MadaMarket Export : Cocoa bean supplier Madagascar

Ivory Coast: What about the production of certified or labeled cocoa bean

Côte d’Ivoire is an African country renowned for its agriculture, most of whose production is for export. The country is known in the international market for the production of cocoa and cashew nuts. For cocoa, Côte d’Ivoire is the world’s largest cocoa bean supplier with 2 million tons of beans at the end of the 2016-2017 season, according to figures from the Cocoa-Coffee Council (CCC). In recent years, Ivorian cocoa bean farmers have been increasingly focusing on organic cocoa farming with fair trade. Organic farming is currently one of the solutions to the problems of the sector. However, this mode of cocoa production has its limits, but it remains an interesting and particularly powerful tool in the structuring of the sector.

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Organic certified cocoa bean

According to statistics from the Ivorian regulator of the cocoa sector, cocoa production in 2017 reflects an overproduction accompanied by a fall in the price, to 700 FCFA per kilo. Overproduction also worsens the country’s deforestation. It is to avoid these problems that the promotion of organic cocoa, labeled and certified is implemented, it leads to a sustainable culture of cocoa bean.

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According to Konan Toussaint Nguessan, president of the World Organization of Cocoa Cultivators (OMCC), organic cocoa production as such is very rare on the market. But Côte d’Ivoire has all the necessary criteria to certify organic products. In fact, 80% of cocoa production has the capacity to meet organic criteria because crops use a small amount of fertilizers and other chemicals.

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Cocoa sector: Fair trade certified cocoa bean

Currently, certified fair trade culture is on the rise. The cocoa sector is no exception and even benefits from this certification to improve the quality of production. In 2017, the cocoa sector has the largest number of “fair trade” cooperatives in West Africa with 113 cooperatives against only 18 in 2013. According to a recent study by the Central Bank of African States of the West (BCEAO), 25,000 cocoa bean farmers out of 600,000 in Côte d’Ivoire have started cocoa farming certified fair trade. Fair trade cocoa bean does not only concern cocoa bean farmers, many actors are also involved in its operation: exporters, buyers, quality controllers … However, the production of fair trade cocoa bean does not benefit in the improvement of the conditions of cocoa. life of cocoa bean supplier.

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At the global level, the fair trade share is only 6 billion euros a year, which is still very low to the point that farmers are not always able to sell their cocoa production. The production of certified or certified cocoa is not immune to the crisis, and cocoa bean supplier have had to sell their crops at the price of conventional cocoa. Premiums are distributed to motivate certified fair trade cocoa bean producers, but it is often the middlemen who receive them. Certification has advantages for cocoa bean farmers in the face of Western consumer demand, but these situations are sufficient to demotivate cocoa farmers.

The global chocolate industry, singled out by cocoa-producing countries

The 4th edition of the World Cocoa Conference took place last April in Berlin, Germany, and brought together nearly 1,500 participants from more than 65 countries. During these four days, all the speakers gave their opinion to find a solution to the problem met by the cocoa bean farmers. All players in the global cocoa market are concerned: governments, cocoa bean supplier, traders and grinders, processors, manufacturers, research institutes, civil society organizations, trade unions and consumer organizations. They will need to work together to put in place an effective strategy to ensure sustainable cocoa that involves eradicating producer poverty, deforestation, child labor, gender inequality, human rights many cocoa areas.

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An opaque market that benefits industrialists and consumer countries

cocoa bean supplier madagascar - cocoa bean farmers

Faced with the problem of meeting the producing countries and their cocoa bean supplier, the Conference turned into a real indictment against the world chocolate industry. Cameroon’s Minister of Commerce, Luc Magloire Mbarga Atangana, said current cocoa prices border on slavery and cocoa-producing countries could no longer accept them. The Cameroonian minister supported the opinion of the German Minister of Agriculture, Julia Klockner, who had requested the opening of the conference the transparency of the world cocoa market. According to this member of the German government, the cocoa market is one of the most opaque in the world especially as a portion is reserved for cocoa bean supplier. ICCO’s Executive Director, Jean Marc Anga, announced that cocoa farmers are currently receiving little decent treatment from the chocolate industry. Indeed, the price of the kilogram of chocolate continues to increase since the last cocoa campaign while the price of cocoa beans remains very: 7,500 FCFA for chocolate against 1,200 FCFA for beans. Mr. Anga also recalled that the African continent includes the main cocoa producing countries.

