UTZ Cocoa Statistics Report 2017
UTZ is the largest program in the world for sustainable cocoa There are more than 760,000 cocoa farmers in the UTZ program UTZ certified cocoa is produced in 21 countries Chocolate products with the UTZ name or logo are available in 128 countries In 2017, enough UTZ certified cocoa was sold to make 29.2 billion milk chocolate bars
Introduction The main goal of this report is to present the scope and scale of the UTZ cocoa program in 2017. The statistics report is written in order to inform our stakeholders and is part of our commitment to transparency. The statistics 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 UTZ monitoring and evaluation system. Most of the data in this report is collected via our online traceability system, the Good Inside Portal. We recognize that there may be shortcomings with the reliability of the data. We look forward to receiving your feedback. For more information, please contact the Monitoring & Evaluation Department at ME@utz.org 2018 UTZ Information presented here is for informative purposes only. UTZ grants permission to use information for personal, non-commercial use, without any right to resell or redistribute information or to compile or create derivative works therefrom.
Summary Higher reach of UTZ cocoa program The UTZ cocoa program has been able to grow and increase its reach: 21% more certified farmers 22% higher total estimated production The top UTZ producing cocoa countries reflect the world distribution of cocoa production 15% of cocoa farmers worldwide are part of the UTZ cocoa program New initiatives (Cocoa Action, Cocoa & Forests Initiative) have brought more attention on sustainable cocoa Increase in demand for UTZ cocoa Farmers are selling a higher % of their cocoa as UTZ: In 2017, 76% of the estimated production of UTZ certified cocoa was sold as UTZ, an increase from 2016 (54%) UTZ is continuously monitoring implementation issues (such as traceability and deforestation) in key producing countries and improving its assurance model
Content 1. Reach 2. Global sales 3. Premium 4. Estimated production 5. Supply-demand trend 6. Multi-certification
1.1 Geographical reach The UTZ Cocoa program increased its reach to 21 countries New countries: Fiji and Honduras (1 producers group each) Drop-out country: Togo (1 producers group)
1.2 Program reach The UTZ Cocoa program reached more than 700,000 farmers # of farmers 744,778 Certified area (ha) 2,706,596 # of workers (permanent and seasonal) 21,781 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Relative growth 16 17 21% 29% 8% Estimated 15% of the cocoa farmers worldwide are UTZ* Largest absolute increase is seen in Côte d Ivoire Largest relative growth is seen in Cameroon The certified area increased by 29% and the number of workers increased by 8% Number of workers in 2016 has been reviewed due to higher data quality and is lower than reported in 2016 * Based on World Cocoa Foundation 2016 estimate: http://www.worldcocoafoundation.org/about-cocoa/cocoa-value-chain/
Number of farmers 1.3 Program reach The number of farmers in the UTZ Cocoa program is steadily growing 350,000 329,978 300,000 250,000 200,000 2015 2016 2017 150,000 144,007 110,463 100,000 50,000 71,125 54,105 35,100 - Côte d'ivoire Ghana Indonesia Nigeria Cameroon Others Relative growth 16 17 23% 16% 39% 3% 101% 9% Global increase of 21% in the number of farmers Largest absolute increase is seen in Côte d Ivoire Largest relative growth is seen in Nicaragua (+104%) Ghana has fewer groups but with increasing number of producers (+16%)
MT cocoa bean equivalent 2.1 Global sales of UTZ certified cocoa beans UTZ cocoa sales increased by 83% over 2017. Lion s share of this is coming from West Africa 1,166,649 83% 581,709 639,087 295,084 390,416 49% 10% 2013 2014 2015 2016 2017 Sales per crop year are steadily increasing (+26% for main harvest) Strong growth in the demand for UTZ certified cocoa. Largest absolute growth in Côte d Ivoire More demand linked to commitment of important customers National record harvest in 2016/2017 in Côte d Ivoire For administrative reasons and anticipation of Mass Balance changes, some sales were recorded in 2017 instead of respectively 2016 and 2018 UTZ is continuously monitoring traceability challenges and improving its assurance in key producing countries First Buyer Sales are all the confirmed sales from a certified producers group or estate to the first buyer. Years are calendar years.
MT cocoa bean equivalent 2.2 Monthly global sales of UTZ certified cocoa beans 200,000 180,000 160,000 176,043 183,038 140,000 120,000 100,000 80,000 60,000 104,817 89,763 119,397 90,054 76,069 85,526 64,937 77,795 80,980 40,000 20,000 18,231 0 Sales represent the first sales from a certified producers group or estate to their first buyer For administrative reasons, part of the 2016 harvest was recorded in February 2017 The market anticipated the UTZ Mass Balance changes in December 2017 First Buyer Sales are all the confirmed sales from the producer to the first buyer.
