Annual Report 2012

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VISION & MISSION

CAOBISCO represents the European chocolate, biscuits and confectionery industries, one of the major food sectors of Europe. It has 18 National Associations, 8 direct member companies, of which 6 leading multinational companies.

Vision
A strong and successful Chocolate, Biscuit and Confectionery Industry, respected by stakeholders with products enjoyed by consumers as part of a balanced diet CAOBISCO and its members will follow this objective by encouraging: 1. The safety, quality and taste of their products, whilst maintaining the culture and tradition of their origins; 2. That products comply with the regulatory framework at national and European level; 3. That raw materials are sourced and products manufactured in a responsible manner from an economic, environmental and social point of view.

Objectives
1. Promote the CAOBISCO food categories to stakeholders through building condence and trust via responsible and transparent practices throughout the supply chain, meeting consumers needs for safe, high quality, tasty and nutritious products; 2. Inuence public policy, at European and Global levels via proactive and effective networking and communication with external stakeholders. Use aligned internal policy frameworks to inuence current issues and to develop positions on future issues; 3. Enhance value to members by addressing their needs via a transparent, timely and efcient decision making process on all non competitive issues relevant to members activities. Make best use of members expertise and commitment in order to optimise efciency and aligned positions through collective engagement.

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TABLE OF CONTENTS
Vision & Mission Foreword Securing Sustainable Raw Material Supply Common Agricultural Policy Reform Dairy Market EU Sugar Market Enhancing Sectors Competitiveness Origin Rules In Preferential Trade Agreements Nutrition & Health Labelling: Industry Efforts To Better Inform Consumers Claims: Improving Consumer Choice Food Taxes Ensuring Food Safety Ingredients: Providing Safe Foods Safe, Sustainable And Quality Raw Materials Working Towards Sustainability The Hazelnut Supply Chain The Cocoa Supply Chain The Palm Oil Supply Chain 2012 In Events CAOBISCO In Figures CAOBISCO Members CAOBISCO Structure Network Overview CAOBISCO Secretariat 2 5 6 6 7 8 10 10 12 12 13 13 16 16 17 20 20 21 24 26 30 38 40 44 45

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FOREWORD

Dear Readers, Currently CAOBISCO represents more than 11 000 Companies, employing more than 300 000 persons and generating a total turnover of about 70 Billion Euros. Those gures are eloquent since they conrm an increase in importance of our sectors in the EU over the last 5 years which have been very challenging for the competitiveness of businesses. Building on this energy, 2012 has been a year of positive changes for CAOBISCO with: >> a new visual identity to better reect who we are >> a new website to reect our vision for the future and communicate our commitments to play an active and effective part in the development of smart, inclusive and sustainable growth in Europe. See more on www.caobisco.eu >> new ofces closer to our main stakeholders: the EU institutions and better representing our members. In such a stimulating new environment and keeping in mind that food safety is a non negotiable prerequisite which needs constant care and attention, CAOBISCO concentrated its resources on: >> Shaping EU Common Agriculture Policy Reform to take into account the challenge faced by sugar users namely the access to the quantity and quality of raw materials needed to continue to produce in the EU. >> Communicating about the discriminatory nature of foods taxes, their inevitable negative collateral effects as well as the lack of evidence on their positive impacts on consumption patterns. >> Enhancing consumer understanding notably in relation to origin labelling and ensuring that a proper cost/benet analysis is being made when further rules are being considered at EU level. CAOBISCO has also been the catalyst to enhance the confectionery sectors engagement in responsible sourcing in partnership with the public sector: >> Signing of the Abidjan declaration on cocoa sustainability >> Signing of a Public-Private partnership agreement with International Labour Organisation (ILO) to work on the sustainability in the production of hazelnuts. We hope you nd it an interesting reading and already extend an invitation for next year to receive and read our report on our long term undertakings.

Tobias Bachmller President

Sabine Nafziger Secretary General

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SECURING SUSTAINABLE RAW MATERIAL SUPPLIES

Common Agricultural Policy Reform

The functioning of the EU agricultural sector is directly impacting the sustainable production and food security in CAOBISCO sectors. CAOBISCO welcomed the proposals of the Common Agricultural Policy (CAP) reform published by the European Commission in October 2011. The proposals included important elements of change, such as the abolition of the dairy and sugar quotas as of 2015. This was a welcoming sign of the times of continuing raw material scarcity and commodity price hikes. The reform presents a unique opportunity to position the European food chain partners as global leaders in the production of high quality food products. More market orientation is needed to make farming a demand-driven part of the food production chain and ensure manufacturers have access to adequate supplies of raw materials that are safe, of high quality and competitively priced. In order to achieve this objective, CAOBISCO identied the following steps as key elements that the reform should secure. >> Abolition of dairy and sugar production quotas in the context of an increasing global demand for food. >> Development and use of price risk management tools. >> Private Storage Aid (PSA) schemes to contribute to strategic management of stocks. >> Investment in policy measures aimed at promoting sustainable intensication of the European agricultural production that will meet future challenges of food security, resource scarcity and climate change. >> Adjustment of the biofuel policy to take into consideration the growing volume of research demonstrating the negative impact of rst-generation biofuels production on raw materials supply and volatility, and avoid further diversion of food crops into fuel. >> Effective market-based mechanisms to correct market imbalances and to guarantee effective access of the food industry to third country raw materials when necessary. MEP Rapporteur Michel Dantin (EPP-F), member of the European Parliament Agriculture Committee, published his draft Report on the Commission proposals on the reformed management of the single Common Market Organisation in June 2012. The Report reects more or less the own-initiative report of Albert Dess (EPP-D) on CAP Reform published back in early 2011: production quotas for sugar should be extended until 2020 but provisional measures on out-of-quota sugar reclassication should be introduced. The Report also focuses on giving more power to Producer Organisations (POs).

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Production quotas are a barrier to sufcient supply, in particular in the context of an increasing global demand for food. Their abolition will benet the competitiveness of the whole supply chain, including farmers.

CAOBISCO activities concentrated specically on making sure that the industry key objectives were covered in the EPs Agriculture Committees report, especially the phasing out of the dairy and sugar production quotas in 2015. Clearly, the direction that the EP was heading towards was not moving to more market orientation. Extensive efforts were made to dare Members of the European Parliament to attempt real reform started to intensify ahead of the EP Agriculture vote on the MEP Dantin Report. CAOBISCO will pursue its efforts in 2013 to make its voice heard and defend the production and competitiveness of its sectors by actively encouraging the suppression of sugar and dairy quotas by 2015. The Council will have to adopt CAP Reform legislation by qualied majority by June 2013, after which the new CAP rules should enter in force on January 2014.

Dairy Market
The CAP reform proposals reiterated the end of dairy production quotas in 2015, which was welcomed by CAOBISCO. Furthermore the proposed ceiling foreseen for intervention stocks on the dairy market seemed reasonable to users who expressed support to the European Commission. As regards private storage aid, CAOBISCO positioned itself in favour of the maintenance of the market measure for skimmed milk powder and butter. CAOBISCO approached the Commission, the supply chain and Member States on the extension of the aid to concentrated butter for following reasons: 1. Concentrated butter is more stable than fresh butter and quality does not change during warehousing. 2. Warehousing costs are much lower compared to fresh butter (because storage does not need below zero temperatures). 3. Several industries (chocolate and bakery sectors) need this butter that does not contain water for technological reasons. 4. To produce concentrated butter out of fresh butter instead of fresh cream is very inefcient and expensive: 82% butter has to be warehoused in Private Storage Aid (PSA) as frozen, than unpacked when needed, melted, concentrated and then repacked and delivered. The European Parliaments report on the Commission proposal sent a good signal in line with the 2010 Dairy package reform in support of the phase out of dairy production quotas in 2015.

