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Ingredients: The
Depletion of Tropical Forests and Biological Diversity, Organic Chocolate
and the Environment, What is Organic Chocolate?, Is Organic Chocolate
Sustainable?, A Growing Market for Chocolate and Organic Products, Major
Organizations, Important Terms and Definitions |
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Introduction
Chocolate comes from the chocolate tree, scientifically classified as Theobroma cacao, which literally means “food of the gods cacao”. In economic terms, it is one of the most important trees grown in the tropics as it provides the fruits that are processed into cocoa, which is currently a multi-billion dollar industry. Its natural and cultural evolution over time is both fascinating and revealing. Perhaps most exciting however, is its peculiar botanical characteristics, which have placed chocolate in a unique position among conservation efforts. Growing chocolate organically or using sustainable methods can further protect and promote biological diversity while lowering the amount of potentially hazardous chemicals used on the farm to combat insects and fungal infestations. In this way, it can become a valuable resource of economic growth while contributing to the biological vitality of the worlds diminishing tropical rainforests.
* * * * *
The tropical rainforests of the world embody the very essence of beauty and diversity to be found in nature. Not only do they play a vital role to feed and provide us with countless botanical treasures such as chocolate, but they also are home to countless species of wildlife and contain the secrets of vast medicinal value that many scientists only dream to uncover. Rainforests are also home to a small number of indigenous groups that rely on the forests for their livelihood and fear displacement in the face of economic development and increased deforestation. The capacity that rainforests have on influencing global and regional climates is also significant as it helps maintain a delicate balance for all life on Earth. There is therefore a real sense of urgency to protect the vast tropical forests of the world today where between 1950 and 1983 (33 years), the area of forest and woodland in Central America plummeted 38% and 24% in Africa. It is clear that if this pattern continues, there will hardly be any rainforests left in the world in only a few decades. The exploitation and conversion of forest resources has often been wasteful and has also placed an enormous stress on the world’s biological diversity for millions of plants, animals, and insects. It is difficult to analyze the total rate of species extinction because scientists do not know for certain how many species truly exist. Over 1.5 million species have been classified, but many scientists estimate that there may be 30 or more million species yet to be classified. Many of the agricultural, medicinal, and scientific value of these species are forever lost.[1]
Almost all countries within the tropical regions of the world struggle to find a balance between the forces of economic development and the need to protect and manage natural habitat. One of the main reasons for this loss is due to agricultural practices that require clearing forests for bananas, coffee, sugar, and cattle pastures. Because natural resources are often times the primary source to maintain economic growth, it becomes a constant push-pull situation between agriculture and biological conservation.[2] While this is the case, some progress is being made as many countries and global organizations are now looking at ways to revitalize the current state of our rainforests. Traditional agricultural practices are being reexamined to provide alternatives to negative patterns of resource extraction and placing a focus on resource management and sustainable agriculture techniques.
The cultivation of organic chocolate is one agricultural practice in particular that is being looked at as an environmental solution to establish a balance between the maintenance of rainforest habitat and economic growth. This is by in large due to the conditions that the chocolate tree is cultivated in. Chocolate trees worldwide are often managed in small plots compared to the enormous plantations used to facilitate banana, cattle, and sugar production. It is a tree that grows best similar to its wild state integrated within the intricate biological web of the forest. It requires much individual care and attention for successful growth. The cultivation and harvesting process of cacao are mostly done by hand which means that there is little mechanization and thus little exterior capital needed to begin successfully cultivating cacao. This is partly what draws in many farmers to choose to grow cacao with its low start up costs and why cacao groves are best managed with only 15 to 50 acres of land. Large plantations of more than 400 acres do exist but this method of cultivation has proved to be a disaster both for the crop itself and for the environment. While it exposes the tree and soil to the sun in order to produce higher harvest yields in the short term, in the long term it lowers the trees long-term growth potential and leads to soil erosion and a host of other environmental problems.
With this in mind, and the fact that it is a major player in the global economy, chocolate is now being seen to have a potentially positive role in the worlds tropical regions. The Smithsonian Institution was one of the first organizations to acknowledge the importance of this relationship when they organized an international workshop on sustainable cacao cultivation in 1998. They concluded that cacao produced in the shade plays an important role in tropical conservation and biodiversity. This in fact is already the case as cacao is mostly grown by 5 to 6 million farmers worldwide who provide for over 85% of the world’s crop and grow cacao within a cabruca (a canopy of shade trees). On the other hand, many non-shaded farms, such as large-scale farms found in West Africa, require a substantial additional input of agricultural chemicals and technical support. Not only do these agricultural chemicals pose a threat to the environment, they are also excessively expensive. This caters towards large-scale producers, which further escalates the potential for environmental degradation.