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In the 2016-17 crop year, Africa accounted for 75% of global cocoa production, but cocoa-producing countries only received 6% of the industry’s turnover. chocolate. The ICCO said beans, mostly from Africa, allowed chocolate companies to make about $ 3.5 billion in global profits, while consumer governments collected $ 15 billion in VAT.

A national cocoa bean economy resilient to price fluctuations

In his speech, the Ivorian Minister Souleymane Diarrassouba said that a sustainable cocoa economy, fair and profitable for all could not take place because of this situation of imbalance. The latter would even threaten the solidity of the cocoa community. The anti-trust law is against producers while it benefits exclusively consumers and connects cocoa bean supplier. The government plans to establish a national cocoa economy that is resilient to price fluctuations in the international market. The objective is to guarantee profitable incomes to cocoa bean farmers, who remain the weak link in the value chain.

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Côte d’Ivoire: Saco increases cocoa bean processing capacity

The cocoa sector is the subject of a national policy aimed at improving local processing to increase the added value of cocoa before export. The state encourages cocoa bean farmers to participate in this project, which requires the establishment of several processing units in the country. Ivorian President Alassane Ouattara and his government are aiming to reach more than 500,000 tons of processed cocoa by 2020. Most recently, the African Cocoa Corporation (Saco) inaugurated the construction of another cocoa processing unit.

A new processing unit in Abidjan

The African Cocoa Company (Saco) is an important cocoa bean supplier in the sector. Saco plans to open a new production line for cocoa, cocoa butter, cake and cocoa powder. Prime Minister Amadou Gon Coulibaly, the Minister of Trade, Handicrafts, SME Promotion, the Minister of Industry and Mines and many other personalities were present to lay the foundation stone of this new production line from Abidjan in Zone 4.

Cocoa sector Madagascar: MadaMarket Export cocoa bean farmers

Saco is one of the companies that are determined to contribute to the growth of cocoa processing. The country plans to increase the local processing of cocoa before export. Côte d’Ivoire plans to process 50% of its cocoa production and reach 700,000 tonnes by 2020. Cocoa farming concerns more than 800,000 families and accounts for 11.5% of GDP. The cocoa sector contributes 42.8% of export earnings. Currently, cocoa processing is limited to 35% of the beans produced. The opening of this processing unit is therefore an important issue for the country in the coming years in order to increase the added value of the product and consequently increase job creation.

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Increase processing capacity and cocoa production

The Prime Minister took advantage of this event to congratulate all cocoa bean farmers who have pledged to increase their processing capacity to meet the ambition of the state. It has also encouraged cocoa bean supplier to take initiatives to accelerate the processing of Ivorian cocoa. For Saco, the goal with this new processing unit is to produce 100,000 tonnes of cocoa processed in Abidjan by 2022, compared with 50,000 tonnes currently. In San-Pédro, processing goes from 120,000 to 130,000 tons in 2022 for a total investment of CFAF 30 billion over the next five years.

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The Minister of Industry and Mines, Souleymane Diarrassouba, expressed his joy at this landmark presentation on the interest of local companies in the industrial policy of the country, especially on the processing of agricultural raw materials. He particularly congratulated Saco for having chosen to develop his investments in Côte d’Ivoire. The minister also referred to the processing programs for agricultural products, namely cashews, cotton, fruits and vegetables and, of course, cocoa. In the cocoa sector, the State has signed agreements with eight industrial cocoa supplier.

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