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SECURING SUSTAINABLE RAW MATERIAL SUPPLIES

EU Sugar Market
Difcult Times For Sugar Supplies
Since the 2009 campaign year, the sugar market has entered a major supply crisis, putting the productivity and competitiveness of our industries at risk. CAOBISCO industries face great difculties in nding the sugar volumes necessary to continue their production and have to buy sugar at prices signicantly above world market levels. In 2012, the European Commission responsible for the market management once again applied emergency market measures in order to bring additional supply of sugar onto the market by: >> putting surplus quota sugar back onto the market; >> temporarily opening borders for additional imports. Since 2010, a total of 11 emergency measures needed to be taken to full the gap in sugar supply - a total of around 2 million tonnes for marketing years 2011/12 and 2012/13. However, these emergency market measures still proved to be insufcient to balance out demand and had little impact on the market, bringing EU average reported prices to record-highs, a gap of more than 100% between the world and EU average market price (Source: European Commission).

EU & World Sugar Prices ( 2 Per Tonne) Source: European Commission

750 728 3 /T 650

3 Per Tonne

550

450 377 3 /T

350

250

Eu Average Price For White Sugar Eu Reference Price World Market Price - London 5

150
r. 0 7 Ju l. 0 7 Oc t. 0 7 Ja n. 08 Ap r. 0 8 Ju l. 0 8 Oc t. 0 8 Ja n. 09 Ap r. 0 9 Ju l. 0 9 Oc t. 0 9 Ja n. 10 Ap r. 1 0 Ju l. 1 0 Oc t. 1 0 Ja n. 11 Ap r. 1 1 Ju l. 1 1 Oc t. 1 1 Ja n. 12 Ap r. 1 2 Ju l. 1 2 Oc t. 1 2 Ja n. 13 6 t. 0 l. 0 Ju n. 07 6

Ja

Ap

Oc

EU & World Sugar Prices

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Numerous small-and medium sized companies continued to testify to the direct economic impact of supply scarcity and record-high price levels on their businesses, with company closures, suspensions of production lines and thus job losses. In this context, the engaged reform of the agriculture policy proposed by the European Commission with the elimination of sugar production quotas in 2015, brought a glimpse of hope to industries.

Elimination Of Sugar Production Quotas In 2015

The CAP reform proposals published in October 2011 included the phasing out of sugar production quotas as of 2015 onwards (as decided in the 2006 reform). This responded positively to the strong requests made by CAOBISCO and CIUS (the European Sugar Users Association). In 2012, the Commissions CAP Reform proposals entered into ofcial legislative procedure under co-decision at the European Parliament. Michel Dantin, the designated Rapporteur for the single Common Market Organisation Reform, tabled his Report to the Agriculture Committee ling amendments requesting the extension of production quotas until 2020. The nal Report to be voted at the March 2013 Plenary would translate into the EPs mandate to negotiate with the Commission and the Council, the so-called trilogues (inter-institutional negotiations). CAOBISCO started its outreach to Members of the European Parliament arguing in support of the Commission proposal to eliminate production quotas in 2015. At the same time, a rst exchange of views on the future of sugar production quotas took place during the Agriculture Council meeting in December, in which most Member States positioned themselves for or against the 2015 end date. CAOBISCO started reaching out to National Permanent Representations in Brussels and through its local networks to national ministries and governments. Sugar quotas are a barrier to sufcient supply. Emergency supply management measures taken by the European Commission to bridge the supply gap and limit price volatility have until now proven to be inadequate. Removing production quotas will benet the competitiveness of the whole supply chain, including farmers and beet growers. In parallel,CAOBISCO reected on changes to the current market regulation which could be envisaged before quotas would be abolished. An automatic trigger mechanism for bringing out of quota sugar and additional imports onto the market was put forward to the Institutions as a transitional measure and considered as an amendment in the European Parliament. The system developed and proposed by CAOBISCO would address the issue of forward planning and trigger supply measures in a timely way before a supply crisis would occur. Along with the internal market management reforms, CAOBISCO requested a reduction of import tariffs and/or additional volumes via import quota in order to add sugar quantities onto the market via preferential agreements and bring in some competition within a highly concentrated market. Two Free Trade Agreements were concluded in 2012 allowing 162,000 tonnes of sugar to be imported from Central America and 114,000 tonnes from Peru and Colombia. All in all, the current sugar market regime, with its regulatory restrictions (production quotas and import restrictions), prevent sugar users of the food and drink industry to be adequately supplied. The current regime is unsustainable as it hinders the whole sugar supply chain to be competitive and meet ever increasing global demand.

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ENHANCING SECTORS COMPETITIVENESS

Origin Rules In Preferential Trade Agreements

Preferential origin is conferred on goods from particular countries (countries that have a preferential trade agreement with the EU and have fullled certain criteria), allowing preferential rates of duty to be claimed. These preferential origin rules are fundamental to determine the customs duty to be paid according to the origin and place of manufacturing of the product and its related content/ingredients. A Regulation determining preferential rules of origin under the General System of Preferences (the GSP allows developing country exporters to pay lower duties on their exports to the EU, according to their economic growth level) entered into force on 1 January 2011. It aims at simplifying rules and procedures for developing countries wishing to access the EUs preferential trade arrangements, while ensuring the necessary controls are in place to prevent fraud. The Regulation took into account the request from nearly all stakeholders and Member States on the need for a sectoral approach in the determination of origin of food products based on weight and no longer on the value criteria. For CAOBISCO products for instance, it has been determined that the product imported from GSP countries could only include a limited percentage in weight of non-originating raw materials (i.e. maximum 40% of the nal weight for sugar or dairy and 60% for sugar and dairy combined). The GSP Regulation concerned only imports from a specic list of developing countries and thus affected only the origin of products imported from these counties. However, since 2011, the Commission decided to negotiate reciprocal rules of origin in new bilateral Free Trade negotiations on the basis of the GSP criteria (based on weight and no longer on value), meaning that the determination of origin would also affect products produced in the European Union and exported to Third Countries. Taking into consideration that since the 2006 sugar market reform the EU is dependent on 20% imported sugar, CAOBISCO industries are and will in the future be more and more dependent in using nonoriginating sugar in their products. Hence the Commissions decision has serious negative consequences on the CAOBISCOs export business and competitiveness. Consequently: 1. CAOBISCO has requested the maintenance of the current origin rules (based on value) in all existing and future free trade agreements (FTA). Otherwise many CAOBISCO products would fall outside of the rules and would risk losing the opportunity to benet from preferential access to third country markets. In 2012, negotiations for a FTA with Canada entered the stage of exchange of trade offers. For CAOBISCO, Canada represents an important export market and strict rules would impeach export ows of sugar-containing products from the EU. CAOBISCO discouraged the Commission to negotiate on the weight criteria in talks with Canada.

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The competitiveness of CAOBISCO industries needs to be supported to face the challenges brought in by the global economic downturn and the rise in raw materials and energy prices.