However, while each year an estimated third of the world’s cocoa crop is lost to different forms of diseases and pests, it is debatable whether those who utilize chemical insecticides and fungicides to combat this loss benefit from them. The conventional chemical insecticides and fungicides used by farmers that can afford them are notably inefficient in a tropical environment where insect resistance can develop quickly and rainfall will simply wash the fungicides away. Therefore agricultural research initiatives that examine ecologically sound cultivation techniques (including organic methods) are an important area of research for the future of the chocolate industry and the environment.[3] The need for alternatives to traditional agricultural practices is also a necessary key to stimulate economic growth and promote biological diversity and forest canopy in the tropics. This can help secure precious habitat for many of those wise migratory birds that fly far away from New England in the wintertime to the lush and green tropical rainforests of Central and South America. There is reason for concern however for bird lovers however as much of their habitat has been decimated through the past few decades where:
“The ‘industrial’ paradigm for food
production has evolved and achieved wide acceptance over many decades. This model has farmers trying to grow as
much acceptable product, as cheaply as they can, for wholesale markets. The industrial model keeps farmers
anonymous to the consumer, pitted against other farmers economically, and,
all too often, at odds with the environment.”[4]
This paradigm and the need for alternative economic growth can be especially seen in the state of Bahía Brazil. This region is at the very heart of the remaining biodiversity of the Amazon rainforest and is also a major area of cocoa production on a global scale. The rainforest in this region contains only seven percent of the original Atlantic Coastal range. Shaded cacao therefore offers an important buffer zone for many species of birds, animals, and countless insects, which allows for them to safely migrate between the remaining pieces of rainforest habitat. Unfortunately, cacao in this state of Brazil has fallen dramatically and the pressure to cut down the canopy of the rainforest and the shade trees of the cacao groves has grown. The diminishing cacao trade in this area has therefore not only had an economic impact but also an ecological one.[5]
There is however a new
interest in organic production of chocolate in Brazil and other countries in
Central and South America to provide a stimulus for economic growth that is
also ecologically sound. Those who
specifically choose to grow chocolate organically choose to not use any
exterior agricultural additives such as pesticides, fungicides, insecticides,
or other chemicals to fight off deadly diseases or pests that may have a
considerable effect on the economic output of the crop. Though the United States Department of
Agriculture has recently implemented a nationwide label for organic standards
in the USA, there are different standards that exist around the world. However, they all hold similar limitations
as to what constitutes organic farming.
A landmark report on organic farming was introduced to the USDA as
early as 1980, defining organic farming as:
“Production systems which avoid or largely exclude the synthetically compounded fertilizers, pesticides, growth regulators, and…rely upon crop rotations, crop residues, animal manures, green manures, off-farm organic wastes, mechanical cultivation, mineral-bearing rocks, and aspects of biological pest control to maintain soil productivity and tilth, to supply plant nutrients, and to control insects, weeds, and other pests.”[6]
With specific standards
for organic certification developed within various organizations, each
certification program will provide its own rules that must be followed in
both production and processing of cocoa.
When these standards are met, the certification will be awarded to the
farm or processor. This often
involves a check of documentation of farm inputs and also unscheduled
inspections.[7]
For organic farmers not being able to combat diseases with heavy doses of chemical inputs, they will generally spend much more time in the fields to clean weeds by hand, and closely monitor the growth of the tree for signs of pests and fungal infections. They may decide on utilizing various techniques to grow and harvest the tree that fits the criteria of the organic certification such as integrated pest management. Though each farmer’s motives of why they choose to farm organically may be different, it can be seen as an ecological choice. The organic cacao farmer must then pay particularly close attention to early signs of infections and once they are identified take care of them before they spread. Though more of the crop might be lost due to disease, there are benefits. First, the heavy dependency on agrochemicals all over the world has had serious consequences throughout entire ecosystems, of which we are inextricably linked with, making it an environmental health issue. Secondly, while having much less of an impact on the environment, organic chocolate production is a growing niche market in the tropics and offers the potential for new avenues of economic growth for many farmers.
The question whether this new niche product is sustainable has yet to be seen. The term’s ‘sustainable’ and ‘organic’ agriculture may mean different things to different people. However, there are specific guidelines that separate these two terms apart even though they are often used intermittently with one another. To begin with, sustainability is a term that has gained wide spread international acceptance especially within the past decade. It is a word whose parameters are loosely defined in various settings. It generally means caring for the needs of future generations in the decisions that we make to fulfill our needs in the present. It first became widely used among agricultural circles such as the USDA, but the word has spread over to all areas of society. The two terms “sustainable” and “organic” are used interchangeably as specific organic practices often times overlap with sustainable ones. Though this is true, to grow chocolate organically does not necessarily merit it a sustainability practice. It can lead to environmental degradation in its own right. A farmer can grow cacao totally exposed to the sun on a scale that would have to deem it an unsustainable practice. It just happens that the philosophy behind organic farming is one that aims to farm in an ecologically sound manner for both the individual and the environment, which helps preserve it for the future. On the other side of the coin, sustainable cocoa farming may allow for a limited use of chemicals where organic farming strictly opposes this practice. Therefore though sustainable production works to use ecologically beneficial solutions in many times the same processes involved with organic cultivation, organic cocoa strictly prohibits the use of chemical fertilizers setting these two terms apart.[8] The evidence presented here is meant to integrate the available research conducted in the major cocoa producing countries in the world from colonial times to the present. This is done in order to examine the question of whether or not organic chocolate is a sustainable practice will be discussed throughout the remainder of the paper. Whether it is organic or conventional chocolate, one has to wonder about the long-term sustainability of the chocolate industry as a whole. With over three million tons of cacao beans are produced every year, one has to wonder if there is a limit to this growth.[9]
PART I
The Puzzle of Chocolate: A Historical
Overview of Chocolate Including Its Evolution and Contemporary Adaptations
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Ingredients: The Birthplace of Chocolate, The
Cultural Evolution of Chocolate, The Entomological Roots of Theobroma Cacao
and Chocolate, Chocolate Enters Europe Through Spain, The Industrialization
of Chocolate, The Perception of Chocolate and Rainforest Conservation, The
Chemistry of Chocolate |
My friends, stand up!
The princes have become destitute,
I am Nezahualcoyotl,
I am a singer,
head of macaw.
Grasp your flowers and your fan.
With them go out to dance!
You are my child,
You are Yoyontzin.
