Cocoa Certification Data Report 2019Cocoa Certification Data Report 2019 Rainforest Alliance and UTZ...

Cocoa Certification Data Report 2019Rainforest Alliance and UTZ programs

May 2020


2

Introduction

The main goal of this report is to present the scope and scale of the Rainforest Alliance and UTZ cocoa certification programs in 2019 – calendar year. The report is created 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 Rainforest Alliance Certified™ and UTZ certified cocoa;

• Program reach: estimated Rainforest Alliance Certified and 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 certification and traceability systems.

We do our best to ensure that all the information in this report is accurate and reliable. As much of the data is collected by third parties, we are aware that there may be some shortcomings.


3

Summary

In April 2019, the Cocoa Assurance Plan (CAP) was implemented with a pause on new growth in Côte d’Ivoire and Ghana. No new producer groups and individual farms are allowed to join the program for the October 2019 - September 2020 harvest season.

Since Côte d’Ivoire and Ghana are such important cocoa producing countries, this had an effect on the Africa and global figures, especially for the UTZ program.

All of this contributed to a significantly lower number of UTZ certificate holders in 2019 vs. 2018. It also translated into lower estimated UTZ certified volumes, areas and other key indicators in 2019 compared to 2018. The Rainforest Alliance cocoa program saw an increase in terms of program reach.

Through our CAP we have seen promising improvements in the assurance of our programs and GPS data quality. We are taking even stronger action in 2020. We have also seen a steady demand of UTZ and Rainforest Alliance Certified™ cocoa, with increases in Ghana, Indonesia and DR Congo.

Latin America also experienced a drop in certificate holders and production volumes due to shifts in demand for certified cocoa from the continent. A decrease in demand (also due to low premium prices) led to producers dropping out of UTZ certification.

https://www.rainforest-alliance.org/business/innovating-certification/measures-to-strengthen-the-cocoa-sector/


Geographical program reach

Rainforest Alliance program

UTZ program

Rainforest Alliance and UTZ programs

The Rainforest Alliance and UTZ cocoa programs reach farmers and workers in 21 countries worldwide.


5

Program reach: Rainforest Alliance and UTZ

Number of farmers

900+ K Area (hectare)

3 Million

Combined estimated production area Combined number of farmers

Combined figures are calculated by subtracting the figures of dual certified producer groups and individual farms from the total of UTZ and Rainforest Alliance.

Cocoa Certification Data Report 2019Rainforest Alliance programUTZ program

Rainforest Alliance Cocoa program

Program reach

AfricaCameroon

Côte d'IvoireGhanaKenyaNigeria

Tanzania

Latin AmericaCosta Rica

Dominican RepublicEcuador

PeruTrinidad & Tobago

9

Geographical reach

AsiaIndia

IndonesiaPapua New Guinea

Cocoa Certification Data Report 2019Rainforest Alliance program

With Kenya added to the map, the number of countries with Rainforest Alliance Certified™ cocoa producers increased to 14.


Program reach

+11%

Relative growth 2018-2019:

+10%


+6%


-43%


Area (hectare)

815,321Number of farmers

209,484

Estimated production (MT)

439,503 Number of workers

(seasonal and permanent)

8,400


Program reach

Area (hectare) Number of farmers

Estimated production (MT)Number of workers


In 2019, the estimated production area increased by 11% compared to 2018. This is mainly due to increases in Ghana, Côte d’Ivoire, and Nigeria.

In 2019, the number of farmers increased by 10% vs. 2018. 89% of all farmers are in Africa, 8% in Asia and 3% in Latin America. The top 3 countries with most farmers are: Côte d’Ivoire (46% of the global # farmers), Ghana (36%), and Indonesia (6%).

In 2019, the estimated certified volume increased by 6% vs 2018. The top 3 producing countries are: Côte d’Ivoire, Ghana, and Ecuador. These countries also contributed most to the total increase.

In 2019, the number of workers decreased by 43% compared to 2018. This is mainly due to the decertification of some farmers in India.


Program reach686.283 692.228

740.822 736.727815.321

2015 2016 2017 2018 2019

Number of farmersArea (ha)

Number of workers (seasonal and permanent)

254.291

206.426 206.096189.793

209.484

2015 2016 2017 2018 2019

491.622 473.480 457.082413.932 439.503

2015 2016 2017 2018 2019

0 0 0

14.834

8.400

2015 2016 2017 2018 2019


No data available

+11%


+10%


+6%


-43%


Global sales


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Global cocoa sales

184.988 183.195202.568

2017 2018 2019

MT

coco

ab

ean

equi

vale

nt

-1%+11%

0

After last year’s decrease, the global Rainforest Alliance cocoa sales increased by 11% in 2019. This is mainly driven by purchases from Côte d’Ivoire (68% of the global sales), Ghana (21%), and Dominican Republic (6%).