Bilateral negotiations with Central America, Colombia and Peru, and South Korea resulted in origin rules based on value. The only exception was Singapore for which weight rules were agreed, restricting the use of nonoriginating sugar between 20%-40%. However, CAOBISCO exports already benet from duty-free access to Singapore, making the decision on rules less relevant. 2. CAOBISCO requested suppliers to apply accounting segregation in order to have a trace on the storage of quantities of non-origin sugar contained in their sugar silos, thus not contaminating EUorigin sugar and thus accounting the sugar volumes sold as non-originating. In May 2012, the Customs Code Committee (composed of the Commission and Member States) agreed that Member States should grant authorisations to allow the management of stocks through accounting segregation to the suppliers of sugar. In 2013, CAOBISCO intends to investigate if this recommendation is being applied in the 27 Member States.

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NUTRITION & HEALTH

Labelling: Industry Efforts To Better Inform Consumers

Consumers need clear and comprehensive information on labels to enable them to make informed choice. CAOBISCO remains committed to promoting the labelling of energy per portion front-of-pack and providing more comprehensive nutrition labelling back-of-pack. To this end, CAOBISCO has been contributing through FoodDrinkEurope on the draft of the European Commission guidance document on the interpretation of the key provisions of Regulation (EU) 1169/2011. This guidance will be very useful to food operators, in particular the small and medium-sized enterprises. CAOBISCO, together with FoodDrinkEurope, worked with the EU Institutions to ensure that the Regulation on Food Information to Consumers is implemented in line with its original aim to harmonise and simplify existing legislation in order to improve consumer understanding. The Commission has commissioned an external study to assess the impact of different options of implementing voluntary origin labelling rules. CAOBISCO has contributed actively to this study that will form the basis of an Impact Assessment report to be drafted by the European Commission in 2013. CAOBISCO understands and supports the need to prevent fraudulent practices and misleading origin indications. However, indication of origin of CAOBISCO products ingredients will put disproportionate burdens on industries without providing informative value to the consumers: >> the sourcing of CAOBISCO ingredients is complex. Our industries procure raw material from multiple sources for reasons of security of supplies, quality, seasonal availability, food safety and sustainability issues >> adding detailed information on country of origin on the labelling will be practically unworkable for small packaging and multi-lingual labels >> the nancial impact will be signicant for manufacturers, in particular for small and medium enterprises since they have limited means to follow up information/context/changes in label CAOBISCO is therefore keen to maintain a exible approach to ensure that the implementing measures are workable in practice for our Food Business Operators.

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The European chocolate, biscuit and confectionery industry is committed to providing a large variety of products for consumers to choose from according to their taste, age or lifestyle, on the basis of clear and concise labelling providing the necessary nutritional information.

Claims: Improving Consumer Choice

Both nutrition and health claims participate in informing consumers of a products specic nutritional or health benet. The list of permitted Article 13.1 health claims has formally been adopted by the European Commission (Commission Regulation (EU) No 432/2012 of 16 May 2012 establishing a list of permitted health claims made on foods, other than those referring to the reduction of disease risk and to childrens development and health) and published in the EU Ofcial Journal in May 2012. It entered into force in December 2012. In parallel DG SANCO also posted the EU Register of nutrition and health claims made on foods online. It will be updated by the Commission when required, namely upon adoption of EU decisions on applications for claims or on changes to conditions of use and restrictions. Today, any claim on a food product in the European Union has to be based on recognised scientic knowledge and criteria. It creates a level playing eld in which businesses nd the legal security they need to operate and build consumer condence. The ability to innovate and remain competitive is key for our industry and this is why CAOBISCO welcomes progress towards a harmonised list of scientically substantiated health claims for use across the EU. What needs to be further improved is the efciency of the individual authorisation procedures which are extremely long. The slowness of decisions is cumbersome for business as speed and predictability of administrative procedures is critical to foster research, creativity and innovation.

Food Taxes
In 2012, Denmark decided to abolish the discriminatory tax on saturated fat introduced in 2011 and decided against the introduction of a tax on sugar. CAOBISCO welcomes the decision and remains strongly opposed to any tax on food products imposed on the alleged grounds of ghting the obesity issue. They are discriminatory in nature placing the burden of the obesity problem and other non-communicable diseases on a single product category. The experience of the Danish government conrmed CAOBISCO position on food taxes: >> They hit the consumers who are already struggling to maintain their purchasing power in the current economic crisis. This is particularly true for low-income consumers as they spend a higher percentage of their income on food.
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NUTRITION & HEALTH

>> They have negative side effects impacting the local economy and the competitiveness of the industry (in particular SMEs): inated food prices, increasing administrative burden for companies, cross-border shopping and potential job losses. >> They also impact the Single Market and the free movement of goods as they may result in competitive disadvantages for imported products versus those produced locally. >> As these taxes are applied against arbitrary criteria to some products within a category this can lead to a distortion of competition between directly competing sectors. This can have direct consequences on investments in these sectors and in particular on innovation. >> They have not demonstrated their effectiveness in bringing about positive behavioural change among consumers in their dietary choices impose or increase taxes on confectionery and ne bakery wares. Obesity is a multi-factorial challenge that needs a holistic approach and a partnership of all stakeholders, together with public health authorities, schools and civil society, taking positive actions. CAOBISCO Members are committed to playing their role. For example through the GDAs voluntarily implemented on our packs and most notably through commitments under the EU Platform for Action on Diet, Physical Activity and Health. At the same time, we rmly believe that a true solution to a multifactorial issue such as that of obesity can only be based on multiple strategies and positive actions such as increasing physical activity practices and education about product composition, balanced diets and healthy lifestyles. The solution will not come from abdicating personal and parental responsibility, and certainly not from introducing new taxes or new discriminating regulations affecting our products. CAOBISCO believes that there are no healthy or unhealthy foods but only healthy and unhealthy lifestyles.

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ENSURING FOOD SAFETY

Ingredients: Providing Safe Foods

Additives
Consumers demand and enjoy chocolate, biscuit and confectionery products that are safe, avourful, colourful, nutritious and textured. Many ingredients are used to meet their expectations, many of them can be found in our kitchen at home. Each of these ingredients serves useful functions, in particular additives. They perform certain technological functions to colour, avour, preserve and sweeten. Food additives are authorised at EU level for all the Member States. The current EU Legislation on food additives consists of a framework Directive and three specic Directives: colours, sweeteners, and the remaining food additives. It is based on the principle that only those additives that are explicitly authorised may be used. They must comply with specications providing that each food additive must be adequately identied, including its origin, and describing the acceptable criteria of purity. The deletion of one single authorisation could change the nature of a product and affect notably its safety characteristics. For that reason CAOBISCO and its member associations have provided the EU Commission and national authorities with data demonstrating why specic additives are necessary. Particular focus has been given to colours. They are essential in our sectors as they provide an appealing appearance to confectionery and help consumers differentiate the different avours. Council Directive 89/107/EEC states that all food additives must be kept under continuous observation and must be re-evaluated whenever necessary in the light of changing conditions of use and new scientic information. The Commission completely revised its food categorisation for additives, colours and sweeteners in 2012. CAOBISCO contributed actively by providing justications of the health and technological needs for all the additives used in our products. The new Regulation 231/2012/EC on specications (information to adequately identify the food additive, including origin, and to describe the acceptable criteria of purity) was adopted on 9 March 2012. It covers the specications for all food additives in Annex II and III to Regulation EC 1333/2008. It applies from 1 December 2012, repealing Directives 2008/60/EC, 2008/84/EC and 2008/128/EC from that date. CAOBISCO is committed to promoting maintained usage of all additives proven to be safe.

