International Cocoa and Commodity Trade

Cocoa produced in tropical or semitropical areas. Such climates found in Asia, Africa, and Latin America who form the principal producers of cocoa. The types of cocoa production are small-scale or large-scale production. An estimated 70% of world cocoa production comes from small-scale farmers. The number of small-scale farmers estimated to be 2.5 million with a yield of about 350kg per hectare. In this case, every farmer owns around 3 hectares (Interfax, 2011). Only 30% of cocoa production comes from large-scale farming. The leading countries in cocoa are West African countries like Ghana, Côte D’Ivoire, and Indonesia, forming 70% of the total coffee production. The other 30% collectively come from Asia, Latin America, Nigeria, Brazil, Cameroon, Malaysia, and Ecuador. The principal by-product of cocoa is chocolate. However, cocoa is processed to produce many other products such as Bergenfield cocoa powders, Bergenfield coffee cacao nibs, cafes cocoa products, chocolate covertures, dried fruit, edible nuts, and seed flour. Other products include organic cocoa products such as spices, extracts and emulsifiers, sugars, stevia, and sweeteners. Some toppings, sauces, drops, snacks, and cold pickings are by-products of cocoa. Demand level determines consumption pattern, and the volume of cocoa processed each year judges the demand. Two-thirds of all cocoa, ground in the chocolate consuming countries, where, the US is the world’s largest consumer of chocolate. The consumption level followed decreasingly: by Germany, the United Kingdom, and France, the Russian Federation, Japan and Brazil. The Cocoa Producers Alliance (CPA) eliminates international transportation of 10% of the cocoa production due to low-grade cocoa. Markets have agreed to destroy non-quality cocoa. This is made possible by introducing levies on farmers and exporters to finance the destruction plan and compensate growers for their losses. Only quality cocoa products transported internationally and traded.

Back To Top