‘Global sales’ are all the confirmed volumes sold from a certified producer to the first buyer. Years are calendar years.


15

Global sales per origin

The global sales increase is mainly driven by purchases from Côte d’Ivoire (68% of the global sales), Ghana (21%), and Dominican Republic (6%).

Africa accounted for 89% of the global sales, Latin America for 10% and Asia for 1%.



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Global sales per origin136.956

42.518

11.757 8.2881.039 874 1.136

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

Côte d'Ivoire Ghana Dominican Republic Ecuador Indonesia Peru Other

MT

Gre

en C

offe

e Eq

uiva

lent

2017

2018

2019

Relative growth 2018-2019: +114% -1%+4% -11% -79%

The global sales increase is mainly driven by purchases from Côte d’Ivoire (68% of the global sales), Ghana (21%), and Dominican Republic (6%).

Africa accounted for 89% of the global sales, Latin America for 10%, and Asia for 1%. -91%+97%



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Registered supply chain actors

810

945

1.059

1.158

1.274

2015 2016 2017 2018 2019

‘Supply Chain Actors’ include exporters, traders, processors, manufacturers and retailers.

In 2019, the number of supply chain actors within the program increased by 116 (+10%).

In Europe the number increased by 50 (12%), including a new country, Cyprus. In North America the number of supply chain actors increased by 24 (6%); in Asia by 16 (10%); in Latin America by 14 (12%); and Africa by 12 (12%).

Estimated Production


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Global estimated cocoa production

491.622473.480 457.082

413.932439.503

2015 2016 2017 2018 2019

MT

coco

ab

ean

equi

vale

nt

+6%-9%

-3%-4%

After some years of decline, in 2019 the estimated global certified volume increased by 6% with a growth of 25,000 MT.

Estimated production is based on information from certificates valid on December 31, 2019.

0


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Estimated production per origin

The top 3 producing countries are: Côte d’Ivoire (57% of the global production), Ghana (27%), and Ecuador (7%).



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248.359

117.519

29.456 21.1449.529 5.461 3.295 1.527 3.213

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

Côte d'Ivoire Ghana Ecuador DominicanRepublic

Indonesia Nigeria Peru Papua NewGuinea

Other

MT

Gre

en C

offe

e Eq

uiva

lent

2017

2018

2019

Relative growth 2018-2019: +1% +13% +44%-6% -52%

The top 3 producing countries are: Côte d’Ivoire (57% of the global production), Ghana (27%), and Ecuador (7%).

Ghana: the 37% increase in certified volume is directly linked to the production area of the new farmers that were added to the certified farmer groups.


+37% +44%-17%

Supply and Demand ratio


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Supply – Demand ratio

% of estimated production sold as Rainforest Alliance CertifiedTM

40%

44%

46%

2017 2018 2019

Producers sold on average 46% of their estimated certified volume as Rainforest Alliance Certified™.

This is based on producer sales and estimated production. It indicates an estimate, not an absolute number.

Multi-certification


25

Multi-certification

27% UTZ

3% Organic

8% Fairtrade

3% Other

of the Rainforest Alliance producers groups and individual farms were

certified for at least one other standard

Multi-certified represents the number of Rainforest Alliance CertifiedTM cocoa producer groups and individual farms that were also certified for one or more of the following schemes: UTZ, Organic, Fairtrade and other schemes.

Double-certification Rainforest Alliance and UTZ is the predominant combination with 27%.

29%

Certification data

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Country 2017 2018 2019

Global 457.082 413.932 439.503Côte d'Ivoire 279.324 245.124 248.359Dominican Republic 22.269 22.429 21.144Ecuador 34.679 26.057 29.456Ghana 75.067 85.959 117.519Indonesia 25.586 18.861 9.529Nigeria 9.844 3.795 5.461

Papua New Guinea 1.058 1.058 1.527

Peru 3.489 3.964 3.295

Other* 5.585 6.686 3.213

Estimated production (MT) Global sales (MT)

2017 2018 2019

Global 206.096 189.793 209.484

Africa 168.346 168.672 185.463Asia 28.752 13.909 16.717Latin America 8.998 7.212 7.304

Number of farmers

2017 2018 2019

Global - 14.834 8.400

Africa - 4.667 5.156Asia - 7.245 363Latin America - 2.922 2.881

Number of workers (permanent & seasonal)

2017 2018 2019

Global 740.822 736.727 815.321

Africa 645.298 655.352 749.482Asia 35.950 30.188 16.383Latin America 59.574 51.186 49.456

Area (Hectare)