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The overriding priority for CAOBISCO manufacturers is and will remain to provide their consumers with products that are safe and manufactured with quality ingredients, in respect of European legislation and other established international safety standards.

Safe, Sustainable & Quality Raw Materials

Working In Close Partnership With Origin Countries
CAOBISCO ingredients come from many different origins all over the world, including developing countries. Global sourcing means that CAOBISCO members need to work in close partnership with their suppliers in the origin countries to ensure that the raw materials used in their products meet the safety and quality criteria that consumers expect. CAOBISCO and its members continuously work with the cocoa-producing countries and the cocoa organisations (European Cocoa Association, Federation of Cocoa Commerce and International Cocoa Organisation) to eliminate safety and quality issues related to cocoa raw materials by actively promoting and implementing good agricultural practices on the ground. This coordinated action has ensured that cocoa beans exported to the EU comply with adopted EU Regulations on contaminants and pesticide residues. CAOBISCO has participated in many events in order to promote the recommendations on good agricultural practices and exchange information with representatives of the producing countries, notably at the Cocoa Producing Countries Alliance Scientic Conference which took place in October 2012 in Cameroon. CAOBISCO has collaborated actively with the EU Commission providing data and CAOBISCO position on cadmium and facilitating the exchange of information between cocoa producing countries and industry. CAOBISCO is willing to achieve a legislation that will ensure the highest consumer protection standards as well as workable levels for cocoa producing countries. The Draft proposal is expected to be published in the beginning of 2013. Levels included in the proposal should be in line with CAOBISCOs position.

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ENSURING FOOD SAFETY

Industry Efforts To Mitigate Acrylamide
CAOBISCO is widely informing interested parties about the efforts made by the industry to mitigate acrylamide in ne bakery wares. CAOBISCO contributed to the revision of the food industry pamphlets (and more specically to the ne bakery wares toolbox) setting out the latest tools to mitigate acrylamide levels in certain food products. These pamphlets are available freely for all companies on the Commission website in all 22 languages and promoted by CAOBISCO to all companies of the sector. EFSA latest scientic report Update on acrylamide levels in food from monitoring years 2007 to 2010 was published in October 2012. Within a FoodDrinkEurope delegation CAOBISCO will participate in a meeting with the EU Commission and Member States in February 2013. The aim will remain to provide more comprehensive information on mitigation tools, success stories and challenges.

Development Of International Standards

In 2012, CAOBISCO was an active participant in the development of food standard guidelines at an international level, under the umbrella of Codex Alimentarius. Specically, CAOBISCO contributed to Codex working groups on Contaminants in Food (CCCF): Code of Practice for the Prevention and Reduction of Ochratoxin A in Cocoa. CAOBISCO also contributed in Codex working groups on Food Additives (CCFA) and other Contaminants in Food (CCCF) through FoodDrinkEurope.

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WORKING TOWARDS SUSTAINABILITY

2012 saw CAOBISCO Further Solidifying Its Approach To Sustainability

Collective approach to achieve goals on: 1. Supporting decent working conditions and specically all efforts towards elimination of worst forms of child labour (as per Convention 182 of the International Labour Organisation, ILO). 2. Supporting Productivity and Quality improvements all along raw materials supply chains through promotion of Good Agricultural and Post-Harvest Practices. 3. Supporting responsible and scientically sound Environmental Stewardship, including land use, pesticide, fertilizers and water usage; compliance with national & international forest protection regulations.

The Hazelnut Supply Chain

CAOBISCO and its members are committed to progress with a multi-stakeholder approach including all parties in the hazelnut supply chain. Addressing the root causes of poor labour practices in the Turkish hazelnut sector cannot be achieved by the private sector in isolation. A joint effort of all relevant private and public stakeholders is required under the leadership of the Turkish government.

Multi-Stakeholder Platform In The Hazelnut Supply Chain

On the 4th July 2012, under the chairmanship of the Under Secretary of the Turkish Ministry of Labour, stakeholders met to explore how best to advance towards an inclusive, constructive and meaningful multi-stakeholder process to address working conditions in hazelnut orchards in Turkey. The essential objective was to follow the implementation of the Turkish government action plan and to communicate on the effective improvements towards the elimination of child

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CAOBISCO members work together and in partnership with other stakeholders throughout the supply chain to ensure that commodities are sourced and products are manufactured in a responsible manner from an economic, environmental and social point of view.

labour in the hazelnut supply chain. CAOBISCO and its members are committed to working in public private partnership to achieve this. The rst agreed step in the meeting on 4th July was to set up a working group to dene the roles and responsibilities of each participant in a multi-stakeholder platform. CAOBISCO and its members consider conformity with recognised international labour standards, including ILO conventions, in the Turkish hazelnut supply chain as a priority. The proper legal and policy framework including the relevant ILO conventions are in place in Turkey. Turkish labour legislation has been further strengthened recently to address labour issues in the agricultural sector. In 2013 CAOBISCO plans to further strengthen alliances with key actors such as ILO and nongovernmental organisations (NGOs) on the ground, in coordination with the Turkish Government. At the end of 2012 CAOBISCO1 agreed to contribute to an ILO led project to contribute to the elimination of the worst forms of child labour in seasonal commercial agriculture in hazelnut harvesting in Turkey. The Public Private Partnership will complement an on-going project of the ILO and the Government of Netherlands. In 2013 CAOBISCO will continue to stimulate constructive dialogue and build awareness of the improvements that need to be made. Our aim is effective implementation and concrete results at farm level in the long term.

Contributing members to the Project: Chocosuisse, Ferrero, Koenig Backmittel GmbH, Griesson - de Beukelaer GmbH & Co.,  Gebr. Jancke GmbH, Mars incorporated, Mondlez International, NATRA S.A., Nestl, Neuhaus NV, Stollwerck GmbH, Viba sweets GmbH

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WORKING TOWARDS SUSTAINABILITY

The Cocoa Supply Chain
CAOBISCO in cooperation with other key supply chain actors are working ever closer together to identify solutions along with partners in both governments and civil society. In addition to a host of company-led and collective programmes that aim to address inefciencies in the supply-chain, CAOBISCO has engaged at the highest levels to drive improvements in the cocoa supply chain.

CAOBISCO Signs The Abidjan Declaration And Committed To Playing Their Role In The Implementation Of The Global Agenda For Cocoa.
On Friday 23rd of November at the closing ceremony of the rst-ever World Cocoa Conference held in Abidjan, Cte dIvoire, CAOBISCO joined cocoa producing country governments, cocoa and chocolate companies and other International and European organisations in signing the Abidjan Declaration. The Declaration outlines a course of actions to bring about major changes in the cocoa sector. The World Cocoa conference was held from 19-23 November 2012 and co-organised by the government of the Republic of Cte dIvoire and the International Cocoa Organisation (ICCO). It gathered all stakeholders of the cocoa and chocolate supply chain and provided a global forum to discuss the key issues facing cocoa production and consumption. CAOBISCO and its members are determined to play their role in addressing the challenges faced by the cocoa supply chain and signing the declaration demonstrated the industrys commitment to work with supply chain partners towards a sustainable world cocoa economy.

