Cocoa Dinner 2001

Response to Chairman's Speech by Mr Sylvain Orebi, President of the of the Fédération du Commerce des Cacaos

"Your Excellencies, Ministers, Ladies and Gentlemen,

I am going to tell you a fairy tale, or at least it starts like one.

Once upon a time there was an island called Britain. Then came the tunnel. then came the merger between the CAL and the FCC. Beware, my friends, of not going too far. Because you start by merging with the french and you end up in the Euro zone!

Well! don't laugh it will happen sooner than you expect!

I am very pleased and honoured to have the opportunity to address you tonight, here in London. I am all the more pleased because Stephen has asked me to speak about this major and unique event in the cocoa trade: the proposed merger between the CAL and the FCC.

Both Associations have been created in the 1930's to promote and protect trade in cocoa beans and products, to establish uniformity in commercial usage by creating contract forms and to provide facilities for the settlement of disputes by arbitration. Both associations have beautifully and equally succeeded which leaves us now with two associations doing roughly the same thing with the same members and very similar contracts. Paraphrasing George Bernard SHAW I would say that they are divided by the same goals.And although both the CAL and the FCC are very international indeed, they are still better known as the "British" or the "French" association.

Therefore __with our members' agreement__ we will join forces into a single association based in London and called the FCC, Federation du Commerce des Cacaos or Federation of Cocoa Commerce.

Our single contract will be made of the best of each current one and will be available in english and french. Both Paris and London will keep an arbitration chamber made available at the option of the contracting parties. The new council or "comité directeur" will have 18 members representing all sectors of our profession. Four from the origin countries, four from the industry, six from the trade, two from service companies plus CAOBISCO and the ECA. It will in fact be very close to the present structure of the FCC.

The formation of that "comité" equally made of members coming from the CAL and the FCC clearly shows that our aim is to make everyone comfortable with the new association. I know that some of our members are worried about these changes. Well they should not be.

I wish to especially reassure our friends from Côte d'Ivoire and Cameroun and tell them:
"We are taking your fears into consideration. You must know that 6 out of 9 members of the merger committee are exporters in your countries. We know what you want . The new contract will be a fair balance between the present ones. Do not worry! And do not forget that if this merger does not go through, other contracts might emerge that will be imposed on you. It is neither your will nor your interest."

I will say a few words in french to our friends coming from Africa:

Mes amis africains,

Sachez que nous connaissons vos craintes et que nous les prenons en considération. Vous pourrez toujours rédiger vos contrats en français, aller éventuellement en arbitrage à Paris comme par le passé. Des gens vous représenteront au comité directeur, ils seront constamment vos interprètes. Ne craignez pas cette fusion ! Et n'oubliez pas que nombre d'entre nous sont eux-mêmes (moi compris) exportateurs dans vos pays. Sachez aussi que si cette fusion ne se fait pas, d'autres contrats verront le jour qui vous seront imposés. Ce n'est ni votre désir ni votre intérêt. Faites-nous confiance !

Of course other producers should not worry either. Whatever their nationality they will be well treated in the next FCC.

I will now talk to the other end where some industries are concerned too.I want to tell you that we are working on your quality requirements, on the food safety regulations, on the sustainability. You will be represented in our council where you will be able to defend your views and help us improve our contracts, especially on cocoa products. We will develop our co-operation on strategic issues like FFA, Ochratoxin A, jute bags and basic quality criteria. We know the end users are requesting a better and more traceable quality, fair practices and a full respect of the environnement and our goal will be to provide you with the right beans and the right contract protection.

I wish to particularly tell the ECA : " our new association is not directed against you. There is therefore no need to be hostile to it. We will always be listening to your suggestions and requests as long as they serve the common interest.

I am sorry I can't say it in dutch but I am sure they'll understand!!!

You all see that we are trying to deal with origin and industry worries. But who takes care of the tradehouses? Who remembers that twenty years ago there were more than 50 tradehouses in Europe and that today you can count less than 15 ! Some will say that the same concentration has occurred in the pressing and the chocolate industries. That is quite true BUT in the case of the trade 95% of the missing.... have gone bankrupt.

The role of tradehouses is definitely changing. It should not be their job anymore to take financial risks for the richer. They will probably aim at being more of service companies to the industry facilitating their supplies. If the trade disappears, which is a possibility that we cannot rule out, the chocolate makers will only have one alternative: directly buy beans at origin. bearing all the risks involved or buy cocoa products from a limited number of actors. bearing all the risks involved! Do they really want that? Well I believe we all have a pretty good idea of the answer. Our new association will have to conduct this change and secure the link between all sectors of our profession which it will defend in its globality. It simply wants to make the trade easier and safer for everyone. Therefore we will not lobby just for one category of members nor will we act against one of them.

My dear friends, I hope that you will share the insights into the strategy behind our merger. In order to convince you that this process is being monitored to the smallest detail I would like to explain why this cocoa dinner is taking place today the 4th of May.

Of course boring people will argue that it simply is the first Friday of May! That, of course, shows a bad understanding of our merger as well as a pretty bad spirit. Some others will recall that today in France is Saint Sylvain's day and would see it as a friendly sign of the british towards the french chairman of the FCC. Well, although the british are definitely capable of such kindness since we've won the world cup it would be presomptuous of my part to take this as the reason for the choice of this date.

No! the real reason lies in the dates around the fourth of May.The third ,fifth and sixth of May bear strong symbols of our merger. The third of may is the date of birth of Niccolo MACHIAVELLI writer of the Prince whose philosophy promoted the cunning, perfidious and tortuous...... But that was yesterday.

Tomorrow the fifth of may is the date of birth of Karl MARX whose contribution to putting things in common is incomparable! And our future is bright as the sixth of may is the date of birth of Sigmund FREUD, the great interpreter of our dreams!

Our common association is a complex institution. Opinions and interests run the whole range. At times they may conflict with each other. All the more reason why we must strive for unity. We are asking you to stay with us on the long journey to solidarity. We must stand together! That way _together_ we will achieve the best results! Thank you."