Take your chocolate,
flower of the cacao tree,
may you drink all of it! Do the dance,
do the song![10]
The Birthplace of Chocolate
There are essentially two birthplaces of chocolate. The first is tied too to its geological past in South and Central America. The second involves its journey as a cherished crop among ancient cultures that flourished throughout modern day Mexico and Central America which was expressed so eloquently in the quote by the Aztec poet-king of Texcoco, Nezahualcoyotl.
* * *
South America
It is generally believed that the evolutionary roots of the cacao tree came from South America, specifically within the upper Orinoco River region and the Amazon Rainforest. Though the genus Theobroma dates back several millions of years, Theobroma cacao may be a relatively new species dating back only ten to fifteen thousand years. According to a recent taxonomic revision of the genus Theobroma, it is theorized that T. cacao was created as a result of ancient Amazonians who crossed two different species, T. pentagona and T. leiocarpa to produce T. cacao. According to this theory, native cultures selected this cross not for the seeds embedded within the cacao pod, but for the rich pulp surrounding the seeds. This is a credible theory as the seed pulp within the cacao pod was used as a beverage in South America in ancient times.
Central America
How Theobroma
cacao then migrated north to Central America still remains an intensely
debated topic among cacao evolutionary research specialists. Was
it possible for cacao to migrate to Central America as a result of its own
natural geographical range from South America, or was it cleverly brought
outside as a result of human ingenuity via trade routes that existed during
the time? There were in fact
extensive sea coastal trade routes between South and Central America during
ancient times and it is easy to speculate that this is how cacao may have
traveled north from its roots in the Amazon.
Either way, cacao came into cultivation in Central America throughout southern Costa Rica all the way up north to southern Mexico centered in a region referred to as Mesoamerica encompassing the modern day countries of Mexico, Belize, Guatemala, Honduras, and El Salvador. It is the people within this region that remarkably began the custom and process of drying and roasting cacao seeds into what we have come to associate with chocolate today. The cacao seeds were first extracted from the pods and mashed to make a crude and bitter tasting paste. This paste was then mixed with water and chili peppers, maize, vanilla, and other spices to prepare a prized beverage, a hot and spicy drink and not as something sweet as chocolate is generally perceived to be today. The tree itself was sacred and seen as a gift from the gods among many different cultures in the region at the time. Even more fascinating however, is the fact that the seeds of the cacao tree were considered to be as valuable as gold and silver and were widely used among the Mayans and the Aztecs as a form of small currency. One could buy and trade with cacao seeds and the powerful emperor of Mexico even maintained entire warehouses containing hundreds of thousands of cacao seeds. During elaborate ceremonies and meals the emperor would be presented with several, sometimes hundreds of prepared cacao drinks in elaborately decorated bowls, which was a symbol his wealth and his power.[11] For instance, among the Aztecs, chocolate, and specifically xochicacahuatl, or “flowered chocolate” could be used as a metaphor for sensuality and luxuriousness.
The adoption of cacao into Mayan society played an especially important social role in their religion and culture.[12] The Mayans were unique in that they were the only known culture in all of the Americas to develop a truly complete script to express their spoken language in its entirety. It is through their ancient hieroglyphic texts that have remained in tact after hundreds of years that give us the best account for how their social, political, and religious life functioned.[13] They recorded much of their history and cosmology into countless bark paper book codices of which only four remain today. These, along with other important hieroglyphic writings found painted on pottery and carved into stone on the pyramids, give us the best account of their history and also helps to identify chocolate and its role among the ancient Maya.[14] In fact, the actual hieroglyph for “cacao” was discovered painted on a few Mayan pottery vessels found through excavation, which were also positively identified to contain traces of cacao within them.[15] This new discovery has been facilitated by the advancement of science and technology that was simply not available fifty years ago and has been opening up doors for researchers to better understand cacao’s cultural roots in ancient Mayan society.
The discovery of three ceramic vessels found in a tomb at the Maya site of Rio Azul in northeastern Guatemala, reveal traces of the two major components of cacao: theobromine and/or caffeine. The vessels are thought to have held foods and beverages to sustain the deceased in the afterworld. The key to identifying the cacao vessels were found in two hieroglyphs with syllabic spellings forming the word ca-ca-wa, or in the Latin alphabet “cacao” referring to the substance that was in the vessel. This discovery confirms the only written manifestation of the word cacao in all of the ancient Americas helping anthropologists identify the actual hieroglyphic sign for “cacao”.
Two additional recent archaeological findings have also revealed exciting new information regarding cacao in ancient Mesoamerica. Less than ten years ago, a great archaeological discovery dating back to the sixth century AD was found in a small farming community in El Salvador called El Ceren. Here, a large volcano erupted leaving the remnants of the village beneath it virtually intact to reveal a snapshot frozen in time as most of the villagers fled the town during the volcano leaving all their personal belongings behind. Among the many artifacts left behind, the botanical remains of a small cacao tree with the blossoms still growing from its trunk was found. As cacao blossoms begin to open at sunset and then stay open all night to allow for pollination, this helped determine that the eruption occurred at night and during the rainy season when cacao flowers.[16] This is one of the closest intact botanical remnants of cacao in ancient times and is an important discovery for those that are researching native methods of farming in ancient Mesoamerica. Another important archaeological finding involves a survey conducted of the settlement patterns of ancient civilizations in Mesoamerica that suggests there was a link between settlement patterns of ancient communities and cacao. In other words, there were specific regions and communities dedicated entirely for its cultivation and trade. One of the most popular cocoa growing regions included the Mayan lower part of the Gulf of Mexico in what is known as the Soconosco coast bordering with the Pacific Ocean. This area was then and still remains a fertile ground for agriculture in Mexico producing much of the country's coffee.[17]
The Entomological Roots of Theobroma Cacao and Chocolate
Often times when European settlers arrived in the Americas, they encountered a plethora of new plants, animals, and objects. As it would have been too burdensome to adopt completely new words to each of these new wonders, common words were borrowed from the native words. In the case of chocolate, the exact origin of the word is a little bit of a mystery and one must look more in depth than the simple definition in the dictionary to find a more realistic theory of the root origin of the word.
