Reports E/CTRM Software – To Build or Buy? | Page 28

CTRM for Ags & Softs

Cocoa
The Cocoa plant was discovered during the early exploration of the Americas and successfully
spread across Europe in the 1600s as sweeteners and flavorings were added. Cocoa comes from
cocoa trees, which grow within 15 to 20 degrees latitude on either side of the equator. It prefers a hot,
rainy, and tropical climate with lots of vegetation to provide shade. Unlike other agricultural crops, the
vast majority of cocoa originates from smaller, family-run farms, and there are actually approximately
five to six million cocoa farmers worldwide.

Overview
The primary growing regions are in Africa, Asia, and Latin America, and the largest producing country by volume is Côte
d’Ivoire, which produces 33% of global supply.In Africa and Asia, the typical cocoa farm is about two to four hectares in
size and producesabout 300 to 400 kilograms per hectare of cocoa beans in Africa and about 500 kilograms per hectare
in Asia.
Cocoa farms in the Americas tend to be slightly larger and will produce 500 to 600 kilograms of cocoa beans per hectare.
The yield per hectare varies not only by region, but also by country and by type of cocoa.
There are two distinct types of cocoa plants: Criollo and Forastero. The Criollo variety is the most sensitive of the cocoa
plants, and any shifts in climate can have an adverse effect on its already low yield. In an attempt to blend the hardiness
of the Forastero plant with the delicate flavors of the Criollo plant, the two were hybridized into a third plant, Trinitario,
which accounted for 20% of all production in 2008 and is steadily developing a following.
Trade balances, pricing, and futures contracts depend on accurate supply estimates, so cocoa production is monitored
throughout the supply chain, as well as by governments and international organizations. Total production increased by
13%, from 4.3 million metric tons in 2008 to 4.8 million metric tons in 2012.

Cocoa Production
Cocoa is quite a delicate, sensitive crop, and farmers need to protect the trees
from the elements, fertilize the soil and watch for signs of distress including
attacks from pests and/or disease. However, most cocoa trees begin to yield the
pods at peak production levels by their fifth year and continue to be productive for
around 10years. The growing season i n the tropics is continuous, and ripe pods
may be found on the trees all year round.However, most production areas have
two periods of the year in which production peaks. In most cocoa-growing areas,
the main harvest lasts for several months with a second smaller harvest, known
as the mid-crop, that lasts for several additional months. Changes in weather can
dramatically affect harvest times and cause fluctuations from year to year.
The outer husk of the harvested pod is split and discarded along with the inner
white pulp of the pod. There are usually around 20-50 beans per pod, depending
on the variety of cocoainvolved.After removal of the beans from the pods, they
are either packed into boxes or piled up into heaps by the farmer.The piles are
then covered with mats or banana leaves so that the layer of pulp surrounding the
beans heats up and ferments them. The heaping method is mostly used in Africa,
and the basket method is more typical in Asia and Latin America. Fermentation
lasts three to seven days, and it produces the chocolate flavor with whichwe are
familiar when the beans are roasted. The beans are then sun dried for several
days.
© Commodity Technology Advisory LLC, 2016, All Right Reserved

27