CAOBISCO Re-Afrms European Chocolate And Cocoa Industrys Commitment Towards The Elimination Of Child Labour In The Cocoa Supply Chain
 The collective challenge facing all stakeholders working to eliminate hazardous child labour conditions in cocoa farming communities of Cote DIvoire and Ghana is understood and we recognise the need to accelerate efforts, - Sabine Nafziger Too many children in cocoa households are helping out on the farm in ways that are damaging to their own health and well-being.

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Industry programmes have already made a difference to over a million vulnerable children in West Africa. We invite our readers to visit the Cocoa Sustainability page on CAOBISCO website to learn more about the different programmes. As we look to the future, the industry along with our partners including the governments of Cte dIvoire and Ghana and the US Department of Labour, are committed to a new Framework of Action. The Framework provides a roadmap to remediation that helps guide and rene the development of programmes and interventions to create a measurable reduction in the Worst Forms of Child Labour. Our common goal - a 70% aggregate reduction in the Worst Forms of Child Labour in the cocoa sectors of Cte dIvoire and Ghana by 2020 against the baseline identied in 2010 - is ambitious, but achievable with a resolve and commitment by all partners. One of the programmes industry is supporting under the Framework of Action is a $2 million industry funded public private partnership (PPP) with ILO-IPEC will support IPECs work in three key areas to combat child labour in cocoa production: 1. Implementing community-based child labour monitoring system Strengthening the capacity of governments, social partners and cocoa farmers and to participate in child labour monitoring systems and 2. Enhancing the coordination role and reporting of the national child labour steering committees, and support the development effective National Partners Forums. We understand, ten years in, that making a difference requires a holistic approach. We remain committed to support governments and our global partners in the pursuit of sustainable cocoa farming, helping farmers, families and children achieve a better life.

Joint Cocoa Quality And Productivity Working Group

CAOBISCO, ECA, and FCC share an interest in promoting good quality and highly productive cocoa essential for a sustainable cocoa economy. The concept of highly productive cocoa will involve the rehabilitation of existing cocoa producing land, using improved planting material, use of fertilizer and management of cocoa pests and diseases. Interaction and regular exchange of information and cooperation with relevant European and cocoa producing countries is key to tackling and solving quality and productivity issues. The joint working group was created in 2012 with the aim of putting in place a joint industry approach to major issues in cocoa production that complements individual company action. Through intervention at origin, the groups goal is to work towards more sustainable cocoa which is safe, good quality, and highly productive, for consumer, manufacturer and farmer benet. In 2012 the group dened industry priority areas and worked on mapping activities on cocoa research in order to identify overlap, gaps, etc. At the end of 2012, the group began to look at a joint industry research programme that aims to identify innovative and effective good agricultural practises to be implemented in cocoa production.

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WORKING TOWARDS SUSTAINABILITY

CEN ISO Project On Sustainable And Traceable Cocoa
CAOBISCO and its members are also working with CEN - the European Committee for Standardisation to develop a Standard for Sustainable and Traceable Cocoa. This standard will serve as a strong framework to promote production practices which recognise the continually evolving needs of both producers and consumers. In turn, it will play an important role in our collective efforts to protect children from the dangers of child labour. CAOBISCO remains focused on ensuring inclusive consultation and dialogue process, with all stakeholders and cocoa producing countries in particular. In 2012 the CEN process established a parallel process in ISO (International Standards Organisation). CAOBISCO seeks full engagement of cocoa producing countries and recognition for existing certiers. Collaboration with ISO to facilitate the producer country voice has opened the way for global alignment on standards. Continued outreach will be needed to ensure that non-European interests are engaged and included. The criteria of the standard should be credible and sufciently robust while being realistically attainable for ALL cocoa farmers in order to meet the long term needs of sustainable production and rural livelihoods. In addition the new standard should be linked to building capacity across the global cocoa sector in conjunction with the relevant and diverse range of stakeholders. CAOBISCO and its members are working hard to ensure the standard is delivered in a timely manner to meet supply chain demands without adding unnecessary complexity to certied cocoa supply chains, prioritising above all the needs of and impact on cocoa farmers. CAOBISCO has an active role, as Liaison organisation in the ISO CEN Technical Committee 415 as well as in the coordination of European industry positioning. CAOBISCO holds the position of project leader of the traceability working group.

The Palm Oil Supply Chain

CAOBISCO members consider the sustainable production of palm oil as a priority addressing the need for a sustainable management of environmental resources there by responding to consumers and businesses interests.

Rebalancing The Public Debate

CAOBISCO and its members facilitate exchange of factual, science based information on palm oil and its uses in foodstuffs to rebalance the public perception of palm oil. In 2012 CAOBISCO set up a joint working group with other food sectors with the aim of national efforts and commitments at European level. This enables industry to communicate on the nutritional,

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environmental, social and economic benets of palm oil in a much more consistent and open manner across the EU. In 2013, CAOBISCO and its members aim to engage even more with European and palm oil producing nations, civil society, consumers and other stakeholders. Palm oil is an essential ingredient for the food manufacturing industry due to its superior sensory characteristics and technical attributes, providing taste and texture, heat stability, resistance to oxidation and solidity to a whole range of food products. Oils and fats consist of a mixture of fatty acids, which inuence their texture and functionality. There is no fat containing only one type of fatty acid. It is the nal fatty acid composition of a product that is important. The European food industry is and has been committed for several years to optimising the nutrient composition of its products on a voluntary basis and to proposing to consumers a wider choice. The relation between nutrition and health must be considered in the context of the whole diet and not in terms of single food items. Within the framework of the EU Platform on Diet, Physical Activity and Health, the results of the latest Monitoring Survey show that 43 % of surveyed companies and 83 % of the FoodDrinkEurope (FDE) core companies have innovated to improve the nutrient composition of their foodstuffs regarding saturated fatty acids (SAFA), trans fatty acids (TFA), sodium/salt or sugars.2 More than half of the palm oil production comes from an estimated 3 million smallholder farms.3 In Malaysia and Indonesia, smallholders represent approximately 35 % and 45 % of national production respectively (NEAC, 2009; RSPO, 2011). The industry has taken concrete steps to address the environmental and social challenges posed by oil palm cultivation. CAOBISCO members in cooperation with the governments of palm oil producing nations and other stakeholders of the Roundtable for Sustainable Palm Oil (RSPO) have created a system to certify palm oil produced sustainably; http://ec.europa.eu/health/nutrition_physical_activity/platform/index_en.htm

For more information see the 2012 Annual Report of the platform;  http://ec.europa.eu/health/nutrition_physical_activity/platform/index_en.htm In line with the expansion of the planted oil palm area, in Malaysia, the number of people employed in the sector grew from  92,352 in 1980 to about 570,000 in 2009. It is estimated that another 290,000 are employed in downstream operations. In Indonesia, an estimated 25 million people indirectly rely on palm oil production for their income.

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2012 IN EVENTS

What A Difference A Year Makes!

In a year time CAOBISCO has made some tremendous and exciting changes with a view to better reect a CAOBISCO that has evolved over the years and is ready to take on future challenges. We moved ofces end of October and integrated a stylish building offering bright and elegant surroundings that will certainly be inspiring for the CAOBISCO team! The house also has pleasant meeting rooms and a garden where we hope to welcome our members and partners in 2013. Last but not least, 47 Boulevard Saint Michel has the advantage to be situated not far from our main interlocutors, the European institutions. Santa Claus also brought other surprises! After more than ten years of good and loyal service, we felt it was time to change CAOBISCO logo. The new design reects the modernity wind which blew over CAOBISCO in 2012 and highlights the three sectors represented by the association. Santa also put a brand new website under the tree: www.caobisco.eu. A website is an open window on the identity and activities of the association. The new site reects the refreshed personality of CAOBISCO and its members. Key to its redesign is the provision of a clear and easy information platform that speaks to our partners and stakeholders.

