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Cocoa industry

Cacao Oro Nicaragua
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Cocoa industry

Globally, cocoa occupies approximately fourth place in terms of value among tropical crops, paired with bananas, and behind palm oil and rubber. Approximately 70% of world cocoa production resides in West Africa, with approximately 67% of world production concentrated in the Ivory Coast and Ghana.

The goal of a sustainable supply, combined with the continuing structural problems of production linked to West Africa and Indonesia, is causing a shift in the industry towards cocoa harvesting in regions where there is more reliable commercial production – Central America and the Andean region of South America.


Cocoa Industry

Global demand

The Cocoa industry is experiencing long-term structural changes and demand is accelerating, mainly as a result of the emergence of the middle classes in developing markets like China, India, and Brazil, that have a discretionary income to buy luxury goods, including chocolate confectionery.

Sustainability

The consumer demand of sustainable cocoa is also impacting the supply chain with major chocolate producers reaching for a 100% sustainable supply-chain by 2020. ICCO has noted that only between 10% and 12% of total production is sustainable today. However, projections indicate that this number will increase by about 50% by 2020.

GLOBAL CHALLENGES

Latin America is a leader in the development of both commercial-scale cocoa production and sustainability. This development has been driven in response to the ongoing structural problems in cocoa production in West Africa and Asia and has been accommodated by the emergence of relative regional political stability in South and Central America.

Latin America accounts for approximately 18% of total production worldwide, but approaches 50% of total sustainable production, and is the leader in the expansion of newly planted hectares. It is estimated that 80% of the large expansions of new plantations are in the region (Hardman).


COCOA IN LATIN AMERICA

Latin America is a leader in the development of both commercial-scale cocoa production and sustainability. This development has been driven in response to the ongoing structural problems in cocoa production in West Africa and Asia and has been accommodated by the emergence of relative regional political stability in Latin and Central America.
Latin America accounts for approximately 18% of total production worldwide, but approaches 50% of total sustainable production, and is the leader in the expansion of newly planted hectares. It is estimated that 80% of the large expansions of newly planted or completely new plantations are in the region (Hardman).