Though some of the very first
attempts to give a botanical description of cacao occurred as early as the
1600’s, it wasn’t until Carolus Linneaus (the Swedish founder of modern botany
who created a binomial system to classify all living organisms), that the
chocolate tree received it name: Theobroma
cacao. This was first documented
account of the chocolate tree with full written descriptions recorded in
Linneaus’s famed Species Plantarum
(1753) based on trees collected in Jamaica.[18]. The word Theobroma can be translated from Latin, which literally means “food of the gods”.[19] The second part of the equation, cacao, however is a word that is much more difficult to trace back to its exact
origins as it is native to the Americas.
Because the humid tropical rainforest environment severely limits the
capacity for archaeological findings throughout tropical regions of ancient
Mexico, any type of hypothesis or theory about the root origin of the word
must come from historical linguists.
Many linguists believe the word chocolate and cacao can be traced back
to a few different potential sources of which the next three examples are the
most popular theories that have stood the test of time.
Kakawa: One credible theory ties cacao to a word that originally sounded like kakawa. This has been identified with a proto-Mixe-Zoquean language family that was in bloom around 1000 BC during the height of the Olmec civilization.
Cacaoatl: This word can be traced back to the Olmec civilization, which means that it was likely that they were the first to cultivate cacao. The Olmec civilization is considered to be the mother culture of Mesoamerica dating back to 2,000 BC. Mesoamerica is a mostly hot and humid region and well suited for the growth of cacao. The Maya succeeded the Olmec to flower into a whole new vast and complex civilization where the Olmecs once flourished. This theory suggests that the word cacao was passed down from the Olmec to the Maya and that the Maya later introduced cacao to the Aztecs in the valley of Mexico. The Aztecs in turn called one of the many drinks made out of this prized possession cacaoatl meaning cacao water where atl translates to water in the Aztec Nuhuatl language. In this theory, the Aztecs then imported the word and with it the beans from their Mayan neighbors to the south because the valley of Mexico is much to high, dry, and cold to cultivate cacao.[20]
Chocolatl: This brings us to a potential candidate for the root word cacao, but what about chocolate? A possible explanation for this is that languages sometimes need to alter a foreign word to better fit their native language. This can occur due to a variety of reasons such as the occasional circumstance where there might be an unpleasant overlap with a similar sounding word in their native tongue. An example of this predicament can be found with the overlap of the word kakawa or cacaotl with the Spanish equivalent of kaka (meaning human feces). The new word simply would not have suited the Spanish’s newfound love for chocolate and thus the word chocolate (pronounced chocola-tay) was adopted.[21] In this theory, the Spaniards then first began to use the prefix choco and atl meaning water to their chocolate as an acceptable alternative. The prefix choco is believed to be onomatopoeic, as it imitates the sound made when the chocolate was beaten to produce a favorable froth at the time. The chocolate would be poured back and forth from one cylindrical vessel to another until the froth met the desired quality. The froth was considered to be the best part of the drink and a sign of good quality. The Spaniards later developed a whole art form out of this tradition introducing the molinillo, an elaborately carved stick twirled between the hands as a beater to create the froth.[22]
Chocolate Enters Europe Through Spain
Chocolate was the first stimulating drink to be introduced into European society, as it predated the arrival of tea from Asia and coffee from Africa. The new chocolate drink contained caffeine and theobromine, both alkaloids that stimulate the human body and was quickly embraced by the noble and upper classes in Europe.[23] When the Spaniards were first introduced to the chocolate drink, they found it much too bitter for their liking and began to mix it together with sugar. As a result of its surge in popularity in Spain, the Spaniards needed to provide increasing quantities of sugar to their cocoa. They then introduced sugar cultivation into Mexico, which consequently fueled the rise of the slave trade between Africa and the Americas during that time to supply the labor needed for the sugar plantations. The cultivation of cocoa also spread from Mexico to Trinidad and other Caribbean islands to supply the growing markets overseas. The Spaniards kept their secrets behind their newfound beverage from the rest of Europe for almost a century. However, chocolate would soon spread outside of the borders of Spain to become a popular drink among the aristocracy throughout Europe. Because of its newness and the fact that it was so expensive at the time, it carried with it a certain mystique. It became an important symbol of royalty and prestige similar to the royal courts of the Aztec Empire. In fact, one of chocolates first introductions into France came as an engagement gift from the Spanish princess Maria Theresa to King Louis XIV. Some even speculate that giving chocolate as a gift of romance originated by this historical occasion. Either way, chocolate truly exploded across Europe in the 17th century, especially in England and France. Among the aristocratic community, exclusive chocolate houses were even established to enjoy the drink and socialize.
The
Industrialization of Chocolate
Chocolate remained an
exclusive drink among the aristocracy through much of the 17th and
18th century due to the high duties placed on cocoa beans at the
time. The duties were eventually
lowered by the middle of the 18th century, which greatly increased
the market for cocoa products.[24] As a result of the lower taxes and a
series of new inventions that led to the mechanization of the chocolate
making process, chocolate reached out to an even wider audience becoming
available to the middle class in the 19th century.