Country 2017 2018 2019

Global 184.988 183.195 202.568 Côte d'Ivoire 123.562 131.442 136.956Dominican Republic 7.013 5.967 11.757Ecuador 9.820 8.369 8.288Ghana 20.873 19.852 42.518Indonesia 17.773 11.132 1.039Papua New Guinea 705 960 300

Peru 1.431 982 874

Other* 2.642 4490 837

*Other countries are Cameroon, Costa Rica, India, Kenya, Tanzania and Trinidad & Tobago

UTZ Cocoa program

Program reach

AfricaCameroon

Côte d'IvoireDR Congo

GhanaNigeria

TanzaniaUganda

Latin AmericaBrazil

Costa RicaDominican Republic

EcuadorMexico

NicaraguaPanama

Peru

30

Geographical reach

AsiaIndonesiaVietnam

Cocoa Certification Data Report 2019UTZ program

With Sierra Leone taken off the map, the number of countries with UTZ certified cocoa producers decreased from 18 to 17 in 2019.

Sierra Leone lost its two farmer groups due to lack of market access (not able to find buyers for certified cocoa).


Program reach

-15%


-4%


-16%


+3%


Area (hectare)

2,541,054Number of farmers

771,632


1,337,340 Number of workers


22,799


Program reach

Area (hectare) Number of farmers

Estimated production (MT) Number of workers (seasonal and permanent)

In 2019, the estimated production area dropped by 15% compared to 2018. The implementation of the Cocoa Assurance Plan reduced certified area in Côte d’Ivoire. Still, 50% of the certified area was in Côte d’Ivoire, and almost 30% in Ghana.

In 2019, we saw a decrease of 4% vs. 2018, due to a drop in Africa (-6%) and Latin America (-18%). As part of the Cocoa Assurance Plan, there was a pause on certification of new groups in West-Africa. Increased scrutiny led to more decertification of certificate holders. 90% of all farmers were in Africa (with 45% in Côte d’Ivoire, 27% in Ghana), 7% in Asia, and 3% in Latin America.

In 2019, the estimated certified volume decreased by 16% compared to 2018. This was mostly driven by a decrease of certified volume in Africa - mainly in Côte d’Ivoire - due to the implementation of the Cocoa Assurance Plan.

In 2019, the number of workers (+3% globally) remained almost constant in Africa vs. 2018 - increase in Ghana offset by the decrease in Côte d'Ivoire. The increase in Asia (+74%) is mainly due to Indonesia, the decrease in Latin America (-17%) is mainly driven by Brazil and Ecuador.


Program reach

1.530.137

2.096.939

2.706.5963.007.123

2.541.054

2015 2016 2017 2018 2019

Number of farmersArea (ha)

Number of workers (seasonal and permanent)

465.631

614.506

744.778807.880 771.632

2015 2016 2017 2018 2019

917.603

1.188.166

1.449.8821.600.161

1.337.340

2015 2016 2017 2018 2019

17.645

23.67521.781 22.176 22.799

2015 2016 2017 2018 2019


-15%


-4%


-16%


+3%


Global sales


35

Global cocoa sales

581.709639.087

1.166.649

965.845 943.436

2015 2016 2017 2018 2019

MT

coco

ab

ean

equi

vale

nt

+ 10%

+ 83%

-17% -2%


In 2019, the global UTZ cocoa sales remained stable with a slight decrease of 2%. The decrease is mainly due to a sales drop from Côte d'Ivoire.

Africa accounted for 89% of the global sales, Latin America for 7%, and Asia for 4%.

0


36



Despite the decrease in sales from Côte d'Ivoire, 89% of the cocoa was purchased from Africa (60% from Côte d'Ivoire, 15% from Ghana), 4% from Asia, and 7% from Latin America.


37


573.038

147.372

60.383 42.794 40.074 31.94720.293 16.986 10.549

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

Côte d'Ivoire Ghana Nigeria Indonesia Ecuador Cameroon DR Congo Peru Other

MT

coco

a b

ean

equi

vale

nt

20152016201720182019

Relative growth 2018-2019: -12% +51% +5% +132% +95%-34% -13%-7% -55%


Global sales decrease is mainly due to a decrease in sales from Côte d'Ivoire. As part of the Cocoa Assurance Plan, more stringent requirements on certificate holders (farmers and companies) were implemented.

In Ghana, a combination of new producers and new buyers in the program resulted in increased sales.


38

Registered supply chain actors

879

1184

1387

1551

1730

2015 2016 2017 2018 2019

‘Supply Chain Actors’ include traders, exporter, retailers, grinders, manufacturers, and confectionery.

In 2019, the number of supply chain actors within the program increased by 179 (+12%).

All regions saw an increase (the highest in Europe), except for Africa. In Africa, the implementation of the Cocoa Assurance Plan reduced the number of certified supply chain actors, as all of them now need to be audited to get certified.

In total supply chain actors from 8 new countries joined the UTZ program.


