The International Cocoa Organization (ICCO) was established in 1973

to administer the first International Cocoa Agreement, that of 1972

and its successor Agreements of 1975, 1980, 1986, 1993 and 2001.
The Agreements were concluded among the governments of cocoa-
producing and cocoa-consuming countries, under the auspices of the
United Nations. The 2001 Agreement was negotiated at the UN
Cocoa Conference in February 2001. This new 2001 Agreement has
been open for signature and ratification since 1 May 2001 and entered
into force on 1 October 2003.

The 2001 International Cocoa Agreement excludes economic clauses

and places greater emphasis on a sustainable cocoa economy. Through
the creation of a Private Sector Board, the Agreement seeks the active
involvement of the private sector in the achievement of its goals. It
will also promote transparency in the world cocoa market through the
collection, analysis and dissemination of relevant statistics and the
undertaking of appropriate studies. Finally, the 2001 Agreement will
strengthen the national cocoa economies of member countries through
the implementation of a range of projects.

Membership of the 2001 Agreement at March 2004 comprised 30

countries, representing around 80% of world cocoa production and
around 60% of world cocoa consumption. Countries that are not
members of the Agreement often participate in meetings as observers.

The ICCO is the main world forum for the gathering and dissemination
of information on cocoa, for the promotion of cocoa research and
studies of the economics of cocoa production, consumption and
distribution and for the encouragement of development projects
concerning cocoa. In this connection, the ICCO Advisory Group on the
World Cocoa Economy has held several conferences on key issues.

Smaller specialist Expert Working Groups exist to deal with specific

issues. At present three such specialist groups exist dealing with cocoa
quality, cocoa research and the environment, and cocoa stocks.

As the 1993 and 2001 Agreements have no buffer stock provisions,

liquidation of buffer stock cocoa accumulated under previous
Agreements began in October 1993 and was completed in March 1998.

The ICCO is working with other organisations and the Common Fund
for Commodities on projects aimed at improving the structural
conditions of cocoa markets and enhancing long-term competitiveness
and prospects in the cocoa economy.

The International Cocoa Agreement recognises the importance of

research in safeguarding the future of the cocoa industry and in
improving the lot of the farmer.

The Common Fund for Commodities aims to promote global action to

improve market structures in international trade in commodities of
interest to developing countries. The Fund has two strands: providing
finance on attractive terms for the stabilisation of prices and financing
commodity development measures which in the long run may
strengthen the economies of developing countries.

The Advisory Group on the World Cocoa Economy was created by the
International Cocoa Council in 1977. The primary purpose for
establishing the group was to have available an independent forum in
which questions deemed fundamental to the cocoa economy and which
may not be covered in the regular meetings of the Organization, often
for political reasons, can be discussed fully among experts on such
subjects. The terms of reference of the group are:

"The group shall act in an advisory capacity with a view to promoting a

continuous dialogue among experts qualified in all aspects of the world
cocoa economy. It shall keep the cocoa economy under review and
advise on all aspects of it. In addition, the group shall examine any
specific matter which may be referred to it by the Council. The group
shall report through its Chairman to the Council or the Executive
Committee."