One invention in
particular that revolutionized the chocolate industry was the cocoa press
created in 1828 by Conrad Van Houten of Holland. This was the first machine engineered to separate the fat
content, or cocoa butter, from the cacao bean and allowed the remaining bean
to be crushed into a fine powder.
Cocoa butter could then be added back to the powder in greater or
lesser quantities. This turned out to
be an important invention not only for cocoa powder and chocolate, but also
for cocoa butter, which is now the world’s most expensive edible natural
fat. This is due to the fact that its
melting point is 95 F and it can remain solid at room temperature, up to
90 F, making it an ideal substance for the pharmaceutical industry
including hair care and skin care products.[25] On the other hand, cocoa powder could be
produced with only half of the original fat and added to a mix of sugar and
other ingredients, chocolate could be now be easily molded for the first time
essentially making edible chocolate possible. In fact, the first edible chocolate was marketed during the
middle of the 19th century.
Though there were some forms of edible chocolate that existed before,
chocolate was mainly consumed as a drink up until this point in history.
Two other milestones in technological
innovation came from the Swiss. The
invention of milk chocolate, where milk solids were first mixed with cocoa
mass and sugar, was invented by M.D. Peter of Vevey in Switzerland and was
first introduced in 1876.
Interestingly, it is now milk chocolate that forms the backbone of the
chocolate industry.[26] The Swiss also made another important
contribution to the chocolate industry, which is known as Fondant
chocolate. In 1879, Randolphe Lindt
invented the conching machine that grinds and aerates chocolate to refine the
texture greatly smoothing it out. By
conching for a duration of time, the chocolate flows evenly and the flavor
and aroma is enhanced. Lindt also experimented
with adding cocoa butter to the chocolate paste before conching making it
taste less bitter. Lindt, after
twenty years of chocolate production, eventually sold his company in 1899 for
1.5 million gold francs to a chocolate manufacturer in Zurich.[27]
The Perception of Chocolate
Throughout history, chocolate has been considered to be a symbol of romance, often thought of as a type of aphrodisiac. It is found everywhere during Valentine’s Day given to our loved ones as a sign of affection. Aside from Valentine’s Day, both Easter and Halloween are now the two other major holidays closely associated with the consumption of chocolate by virtue of either trick-or-treating or chocolate covered Easter eggs and bunnies. Few people consume chocolate today as in the traditional cultures of Mesoamerica. However, the long history of Mexican chocolate continues on and chocolate is served as a hot beverage using a simple mixture of cacao seeds, sugar, cinnamon, and almonds, which originated in colonial times and has changed little since. In Oaxaca today, where international chocolates are widely available, “most Oaxacans claim that the tradition and experience of freshly-made chocolate prevent them from completely shifting to industrially manufactured forms.”[28]
There are many others around the world outside of Oaxaca that are very concerned about the quality and taste of chocolate. In fact, there is currently a movement underway to revolutionize chocolate to make it as distinctive as fine wine. For example, in her book, The New Taste of Chocolate, food historian Maricel Presilla, writes about the rich history of chocolate along with recommendations for the highest quality chocolate, discerning the significance of taste and quality in relation to the variety of tree the chocolate bean comes from. As it currently is not indicated by most chocolate manufacturers where the country of origin their cocoa beans come from (they generally want the greatest quantity of the cheapest beans), it is also recommended that manufacturers in the future who produce fine and high quality flavor do so. This would be reflective of the coffee industry, where country of origin has been associated with a reputation of quality. In Venezuela for example, the popular El Rey brand has gained notoriety for good tasting cacao and advertises the origin of its beans on its label.[29]
Another important article entitled, “The Chocolate Revolution”, by Linda Joyce Forristal, predicts that in the future chocoholics “will want to know more about the chocolate they consume and whether it was produced by sustainable methods with good cacao.”[30] In terms of conservation efforts and organic cocoa specifically, Chris Bright in his provocative article entitled “Chocolate Could Bring the Forest Back” takes this idea even farther focusing on Brazil’s Amazon rich Bahía state and the potential for organic cocoa there. After Brazils plummeting cocoa economy rapidly fell from producing a quarter of the world’s cocoa supply in the early 1980’s to only 4% today, largely a result of cocoa disease and drop in cocoa prices, Chris sees potential for a rebound. He sees a revolution in the image of Brazilian cocoa and cocoa as an instrument for environmental conservation:
“Bahía may be the best place in the world to launch a large-scale effort to develop a forest-friendly cocoa. The need for change, the capacity for change, and a major ecological benefit for change – all these elements have now emerged in Brazil.”
Brazil might be better off to develop its own niche for higher-value chocolate products that appeals to consumer awareness for chemical free, organic, forest friendly products. Currently, in the western Brazillian Amazon, forest continues to cover 60% of the land on the average smallholder farm.[31] Investing in cocoa farms there could help provide many of the 90,000 unemployed farmers with work who are already putting pressure on the remaining forests in the region. Most importantly however, it can help bridge the gap between producer and consumer, educating the consumer back to discover the richness of the Amazon rainforest where cocoa has its ancient origins to begin with and also establish a clear relationship between conservation efforts and farming practices in the tropics.[32] In terms of the social impacts of the cocoa industry, perhaps no other program is better suited than Brazil to adopt a major sustainable or organic cocoa growing initiative. This might help promote stability in the country whose farmers suffer from the many health risks due to overexposure to pesticides found on farms (including cocoa fields), along with a lack of access to medical services and job security. In fact, only a decade ago, there were as many as 150,000 to 200,000 unemployed cocoa workers in the cocoa zone of Bahia alone due to low world prices.[33]
The Chemistry of Chocolate
More than three hundred identified chemical substances have been identified in chocolate. In fact, the chemical components of chocolate are so complex that they cannot be reduced to only a few compounds. These compounds also change dramatically during each of the processing stages, from the farm to the factory, before the flavor is developed and the final chocolate reaches the shelf. Though this is an extensive process, it is summarized here in the following steps:
1. The beans first need to be fermented from two to nine days after they are harvested from the tree. The pods are split open and the beans are extracted and all the pulp surrounding the seeds will be drained away. Many chemical changes occur during this period. The pulp itself contains 80% water and 10% reducing sugars and the amount of pulp surrounding the seeds determines how long it will take for fermentation. During the fermentation, the pulp turns from a white to brown color. It then may change from dark brown, brown, to purple-brown as it loses its power to germinate and also begins to change its physical structure.[34]
2. After fermentation, the beans are often dried in the sun where the brown color and flavor first develops. The shells become crisp and can be easily removed. At this stage the beans can taste bitter and acidic. However, after the beans are roasted, they become less acidic and the flavor develops and they are ready for transport.
