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Fine Aromatic Cocoa Ecuador

Module 3 Upgrading Strategy Case Study. Fine Aromatic Cocoa Ecuador. Case Study: Fine Aromatic Cocoa, Ecuador. Contents. 1. Chain Analysis. 2. Upgrading Objectives and Strategy. 3. Activities and results. Production. 1. Fermenting, Drying. 1. Bulking, Export. 1.

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Fine Aromatic Cocoa Ecuador

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  1. Module 3 Upgrading Strategy Case Study Fine Aromatic Cocoa Ecuador

  2. Case Study: Fine Aromatic Cocoa, Ecuador Contents 1 Chain Analysis 2 Upgrading Objectives and Strategy 3 Activities and results

  3. Production 1

  4. Fermenting, Drying 1

  5. Bulking, Export 1

  6. Value chain of fine cocoa, Ecuador Fermentation Drying Bulking, trade Production Export Individual cocoa farmers Ordinary cocoa Individual cocoa farmers “National” fine aromatic cocoa Inter-mediaries Exportcompanies World Market Cocoa cooperatives N = 50 1 N = 1.000 N = 30 N = 90.000 (farmers) 500.000 ha EU 52% USA 25% Asia 12% LAC 11% Export 2006 110.000 t 175 Mio USD 2nd tier Cocoa Farmer Associations Association of exporters Nat´l Cocoa Association ANECACAO CORPEI – Cocoa desk Ministry of Agriculture Regional Offices

  7. Market of fine, aromatic cocoa Countries producing fine, aromatic cocoa = 5% of the world market Fine cocoa 153.000 t 1 Ordinary cocoa 3´080.000 t Source: ICCO, 2006

  8. Production of chocolate 1

  9. Case Study: Fine Aromatic Cocoa, Ecuador Contents 1 Chain Analysis 2 Upgrading Objectives and Strategy 3 Activities and results

  10. Pure quality of aromatic cocoa, avoiding mixtures Increasing productivity and production volume Organic certification / certification of origin Creating an upgrading vision Increase sales of aromatic cocoa to 150.000 t by 2010 consolidating the market position of Ecuador in high-quality markets, and penetrating specialty markets Key elements of the upgrading strategy 2

  11. Value chain and upgrading vision Volume Price Income Fermentation Drying Bulking, trade Production Export Individual cocoa farmers Ordinary cocoa Individual cocoa farmers Fine aromatic cocoa Inter-mediaries Exportcompanies 2 World Market Cocoa cooperatives Pure product quality Traceability ensured Access to specialty markets Better Productivity, consistent quality Direct links producer – int´l buyer

  12. SWOT Analysis SWOT Analysis of the cocoa value chain, 2004 2

  13. Constraints analysis Constraints in the relationship producers - buyers Fermentation,Drying Bulking, trade Production Export Inter-mediaries Exportcompanies Chocolatecompanies Cocoa cooperatives 2 • Productivity • Quality • No separate • collection of • varieties Volume and availability of high quality produce • Organisational • Capacity

  14. Strategy developing the value chain New model of direct marketing Fermentation,Drying Bulking, trade Production Export Individual cocoa farmers World Market Inter-mediaries Exportcompanies N = 90.000 (farmers) N = 1.000 N = 30 Cocoa cooperatives 2 Introduction of a standard for aromatic cocoa Certification of organic and fair trade cooperatives Organisational support for Cooperatives and associations New business partners Chocolate companies N = 2 Cooperatives Associations of cooperatives

  15. Measures & activities Public-private partnership with the chocolate industry Fermentation,Drying Chocolate production Production Export Black Chocolate Market Cooperatives (17) / >1000 farmers UNOCACE – Association of cooperatives KAOKA company, France PPP with 2 Certification ECOCERT Certification offers Image campaign and business matchmaking Export Promoción CORPEI National Research Institute INIAP Varietal improvement, planting material Technical Assistance training, advice Development Assistance Programs MoA, ACDI-VOCA, BID-FOMIN, CORPEI, INCCA, CAMAREN Definition of quality norms and requirements SESA, ANECACAO Ministry of Agric, Cocoa Division

  16. Measures according to levels of the cocoa sector MICRO Farmers, associations, enterprises Self organisation of association, business plans Investment into plantations and plantation management Post harvest and quality management Improvement of business processes MESOSupport service providers, working groups 2 Improved and more targeted service provision Organizing exchange and cooperation MACROCocoa round table, Ministry of Agriculture, Commerce Agreement on a national cocoa policy and strategyl Adaptation of quality norms Image promotion at international level

  17. Case Study: Fine Aromatic Cocoa, Ecuador Contents 1 Chain Analysis 2 Upgrading Objectives and Strategy 3 Activities and results

  18. Results 2004 - 2007 A functioning model that is being replicated GermanChocolatiers 110% increase in affiliation 50% increase in prices 43% increase in income SwissChocolatiers Cooperatives (17) / >1000 farmers UNOCACE – Association of cooperatives KAOKA company, France Chocolate production Production Fermentation Export 3 Established business relationship Higher productivity

  19. And after 2010......”non-traditional export” Ecuador becomes a specialized chocolate producer After 250 years exporting cocoa, nobody knew how to make chocolate in this country Santiago Peralta, Ecuadorean chocolate maker Gold Medal Ecuador, the world’s top grower of flavored beans used in fine chocolate, is benefiting from increasing demand in Asia, Europe and Latin America for specialty sweets made with the country’s higher-quality beans, said Santiago Peralta, the 42-year-old founder of Quito-based Pacari Chocolates, winner of the gold medal for dark chocolate at the 2013 International Chocolate Awards in London in October. “In terms of chocolate, the world now respects Ecuador a lot,” 3

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