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The International Cocoa Trade, 3rd Edition

Book Description

‘An overview of the history of cocoa, the factors affecting its production and consumption as well as how the trade is conducted, various risks mitigated, and by whom. …The International Cocoa Trade is a work designed to inform all on the subject of cocoa and an essential guide for those involved in its trade.’

Dr J. Vingerhoets, Executive Director, ICCO

Cocoa is a valuable commodity, and the cocoa trade involves many different parties from growers and exporters through dealers and factories to those trading futures and options and the banks they deal with. The International Cocoa Trade provides an authoritative and comprehensive review of the cocoa trade at the beginning of the twenty-first century, and the main factors that drive and affect that business.

The opening chapter of the third edition examines the history and origins of the international cocoa trade, and its recent developments. The agronomics of cocoa production are discussed in chapter two whilst chapter three deals with the environmental and practical factors affecting cocoa production. Chapters four, five and six cover issues around the export and trading of physical cocoa, including the actuals market, the physical contracts used and the futures and options markets. In chapter seven, the international consumption and stocks of cocoa are reviewed with chapter eight discussing the issue of quality assessment of cocoa beans for international trade. Finally, chapter nine focuses on the end product, examining the processing of cocoa beans and the manufacture of chocolate. Updated appendices provide copies of some of the most important documents used in the cocoa trade, including contracts, sale rules and world production statistics.

This comprehensively updated third edition of The International Cocoa Trade ensures its continued status as the standard reference for all those involved in the production consumption and international trading of cocoa.

  • Provides an authoritative and comprehensive review of the cocoa trade at the beginning of the twenty-first century, and the main factors that drive and affect that business
  • Examines the history and origins of the international cocoa trade, and its recent developments featuring a discussion of environmental and practical factors affecting cocoa production
  • Explores issues concerning the export and trading of physical cocoa, including the actuals market, the physical contracts used and the futures and options markets

Table of Contents

  1. Cover image
  2. Title page
  3. Table of Contents
  4. Copyright
  5. Foreword
  6. Preface
  7. Chapter 1: History and origins of the international cocoa trade
    1. Abstract:
    2. 1.1 The beginning
    3. 1.2 Early production
    4. 1.3 Early consumption
    5. 1.4 Forastero cocoa and cocoa production since 1840
    6. 1.5 Prices
    7. 1.6 Recent times – 1980–2010
  8. Chapter 2: Agronomics of international cocoa production
    1. Abstract:
    2. 2.1 Classification
    3. 2.2 The cocoa tree
    4. 2.3 Climatic requirements
    5. 2.4 Soil
    6. 2.5 Methods of production
    7. 2.6 Cocoa nursery
    8. 2.7 The plantation
    9. 2.8 Nutrients
    10. 2.9 Diseases and pests
    11. 2.10 Harvesting and post-harvest practice
  9. Chapter 3: Environmental and practical factors affecting cocoa production
    1. Abstract:
    2. 3.1 Evolution of production
    3. 3.2 Factors affecting production
    4. 3.3 Environmental influences
    5. 3.4 Smallholders and estates
    6. 3.5 Setting up
    7. 3.6 Labour
    8. 3.7 Assessing production
    9. 3.8 Going forward
  10. Chapter 4: The physical market in the international cocoa trade
    1. Abstract:
    2. 4.1 Background
    3. 4.2 Physical market – trade associations
    4. 4.3 Export marketing
    5. 4.4 Processing at origin
    6. 4.5 Other participants
    7. 4.6 The recent past
  11. Chapter 5: Physical contracts used in the international cocoa trade
    1. Abstract:
    2. 5.1 Introduction
    3. 5.2 Differences between the FCC and CMAA terms
    4. 5.3 Contract terms
    5. 5.4 Delivery terms
    6. 5.5 Weight terms
    7. 5.6 Contract forms
    8. 5.7 Price fixation contracts (PFA)
    9. 5.8 Cocoa products
    10. 5.9 Contract performance
    11. 5.10 Risk management
    12. 5.11 Disputes
  12. Chapter 6: Futures and options markets in the international cocoa trade
    1. Abstract:
    2. 6.1 Introduction
    3. 6.2 Differences between the futures and physical markets
    4. 6.3 The two futures exchanges
    5. 6.4 Financing tool and source of cocoa
    6. 6.5 Link between physical and futures markets
    7. 6.6 An example of a simple hedge
    8. 6.7 Organisation of futures markets
    9. 6.8 Deliveries
    10. 6.9 The board
    11. 6.10 Market participants
    12. 6.11 Liquidity
    13. 6.12 Trading techniques
    14. 6.13 Hedging
    15. 6.14 Arbitrage
    16. 6.15 Exchange for physicals or against actuals and exchange for swaps
    17. 6.16 Cleared over-the-counter (OTC) contracts
    18. 6.17 Options
    19. 6.18 Regulation of markets
    20. 6.19 Market behaviour
    21. 6.20 Conclusion
  13. Chapter 7: International consumption and stocks of cocoa
    1. Abstract:
    2. 7.1 The uses of cocoa
    3. 7.2 Measuring consumption
    4. 7.3 Factors affecting consumption
    5. 7.4 Stocks
    6. 7.5 Conclusions
  14. Chapter 8: Quality assessment of cocoa beans for international trade
    1. Abstract:
    2. 8.1 Introduction
    3. 8.2 Faults occurring in cocoa
    4. 8.3 Fumigation
    5. 8.4 Sampling
    6. 8.5 The cut-test: procedure, fault definition and standards
    7. 8.6 Bean count
    8. 8.7 Cut-test standards
    9. 8.8 The limitations of the cut-test and ideas on its replacement
    10. 8.9 Factors important to the butter presser
    11. 8.10 Factors important to the chocolate manufacturer
    12. 8.11 Fine or flavour cocoa
    13. 8.12 Achieving quality cocoa
  15. Chapter 9: Cocoa bean processing and the manufacture of chocolate
    1. Abstract:
    2. 9.1 Introduction
    3. 9.2 Initial processing
    4. 9.3 Cocoa liquor or mass
    5. 9.4 Methods of cocoa butter and powder production
    6. 9.5 Cocoa butter
    7. 9.6 Cocoa powders
    8. 9.7 Chocolate production
    9. 9.8 The end
  16. Appendix I: Strategic/recorded pesticides for use in cocoa and those that must be avoided
  17. Appendix II: The Federation of Cocoa Commerce Ltd Cocoa Bean Rules for: contract, weighing, sampling and quality
  18. Appendix III: Specific FCC sale rules applicable for: cocoa beans in bags on CIF landed weights with payment by documentary credit
  19. Appendix IV: FCC contract rules for shipment of packed cocoa products
  20. Appendix V: CMAA cocoa contracts
  21. Appendix VI: NYSE Liffe Cocoa futures contract
  22. Appendix VII: NYSE Liffe Extracts from the ‘Grading and Warehousekeeping Procedures in respect of Cocoa and Robusta Coffee Futures Contracts’
  23. Appendix VIII: ICE Futures U.S.®, Inc. Cocoa Rules
  24. Appendix IX: List of recognised methodologies for cocoa beans and products as published by CAOBISCO and ISO
  25. Appendix X: Information to monitor and interpret while following the evolution of the cocoa market
  26. Appendix XI: ICCO statistics of the world production, grindings and summary
  27. Index