3. The production of cocoa powder and chocolate involves many complex processes, which vary greatly between manufacturers. Each stage of the manufacturing process, the chemical compounds within the cocoa changes. One of the processes used is the conching process that takes the chocolate paste and pounds it into a smoother paste. This improves its flavor and texture and reduces the bitterness of the chocolate.
There has recently been
much research focused on determining exactly what the motivations behind
chocolate consumption are in relation to what chemical may have on the
brain. There is controversy
surrounding the motivations for chocolate are purely physiological,
psychological, or pharmacological.
The traditional review of literature on the phenomenon of chocolate
cravings associates the appeal for chocolate being related to the sugar,
texture, fat, and aroma of chocolate.
On a psychological level, it is hypothesized that chocolate craving is
simply a phenomenon associated with the natural backlash of societal
pressures to exercise restraint when it comes to eating sweets. Though chocolate is solid at room temperature,
it eventually melts just below body temperature giving the sensation of
chocolate melting in the mouth which is another reason for its appeal.[35]
However, new research by the American Dietetic Association has taken a step
further to evaluate actual addictive behavioral aspects of chocolate to
reveal that it may have similar psychopharmacological and behavioral
reactions as drug and alcoholic abusers.
Though chocolate is not clearly established as an addictive substance,
it is by a wide margin, the most craved food in North America, particularly
with women. In fact, one study even
found that ½ of all food cravings to be chocolate-specific cravings. With the terms like chocoholic coined to
express the feeling of helplessness to avoid this substance, it makes one
wonder how addictive chocolate really can be. Scientifically, craving can be described as “an intense,
periodic motivation aimed at gaining the craved substance.” In this respects, surveys have shown that
chocolate cravings appear in 40% of females and 15% of males, of which three
fourths of the participants in the study claimed that no other substance
would satisfy their longing for chocolate.[36]
There might be other important aspects to chocolate cravings, which include a way to balance low levels of neurotransmitters involved in the regulation of mood, food intake, and compulsive behaviors (serotonin and dopamine).[37] As chocolate might have an effect the brain's neurotransmitters affecting people’s mood. Looking into the biochemical motivations for consuming chocolate, it is theorized that the decrease of neurotransmitters such as serotonin in the brain can lead to craving for starches and sweet foods such as chocolate. Serotonin is thought to play an important role in feeling calm and relaxed and chocolate intake might help increase serotonin levels in the brain. Another important set of neurotransmitter molecules, called endorphins help relieve pain, increase euphoria, and contribute to the overall wellbeing, or feel good, of an individual. It has been suggested that endorphins might be controlled by dietary fat and that chocolate can help elevate ones mood by increasing endorphin activity in the brain.[38]
On a pharmacological level, there are several biogenic amines that act as sympathomimetic compounds found in chocolate. The most notable are tyramine and phenylethylamine (PEA). PEA is a nueromodulator of brain synapses and is structurally similar to amphetamine. It is produced by brain tissue and studies have shown that it is pharmacologically active and can be stimulated when administered artificially. Many studies have shown that PEA has an important affect on mood and that a deficit of it may contribute to depression. In other words it has been shown that there is a reduction in PEA among the biological tissues and fluids of depressed subjects. There are substantial amounts of PEA found in chocolate making some experts theorizing that chocolate craving may be some form or attempt to self-regulate PEA level in the brain.
Another group of compounds that are present in chocolate include alkaloid methylxanthines, of which caffeine and theobromine are the most predominant. Though the measure of methylxanthines in chocolate varies according with the brand, the typical chocolate bar contains only 10 mg of caffeine (about 1/10th found in a cup of coffee), and 92 mg theobromine. In an important study conducted at the Nueroscience Institute in San Diego, California, chocolate appeared to target the endogenous cannabinoid system of the brain. Anandamine (which literally means internal bliss) is the endogenous brain lipoprotein that binds to and activates cannabinoid receptors within the brain, similar to the psychoactive effects of cannabinoid drugs. Lastly, chocolate also contains very high levels of magnesium and some scientists speculate that chocolate intake might be motivated as some form of self-medication for dietary deficiencies such as magnesium deficiency. Magnesium deficiency may also contribute to the symptoms of premenstrual syndrome (PMS), which might explain the predilection for chocolate among females. Interestingly, another study among undergraduate college students showed that chocolate was the most frequently craved substance among women and that 32% reported an association with the menstrual cycle.
