Rebecca Hubbard
Posted: Monday, July 19, 2010 11:27 am

Anthony "Chocfinger" Ward, commodities trader of Armajaro Holdings, is planning his next move in confectionery. 

After paying £658m for enough cocoa beans to manufacture 5.3bn quarter-pound chocolate bars on Friday, Mr Ward, 50, is looking to improve his company's ethical credentials.

The financier, based in Mayfair, is amongst a growing group of hedge fund owners who are acquiring food production capacity in Africa. Mr Ward is anticipating that the growth in the world's population and a decline in available cropland will push up prices.

Plans of the investment include: African farmland and storage facilities, schools and other infrastructures, as well as setting up a private equity fund that will invest in roads and ports.

Mr Ward hopes to also build up his sugar trading operations, but cocoa will remain the main target commodity.
Of the trend toward food-related investing and farmland acquisition, Mr Ward said: "Food will go to a price where it encourages these developments. If you're long food, it will give you good returns."

The planned programme follows Armajaro's purchase of 241,000 tonnes of cocoa beans last week – almost the same amount of the product in Liffe-registered warehouses across Europe.

Armajaro Holdings made $6.1m (£4m) pre-tax profits on $1.4bn in sales in the 13 months to September 2009.