From: Andreas Lombardozzi [mailto:andreas@africanpacific.com]
Sent: 10 April 2011 05:59 PM
To: Ian Wilson; Grant BOWKER
Cc: Miro@africanpacific.com; Herman uit de Bosch
Subject: African Pacific seeking export partner for Premium Vanuatu Cocoa
Sent: 10 April 2011 05:59 PM
To: Ian Wilson; Grant BOWKER
Cc: Miro@africanpacific.com; Herman uit de Bosch
Subject: African Pacific seeking export partner for Premium Vanuatu Cocoa
Dear Ian,
trust you are well.
I appreciate your time during my visit here in Vanuatu and being able to finalise our discussions in terms of requirements for Vanuatu Premium Cocoa.
I am please to enclose this letter as the foundation for our potential contractual arrangements in the export of Vanuatu Premium Cocoa, as part of the African Pacific Strategic Plan 2011 to 2015.
History
African Pacific, as a founding member of the Pacific Growers Export Partnership (PGEP,see attached) has engaged strongly in driving better outcomes for cocoa farmers across the Pacific since 2008, including the markets of PNG, Bougainville, Solomon Islands and Vanuatu. We are also engage in assisting with the revitalisation of the cocoa industry in Fiji.
African Pacific is strategic development outcomes business, with its main mandate to measurable improve the livelihoods of growers across the Pacific through positive and sustainable development outcomes, based on a open and transparent trading platform. Since our inception in 1998, we have engage in Vanuatu with Virgin Coconut Oil, which continues to this day with VVCOL, and since 2008, have participated in the local cocoa industry, making Vanuatu our Hero Brand in our South Seas Cocoa Project.
Records will show that in 2009 and 2010, we exported over 400 mt of cocoa from Vanuatu which has had the most dramatic effect in increasing the price for growers in Vanuatu. We have also participated in the 2009 Cocoa Forum in Santo, hosted by Dept of Agriculture. Please see attached the presentation of our model which we continue to use in our development strategy to the present day. Our Vision for the Vanuatu Cocoa & Chocolate Industry is , by 2015, to achieve and export potential of 3500mt of cocoa, of which at least 1000mt will be value added and be exported as Vanuatu Premium Export Cocoa-Liquor, the primary universal base ingredient for chocolate manufactures. Although this strategy would require the participation of all cocoa stakeholders in Vanuatu, including the Government, this could lead to a net export value from cocoa by 2015 of 875 million vatu. Many new plantings have been made in 2009 and 2010 and with the revitilisation of the cocoa trees already present, the strong demand for cocoa and the ability to value add, this is an acceptable target for the industry to aim for, and we hope to be a strong and postive partner in this vision.
2011
For this year, with you as an export partner, we have contracts for minimum of 250 mt of Vanuatu Premium arising from three main clients:
trust you are well.
I appreciate your time during my visit here in Vanuatu and being able to finalise our discussions in terms of requirements for Vanuatu Premium Cocoa.
I am please to enclose this letter as the foundation for our potential contractual arrangements in the export of Vanuatu Premium Cocoa, as part of the African Pacific Strategic Plan 2011 to 2015.
History
African Pacific, as a founding member of the Pacific Growers Export Partnership (PGEP,see attached) has engaged strongly in driving better outcomes for cocoa farmers across the Pacific since 2008, including the markets of PNG, Bougainville, Solomon Islands and Vanuatu. We are also engage in assisting with the revitalisation of the cocoa industry in Fiji.
African Pacific is strategic development outcomes business, with its main mandate to measurable improve the livelihoods of growers across the Pacific through positive and sustainable development outcomes, based on a open and transparent trading platform. Since our inception in 1998, we have engage in Vanuatu with Virgin Coconut Oil, which continues to this day with VVCOL, and since 2008, have participated in the local cocoa industry, making Vanuatu our Hero Brand in our South Seas Cocoa Project.
