SIP Markets Specialty Tea, Coffee & Cocoa Contact desk

Cocoa

COCOASpecialty Tea, Coffee & Cocoa2 listed markets

Cocoa beans are the fermented and dried seeds of Theobroma cacao. The pods are cut from the tree, the wet beans and pulp are heaped or boxed to ferment for several days, and the beans are then sun or artificially dried. Fermentation is what creates the precursors that become chocolate flavour on roasting, so a poorly fermented bean cannot be recovered later. The dried bean is roasted, cracked and winnowed into nib, then ground into cocoa liquor, which is pressed into cocoa butter and cocoa press cake, or refined with sugar and milk into chocolate. Bulk cocoa out of West Africa supplies the volume chocolate industry. Fine or flavour cocoa, chiefly from Latin America, the Caribbean and parts of Asia and Africa, is bought by origin and genetic type for its aromatic profile. Cocoa trades on the ICE futures markets in London and New York, and physically on differentials to those contracts.

Listed cocoa markets

Each line is a grade at a delivery point. Open one for its full specification and terms.

Grades

Cocoa is graded by the cut test on a counted sample of beans, by bean count per 100 grams, and by moisture and defect limits under ISO 2451.

Cut test

9 grades

ISO 2451, cocoa beans, specification and quality requirementsA sample of 300 beans is cut lengthwise and each half examined. Results are expressed as the percentage of beans in the cut showing each defect. This is the primary grading instrument in the cocoa trade.

GradeDefinition
Grade IGood fermented cocoaMaximum 3 per cent mouldy beans, maximum 3 per cent slaty beans, maximum 3 per cent combined insect damaged, germinated and flat beans, all by count on the cut test.
Grade IIFair fermented cocoaMaximum 4 per cent mouldy beans, maximum 8 per cent slaty beans, maximum 6 per cent combined insect damaged, germinated and flat beans, all by count on the cut test.
SubstandardOff gradeCocoa failing the Grade II limits. Traded only against an agreed specification and an agreed allowance.
Mouldy beanCut test defectInternal mould visible to the naked eye on the cut surface. The defect the trade penalises hardest, because it carries through into flavour and into ochratoxin risk.
Slaty beanCut test defectA bean showing a slate grey colour over half or more of the cut surface, indicating it was not fermented.
Insect damaged beanCut test defectInternal damage caused by insects.
Germinated beanCut test defectA bean whose shell has been pierced or split by the emerging radicle.
Flat beanCut test defectA bean too thin to be cut and show a cotyledon surface.
Purple beanCut test observationRecorded as an indicator of under fermentation. The contract states whether a purple limit applies.

Bean size

3 grades

ISO 2451 bean countThe number of beans in 100 grams of the dried lot, which fixes the average bean weight and therefore the yield the grinder will get.

GradeDefinition
Bean countBeans per 100 gramsCounted on a representative sample. A lower count means a larger, heavier bean. The trade standard requires the count to be stated and requires uniformity, with a stated maximum spread around it.
Good fermented countVolume specificationBulk contracts commonly call for a count not exceeding 100 beans per 100 grams, giving an average bean weight of at least one gram.
UniformityScreen spreadThe percentage of beans falling outside the agreed count band. Stated on the contract.

Physical and chemical requirements

8 grades

ISO 2451 and the destination market food lawDeterminations made on the dried bean as delivered, expressed as percentages by mass or as concentrations.

GradeDefinition
MoistureMaximum 7.5 per centMeasured on the whole bean. Above this the lot is at risk of mould in transit; well below it the shell becomes brittle and breaks in handling.
Foreign matterPercentage by massStones, sticks, pod fragments, string and other material not cocoa. The contract states the limit.
Broken beans, fragments and shellPercentage by massBeans broken in drying, bagging or transit, plus loose shell.
Fat contentPercentage by massThe cocoa butter yield the grinder will obtain. Declared for pressing contracts and a direct driver of value.
Free fatty acidPercentage as oleic acidThe acidity of the extracted butter. Rises with poor drying and storage; the destination market sets the ceiling.
Ochratoxin AMicrograms per kilogramA storage mould toxin. The destination market fixes the maximum for cocoa and cocoa products.
CadmiumMilligrams per kilogramA soil derived heavy metal that varies with origin geology. The destination market fixes the maximum in the finished chocolate, which the buyer works back to a bean level.
Smoke and off odourSensory determinationBeans dried over open fire or stored beside fuel carry a smoke taint that cannot be removed. Assessed and rejected on the sample.

Type and certification

6 grades

Declared on the contract alongside gradeThe genetic and market classification of the lot, and any scheme it is certified under. These are declarations, not quality ranks.