Representing CAOBISCO
In May, Sabine Nafziger, CAOBISCOs Secretary General, joined a panel debate discussing the eradication of child labour in the cocoa supply chain. It was organised by the Fair Trade Advocacy Organisation (FTAO) and took place at the European Parliament. This event was a good opportunity to advocate a holistic and coordinated approach to address the root causes of child labour. CAOBISCO and its partners in the cocoa supply chain, including the origin country

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governments and local authorities, are working together to address the complex challenge of achieving a sustainable cocoa farming allowing cocoa growing communities to sustainably improve their livelihoods and well-being. Industry programmes have already made a difference to over a million vulnerable children in West Africa. CAOBISCO replied to this invite Need for ambitious EU action and suggested that the EU should: 1. Promote the exchange of good practices between sectors; 2. Provide funding and expertise to strengthen the capacity of local stakeholders including civil society and relevant government ministries (capacity building must include government as cocoa experience has found these ministries lacking staff and technical knowledge to enforce/remediate ILO conventions). 3. Address, with appropriate fora (eg ILO, OECD, IPU) the regional dimension of labour in West Africa. There is traditional practice of economic migration in the region during harvest seasons of different crops. Regional collaboration among civil society and governments should serve to tackle issues raised by such practice. 4. Use political dialogue/leverage to promote decent work agenda within the context of the trade negotiations/discussion with third countries. 5. Look at novel ways of addressing universal education needs. In June, CAOBISCO held its annual conference entitled Sustainability, sweet sustainability in Brussels. Organised in the European Parliament, the Conference was hosted by Dr Horst Schnellhardt, MEP. It gathered representatives from the European institutions, supply chain partners, the industry, NGOs and consumers to discuss ways of improving/implementing sustainable practices, identifying areas where public support should be reinforced and identifying priorities. A highlight of the conference was the presentation from Commissioner Karel De Gucht. His keynote address reminded the audience that world leaders were going to meet in Rio de Janeiro for the UN Conference on Sustainable Development, to assess current actions on the 3 pillars of sustainable development: economic growth, social equity and environmental protection which are also at the heart

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2012 IN EVENTS
of the EU 2020 strategy for smart, sustainable and inclusive growth. He encouraged the industry to conclude economic partnership agreements with West Africa to provide a stable platform for sustainable trade in cocoa between Europe and the region. In matters of social responsibility, Commissioner De Gucht welcomed CAOBISCOs long term commitment to the elimination of child labour in the supply chain through cooperation with cocoa stakeholders and CAOBISCOs Responsible Sourcing Guidelines providing guidance to companies on how to integrate social and environmental principles into their economic activity. The debate was articulated around three panels: the role of innovation; affordable and sustainable access to food going forwards; and the nal panel looked at the important role of people. Each panel had a wide range of stakeholders who provided much insight and food for thought for the audience. Key points in rst panel included: >> innovation should be encouraged as it leads to healthy and sustainable enjoyment >> necessity to better communicate with consumers The second panel highlighted the absolute necessity of partnerships within the supply chain as well as the need of scientic analysis of environmental impacts and improvements. The third panel reminded the audience of the importance to respect human rights in food production. It also advocated for the adoption of a holistic approach by addressing social aspects in conjunction with economic and environmental considerations and by installing the dialogue at community level. The President of CAOBISCO, Didier R. Focking, concluded the conference with three words: partnerships, responsibility and communication. In October, CAOBISCO and SEMAD (Turkish Association of the Confectionery Manufacturers) organised a Workshop on the topic How regulations can foster or hinder competitiveness: an analysis of the current sugar market organisation in the EU and Turkey. The CAOBISCO-SEMAD workshop was attended by high level national representatives of local authorities, from Members of the Turkish Parliament to agriculture attachs of Permanent Representations of EU Member States, as well as ofcials from the European Commission DG Agri, Trade and Enterprise. Both organisations gathered to debate about the impact a highly regulated sugar market can have on the competitiveness of the confectionery industry in Turkey and in the EU. In November, CAOBISCO took part in the rst World Cocoa Conference held on 19-23 November 2012 in Abidjan. It was co-organised by the government of the Republic of Cte dIvoire and the International Cocoa Organisation (ICCO).

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Mr. Patrick Poirrier, Vice President of CAOBISCO and CEO of Groupe CEMOI presented CAOBISCOs role in the development of sustainable cocoa and chocolate production and consumption at the conference. His presentation focused on CAOBISCO and its members commitment to working to create better and more effective collaboration and partnership in the cocoa supply chain. He highlighted key areas such as cocoa research, productivity and quality. He also informed participants of the CAOBISCO position on the ISO CEN project to create a standard for sustainable and traceable cocoa. He encouraged other stakeholders, especially those in cocoa producing countries to work together in creating a strong standard that would reduce confusion especially at farm level, and help to make sustainable cocoa mainstream.

In 2013
CAOBISCO will build on the positive impetus initiated in 2012 and pursue the modernisation of its communication tools. During the rst trimester it will work at the creation of a new internal platform. The aim is to improve its internal communication and promote quick and efcient exchange of information between members in order to improve the effectiveness of the organisation and create a climate of openness within the membership. CAOBISCO is also preparing a short lm to present the association and promote its activities. Make sure to visit our website (www.caobisco.eu) and watch the lm! Finally, CAOBISCO will pursue its engagement with its stakeholders through targeted events and reinforced partnerships with its partners in the supply chain in an effort to facilitate the exchange of information and knowledge on key topics.

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CAOBISCO IN FIGURES

Chocolate, biscuits and confectionery manufacturers are amongst Europes most dynamic entrepreneurs, contributing strongly to local and European economy. They contribute to creating jobs through the development of their industrial activities in EU Member States. Manufacturers provide consumers with a wide choice and variety of products. The gures presented below describe the European sector as a whole. They are based on the NACE classication, which is the nomenclature of economic activities in the European Union.

Data of the EU sector

EU27 + Swiss & Norway Source: Eurostat (NACE) Year: 2010

11,853

NUMBER OF COMPANIES

69 Billion 4 313,252
DIRECT EMPLOYEES

ANNUAL TURNOVER

4.9 Billion 4 1.3 Billion 4 10.9 Million

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EU EXPORT VALUE

IMPORT VALUE

PRODUCTION (TONNES)

CAOBISCO releases each year a Statistical Review providing key information illustrating the importance of CAOBISCO sectors on the European economic scene. Figures are based on the ofcial product codes of the EU (combined nomenclature), i.e. codes 1704 (sugar confectionery), 1806 (chocolate products) and 1905 (ne bakery wares).

Production
Production Trends
EU-27 including Swiss & Norway, 2009-2011 (000 Tons) Source: Eurostat
4,347,410 4,331,700 4,218,355 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 1,783,650 1,746,642 1,710,345 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2009 2010 2011 2009 2010 2011 2009 2010 2011 2,906,950 2,868,255 2,835,062

Sugar Confectionery

Chocolate Confectionery

Fine Bakery Wares*

Figures covering CAOBISCO products only. *Figures for Fine Bakery Wares do not include Norway.

