Sales and Payments

Marketing of Cameroon's cocoa beans is the primary objective underpinning the formation of the SUCOFA-CocoaBoard. Marketing of Cameroon cocoa beans will be done by SUCOFA-expert group of marketers, who monitor price movements in the international cocoa futures markets in London and in New York. Buying decision are made on the basis of internal strategy towards obtaining the best achievable prices in the market. Sales will be done directly to firms, registered as partners with SUCOFA and delivered directly to designated ports. SUCOFA is presently inviting international cocoa processing companies, chocolate manufacturers and trade houses.

The forward sales strategy will ensures stable income for the farmer and supports national revenue planning. The SUCOFA-Cocoa Board will be able to use forward sales contracts as security to secure annual syndicated financing from international financial institutions. The global reputation of the SUCOFA in the performance of its sales and contract obligations will further contributes to the premium that counterparties pay for Cameroon cocoa beans.

 

Sales Policy

The major sales objective of the Association is to partner with external and local markets at the best prices obtainable and to undertake its marketing function in a manner which will maximise the foreign exchange revenue that will accrue to the country.

 

Registration

All sales by SUCOFA Association will be made only to firms registered as partners.

 

Firms wishing to be registered as partners are required:

 

• To apply in writing directly to Sustainable Cocoa Farmers Association.

• To provide evidence that they have usefully been employed in some capacity in the cocoa trade in a consuming country or that they are organised in such a way that they can effectively handle the commodity on the International Market.

• To furnish the SUCOFA management with the name(s) and address(es) of their bankers to enable it to ascertain the Firm’s financial capacity for buying at last 2,500 tonnes per crop year (1st August to 30th November).

• To provide evidence of their membership of the Federation of Cocoa Commerce Limited and or the New York Cocoa Merchants Association, even if they are members of other Cocoa Associations.

Companies satisfying the above requirements are issued a document which provide the inside of Cameroon cocoa trade, Cameroon Cococa Export Regulation and Trade Prociduce.

Negotiation

Sales of cocoa beans to registerd partners of SUCOFA will be made by private treaty on the basis of World Cocoa Market values at the best prices obtainable. Negotiations are governed by normal commercial considerations only, without any kind of discrimination in favour of or against any individual firm or particular company.

 

Payments

Sales, except those made under special trade agreements, are effected on the basis of Cash Against Documents on first presentation payment terms in either New York or London. SUCOFA, however, reserves the right to insist on the establishment of partnership letter whenever it deems it necessary to do so. Sales under trade and payment agreements made to meet with sustainability. Partnership is open to all chocolate and cocoa procesors or trades houses and all local bank charges are for the account of the Partners.

 

Contract Quantity

The minimum quantity of cocoa beans for a contract to all main ports of discharge is 50 tonnes. The minimum quantity for coffee is 10 tonnes. In certain circumstances, however, the Company can insist on a larger tonnage if that serves as an incentive to carriers.

 

Shipment

Sales/exports are made usually on a Cost, Insurance and Freight (CIF) basis. Occasionally, Free On Board (FOB) and Cost and Insurance (C&I) bases are also allowed. Sales of cocoa beans are made for three-monthly shipment periods, e.g., October-December; November-January, December-February, etc. In the case of cocoa products sales are made for two-monthly shipment periods, e.g., February-March, March-April, etc. In both cases, the sales are made on the basis of main Europe ports. Exports to major open ports in overseas destinations are allowed, subject to the payment of the appropriate freight differential. The Association, however, reserves the right to reject declared ports which are not easily accessible.

Buyers are required to declare ports of destination at the time of negotiation or, at the least, two clear calendar months prior to the commencement of the contract shipment period. Requests for change of destination are entertained, but each request is dealt with on its own merit.