Dear Friends,

We invite you to visit our company stand in 11^th Moscow International Exhibition “Food Ingredients 2008”, which will take place in the 2^nd pavilion of the exhibition center “Krokus Expo” during the period 25-28.11.08.

Our stand В 25 is in the 8 Hall.

The exhibition time table is the following.

25 of November, Tuesday – 11:00 – 18:00

26 of November, Wednesday – 10:00 – 18:00

27 of November, Thursday – 10:00 – 18:00

28 of November, Friday – 10:00 – 16:00

The exhibition address is the following. Moscow field, Krasnogorsk town, 66-65 km of Moscow Ring Road (external side, crossing with Volokolamskoye shosse).

City transport: bus 640 and 631 from “Tushinskaya” and “Tshukinskaya” metro stations till bus stop “Isakovskogo Street”.

During the exhibition working days there will be a ticket free bus from “Planernaya” metro station.

You can see here the plan of delivery to “Krokus Expo”: www.ingred.ru/visitors/ 

 

 

Cocoa products market condition is in the direct depend on the position of the biggest cocoa beans grinders. Depending on their economical interests, cocoa products producers prefer to produce cocoa liquor or cocoa butter and cake. Depending on their decision, deficit is created on this or that kind of cocoa product, which leads to increase or decrease of the price.

 

International market

In December 2007 although as in January 2008 we saw a serious deficit of cocoa products in the world. It is supposed, that this situation will be the same approximately till March 2008.

Cocoa powder.

Prices of the factories producers for cocoa powder are now around $1100-1200 per 1 ton FCA Factory. This level is supposed to be the same for the first half of 2008. For the second half prices are supposed to be higher $100 per 1 ton.

Cocoa liquor.

In this segment of the market deficit is very serious. Today ratio in Europe is around 1,55-1,60. In March these figures will fall down around up to 1,50. Since April we expect the ratio level will revert to the normal level – 1,40-1,50.

Cocoa butter.

The cocoa butter situation is very similar to cocoa liquor. Today ratio in Europe is 3,00-3,10. In March these figures will fall down around up to 2,95 and it is supposed to revert to the level 2,90.

 

Russian market

Cocoa products international market difficult situation is influencing on the Russian cocoa products market. Even international groups, represented in the Russian cocoa products market, had deficit with cocoa products to their productions.

Cocoa powder.

Today DDP Moscow price for cocoa powder is $1900-2200 per 1 ton with perspective to reach the level $2200-2400 in the end of this year.

Cocoa liquor.

Today DDP Moscow price for cocoa liquor is $4800-5200 per 1 ton with perspective to reach the level $5000-5500 in the end of this year.

Cocoa butter.

Today DDP Moscow price for cocoa butter is $8500-9000 per 1 ton with perspective to reach the level $9000-10000 in the end of this year.

 

Dear Friends,

We invite you to visit our company stand in 10^th Moscow International Exhibition “Food Ingredients 2007”, which will take place in the 2^nd pavilion of the exhibition center “Krokus Expo” during the period 04-07.12.07. Our stand C27is in the 8 Hall.

We will be happy to get acquainted you with the assortment of our products and with 2008 new products. You can discuss with our managers the cooperation perspectives, interested products delivery conditions. Experts of our company are ready to answer all your questions.

The exhibition time table is the following.

The 4^th of December, Tuesday – 11:00 – 18:00

The 5^th of December, Wednesday – 10:00 – 18:00

The 6^th of December, Thursday – 10:00 – 18:00

The 7^th of December, Friday – 10:00 – 16:00

The exhibition address is the following. Moscow field, Krasnogorsk town, 66-65 km of Moscow Ring Road (external side, crossing with Volokolamskoye shosse).

City transport: bus 640 and 631 from “Tushinskaya” and “Tshukinskaya” metro stations till bus stop “Isakovskogo Street”.

During the exhibition working days there will be a ticket free bus from “Planernaya” metro station. You can see here the plan of delivery to “Krokus Expo”: www.ingred.ru/visitors/ 

 

Powder

 

What we see now is a growing deficit on powder, especially alkalized. Prices finally reach 2000 USD per 1 metric ton.

 

But main problem is a deficit of physical products. Main reason is the following. Main producers of cocoa powder have also a deficit of beans. So they don’t have enough powder to provide all their clients. Europe market is more attractive for cocoa producers as it’s possible to sell at a higher price than in the Russian market. That’s why the Russian market receives less and less physical powder.