EU27 Production Trend (In 000 Tons)

Figures cover CAOBISCO products only. *Figures for Fine Bakery Wares do not include Norway.

The production in the sugar and the ne bakery ware sectors remained more or less stable between 2009 and 2011. After a rise of production in 2010 the gures have slightly declined in both sectors. However, they remained above their 2009 level. Chocolate was a lone ranger and continued to drive its growth in Europe.
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CAOBISCO IN FIGURES
Top Ten Producing Countries For The Three Sectors In Europe
2011 (000 Tonnes) Source: Eurostat

23%

45%

32%

19%

29%

52%

Germany - 2.299

Sweden - 178

19%

35%

46%

11%

43%

46%

United Kingdom - 1.226

Belgium - 477

11%

23%

66%

8%

17%

75%

Italy - 993

Netherlands - 436

22%

29%

49%

11%

51%

38%

France - 822

Poland - 511

28% 15%

58%

16%

63%

21%

Spain - 777 Sugar Confectionery Chocolate Confectionery

Switzerland - 228 Fine Bakery Wares

Not including Cyprus, Luxembourg and Malta.

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In 2011, Germany, the United Kingdom and Italy remained the biggest European producing countries for the three sectors all together. To be noted the upward trend in production by Italy, Belgium and The Netherlands. The top ne bakery wares producer remains the Netherlands (75%). For chocolate it is Switzerland (63%) and for confectionery, Spain (28%). This does not change from 2010.

Consumption
Consumption Trends
5,000,000 4,500,000 4,000,000 2,662,508 2,630,290 3,500,000 3,000,000 1,768,244 1,718,379 1,652,070 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2009 2010 2011 2009 2010 2011 2009 2010 2011 2,601,763

EU-27 including Swiss & Norway, 2009-2011 (000 Tonnes) Source: Eurostat
4,167,595 4,094,320 3,965,212

Sugar Confectionery

Chocolate Confectionery

Fine Bakery Wares*

Consumption Trends (In 000 Tons)

Figures covering CAOBISCO products only. *Not *Figures for Fine Bakery Wares do not include Norway. including Norway

Consumption gures remain more or less stable. However, the consumption of sugar confectionery decreased by 2,82% and ne bakery wares by 1,75%. Chocolate consumption gained 1,22%.

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CAOBISCO IN FIGURES
External Trade
Trade Balance Of CAOBISCO Products
EU27, 2006-2011 (000 Euros) Source: Eurostat
6,000,000 5,000,000 2,788,266 4,000,000 3,000,000 2,000,000 1,000,000 0 3,917,287 1,239,021 2,985,563 4,103,585 1,118,022 5,717,574 4,886,320 4,310,591 4,383,922 1,200,837

4,406,460

3,634,087

3,195,929

3,183,085

1,114,662

1,252,233

1,311,114

2006 (EU25)

2007 (EU27)

2008 (EU27)

2009 (EU27)

2010 (EU27)

2011 (EU27)

Trade Balance

Total Exports

Total Imports

Trade Balance Of CAOBISCO Products 2006 - 2011 (000 Euros) The positive trade balance slowed down its upward trend in 2009 due to a fall in imports and exports, but recovered again in 2010. Imports and exports increased again rapidly and exports showed a very positive result in 2011 as they increased by 17,01%.

Extra Exports

EU27, 2006-2011 (000 Euros) Source: Eurostat

5,717,574

4,886,320

4,383,922

4,310,591

6,000,000 5,000,000 4,000,000 1,658,091 1,659,973 3,000,000 2,000,000 1,000,000 0 599,222

4,103,584

2006 (EU25)

Extra EU Exports 2006 - 2011 (000 Euros) The three sectors showed an increase of their exports in 2011: chocolate confectionery exports experienced the highest growth since, with +21,7%, followed by ne bakery wares (+13,4%) and sugar confectionery (+12,6%).

3,917,287 1,835,048 1,660,824 607,712

2,677,218

2,320,075

2,200,478

1,937,1392

2,046,161

1,881,576

1,812,075

1,818,493

720,281

628,290

639,681

616,940

2007 (EU27) Sugar Confectionery

2008 (EU27) Chocolate

2009 (EU27)

2010 (EU27)

2011 (EU27)

Fine Bakery Wares

Total Exports

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Destinations Of Extra Exports

EU27 in 2011 Source: Eurostat
CIS 10% Latin America / Caribbean 3% Total = 5.718 Billion Euros 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. USA - 13.8% Switzerland - 9.6% Norway - 8% Russia - 7.9% Canada - 5.7% Australia - 4.7% Japan - 3.7% UA Emirates - 3.1% Saudi Arabia - 2.8% Turkey - 2.5%

Gulf Countries 9%

NAFTA 21%

Mediterranean 9%

Africa 5%

Balkans 5% Australia / Asia 20% EEA 18%

The total value of chocolate, biscuits and confectionery exports The Destinations Of EU27 Exports In reached 2011 5.718 billion Euros in 2011. North America remains the favourite destination for EU exports followed by neighbouring countries Switzerland and Norway. To be noted, a signicant increase in exports of 2% to Australia and Asia since 2010.

Imports Into The EU27

2006-2011 (000 Euros) Source: Eurostat

1,311,114 1,252,233 1,200,837

1,114,662

1,400,000 1,200,000 1,000,000 526,476 800,000 600,000 400,000 200,000 0 2006 (EU25) 2007 (EU27) Sugar Confectionery 239,226 373,319 1,118,022 1,139,021 258,326

559,797

547,089

530,148

Extra EU Imports 2006 - 2011 (000 Euros) Imports into Europe increased in parallel with exports since 2010, although at a lower pace. Sugar confectionery imports gained 7.7%, ne bakery wares 4.8% and chocolate 3.2% between 2010 and 2011.

495,309

486,786

487,142

464,987

399,246

398,751

364,387

276,883

257,098

241,794

229,125

2008 (EU27) Chocolate

2009 (EU27)

2010 (EU27)

2011 (EU27)

Fine Bakery Wares

Total Imports

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CAOBISCO IN FIGURES
Origin of EU27 Imports

In 2011 (000 Euros) Source: Eurostat

CIS 5% Africa 4% Latin America / Caribbean 3% Total = 1.311 Billion Euros 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Switzerland - 40.7% Turkey - 10% China - 8.4% USA - 3.1% Ivory Coast - 3.3% Norway - 3.7% Thailand - 3% Russia - 2.2% Croatia - 1.9% Canada - 1.7%

Mediterranean 12% EEA 44%

NAFTA 9%

Asia / Australia 20%

Balkans 3%

The Origins Of EU27 2011 of import origins in 2011. 44% of the The European Economic Area consolidated itsImports top-rankIn position imports originated from Norway and especially, Switzerland (with 40.7%). The other two steps of the podium are occupied by Turkey and China.

