The chocolate industry is getting stirred up by the innovation of Swiss scientist Kim Mishra and his team at Zurich’s Federal Institute of Technology. Switzerland, which has been producing chocolate since the nineteenth century, has seen continuous developments both in the way that chocolate is produced and consumed as new machinery and techniques are developed.
globalEDGE Blog - By Tag: cote-d'ivoire
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The cacao seed, which is used for the production of cocoa butter, cocoa powder, and chocolate, has seen several spikes in its supply over the past five years due to climate change, insects, and fungal infections. Paired with fluctuations in demand, the market has experienced a volatile commodity price for several years. Forecasts in 2014 predicted that the demand for cacao would outweigh its supply by 2020 and cause a global shortage. However, estimates have become even bleaker as scientists now predict that cacao may become extinct by 2050, as the main countries that produce the world’s supply of cacao will become unsuitable for cultivation due to climate change and deforestation. Even though this prognosis is still over 30 years away, is important now more than ever for countries and companies all around the world to increase their efforts to clean up the cocoa supply chain for a more sustainable future.
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Ok, so normally my globalEDGE blogs are a bit more topical, serious, and germane to my international business and trade interests. But I’m finding myself up early, from jetlag, in my hotel room in Nairobi, Kenya where I am attending the joint meeting of UNCTAD and the World Investment Forum, and it strikes me that cocoa beans have been in the news lately. And the world may not have noticed!
Let’s connect the dots. Kenya is of course in Africa, and Africa accounts for 73 percent of the world’s cocoa bean production according to a 2016 report by UNCTAD (but only 19 percent of the cocoa bean roasting/grinding/refinement which is done mainly in other parts of the world, led by Europe at 39 percent). In Africa, Ghana and Cote d’Ivoire lead the way – each country has about 30 percent of their export earnings coming from the cocoa bean commodity. And therein lies the crux perhaps; that cocoa beans are viewed as a commodity.