GradeDefinition
Bulk cocoaVolume gradePredominantly Forastero material supplying the volume chocolate industry.
Fine or flavour cocoaAromatic classificationCriollo, Trinitario and Nacional derived material recognised for aromatic character and traded at a differential over bulk. The producing country and its share of fine or flavour production is set by the ICCO.
Genetic typeDeclared variety groupCriollo, Forastero, Trinitario, Nacional or a named clone. Declared where the buyer is paying for a specific profile.
OrganicCertificationCertified to the destination market organic regulation. Certificate travels with the lot.
Fairtrade, Rainforest Alliance or a company schemeCertificationDeclared on the contract with the certificate reference.
Deforestation traceabilityOrigin declarationPlot level geolocation and legality evidence, required by the European Union deforestation regulation for cocoa placed on that market.

Grades outside this list trade on request. Send us the contract specification you work to and we will price against it.

Locations

CountryRegionWe trade it as
Cote d IvoireWest AfricaOrigin
GhanaWest AfricaOrigin
EcuadorSouth AmericaOrigin
IndonesiaSoutheast AsiaOrigin and destination
NigeriaWest AfricaOrigin
CameroonCentral AfricaOrigin
BrazilSouth AmericaOrigin and destination
PeruSouth AmericaOrigin
Dominican RepublicCaribbeanOrigin
ColombiaSouth AmericaOrigin
Papua New GuineaOceaniaOrigin
VenezuelaSouth AmericaOrigin
MadagascarEast AfricaOrigin
UgandaEast AfricaOrigin
Sierra LeoneWest AfricaOrigin
LiberiaWest AfricaOrigin
TogoWest AfricaOrigin
MexicoNorth AmericaOrigin and destination
NetherlandsEuropeDestination
GermanyEuropeDestination
BelgiumEuropeDestination
United StatesNorth AmericaDestination
MalaysiaSoutheast AsiaDestination
TurkiyeEuropeDestination
United KingdomEuropeDestination
SwitzerlandEuropeDestination
FranceEuropeDestination
SingaporeSoutheast AsiaDestination
ChinaEast AsiaDestination
JapanEast AsiaDestination

Origins and destinations outside this list trade on request. We are not limited to the locations shown here.

Timing

Harvest is when the crop is taken at origin. Arrival is when a shipment from that origin typically lands in a consuming market. The gap between them is processing, grading and the voyage.

HarvestArrival

OriginJFMAMJJASONDWindow
Cote d IvoireHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalArrivalArrivalHarvestHarvestHarvest and arrivalHarvest Oct to Jul, arrival Dec to SepMain crop from October to March, mid crop from April to July. Shipment out of Abidjan and San Pedro.
GhanaHarvest and arrivalHarvest and arrivalHarvest and arrivalArrivalHarvest and arrivalHarvestHarvest and arrivalArrivalArrivalHarvestHarvestHarvest and arrivalHarvest May to Mar, arrival Jul to MayMain crop from October to March, light crop from May to July. Shipment out of Tema and Takoradi.
EcuadorHarvest and arrivalArrivalHarvest and arrivalHarvestHarvest and arrivalHarvest and arrivalArrivalArrivalHarvestHarvestHarvest Mar to Jan, arrival Jan to AugMain harvest from March to June with a second peak from November to January. Fine flavour Nacional and Arriba shipped out of Guayaquil.
IndonesiaHarvestHarvestHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalArrivalArrivalHarvest May to Oct, arrival Jul to DecSulawesi main harvest from May to September, with a secondary crop later in the year.
NigeriaHarvest and arrivalArrivalArrivalHarvestHarvestHarvest and arrivalArrivalArrivalHarvestHarvestHarvest and arrivalHarvest and arrivalHarvest Apr to Jan, arrival Jun to MarMain crop from September to January, light crop from April to June.
CameroonHarvest and arrivalArrivalArrivalHarvestHarvestHarvest and arrivalHarvest and arrivalHarvest Sep to Jan, arrival Nov to MarMain crop from September to January out of Douala.
PeruHarvestHarvestHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalArrivalArrivalHarvest Apr to Oct, arrival Jun to DecMain harvest from April to October, with fine flavour material out of San Martin, Cusco and Piura.
Dominican RepublicHarvestHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalArrivalHarvest Mar to Nov, arrival Apr to DecHarvest spread across most of the year with a peak from March to July.
ColombiaArrivalArrivalHarvestHarvestHarvest and arrivalArrivalArrivalHarvestHarvestHarvest and arrivalHarvest Apr to Dec, arrival Jun to FebTwo harvests, the larger from October to December.
Papua New GuineaArrivalHarvestHarvestHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalArrivalHarvest May to Nov, arrival Jul to JanMain harvest from May to November.
MadagascarHarvestHarvestHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalArrivalArrivalHarvest May to Oct, arrival Jul to DecSambirano valley harvest from May to October, almost entirely fine flavour Trinitario.
BrazilArrivalArrivalHarvestHarvestHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest and arrivalHarvest May to Dec, arrival Jul to FebBahia and Para harvest from May through to December.

