1. Caribbean Fine Cocoa Industry
Vernon Patrick Barrett

2. The Fine Cocoa Industry – Global
(UNCTAD 2010)
Western Hemisphere
• Trinidad & Tobago
• Jamaica
• Grenada
• St Lucia
• Dominica
• Dominican Republic
• Venezuela
• Colombia
• Peru
• Ecuador
• Costa Rica
Rest of World
• Madagascar
• Papua New Guinea
• São Tomé & Príncipe
• Indonesia
Above new entrants –
could change market
dynamics
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3. What is Fine (or Flavoured) Cocoa?
• “Fine” Cocoa is recognised for its unique flavour and
colour and is determined by an ICCO panel depending
upon consumers and manufacturers – old Criollo and
Trinitario varieties (5% of total) Tropical Plant Breeding (A. Charrier 2001)
• “Bulk” Cocoa is grown in large amounts mainly in South
America (Brazil) and Africa (Cote d’Ivorie, Ghana,
Cameroon)
Fine Cocoa attracts a substantial premium price to bulk cocoa
– need to RETAIN this classification in Caribbean where some
countries produce ONLY fine cocoa.
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4. Jamaican Fine Cocoa Industry

5. The Jamaican Fine Cocoa Industry
• Brief History
– One of oldest crop exports - from 16th Century
– Sugar slump in mid 19th Century led to cocoa and
bananas being actively promoted
– From 20 tons (1874) to 3,500 tons (1925)
– Early 20th century – prices slumped & large farmers
exited the industry
– Thereafter, and now, cocoa is mainly in hands of
small farmers (90% have less than 5 acres of land)
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6. The Jamaican Fine Cocoa Industry
• First Renaissance
– 1957 by Hon. Norman W Manley (then Chief Minister)
– Cocoa Marketing Board first then Cocoa Industry Board
– Built 4 Centralized Fermentaries across island
– By late 1960’s
• Distributed 9 million cocoa plants
• Cocoa acreage went from 14,000 to 30,000 acres
• Annual cocoa production averaged about 2,000 tons
into 1980’s
However difficulties ensued from the 1990’s onwards
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7. The Jamaican Fine Cocoa Industry
• Present Day Situation
– Still present across the island from east, central and
west (only 3 or 4 parishes cannot grow cocoa)
– Thousands of small farmers grow it (< 5 acres)
– Mainly inter-cropping with cash crops
– Very few large farmers or cocoa mono-cropping
– Distributed Production but Centralised Processing
• Only 2 active Fermentaries remain (from 4 original)
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8. The Jamaican Fine Cocoa Industry
• Structure of Industry
– Model of Operation
• Distributed Growing but Centralised Processing
– Advantages
• Economies of Scale - collection, processing, marketing
• Social Network support for rural communities
• Economic with centralised Quality Control
• Volume to negotiate with external buyers
• Visible pricing to farmers
• Diversified risk against hurricanes etc
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9. The Jamaican Fine Cocoa Industry

10. The Jamaican Fine Cocoa Industry

11. The Jamaican Fine Cocoa Industry
• Required Key Success Factors - Interdependency
– Trust and good working relationship between Cocoa Board
(sole buyer) and cocoa farmers
– Proper functioning of inter-linkages such as Lead Cocoa
Agents, Cocoa Collectors, etc. in the network
– A critical mass of participation by small farmers to supply
Cocoa Board processing plants
– Efficient and well functioning Cocoa Board
• Proactive; investing for future;
• Good relationship management with farmers (customers)
• Honesty, fair play, competent staff
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12. The Jamaican Fine Cocoa Industry
(tonnes of cocoa per year)
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13. The Jamaican Fine Cocoa Industry
• Current Issues - I
– Declining volumes of cocoa output (now reversing)
– Ageing demographics of rural farmer
– Farming not seen as a viable business
– Urban migration; stigma of farming re livelihood
– Competing crops with quicker returns
– Low price paid to small farmer by monopolistic
buyer (but now improving)
– Informal land tenure (who owns what legally)
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14. The Jamaican Fine Cocoa Industry
• Current Issues - II
– Loss of cocoa know-how across the generations
– Limited applications of technological innovations
• GIS /GPS; mobile telephony; transportation
– Cumulative lack of investment over the years
– Loss / Ageing of cocoa trees / Trees growing wild
– More extreme weather - possible low pollination
Host of Issues – is industry structured to address
change in a pro-active manner?
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15. The Jamaican Fine Cocoa Industry
• Current Status
– Government divesting its interest in Board and
wants to liberalise market (ongoing new model)
– Significant EU Funding for project to rehabilitate
2,000 acres of cocoa (well underway - see Posters
outside & CIB team here today)
– USAID support to the industry
– Jamaica Cocoa Farmers Association mobilising
(also in attendance)
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16. The Jamaican Fine Cocoa Industry
• Current Actions – EU project underway (CIB)
– Capacity build the Cocoa Board (people, computers, power tools,
telecoms etc)
– Develop a methodology to rehabilitate the derelict cocoa fields with
teams led by Change Agents
– Educate the Farmers in Business and Entrepreneurship (more from
Prof Thompson UTT on that in her presentations)
– Use modern technology where beneficial to improve the productivity,
efficiency and image of farming – BRING IT INTO THE 21st Century
– Promote the value add end of the value chain – not going to process
all the beans immediately but we need to get into this part of the
business!!
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17. Trinidad & Tobago
Fine Cocoa Industry