Records will show that in 2009 and 2010, we exported over 400 mt of cocoa from Vanuatu which has had the most dramatic effect in increasing the price for growers in Vanuatu. We have also participated in the 2009 Cocoa Forum in Santo, hosted by Dept of Agriculture. Please see attached the presentation of our model which we continue to use in our development strategy to the present day. Our Vision for the Vanuatu Cocoa & Chocolate Industry is , by 2015, to achieve and export potential of 3500mt of cocoa, of which at least 1000mt will be value added and be exported as Vanuatu Premium Export Cocoa-Liquor, the primary universal base ingredient for chocolate manufactures. Although this strategy would require the participation of all cocoa stakeholders in Vanuatu, including the Government, this could lead to a net export value from cocoa by 2015 of 875 million vatu. Many new plantings have been made in 2009 and 2010 and with the revitilisation of the cocoa trees already present, the strong demand for cocoa and the ability to value add, this is an acceptable target for the industry to aim for, and we hope to be a strong and postive partner in this vision.
2011
For this year, with you as an export partner, we have contracts for minimum of 250 mt of Vanuatu Premium arising from three main clients:
- Kakao Verarbeitung Berlin (KVB), Berlin Germany, /www.schwartau-food.de/en/
- Mars Chocolate (Singapore), Singapore www.mars.com/global/who-we-are/where-we-operate/singapore.aspx
- Nui Organic LifeStyle Range (Australia) www.nuicoconut.com
Our past experience has shown us that the AP transparent trading platform, allowing cocoa growers and all other value chain participants to participate fully in an open trading system gives growers the option to place their products into the local market for the best price. However, and most importantly, it allows them to engage strategiclly in the internaional market place and make better make better agrcultural investment decisions for their future and that of Vanuatu. We fundamentally believe that higher prices will lead growers to invest time and money in planting and rehabilitating cocoa, and be strong partners in the countries success in export growth.
However, our past export experience has also shown us that much of the cocoa exported from Vanuatu is not premium grade, due to over fermentation and some smoke drying. Notwithstanding this fact, we have again achieved forward selling of Vanuatu Premium Cocoa given the potential we have shown in the past. We have and are consciously engaging many new processing partners in the islands to achieve this aim We are positive in working with you and our processing partners on the ground, to reengage in new drying systems that will allow us to confidently move forward to achieve our aims for 2011 and the future.
In order to consolidate our mutual aims, whether they are growers selling green, or processors, we are introducing to Vanuatu in 2011, our AP Cert-Link System in order to achieve an international accreditation certificate in Fair Trade (www.fairtrade.net), Organic (www.ifoam.org) or Rainforest Alliance (www.rainforest-alliance.org). This should lead to a consolidation for the demand for Vanuatu Cocoa as well as leading to premiums for growers. African Pacific, as part of the PGEP, is planning to host the annual PGEP Forum, hosted by the Vanuatu Agricultural College, in June 13 - 20 2011, to introduce the PGEP program of our Multi Certification Platform and the AP CertLink system. This will be a world first in terms of any developing country and or agricultural commodity and we are pleased to have secured Vanuatu for the launch of this pilot program.
2012 to 2015
As mentioned above, our plan is to introduce to Vanuatu a Cocoa Value adding and processing plant, exporting Vanuatu Premium Cocoa Liquor to EU and other clients. Contracts have already been secured, with a JV being engaged into in August of this year. Our main constraint is that we need a minimum of 500mt of through put for the value add process to be sustainable, and thus we hope to consolidate our efforts in 2012 to be able to achieve JV with cocoa growers and processors in terms of fermentation and drying to achieve this total for export in 2012. Having achieved this goal, our aim for 2013 is to introduce the value add process for the 2013 season. This will significantly increase returns to growers and should amount to minimum returns to growers for premium dried and fermented been of no less than 250 vatu per kg.
We strongly believe that the our strategy, through increased returns to growers, will organically drive up the volume of production for cocoa in Vanuatu. Anecdotal data has shown that through the entry of African Pacific in 2009/2010, bringing competitive market prices to Vanuatu, cocoa has become the highest yielding agricultural crop for growers in Vanuatu. Furthermore, as per our discussion, AP is seeking JV partners to increase planting of new cocoa on Vanuatu, as well as establishing processing partners in the outer islands of Maevo, Epi, Ambrym and Efate.