 

Price perspectives. We have already made some new contracts with big international groups for first half of 2008. The price offered by cocoa powder producers is $50-100 higher than for the 4^th quarter of 2007. So, it’s expected, that market is going to continue it’s increase next year.

 

Liquor and butter

 

For today we see the price of Ghana liquor in the Russian market about 4600-4800 USD. During the second part of 2007 it’s expected, based on collected information from main trading houses, to be 5000-5200 or even up to 5500 USD per 1 metric ton. Also we see a great deficit in PORTEM brand and new PORTEM liquor is only expected to appear in the Russian market in December 2007.

 

Butter prices now are about 7300-7800 USD, depends on the quality and purchase volume. During the second part of 2007 it’s expected, based on collected information from main trading houses, to be 8000-8500 USD per 1 metric ton.

 

Finally London went through 1100 Pounds and New York 2020 USD levels. In accordance with information, collected from main trading houses, for the second part of 2007 we should expect London corridor 1200-1300 Pounds with little chance to reach even 1400 Pounds.

 

Confirming the increase of the Funds presence, the New York raw materials market announced that the total volume during the month of June had been 5 million lots meaning an increase of 34% over the month of June 2006. We see a great interest to physical products from the world industry. Producers of cocoa beans prefer now to sell little parties of beans as they don’t have a lot of them and also plan to sell later, when price is expected to be higher. Some grinders of cocoa bean are only receiving now the beans, which should be delivered to them in April-May 2007.

The Sterling is strengthening it’s position against the Dollar. Today we see the level 2,03-2,04 with possibility to reach 2,10 in the end of 2007.

 

The Ivorian authorities announced that a new commercialization system will be implemented for the 07/08 crop. This system is based on establishing warehousing in the country’s interior, where the cocoa of the farmers can be received, cleaned and bagged for export (better quality?) before being sold through internet. What it all means at this stage is not yet quite clear, what could happen is that it will cause delay in the beginning of the crop if the system is not functioning perfectly and authorities block exports.

 

There is a very attractive God Transformation church in the village Tsikul placed in Gus-Chrustalnyi area of Vladimir field. The church was built in the beginning of nineteenth century. After we once visited it and got acquainted with it’s keeper Father Superior Varsonofy, we decided to take part in repair-restoring work inside the church.

 

Now with the aid of our company the repair of the church tower is going to the end. But the most important thing is that the church will never be empty and voiceless. In accordance with our request ring bells were made on Anisimov ring bell manufacturer and today they were delivered to Tsikul from Voronezh . Four very beautiful both sounding and appearance ring bells with weight 502, 290, 150, 100 kg were placed in the church hall. As soon as the repair work will be over, the ring bells with be sainted and raised to the tower. Many people from Tsikul and surrounding villages are waiting for this event. As the church is placed on the hill, the ring bells will be heard in the long distance.

 

With very good results in the previous season and serious future plans we reached our seventh birthday.

 

Biggest Russian cacao market trader status doesn’t mean, that we reached the top of the hill and that we don’t have anything new to reach. Visa verse, our stabile powerful place of company allows us to move to new heights. We have very big future plans. In the nearest future we hope to make our clients happy by offering them new business possibilities.

In accordance with our traditions, we spent time in the countryside and it was a good opportunity to speak to each other in nonofficial atmosphere, discuss current and future things, points of view exchange.

What is a birthday without jokes, games, gifts and tasty things. We had all these and in big volumes. We had a very good holiday. Also we received a lot of good words and best wishes from our partners. So we’d like to thank everybody.    

In season 2006 we are glad to introduce to our customers high-quality cocoa products, manufactured by two Spanish factories, NEDERLAND and MONER&LLACUNA. The range of products includes natural and alkalized cocoa powders which are produced in accordance with strict European quality requirements. In additional, the NEDERLAND factory produces natural and deodorized PPP cocoa butter and cocoa liquor (in blocks and kibbled) made of West-African cocoa beans.

Our Moscow office organized on-sight “Russian Cocoa Market Challenges” seminar for MBA students from Columbia University Business School, New York. The discussion included history of the company, success of a business model, different partnership strategies (e.g. EUROMAR vs. COCOA HOUSE), branding that helps commodities (JB COCOA launch story), future prospects and challenges.

Our strategic partner TRANSMAR COMMODITY GROUP (shareholder of EUROMAR cocoa processing facility) is celebrating 25-years anniversary. We praise the opportunity to have such a reliable, experienced, and innovative company in the list of our suppliers. We wish many happy returns to our colleagues and are looking forward to mutual accomplishments in the future.