d’Ivoire▪ Brazil growth thanks to good price incentives for certified cocoa as well as the increase of the
beans-to-bar market
Relative growth
2017-2018:+ 5% - 7%+ 21%+ 95%- 17%+ 15%
Cocoa Annual Report 2018 - UTZ Program
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Number of group members and estates
per country
*’Others' includes : Peru, Ecuador, Dominican Republic, Cameroon, Brazil, Uganda, Sierra Leone, Nicaragua, Vietnam, Tanzania,
Colombia, Panama
▪ Global increase of 8% in the number of group members and estates▪ Largest absolute increase is seen in Côte d’Ivoire▪ Decrease in Indonesia due to decertification of producers and lower demand for certified
cocoa
Relative growth
2017-2018: + 29% - 28%- 48%+ 27%+ 8%+ 28%
Cocoa Annual Report 2018 - UTZ Program
Global Sales
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Global Sales
▪ After the important growth in sales last year (due to low cocoa prices and
changes in our Mass Balance program), an expected decrease and stabilisation
of the demand
‘Global Sales’ are all the confirmed sales from a certified producer to their first buyer. Years are calendar years.
*Based on ICCO estimation for harvest 2017/2018 https://www.icco.org/about-us/icco-news/398-quarterly-bulletin-of-cocoa-statistics-november-2018.html
UTZ certified sales represent about 21% of the global cocoa production*
Cocoa Annual Report 2018 - UTZ Program
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Sales per origin
▪ After the important growth in sales last year (due to low cocoa prices and changes in the Mass
Balance program), a decrease in the demand in 2018 is expected.▪ Certification process for harvest 2018/19 stricter, causing delays in the licensing of producers and in
the registration of sales in the system
Includes all confirmed sales from the producer to the first buyer. *’Others' includes : Peru, Indonesia, Dominican Republic, Congo DR, Brazil, Uganda, Sierra Leone, Nicaragua, Vietnam, Tanzania, Colombia, PanamaCocoa Annual Report 2018 - UTZ Program
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Sales per origin
▪ After the important growth in sales last year (due to low cocoa prices and changes in the Mass Balance program), a decrease in the demand in 2018 is expected.
▪ Certification process for harvest 2018/19 stricter, causing delays in the licensing of producers and in the registration of sales in the system
Relative growth 2017-2018: - 19% - 33% - 4%- 13%
Includes all confirmed sales from the producer to the first buyer. Years are calendar years.’Others' includes : Peru, Indonesia, Dominican Republic, Congo DR, Brazil, Uganda, Sierra Leone, Nicaragua, Vietnam, Tanzania, Colombia, Panama
- 45%- 4%
Most UTZ Cocoa came from Ivory Coast (67%), Ghana (10%) and Nigeria (6%)
Cocoa Annual Report 2018 - UTZ Program
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Market uptake
▪ Italy, United Kingdom and Belgium are the countries with the highest numbers of
new certified supply chain actors
‘Supply Chain Actors’ include traders, grinders and manufacturers
879
1,184
1,387
1,550
2015 2016 2017 2018
Number of certified Supply Chain Actors increased by 12%
Cocoa Annual Report 2018 - UTZ Program
Premium
Cocoa Annual Report 2018 - UTZ Program
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Premium
▪ The UTZ Premium is an additional cash amount paid above the market price for a
similar conventional (non-certified/non-verified) product. It is mandatory
and agreed upon between the certified group or producer and the first buyer
UTZ premium calculations are based on transactions data recorded in the UTZ traceability system.
Values under 10 and above 350 EUR/MT are excluded from 2017 analysis
UTZ average cocoa cash premium is stable
Cocoa Annual Report 2018 - UTZ Program
Estimated Production
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UTZ global estimated production
Estimated production is based on license information from licenses valid on December 31st 2018
Cocoa Annual Report 2018 - UTZ Program
Increase of the estimated production of 10%, mainly driven by Ivory Coast
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UTZ estimated production per origin
21
Estimated production is based on license information from licenses valid on December 31st 2018*Others’ includes: Peru, Indonesia, Dominican Republic, Congo DR, Brazil, Uganda, Sierra Leone, Nicaragua, Vietnam, Tanzania, Colombia, Panama
Cocoa Annual Report 2018 - UTZ Program
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UTZ estimated production per origin
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Estimated production is based on license information from licenses valid on December 31st 2018Others’ includes: Peru, Indonesia, Dominican Republic, Congo DR, Brazil, Uganda, Sierra Leone, Nicaragua, Vietnam, Tanzania, Colombia, Panama
Relative growth2017 – 2018:
+ 19% + 19% + 26% - 22% - 14% - 21%
Cocoa Annual Report 2018 - UTZ Program
Supply and Demand ratio
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Supply and Demand ratio
This is based on Producer sales and estimated production 2018. It indicates a trend but not an absolute number.
▪ Supply and demand ratio is going down and stabilizing, sign of a mature program
▪ Decrease in supply-demand ratio linked to a higher increase in certified estimated
volume (+10%) than in producers sales to first buyer (-17%)
Producers sold on average 60% of their estimated production as UTZ.
Cocoa Annual Report 2018 - UTZ Program
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Supply – Demand trend
This is based on Producer sales and estimated production 2018. It indicates a trend but not an absolute number.
▪ Supply and demand ratio is going down and stabilizing, sign of a mature program
▪ Decrease in supply-demand ratio linked to a higher increase in certified estimated
volume (+10%) than in producers sales to first buyer (-17%)
Cocoa Annual Report 2018 - UTZ Program
Multi-certification
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Multi-certification
9% Rainforest Alliance
8% Fairtrade
6% Organic
of the UTZ producers’ groups and estates were certified for at
least one other standard
21%
Multi-certified represents the number of UTZ coffee certificate holders that were also certified for one or more of the following schemes: Fair Trade; Rainforest Alliance; Organic are included in the analysis. Other schemes are included from the total Multi-certification figures. They include Cocoa Practices, Cocoa Life and Global GAP
▪ Double-certification UTZ and Rainforest Alliance is the predominant combination.
▪ Organic: increase mainly due to Indonesia
Cocoa Annual Report 2018 - UTZ Program
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Multi-certification
Multi-certified represents the number of UTZ coffee certificate holders that were also certified for one or more of the following schemes: Fair Trade; Rainforest Alliance; Organic.Other schemes are included in the total Multi-certification figures. They include Cocoa Practices, Cocoa Life and Global GAP
▪ In 2018, 21% of the UTZ producers’ groups and estates were certified for at least
another standard
▪ Double-certification UTZ and Rainforest Alliance is the predominant combination.
▪ Organic: increase mainly due to Indonesia
In percentage of number of producers’ groups and estates
Cocoa Annual Report 2018 - UTZ Program
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