Major Organizations
There are many important national and international organizations focused on both the production and processing of cocoa. In terms of plant improvement and research and development such as in breeding programs, there has always been difficulty in ensuring adequate financing over time. In the U.S., crop research was once the dominant role of the USDA and Land Grant Colleges, but this has shifted so that today almost 90% of the research is supported by private industry. There are no major companies fully engaged in cacao research and most efforts are channeled through major organizations such as the International Cocoa Organization, the American Cocoa Research Institute (ACRI), the and the US Agency for International Development (USAID).[39] While there are many important national and international organizations that are working towards research and development of cocoa both in the fields and the marketplace, the following list is a short description of some of the most influential ones.
The International Cocoa Organization (ICCO)
The ICCO was originally established in 1973 to enforce the first International Cocoa Agreement (ICA) of 1972, formed under the United Nations by governments of cocoa producing and consuming countries. In 1993, the ICA was organized by up to 40 countries and the European Union accounting for over 80% of the world’s cocoa production and 70% of its consumption. The ICCO’s Quarterly Bulletin of Cocoa Statistics is the main source of data on the world cocoa market and it also publishes economic analyses and studies. Recently, the ICCO has been involved in sustainable cocoa production designing its own sustainable cocoa program. This was organized to incorporate several individual projects regarding major issues that the cocoa industry faces today.[40]
The
American Cocoa Research Institute (ACRI) and the Sustainable Cacao Program
The ACRI is one of the oldest and most significant research organizations in the field. It is a non-profit branch of the Chocolate Manufacturers Association founded in 1947. It is dedicated to research in all scientific areas concerning cocoa and chocolate.[41] One of its recent innovative programs is the Sustainable Cacao Program (SCP). It builds on over 50 years of experience in basic applied cocoa research.[42] This is part of a new global initiative to promote the enhancement of sustainable agriculture. It involves producing cocoa in an ecologically sound manner while helping to secure the livelihood of small farmers in cocoa producing countries. The ACRI also works in alliance with other research institutions, donor agencies, governments, environmental groups, and farmers in order to build an international web of cooperation. Their research branches over to all major issues such as integrated pest management, small holder economics, breeding programs and agro-ecology.[43]
The Rainforest Alliance & ECO-O.K.
The Rainforest Alliance
is a non-profit organization that works with an international network of partners
established in 1987 to represent the growing decline of the world’s tropical
rainforest and establish conservation programs. The ECO-O.K. Certification Program of the Rainforest Alliance
works specifically to promote tropical agricultural in ways that have less of
an environmental impact. It has
currently certified close to 20% of Costa Rica’s banana production[44]
and the ECO-O.K. certification model has been developed so that it can be
used throughout Latin America and adapted to a variety of tropical
agricultural products. Recently, An Introductory Handbook To Cocoa
Certification: A Feasibility Study and Regional Profile of West Africa was
published after two years of research to determine the potential use of cocoa
as an environmentally beneficial tropical crop. The Rainforest Alliance is looking into cocoa because it is a
major agricultural crop from the tropics.
They are also interested in social issues identified with cocoa
production because it is not a large plantation crop, but is grown by 5 to 6
million farmers making it a significant economic crop where it is produced.[45]
The Fair Trade
Foundation
The Fairtrade Foundation is a prominent fair trade certifying agent that promotes products traded in a socially and ethically responsible way. It is a company whose members include; Christian Aid, the National Federation of Women’s Institute, New Consumer, OXFAM, Traidcraft Exchange, and the World Development Movement.[46] The Foundation awards a license, which appears on the product label for meeting the standards. Wages and working conditions, health, safety, and environmental conditions are factors considered when appropriating minimum standards. A brand new Fairtrade Mark was placed on its first two chocolate products in 1994 including the Maya Gold chocolate bar containing cocoa from a cooperative in Belize. Most fair-trade suppliers of cocoa come mainly from Latin America because it can be extremely problematic to track down and monitor cocoa from West Africa with their government-run marketing systems. Therefore most fair-trade suppliers are from Latin America including Bolivia, Peru, Belize, and the Dominican Republic.[47]
The Smithsonian Tropical Research Institute (STRI)
The STRI is an organization that held the very first international conference on growing cocoa in a sustainable manner. This conference, held in Panama, was sponsored by the M&M/Mars Inc., and brought together for the first time in one room many of the key scientists from around the globe working on sustainable cocoa initiatives. Through this meeting, a consensus was reached to validate the importance of cultivating cocoa in a sustainable ecological system.[48]
Important Terms and
Definitions
Cacao, Cocoa, and Coca
As these words are similar in appearance they are sometimes easily confused with one another. However, by taking a closer look, it can be easy to distinguish them apart.
Cacao: It is common practice in American English that the seeds
from Theobroma cacao and all its
products before processing are referred to as “cacao”.
Cocoa: It is only after the cacao seeds are processed into its powdered form sold for drinking or for a manufactured product that “cacao” becomes “cocoa” or chocolate.[49]
Coca: The term “coca” is also sometimes confused with “cocoa”[50]. Erythroxylum coca is a plant whose leaves were chewed by the Incas of Peru and their ancestors. Today, the leaves are mostly used as the main ingredient to produce the drug cocaine. However, it can also be made into a tea, which is given to tourists as a cure for altitude sickness in the Andean highlands.
