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Armajaro

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This is an old revision of this page, as edited by Tomxcoady (talk | contribs) at 10:04, 1 November 2010 (→‎History: moved recent developments on Ghana story to original paragraph where it was already mentioned.). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Armajaro is an investment firm based in London. The company specialises within the cocoa and coffee markets, managing investments in soft commodity and equity hedge funds. Armajaro is run by Anthony Ward and employs over 1000 people through its subsidiary companies.[1]

Armajaro also has investments in wine production and wine distribution as well as cocoa processing.

Armajero employs a full time meteorologist and has its own weather stations to help anticipate yields of commodities around the world.[2]

History

Armajaro Group was founded by Anthony Ward and Richard Gower in May 1998. That November, Armajaro Securities Ltd gained Financial Services Authority authorisation. Armajaro, in 2001, acquired a wine producing estate in Paarl, South Africa. The company established subsidiaries in Lagos, Nigeria and Abidjan, Côte d'Ivoire and got into the asset management business in 2002.

In August 2002, Armajaro bought three quarters of the 204,380 tonnes of cocoa delivered through the Euronext Liffe exchange under futures contracts. The purchase amounted to more than 5 percent of global cocoa production and produced a £58 million gain. The price of cocoa soared to a 17-year high of £1554 a tonne and sparked fears of a massive jump in chocolate prices.[3][4] Ward denied the company was manipulating the market in an effort to drive prices higher amidst the concerns of traders having difficulties fulfilling cocoa obligations.[5]

Armajaro is one of three companies that were banned by the Ghana Cocoa Board from operating on the western border of Ghana after being indicted for facilitating the smuggling of cocoa across Ghana's border with Côte d'Ivoire.[6] Armajaro was barred from trading in 13 districts in western Ghana after a journalist filmed one of its contractors agreeing to smuggle cocoa across the border to Ivory Coast where prices were higher. After the results of an inquiry by the Ghana cocoa board, the ban on Armajaro was lifted in September in all but one district. Bans on two local trading companies, which had been implicated by the same journalist, were also lifted.[7] The case has caused additional scandal after it was revealed that the British Government had lobbied for Armajaro which was also a significant donor to the Conservative party as well as to Andrew Mitchell, the international development secretary who reportedly intervened on Anthony Ward's behalf after receiving £40,000 in donations from the millionaire's company to his parliamentary office.[8]

On July 17, 2010, Armajaro purchased 240,100 tonnes of cocoa.[9] The buyout caused cocoa prices to rise to their highest level since 1977. The purchase was valued at £658 million and accounted for 7 per cent of annual global cocoa production.[10] While cocoa beans are perishable, they can be held in storage for several years.

Ward, the manager of the hedge fund, has been dubbed "Chocfinger" by fellow traders for his exploits. The nickname is a reference to both the Bond villain Goldfinger as well as a British confection.[3][11]

References

  1. ^ "Our Approach". Armajaro.com. Retrieved 27 July 2010.
  2. ^ "Interview with Anthony Ward, Armajaro". Opalesque.TV. YouTube. Retrieved 27 July 2010.
  3. ^ a b Cowell, Alan (31 October 2002). "War Inflates Cocoa Prices but Leaves Africans Poor". The New York Times. Retrieved 27 July 2010. [dead link]
  4. ^ Fletcher, Richard (13 July 2003). "'Chocolate finger' makes a £10 million bean as stockpiling gamble pays off". The Telegraph. Retrieved 27 July 2010.
  5. ^ Batt, Carolyn (6 August 2002). "Armajaro denies cocoa squeeze as price soars". The Telegraph. Retrieved 27 July 2010.
  6. ^ "Illegal cocoa smuggling: Three firms banned". Daily Graphic. 27 April 2010. Retrieved 27 July 2010.
  7. ^ http://www.ft.com/cms/s/0/ff9f46be-e52b-11df-8e0d-00144feabdc0.html
  8. ^ http://www.guardian.co.uk/politics/2010/oct/31/andrew-mitchell-ghana-cocoa-armajaro
  9. ^ Farchy, Jack (16 July 2010). "Hedge fund develops taste for chocolate assets". Financial Times. Retrieved 27 July 2010.
  10. ^ Sibun, Jonathan; Wallop, Harry (17 July 2010). "Mystery trader buys all Europe's cocoa". The Telegraph. Retrieved 27 July 2010.
  11. ^ Werdigier, Julia; Creswell, Julie (July 24, 2010). "Trader's Cocoa Binge Wraps Up Chocolate Market". The New York Times. Retrieved July 27, 2010.
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