MT cocoa bean equivalent 2.3 Sales of UTZ certified cocoa beans per origin country Increase in sales coming from main UTZ producing countries 800,000 700,000 671,854 600,000 500,000 400,000 300,000 2015 2016 2017 200,000 100,000 176,201 71,805 70,976 64,658 111,156 Relative growth 16 17 - Côte d'ivoire Ghana Cameroon Nigeria Indonesia Others 94% 123% 118% 79% 51% 13% Largest absolute change is seen in Côte d Ivoire Ghana sales boosted by new sourcing market members and internal Mass Balance purchases by Licensed Buying Companies Cameroon and Nigeria sales boosted by important investments in large groups First Buyers Sales are all the confirmed sales from the producer to the first buyer. *Other includes Domincan Republic, DR of Congo, Sierra Leone, Uganda, Brazil, Tanzania, Vietnam, Nicaragua, Togo, Mexico and Panama
2.4 Market uptake The uptake of UTZ cocoa by market continues; amount of licensed supply chain actors and requests for labeling approvals grew again Number of Licensed Cocoa Supply Chain Actors 1,387 879 1,184 17% 610 415 2013 2014 2015 2016 2017 Number of Supply Chain Actors increased by 17% 82% of the licensed Supply Chain Actors are based in Europe In 2017, 13,158 new consumer-end products on the market with the UTZ label Supply Chain Actors include traders, manufacturers and retailers.
3.1 Premium transparency On average 45% of UTZ premium is used to further professionalize at coop level, 55% is paid in cash to group members 55% Management 76% of groups use UTZ premium for their IMS 53% of groups use UTZ premium to pay for their external audit Products & services to the group 78% of groups 62% of groups use UTZ premium to provide productive inputs use UTZ premium to provide technical assistance 31% of groups use UTZ premium for basic community services Group member premium (in cash) Based on data from 2013/2014 time period
3.2 Premium An average of 83 euros/mt was paid in cash premium to UTZ producers groups and estates 122 Average Cash Premium in EUR/MT 102 102 89 83 2013 2014 2015 2016 2017 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 Additionally to the cash premium, buyers support cocoa producers groups with in-kind investment UTZ premium calculations are based on transactions data recorded in the GIP. Values under 10 and above 350 EUR/MT are excluded from 2017 analysis.
MT cocoa bean equivalent 4.1 Global Estimated UTZ Production Significant growth to almost 1,5 million tons 1,449,882 1,188,166 22% 879,771 4% 917,603 29% 2014 2015 2016 2017 Estimated production is the volume indicated on the certificate of a producers group or estate The largest increase (232,742 MT, +23%) in volume is seen in Africa Estimated production is based on license information from licenses valid on December 31st 2017
MT cocoa bean equivalent 4.2 Estimated production per origin country Increase in estimated production in main origin countries 900,000 800,000 817,264 700,000 600,000 500,000 400,000 2015 2016 2017 300,000 200,000 193,566 187,172 100,000-99,314 83,130 69,437 Côte d'ivoire Ghana Nigeria Ecuador Cameroon Others Relative growth 16-17 23% 7% 36% 39% 95% 5% Largest absolute change is seen in Côte d Ivoire: estimated production increased by 23% This is mostly due to new members entering the UTZ Cocoa Program Cameroon: new certified large groups in 2017 Estimated production is based on license information from licenses valid on December 31st 2017 *Others includes Dominican Republic, Sierra Leone, DR Congo, Uganda, Tanzania, Brazil, Vietnam, Liberia, Colombia, Nicaragua, Mexico, Panama, Honduras and Fiji.
5. Supply-demand trends Producers sell on average 76% of their estimated production as certified % of estimated production sold as UTZ 43% 44% 63% 54% 76% 2013 2014 2015 2016 2017 Supply-demand ratio measures the share of estimated production (as mentioned on the certificate) that is sold as UTZ Increase in supply-demand ratio linked to a higher increase in first buyer sales (+83%) than in certified estimated volume (+22%) Supply-demand ratio increased in all regions with a largest relative growth seen in Asia Supply-demand ratio is based on first buyers sales and estimated production 2017. It indicates a trend but not an absolute number.
% of total producers groups and estates 6. Multi-certification The number of multi-certified producers groups and estates is stable 25% 24% 24% 16% 14% 12% 2015 2016 2017 8% 8% 9% 8% 6% 6% 1% 2% 3% Multi-certified Fair Trade Rainforest Alliance Organic Others In 2017, 24% of the UTZ producers groups and estates were certified for at least another standard Double-certification UTZ and Rainforest Alliance is the predominant combination Fairtrade: increase mainly because of Ghana and Peru Multi-certification represents the number of producers groups and estates that were UTZ as well as certified for one or more other schemes Others includes schemes such as SPP, SASSANDRA, PROJET QPP, HACCP, FERMICOA, CROP LIFE, CP, COSTCO, cocoa life & COCOA TRACE