18. The Trinidad Fine Cocoa Industry
(tonnes of cocoa per year)
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0
500
1000
1500
2000
2500
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

19. Comparison of Cocoa Industry Structures
TRINIDAD & TOBAGO
• Outside Hurricane Zone
• Several Large Farms (>200
acres) & many medium
sized farms
• Complex industry structure
of many buyers and traders
• Good cooca varieties
research capability CRU
• Cocoa Assns strengthening
JAMAICA
• Multiple Hurricanes & Storms
• Some medium sized farms
• Majority are small farm sizes (2-
5 acres)
• Centralised control by Cocoa
Board – only buyer
• Need for improved technical
capability in cocoa
• One main Cocoa Farmers Assn.
JCFA
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20. The Trinidad Fine Cocoa Industry

21. The Trinidad Fine Cocoa Industry

22. The Tobago Fine Cocoa Industry

23. The Trinidad Fine Cocoa Industry
• Current Challenges
– Stagnating volumes of cocoa production
– Ageing demographics of rural farmer - generational
memory loss & success crisis?
– Smaller farmers wanting support / incentives
– Wage inflation – hard to find labour / youth
– How to translate new cocoa varieties into the field (IP?)
– Supporting the small indigenous chocolate processors
– Increase value from the cocoa product
– Loss / Ageing of cocoa trees
– Possible low pollination with climatic change
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24. Global Cocoa Based Industries

25. Internationally Traded Price of Cocoa
(Monthly Average - ICCO)
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0
500
1000
1500
2000
2500
3000
3500
4000
Jan-04
Apr-04
Jul-04
Oct-04
Jan-05
Apr-05
Jul-05
Oct-05
Jan-06
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
US$ per tonne
US$ per tonne

26. The Global Cocoa Processing Industry
• What happens to the cocoa beans exported?
– Value Add Players
• Cocoa grinders; blenders; traders;
• Chocolate makers; Confectionery makers;
– Value Add Products
• Cocoa Shells
• Powder / Cake
• Butter
• Paste / Liquor
• Chocolate & Chocolate Products
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27. The Global Cocoa Processing Industry
• Favourable Trends
– Increasing specialisation / differentiation of end
products; by country, region, taste etc.
– Growth in end consumer demand
– Higher world cocoa prices (Fine cocoa a premium)
– Small scale chocolatiers proliferating
– Health benefits of dark chocolate being promoted
– Miniaturization of technology in processing
– Dynamic changes in overseas processing structure
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28. Caribbean Fine Cocoa Industry
THE FUTURE ?

29. The Caribbean Fine Cocoa Industry
The Way Forward
• RETHINK THE VALUE CHAIN
– Most of the value is in the end product sales of
confectionery AND in developed markets
– But without Cocoa Beans there is no Chocolate Bar
– Point of origin is a key selling point – branding
– Wine industry & premium coffee have analogies &
lessons (Jamaica Blue Mountain Coffee)
– Move from a Value Chain to a Value Loop
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30. The Caribbean Fine Cocoa Industry
The Way Forward
• New Models for commercial success
– Caribbean Producers need to access / participate
in wealth at end of value chain
• Partnership with intermediate or end producers (Joint
Ventures, Sale Agreements etc)
• Growers get critical mass and economies of scale by
collaboration amongst themselves (Assns. Co-ops etc)
• Incorporate other income streams via new products,
markets and services – eco-tourism etc. (maximise
revenue overall)
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31. The Caribbean Fine Cocoa Industry
The Way Forward
• Success Stories – Actions Underway
– Rehabilitation exercises in Trinidad & Tobago,
Jamaica, St Lucia
– Renewed interest by land owners to get into cocoa
growing & production
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This project is funded
by the European Union
This project is funded
by the European Union

32. The Caribbean Fine Cocoa Industry
The Way Forward
• Success Stories – New Models & Value Add
– Grenada (The Grenada Chocolate Company)
– St. Lucia (Hotel Chocolat)
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33. The Caribbean Fine Cocoa Industry
The Way Forward
• Success Stories – New Models & Value Add
– Trinidad
• Exotic Caribbean Mountain Pride
• Cocobel
• Brasso Seco
• House of Olando
• Rodco
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34. The Caribbean Fine Cocoa Industry
The Way Forward
• Success Stories – New Models & Value Add
– Tobago (Tobago Cocoa Estate)
– Jamaica (Chocolate Dreams)
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35. The Caribbean Fine Cocoa Industry
The Way Forward
• Policy Considerations - Trinidad
– Rural Labour availability (does TT need to formally
import short term labour to get farm work done?)
– Need to stimulate and support the cocoa
processing & value add sector
– Strengthen cross-linkages between Ministries of
Food Production, Trade and Industry, Tourism
– Take the lead in regional approach for cocoa
processing (cheap energy, close to other states,...)
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36. The Caribbean Fine Cocoa Industry
The Way Forward
• Policy Considerations - Jamaica
– Land tenure (legal issues) for generational transition
so land ownership is secured
– Accessing cocoa growing on absentee land-holdings
– Use of All Terrain Vehicles (ATV’s or UTV’s) on public
roads
– Collaboration between Government Departments in
applying for external funding (EU etc.)
– Establishment of Project Office approach at CIB to
proactively address industry issues
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37. 37
This project is funded
by the European Union
This project is funded
by the European Union
cfcfactory@gmail.com www.caribbeanfinecocoa.net