Sustaining the Chocolate Economy
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Organic, Fair Trade and Sustainable Practices in Cacao Farming
Research on organic and sustainable practices has shown that cacao production suffers in monoculture and with pesticide use: successful pollination relies on insects that live in the moist ground layer, in the debris of the forest floor. Growing cacao as it grows in the wild, as an understory plant sheltered by larger trees such as rosewood, teak and taller fruit trees, results in a diverse environment with potential for other avenues of income should there be a failure in the cacao crop. Continued educational practices, along with established cooperatives, prevent farmers from losing their land, allowing them to focus on the long term benefits of sustainable farming practices.
About 20% of the world's cacao is grown in Asia and Oceania, with Indonesia leading production; Papua New Guinea and Malaysia are the next largest growers. In these countries, poverty is still an issue: small farmers will need the protection and assistance of cooperatives, academic research groups and companies willing to pay fair trade prices.
Brazil was once the leading producer of cacao, but in the late 1980's, a fungus destroyed most of the cacao trees in the region. At this time, Brazil and Ecuador lead Central and South America in cacao production: the region produces around 10% of the world's cacao, and those two countries are the leading producers in the region.
Although the demand is increasing at about 3% per year, the 2006-7 crop was about 5% smaller than that of last year, coming in at around 3.1 million metric tons. The decrease in production has been attributed to problems with the weather and trouble with pod borer disease
U.S. Imported Chocolate Costs
The current market value of the annual cacao crop is just over $5 billion, and in 2005, the U.S. chocolate industry imported more than $870 million in cacao beans, $670 million in processed chocolate (chocolate paste, cocoa butter and cocoa powder). Another $470 million was imported in the form of prepared chocolate in bulk. In all, the chocolate manufacturers in the U.S. purchased $1.4 billion of cacao products. In addition to the imported chocolate products, the industry uses $1-$2 in domestic products (milk, sugar, flavors, etc.) in the manufacture of chocolate food products.
When you do the math on the prices paid by U.S. food manufactures to the chocolate industry for chocolate products, you find that large scale manufacturers pay around $1 a pound for chocolate products. * And if you check out the statistics presented by the International Cocoa Organization (ICCO), you'll see that the purchase price for one ton of cacao beans as of February, 2008 is $2,388.13.
U.S. Export
In 2005, the U.S. chocolate industry exported more than $711 million in chocolate products to consumers in 160 countries. With increased marketing efforts targeting Asian countries as potential consumers, the potential for export could be even greater.
U.S and World Employment in the Chocolate Industry
According to the Chocolate Manufacturers' Association, the U.S. chocolate industry employs around 65,000 people-about two-thirds the number involved in the gas and oil industry in the country. In fact, according to the World Cocoa Foundation, somewhere between 50 and 60 million people are employed in the global chocolate industry, with only 10% of those employed being growers.
More than 400 companies manufacture over 90% of the chocolate and confectionary products in the country, and another 250 companies act as suppliers. The chocolate industry also reaches far into the domestic agricultural sector: 7 million pounds of sugar a day, 1.4 billion pounds of corn syrup, 3 billion pounds of milk products, and nearly 400 million pounds of nuts are consumed by the chocolate industry.
The Future of Chocolate
Chocolate futures, with a steadily increasing demand and advances in breeding stronger cultivars, educating growers and providing higher quality product at fair trade prices, are looking bright. And if you've always wanted to become a chocolatier, now's your chance to dive into an exciting and lucrative artisanal adventure. Hand molded chocolates are a low-overhead but high labor endeavor: perfect for people with little cash to start a business but with a love of chocolate.
Facts derived from the Chocolate Manufacturers' Association Website: http://www.chocolateusa.org/Resources/statistical-information.asp
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How Chocolate is made