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Ghana and cocoa and chocolate companies have collaborated on a deal poised to protect and restore forests in cocoa-growing areas. With this agreement, the World Cocoa Foundation (WCF) and the Forestry Commission of Ghana (GFC) are building a partnership to further align the Ghana Cocoa Forest REDD+ Programme (GCFRP) and the Cocoa & Forests Initiative to achieve no-deforestation commitments. The Memorandum of Understanding (MoU), signed by GFC and WCF, commits the parties to work together in six regions where Ghana's government has made action to protect and restore forests a priority.

Ethan Budiansky, Director of Environment at WCF World Cocoa Foundation, says: “In 2021, our collective work on protecting and restoring forests, promoting sustainable cocoa production and farmers’ livelihoods, and engaging communities and boosting social inclusion is progressing fast. One of our main focuses this year is on landscape approaches in the six regions where Ghana’s government has made action to protect and restore forests a priority”.

In Givaudan’s Q1 business review, the company’s Taste & Wellbeing segment reported good growth driven by packaged foods, dairy, savoury, sweet goods, snacks and beverages. In the first three months of 2021, the flavour house recorded overall sales of CHF 1,674 m, an increase of 7.7 % on a like-for-like basis and 3.4 % in CHF.

CEO Gilles Andrier comments: “I am very pleased with the strong start that we have made to 2021, in what continues to be a very uncertain environment related to the Covid 19 pandemic. We have seen continued strong demand across the parts of our business which are less impacted by the Covid 19 pandemic and improving conditions in the parts of our portfolio which have been more affected”.

Givaudan started the year with strong business momentum while maintaining its operations and global supply chain at a high level. The good growth was achieved across most product segments and geographies, with particularly strong performance in the high growth markets, which recorded sales growth of 14.5 % on a like-for-like basis.

Netherlands-based Royal DSM acquired the flavour and fragrance bio-based intermediates business of California-based Amyris in order to extend the Dutch corporation’s presence in bio-based flavour and fragrance ingredients. The transaction was completed on 31 March 2021 for an initial payment of USD 150 m. DSM and Amyris will continue their R&D partnership.

Since 2017, these two companies have worked together closely. DSM has already acquired Amyris’ Farnesene – a sugarcane-based chemical reputed for its calming effects – business and licensed it to Givaudan, and has purchased its Brotas (Brazil) biotechnology manufacturing facilities where DSM produces several of Amyris’ flavour products.

Now, this most recent acquisition more tightly ties these two companies together as this agreement comes with the transfer of seven of Amyris’ intermediate products. Four of these products are already generating “meaningful sales,” according to DSM. Two other products recently launched and one is still under development. Amyris will continue to share in the sales growth of products that are just launched or under development until 2024.

According to the Dutch science company, this acquisition strengthens its foundation in biotechnology activities in nutritional ingredients, broadens the company’s portfolio in aroma ingredients, and strengthens its sustainability profile, since these bio-based ingredients provide an alternative to chemical-based products.

In the 2020/2021 growing season, Ghana and Ivory Coast are predicted to have a 102,000 t surplus of cocoa due to a decrease in cocoa purchases from Europe and an overall dip in chocolate sales. The International Cocoa Organization (ICCO) expects the price of cocoa to fall in Q2 2021, a position not held by some future traders who are looking at it from pure trend analysis.

Ghana and Ivory Coast supply nearly 60 % of the world’s cocoa, and both countries have established a Living Income Differential in order to force corporations/buyers to pay a more equitable price for cocoa. Since demand has decreased and these two countries are demanding higher prices for their cocoa, large corporations may look to other ways to source the cocoa in order to bypass fair wage policies.

Some traders examining the forecast fundamentals, rather than trend analysis, agree that price pressure will apply because of the LID. It is not clear, however, where the chocolate companies would go to get a regular source of cheap cocoa if the underlying demand was there.

After discussing the centuries-long relationship Ghana has with Switzerland through missionaries and colonialism, Ghana’s president Nana Akufo-Addo announced the end of trading raw cacao beans with Switzerland. Western/European countries have capitalized upon Ghanain raw materials by paying bottom dollar for their raw materials, and now the Ghanain president explained that Ghana must advance their internal industrial capabilities and process their raw materials within their country: “We’re determined in Ghana, to ensure the succeeding generations of Ghanaians do not become victims or pawns of international economic order, but her beneficiaries”.

After witnessing American companies such as Hershey also capitalize on cheap Ghanain cacao, it would not surprise if changes occurred with the US/Ghana cacao trade as well. The CCC (Coffee and Cacao Council of Cote d’Ivoire) believe Hershey avoided paying the Living Income Differential which aims to eliminate poverty within the farming community in Ghana. This differential requires chocolate companies to pay an additional USD 400 per ton of cacao.

Luxury goods should be bought at a price that supports the farmer after all. This shall lead to greater independence for the Ghanaian economy as they focus on developing the capabilities to process more of their own raw materials and gain more control over the cocoa value chain.

ISM, the world's largest trade fair for sweets and snacks, is set to celebrate its Asian debut in Tokyo, Japan in the heart of East Asia. The new trade fair will be staged from 13 to 15 April 2022 at the Tokyo Big Sight under the name ISM Japan and will serve as the information, communication and networking hub for the industry in the region.

ISM Japan is the first trade fair of its kind in Asia and is oriented on the role model of the world's largest trade fair for sweets and snacks - ISM in Cologne. The premiere, at which over 200 brands are awaited, reflects the global leading role of Koelnmesse in the sweets and snacks industry as well as in the food and beverage industry. ISM Japan is a natural enhancement of the existing food and beverage segments of Wine & Gourmet Japan as well as the established food trade fairs that are organised by the Japan Food Journal - FABEX, Dessert Sweets & Bakery Festival, Food & Drink OEM Matching Expo, Noodle Industry Fair and the Premium Food Show.

This will lead to a more efficient synergy between the events and will offer all trade visitors a wider product palette. The seven food shows under one roof will unite extensive industry competence and thus offer an optimal, business-oriented trade fair experience. Several of the key factors that prompted ISM to enter the Japanese market are a forecasted annual 6.2% growth on the Asiatic-Pacific sweets market from 2020 to 2025 and the fact that Japan is the sixth largest sweets market in the world.

Global food and agri-business Olam International Limited has published its 2020 annual report, outlining the company’s financial and non-financial performance for the year. Key highlights include how Olam made significant progress on its reorganization plan to unlock and maximize long-term sustainable value via carve-out, IPO and concurrent demerger of Olam Food Ingredients (OFI) and pursue similar strategic options for Olam Global Agri (OGA). Olam has also successfully navigated the pandemic to emerge stronger, delivering robust operational financial performance in 2020.

Sunny Verghese, Co-Founder and Group CEO of Olam, says: “2020 was one of our strongest years on record as we delivered operational earnings growth of 36.0 percent to USD 677.8 million even as we contended with the Covid-19 pandemic. We also made significant progress on our transformational reorganization plan to unlock and illuminate the current value of our business and develop new strategic pathways that drive sustainable growth for the group”.