I thank you again for the opportunity to discuss the possibilities of exporting Vanuatu Premium Cocoa with you. Our recent export success with Vanuatu Virgin Coconut Oil and your imminent achievement of Organic Certification for VVCOL bears testimony to our mutual vision, cooperation and future success in making Brand Vanuatu an international success, thus creating sustainable development outcomes for growers, including long term brand equity and open and transparent access to international markets.
For further information on African Pacific please see www.africanpacific.com or for our AP "Live Strategy" see https://sites.google.com/a/africanpacific.com/ap-strategy/home
Thanking you in anticipation and wishing you success in your VCMB application for cocoa export.
Kind Regards
andreas
- - - - - - - - - - - - - - - -However, our past export experience has also shown us that much of the cocoa exported from Vanuatu is not premium grade, due to over fermentation and some smoke drying. Notwithstanding this fact, we have again achieved forward selling of Vanuatu Premium Cocoa given the potential we have shown in the past. We have and are consciously engaging many new processing partners in the islands to achieve this aim We are positive in working with you and our processing partners on the ground, to reengage in new drying systems that will allow us to confidently move forward to achieve our aims for 2011 and the future.
In order to consolidate our mutual aims, whether they are growers selling green, or processors, we are introducing to Vanuatu in 2011, our AP Cert-Link System in order to achieve an international accreditation certificate in Fair Trade (www.fairtrade.net), Organic (www.ifoam.org) or Rainforest Alliance (www.rainforest-alliance.org). This should lead to a consolidation for the demand for Vanuatu Cocoa as well as leading to premiums for growers. African Pacific, as part of the PGEP, is planning to host the annual PGEP Forum, hosted by the Vanuatu Agricultural College, in June 13 - 20 2011, to introduce the PGEP program of our Multi Certification Platform and the AP CertLink system. This will be a world first in terms of any developing country and or agricultural commodity and we are pleased to have secured Vanuatu for the launch of this pilot program.
2012 to 2015
As mentioned above, our plan is to introduce to Vanuatu a Cocoa Value adding and processing plant, exporting Vanuatu Premium Cocoa Liquor to EU and other clients. Contracts have already been secured, with a JV being engaged into in August of this year. Our main constraint is that we need a minimum of 500mt of through put for the value add process to be sustainable, and thus we hope to consolidate our efforts in 2012 to be able to achieve JV with cocoa growers and processors in terms of fermentation and drying to achieve this total for export in 2012. Having achieved this goal, our aim for 2013 is to introduce the value add process for the 2013 season. This will significantly increase returns to growers and should amount to minimum returns to growers for premium dried and fermented been of no less than 250 vatu per kg.
We strongly believe that the our strategy, through increased returns to growers, will organically drive up the volume of production for cocoa in Vanuatu. Anecdotal data has shown that through the entry of African Pacific in 2009/2010, bringing competitive market prices to Vanuatu, cocoa has become the highest yielding agricultural crop for growers in Vanuatu. Furthermore, as per our discussion, AP is seeking JV partners to increase planting of new cocoa on Vanuatu, as well as establishing processing partners in the outer islands of Maevo, Epi, Ambrym and Efate.
I thank you again for the opportunity to discuss the possibilities of exporting Vanuatu Premium Cocoa with you. Our recent export success with Vanuatu Virgin Coconut Oil and your imminent achievement of Organic Certification for VVCOL bears testimony to our mutual vision, cooperation and future success in making Brand Vanuatu an international success, thus creating sustainable development outcomes for growers, including long term brand equity and open and transparent access to international markets.
For further information on African Pacific please see www.africanpacific.com or for our AP "Live Strategy" see https://sites.google.com/a/africanpacific.com/ap-strategy/home
Thanking you in anticipation and wishing you success in your VCMB application for cocoa export.
Kind Regards
andreas
andreas b lombardozzi
trader & value chain architect
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