Windows outside this pattern trade on request, including carry, forward positions and stock already sitting in a destination warehouse.

Customs, packing and contract terms

Indicative terms for cocoa. Tariff classification is the importer’s responsibility and limits change, so confirm both against the destination customs authority and the current regulation before you fix a contract.

  • HS heading1801.00 Cocoa beans, whole or broken, raw or roasted
  • PackingTea in foil lined paper sacks, plywood chests or corrugated cartons of 20 kg to 60 kg. Green coffee in 60 kg or 69 kg jute bags, or 1 t bulk container liners with GrainPro or equivalent barrier for specialty lots. Cocoa in 62.5 kg or 65 kg jute bags.
  • Container loading20ft: 18 t to 21 t bagged. 40ft: 24 t to 26 t with a bulk liner. Coffee and cocoa are weight limited, tea is volume limited.
  • Contract and arbitrationCoffee on the European Coffee Contract or GCA terms with ICE Futures US as the price reference, arbitration under ECF or GCA rules. Cocoa on Federation of Cocoa Commerce or CMAA contracts with FCC arbitration in London. Tea on the rules of the selling auction centre or on the terms of the importing association.
  • Destination limitsEU pesticide MRLs under Regulation 396/2005, where anthraquinone and glyphosate are the recurring tea failures. Ochratoxin A and aflatoxin limits and cadmium limits on cocoa under Regulation 2023/915. EUDR (Regulation 2023/1115) due diligence with plot geolocation applies to cocoa and coffee. US FDA import alerts apply to pesticide residues and to mould.

Common questions

What grades of cocoa does SIP Global trade?

We quote 26 published grades of cocoa, including Grade I - Good fermented cocoa, Grade II - Fair fermented cocoa, Substandard - Off grade, Mouldy bean - Cut test defect, Slaty bean - Cut test defect and Insect damaged bean - Cut test defect. Every grade is tied to a delivery point and a settlement route. Grades outside the published list are priced on request.

How is cocoa graded?

Cocoa is graded by the cut test on a counted sample of beans, by bean count per 100 grams, and by moisture and defect limits under ISO 2451. Grading runs on 4 systems: Cut test, Bean size, Physical and chemical requirements and Type and certification.

Where does SIP Global trade cocoa?

We trade cocoa in Cote d Ivoire, Ghana, Ecuador, Indonesia, Nigeria, Cameroon, Brazil and Peru and 22 further markets. Origins and destinations outside this list trade on request. We are not limited to the locations shown.

When is cocoa harvested and when does it arrive?

Typical windows are Cote d Ivoire: harvest oct to jul, arrival dec to sep; Ghana: harvest may to mar, arrival jul to may; Ecuador: harvest mar to jan, arrival jan to aug; Indonesia: harvest may to oct, arrival jul to dec; Nigeria: harvest apr to jan, arrival jun to mar. Harvest is when the lot is taken at origin, arrival is when a shipment from that origin lands in a consuming market. Windows outside this pattern, including carry, trade on request.

What is the HS code for cocoa?

Cocoa is normally classified under HS 1801.00 (cocoa beans, whole or broken, raw or roasted). The heading follows the form the goods are in at the border, and national tariffs extend it beyond six digits, so confirm the full line with the destination customs authority before you fix a contract.

How do I get a price for cocoa?

Send the grade, the origin and the delivery window to the SIP Global desk. That is enough for a trader to come back with a level and a settlement route. 2 listed cocoa markets are published on this page, each with its full specification and terms. We take both sides, physical and financial, prompt to long dated.

Standards and data sources

The grading language on this sheet follows published standards. Trade volumes and tariff lines are public record. Verify anything here against the source.

  • ISOInternational Organization for Standardization
  • UN ComtradeOfficial international trade statistics by HS code
  • ITC Trade MapBilateral trade flows and tariff data
  • FAOSTATFAO production and trade series for agricultural commodities

Price this with our desk

Grade, origin and window if you have them. If what you are carrying does not fit the sheet above, describe it in your own words and a trader will take it from there.

Nothing here matches what you are holding? Send it anyway. The sheets cover the markets we publish, not the limit of what the desk will look at.

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