Products
from Cocoa
A pod of cocoa can be translated into a variety of products, among which
are;
·
Animal feed- cocoa pod husk,
can be used as an animal feed.
·
Production of soft drinks and
alcohol - In the preparation of soft drinks, fresh cocoa pulp juice (sweatings)
is collected, sterilised and bottled.
·
Potash from cocoa pod husk -
Cocoa pod husk ash is used mainly for soft soap manufacture. It may
also be used as fertiliser for cocoa, vegetables, and food crops.
·
Jam and marmalade - Pectin for
jam and marmalade is extracted from the sweating by precipitation with alcohol,
followed by distillation and recycling of the alcohol in further extractions.
·
Mulch - Cocoa bean shells can
be used as organic mulch and soil
conditioner for the garden.
·
Cocoa butter - Cocoa butter is
used in the manufacture of chocolate. It is also widely used in cosmetic
products such as moisturising creams and soaps.
·
Cocoa powder - Cocoa powder can
be used as an ingredient in almost any foodstuff. For example, it is used in
chocolate flavoured drinks, chocolate flavoured desserts such as ice cream and
mousse, chocolate spreads and sauces, and cakes and biscuits.
·
Cocoa liquor - Cocoa liquor is
used, with other ingredients, to produce chocolate. Chocolate is used as a
product on its own or combined with other ingredients to form confectionery
products.
All the
products from cocoa are sought after but the global chase for chocolate
sustainability is a concern that should interest investors.
The
Global Chase for Chocolate
Exploring
chocolate, just one of the products from cocoa; Chocolate is highly consumed
product among children and adults alike. It is a very big business and one of
the bestselling global products. Chocolate is although considered a naughty
addiction for consumers but its demand is ever on the rise. As a matter of
fact, the demand for cocoa for chocolate is so high that experts warns that
there will shortage of affordable cocoa supplies within 20 years if active measures
are not taken to sustain cocoa production.
Why should Investors be interested in Cocoa Business?
There are
a couple of reasons why investors should find the cocoa business a viable
opportunity to dip into;
1.
Nigeria
(Africa) has a huge plus in cocoa production- Cocoa plant is not peculiar to
Nigerians though, but Africa now dominates the production of cocoa towering
with 70%. The temperate and climate of Nigeria, especially the South-West
region favours the growth of cocoa production. Nigeria is a sweet spot for
cocoa production. It makes its sustainability limitless.
2.
The is a
present and future demand for the production of cocoa- As long as chocolate and
other cocoa products are consumed, the market remains profitable. Aside
chocolate, Cocoa beverages are heavily consumed (especially by growing children
and young adults) in developing regions of the world like Africa. Beverages
like Milo, Ovaltine, Bonvita etc. is a household name in Nigeria. Nigeria has a
one of the fastest growing population in the world with about170, 000,000
million people. As a result of this explosive population growth, more
people will depend on cocoa farmers to produce the valuable beans used for
producing these beverages. And because cocoa can be grown in only a few other
places outside Africa, Nigeria precisely, the high demand for cocoa products
will provide a steady and lucrative market for cocoa producers.
3.
Increased
Investment Support for Farmers- Through agricultural credit support schemes and
policies, the Nigerian government is actively supporting agriculture. Even organisations
are now making huge efforts to make cocoa production more lucrative for African
farmers because they are one of the important value chains in the entire
process.
For example, Nestle and Cargill, two of the world’s largest food
companies that sell a lot of chocolate products are investing millions of
dollars to train African cocoa farmers and providing disease-resistant and
high-yielding varieties for farmers.
Nestle’s Cocoa Plan is an initiative that will invest over $120 million
in cocoa development over the next ten years. Cargill calls its program the Cocoa
Promise. The program has trained over 90,000 farmers in Cote D’Ivoire to
improve their skills in cocoa cultivation. Also to increase the amount of money
farmers can make from the cocoa business and encourage sustainable cocoa
production, NGOs like Fairtrade, Rainforest Alliance and UTZ have set up
certification programs to protect cocoa farmers and increase the profit potential
of their produce.
Insightful Tips on how to get into Cocoa Business
Cocoa
passes through a number of interesting stages. It goes from the farms where
they are cultivated and harvested to the big manufacturing plants that use them
to manufacture chocolate and beverages. The cocoa value chain starts from the
farmer and ends with the global brands like Nestlé, Cadbury and Hershey that
produce chocolate and several other cocoa products.
But if
you would like to enter the cocoa business, you must first decide the role you
want to play in the cocoa value chain. Would you like to own a farm or
plantation for cultivating cocoa trees? Or would you rather act as a middleman
who buys the harvested and dried cocoa beans and sell them locally or export to
processors overseas? You could also be a grinder or chocolate maker but these
will require huge capital investment and lots of technical knowledge and skills.
This is though what Nigeria needs. Just like its sister nation Cote
d’Ivoire who not only plants but processes cocoa.
If you also
intend to become a farmer and
cultivate cocoa trees, getting the land with suitable characteristics is
important. Cocoa grows well in well-drained soils and a variety of soil types.
Because cocoa is sensitive to water deficiency, the area
should have plentiful rainfall which is well distributed throughout the year.
Using new and hybrid varieties of cocoa is also very important. These new
varieties mature earlier, produce more cocoa pods and are resistant to
diseases. Nigerian soil is pretty favourable for cocoa plant but the
South-Western part of Nigeria seem to be a more proven viable soil.
If your
preference is to trade in cocoa
beans and possibly become an exporter to cocoa grinders and processors
overseas, there are a couple of things you must know. Internationally traded
and export grade cocoa usually have specific requirements and high quality
standards. If cocoa beans do not meet these standards, they are often rejected
by the customers and you’ll lose a lot of money. In addition to quality, price
is also another important factor you must follow closely. International cocoa
prices change very often based on market supply and demand, poor harvests or
political instability in cocoa producing countries. To avoid any losses, cocoa
traders must always consider the effect of pricing on their trading business.
Above
all, there are usually cocoa research and support programs run by NGOs or
government offices in cocoa producing countries. Joining these programs and
visiting the offices will provide you access to quality information about the
cocoa business in your country. You could also make some connections that will
help your learning and teach you more about the business.
We do
hope you find these pieces of information helpful.
Written
by
Ryta Moemeke.
