Sales and Payments

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

The forward sales strategy ensures stable income for the farmer and supports national revenue planning. The SUCOFA-Cocoa Board is able 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 further contributes to the premium that counterparties pay for Cameroon cocoa beans.

 

Sales Policy

The major sales objective of the Association is to sell to the 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 are made only to firms registered as buyers.

 

Firms wishing to be registered as buyers for Cocoa beans and Cocoa Products are required:

 

• To apply in writing direct to the Managing Director of 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 by SUCOFA are 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 by the company, 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. The Company, however, reserves the right to insist on the establishment of Letters of Credit whenever it deems it necessary to do so. Sales under trade and payment agreements are made against Letters of Credit. Sales by SUCOFA are negotiated on a net basis and all local bank charges are for the account of the Buyer.

 

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.