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Premium

102

8983 83 84

2015 2016 2017 2018 2019

Average UTZ premium in EUR/MT

UTZ global average cocoa premium increased to 84 EUR/MT.

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.


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Premium

€59.57

€84.02

€127.27

Latin America Africa Asia

Average UTZ premium in EUR/MT

2019 Global weighted average UTZ premium

In 2019, the average premium paid for UTZ certified cocoa from Asia increased by 39%. The premium in Latin America decreased by 13%, while the average for UTZ cocoa from Africa remained stable.

Estimated Production


42

Global estimated cocoa production

917.603

1.188.166

1.449.882

1.600.161

1.337.340

2015 2016 2017 2018 2019

MT

coco

ab

ean

equi

vale

nt

+29%

+22%

+10%

-16%

In 2019, the estimated certified volume decreased by 16%, approximately 250,000 MT. This was mostly driven by a decrease of certified volume in Africa - mainly in Côte d’Ivoire - due to the implementation of the Cocoa Assurance Plan. 0



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Despite the drop of estimated certified volume in Côte d’Ivoire, this country still accounted for around 50% of the global certified volume in 2019, and Ghana for 20%.

In Latin America, estimated certified volume decreased in most countries, driven by a lack of demand (due to no market access).



44


706.072

300.560

116.95858.139 42.334 28.092 27.283 27.189 36.629

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

1.000.000

Côte d'Ivoire Ghana Nigeria Ecuador Indonesia Peru Cameroon DR Congo Other

MT

coco

a b

ean

equi

vale

nt

20152016201720182019

Relative growth 2018-2019: -27% +31% -10%-6% +68% -12% +3%-54% -37%

Despite the drop of estimated certified volume in Côte d’Ivoire vs. last year, this country still accounted for around 50% of the global certified volume, and Ghana for 20% in 2019.


Supply and Demand ratio


46

Supply – Demand ratio

% of estimated production sold as UTZ

54%

76%

60%

71%

2016 2017 2018 2019

Producers sold on average 71% of their estimated certified volume as UTZ certified.

This is based on producer sales and estimated production. It indicates an estimation, not an absolute number.

Multi-certification


48

Multi-certification

9% Rainforest Alliance

12% Fairtrade

5% Organic

of the UTZ producer groups and individual

farms were certified for at least one other

standard

22%

Multi-certified represents the number of UTZ cocoa producer groups and individual farms that were also certified for one or more of the following schemes: Rainforest Alliance, Fairtrade, and Organic. Other schemes are excluded from the total Multi-certification figures.

Double-certification UTZ and Fairtrade is the predominant combination with 12%.

Certification data

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Estimated production (MT) Global sales (MT)

2017 2018 2019

Global 744.778 807.880 771.632

Africa 645.440 746.001 698.281Asia / Pacific 72.084 37.552 53.514Latin America 27.254 24.327 19.837

Number of farmers

2017 2018 2019

Global 21.781 22.176 22.799

Africa 11.385 13.023 14.476Asia / Pacific 2.467 798 1.390Latin America 7.929 8.355 6.933

Number of workers (permanent & seasonal)

2017 2018 2019

Global 2.706.596 3.007.123 2.541.054

Africa 2.448.750 2.805.451 2.372.039Asia / Pacific 86.242 41.801 51.715Latin America 171.604 159.871 117.300

Area (Hectare)

Country 2017 2018 2019

Global 1.449.882 1.600.161 1.337.340

Brazil 6.113 14.050 6.991

Cameroon 69.437 59.957 27.283

Côte d'Ivoire 817.264 973.496 706.072Dominican Republic 28.714 32.873 19.359

DR Congo 17.871 26.324 27.189

Ecuador 83.130 64.786 58.139

Ghana 193.566 229.996 300.560

Indonesia 60.959 25.162 33.640

Nicaragua 1.417 2.053 2.778

Nigeria 99.314 124.658 116.958

Peru 42.468 31.894 28.092

Uganda 7.442 6.441 7.725

Other* 3.687 2.901 2.554

Country 2017 2018 2019

Global 1.166.649 965.845 943.436

Brazil 2.829 4.041 2.937

Cameroon 71.805 48.283 31.947

Côte d'Ivoire 671.854 647.873 573.038Dominican Republic 12.923 13.630 2.338

DR Congo 8.694 10.403 20.293

Ecuador 49.560 42.925 40.074

Ghana 176.201 97.386 147.372

Indonesia 64.658 18.429 42.794

Nicaragua 337 716 1.141

Nigeria 70.976 57.487 60.383

Peru 20.892 19.500 16.986

Uganda 5.289 2.836 2.559

Other* 2.682 725 1.573

*Other countries are Costa Rica, Mexico, Panama, Tanzania and Vietnam

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