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CAOBISCO MEMBERS
National Associations In Europe
AUSTRIA  FIAA - Fachverband der Nahrungs-u. Genussmittelindustrie Oesterreichs www.dielebensmittel.at BELGIUM  Choprabisco - The Royal Belgian Association of the Biscuit, Chocolate, Pralines and Confectionary www.choprabisco.be FINLAND  ETL - The Finnish Food and Drink Industries Federation www.etl. FRANCE  LAlliance 7 www.alliance7.com GERMANY  BDSI - Bundesverband der Deutschen Ssswarenindustrie e.V. www.bdsi.de IRELAND  FDII - Food and Drink Industry Ireland www.fdii.ie ITALY  AIDEPI - Associazione delle Industrie del Dolce e Della Pasta Italiane www.aidepi.it, www.dolceitalia.net NORWAY  NACM - The Norwegian Association of Chocolate Manufacturers PORTUGAL  ACHOC - Associao dos Industriais de Chocolates e Confeitaria SPAIN  PRODULCE - La Asociacin Espaola del Dulce www.produlce.com SWEDEN  LI - Livsmedelsfretagen www.li.se SWITZERLAND Chocosuisse-Biscosuisse www.chocosuisse.ch, www.biscosuisse.ch THE NETHERLANDS  VBZ - Vereniging voor de Bakkerij-en Zoetwarenindustrie www.vbz.nl UNITED KINGDOM  FDF - Food & Drink Federation www.fdf.org.uk

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Direct Member Companies

BARILLA www.barillagroup.com FERRERO www.ferrero.com MONDLEZ INTL. www.mondelezinternational.com

MARS www.mars.com NESTL www.nestle.com UNITED BISCUITS www.unitedbiscuits.com

Observer Members
HUNGARY  HUNBISCO - Association of the Association of Hungarian Confectionery Manufacturers www.hunbisco.hu POLAND  POLBISCO - Stowarzyszenie Polskich Producentw Wyrobw Czekoladowych i Cukierniczych www.polbisco.pl SLOVENIA  CCIS - Chamber of Commerce and Industry of Slovenia www.gzs.si TURKEY  SEMAD - ekerli Maml Sanayicileri Dernei www.semad.org

Afliated Members
ION www.ion.gr FOSTER CLARCK PRODUCTS LTD. www.fosterclarck.com

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CAOBISCO STRUCTURE
CAOBISCO coordinates the work of more than 390 experts through its committees and expert groups. They share their broad knowledge and in-depth expertise to dene CAOBISCO positions and communications. With the view to encourage the synergies within the supply chain and optimise input some committees are joined with partner organisations.

General Assembly

General Council

EXCO

Statistics Network

Economic Affairs

Regulatory & Scientific Affairs

Sustainability & CSR

Communication

President of CAOBISCO Tobias BACHMLLER - succeeded Didier FOCKING on 22.06.2012 Vice-Presidents Patrick POIRRIER - succeeded Tobias BACHMLLER on 22.06.2012 Alessandro CAGLI - succeeded Filippo Cerulli on 22.06.2012 Treasurer Jos LINKENS Secretary General Sabine NAFZIGER

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Executive Committee
Tobias BACHMLLER President Katjes Patrick POIRRIER Vice President Cemoi Alessandro CAGLI Vice President Ferrero

Simon BILLINGTON Nestl

Christina BJORCK Cloetta

Alice CADMAN United Biscuits

Franz KRAUS Mondlez

Jos LINKENS Neuhaus

Mario PICCIALUTI AIDEPI

Florence PRADIER Alliance 7

Klaus REINGEN BDSI

Franz Urs SCHMID ChocosuisseBiscosuisse

Fritz SCHROEDERSENKER Mars

Nick STUART FDF

Luca VIRGINIO Barilla

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CAOBISCO STRUCTURE
CAOBISCO COMMITTEES
Economic Affairs Committee
Chair: Damiano DI NATALE (Ferrero) Vice-Chair: Leonardo MIRONE (Barilla) Secretariat: Muriel KORTER CAP Working Group Chair: Bert de MEESTER (Nestl) Secretariat: Muriel KORTER Dairy Working Group Chair: Leonardo MIRONE (Barilla) Secretariat: Muriel KORTER Sugar Working Group Chair: Robert GUICHARD (Mondlez International) Secretariat: Muriel KORTER Cereals Working Group Chair: Filippo CERULLI IRELLI (Barilla) Secretariat: Muriel KORTER Hazelnuts Working Group Chair: Rossano BARBIERI (Nestl) Secretariat: Muriel KORTER

Regulatory & Scientic Committee

Chair: Richard WOOD (Nestl) Vice-Chair: Robert VAN BREEN (Mondlez International) Secretariat: Alice COSTA Health & Nutrition Working Group Chair: Sylvie CHARTRON (Mars) Secretariat: Alice COSTA Residues Working Group Chair: Claudine VANDEMEULEBROECKE (Barry-Callebaut) Secretariat: Alice COSTA Acrylamide Working Group Chair: Richard STADLER (Nestl) Secretariat: Alice COSTA

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Cocoa Contaminants Working Group (joint with ECA) Chairs:  Martin GILMOUR (Mars), Helmut GNTHER (Mondlez International), Ron HEISTEK (ADM) & Marc JONCHEERE (Cargill) Secretariat: Alice COSTA

Sustainability & CSR

Chair: Aldo CRISTIANO (Ferrero) & Martin GILMOUR (Mars) Secretariat: Paula BYRNE Joint Sustainability & CSR (joint with ECA, FCC and WCF) Chair: Aldo CRISTIANO (Ferrero) & Martin GILMOUR (Mars) Secretariat: Paula BYRNE Hazelnuts Task Force Chair: Aldo CRISTIANO (Ferrero) & Martin GILMOUR (Mars) Secretariat: Paula BYRNE CEN Task Force Chair: Alastair Child (Mars) Secretariat: Paula BYRNE Palm Oil Task Force Secretariat: Paula BYRNE Cocoa Quality & Productivity Working Group (joint with ECA) Chair: Martin Gilmour (Mars) Secretariat: Paula BYRNE

Communication
Chair: Bob BRIGHTWELL (United Biscuits) Vice-Chair: Hilary PARSONS (Nestl) Secretariat: Laurence VICCA

Statistics Network
Secretariat: Muriel KORTER

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NETWORK OVERVIEW
CAOBISCO secretariat, based in Brussels, maintains close contacts with European and international institutions and is a key partner in consultations and discussions on all issues affecting the European chocolate, biscuit and confectionery industry. Its network includes:

International Institutions

European Institutions

Industry Representation

Universities

Supply Chain Actors

Scientific Institutes

Civil Society EU Media

Third Country Authorities

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CAOBISCO SECRETARIAT

ECONOMIC AFFAIRS STATISTICS Director: Muriel KORTER

muriel.korter@caobisco.eu +32 2 533.94.63

REGULATORY & SCIENTIFIC AFFAIRS Manager:Alice COSTA

SECRETARY GENERAL Sabine NAFZIGER

sabine.nafziger@caobisco.eu +32 2 533.94.65

alice.costa@caobisco.eu +32 2 533.94.67

COMMUNICATION Manager: Laurence VICCA

laurence.vicca@caobisco.eu +32 2 533.94.66

OFFICE MANAGEMENT Verda MEHMET ALI

verda.mehmetali@caobisco.eu +32 2 533.94.60

SUSTAINABILITY & CSR Manager: Paula BYRNE

paula.byrne@caobisco.eu +32 2 533.94.61

Address
CAOBISCO Bd Saint-Michel 47 1040 Brussels Belgium

Telephone
+3225391800

Web
www.caobisco.eu

E-Mail
caobisco@caobisco.eu
Credit for the pictures on Page 26-27: Koen Vandepopuliere

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NOTES

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