It is important to mention that a degree of ambiguity exists here because in many occasions the two term’s cocoa and cacao are used intermittently. This is mostly due to the fact that British English often uses the term “cocoa” to refer to both the unprocessed and processed products of the chocolate tree and the New York Commodities Market also prefers to label all the unprocessed seeds “cocoa”. Either way, the terminology that is used by most scientists and professionals is the American English version.[51]
Dark, Milk, and White Chocolate
There are three main types
of chocolate that we commonly use today include the following ingredients:
·
Dark
Chocolate: cocoa
liquor, sugar, cocoa butter
·
Milk
Chocolate: cocoa
liquor, sugar, cocoa butter, milk
·
White
Chocolate:
sugar, cocoa butter, milk
White chocolate is often
not considered to truly be chocolate by industry standards as it only
contains cocoa butter and does not include any cocoa liquor. It is often labeled as ‘confectionery’
chocolate when it is traded and is sold separately from milk and dark
chocolate. Also, among most chocolate
connoisseurs, milk chocolate is often discarded as an adulteration and
something to be avoided. The best
quality is then viewed to be the dark and bitter chocolate that contains a
minimum of 50-54% cacao solids.
Exceptional chocolate would contain somewhere in the 70% or higher
range. This usually tastes much more
bitter than the 30% or less cocoa solids used by many of the major chocolate
bar manufacturers around the world.
Another important attribution to quality involves the percentage of
actual cocoa butter used. After the
cocoa press extracts the fat content of the seed in the form of cocoa butter,
it is placed back into the chocolate batter in small percentages. Many times, it is even replaced with
hydrogenated soy or other substances and the cocoa butter is sold at a high
price to the pharmaceutical companies who in turn use it for many hair and
skin care products.
Part II
The Natural History of Theobroma Cacao: A Botanical and
Ecological Analysis
|
Ingredients:
Theobroma cacao: A Tropical Tree,
The Three Main Varieties of Cacao, Wild Cacao, Genetic Diversity &
Origins, Physical Characteristics of Cacao, The Major Fungal Diseases of
Cacao: Alternative Methods of Control, Biocontrol & Trichoderma
stromaticum; Improved Crop Sanitation; Research in Genetically Modified
Cacao |
Theobroma cacao: A Tropical Tree
The genus Theobroma contains approximately twenty species of small bushes and trees.[52] It is a member of the species Sterculia (named after the Roman god of dung Stercus because many of the plants in this family give off a rotten smell that is similar to dung in order to attract pollinating insects)[53]. Theobroma cacao is also related to Cola acuminata, which is the source for cola nuts used in soft drinks[54] and its geographical growing region is very limited, as is the case with many other tropical crops. The tree is grown almost exclusively between 20 degrees north latitude and 20 degrees south latitude of the equator. It does not grow well in high altitudes where temperatures fall below 60°F or 16°C and flourishes in shaded conditions of the rainforest with high levels of humidity.[55] The tree typically grows to a height of 20 to 30 feet under cultivation, while in its wild state it can grow much higher in its 20-40 year life span.[56]
Perhaps most unique about Theobroma cacao includes its unique flowering characteristics. The flowers of the tree form small cushions on its trunk and some of its larger branches in a pattern known as cauliflory. These cushions, which are about the size of a quarter, are where the flowers and pods spring forth. A few Europeans when first describing T. cacao back in Spain mistakenly depicted the pods growing off the trees branches, as they were not yet accustomed to seeing fruit stem from the trunks of trees. Though many flowers are produced on the tree, only a very small number of these become pollinated and eventually develop into pods. The flowers are around half an inch wide and are formed in small clusters around the trunk and lower main branches of the tree. They contain no nectar or perfume and the pollen is very sticky primarily pollinated by a small midge or insect called Ceratopogonidae, which resembles a small gnat or fly.[57]
Once the flower is pollinated, the fruit of the cacao tree can begin to grow. The fruit comes in the form of a pod, which takes five to six months to mature before it is ready for harvest and many pods will wilt and die before they reach that age.[58] The pod itself grows to be about 6-10 to 3-4 inches in diameter, about the size of a small football. It contains around twenty to forty seeds surrounded by a mucilaginous sticky white pulp when the pod is ripe. In its natural setting, the ripe pods do not actually open up and scatter the seed or drop off and rot. Instead it is entirely dependent on animals in the forest such as monkeys and squirrels that forage through the rainforest and can break through the rough outer layer of the pod to enjoy its sweet pulp. These animals later spit out the bitter seeds, which then fall on the forest floor to eventually produce new cacao trees and this is cacao’s main reproduction strategy in its natural state.
The Three Main Varieties of Cacao: Criollo, Forastero, & Trinitario
In much the same way that the dairy industry in America is mainly split between three different types of cows: Jerseys, Holsteins, and Brown Swiss, the chocolate tree has three main varieties with their own unique set of characteristics. These can be divided into three types of trees: Forastero, Criollo, and Trinitario (a cross between Criollo & Forastero). The forastero variety of cacao is currently the most important type of cacao for commercial purposes. Both the criollo and trinitario types are used mainly as flavor cacaos in special blends for higher quality chocolate. The criollo variety is believed to originate from northern parts of South America and the forastero from deeper within the Amazon basin.[59] The Spaniards were first exposed to the criollo variety and this was for many years the only tree known to the colonists. They had become accustomed to growing this variety and it wasn’t until much later, after their conquests throughout South America, in particular modern day Ecuador along the course of the Amazon, when the Spaniards came across a new variety. They nicknamed this new variety forastero, meaning “foreigner”, as it was foreign to them. There were obvious physical differences in the shape and taste of these new pods. The criollo pods were generally red, while the forastero pods were markedly greener. There were also notable differences in the seed: the criollo had sweet white or violet seeds while the forastero had bitter purple seeds. After being roasted, the taste of the forastero proved to be stronger and bitter with a different aroma. Despite this, it had some great advantages as it produced hardier pods and maintained a higher bean and pod count.
While chocolate was spreading in popularity around Europe during the “chocolate boom” in the 17th century, plagues were known to threaten and almost eliminate entire plantations of cacao. This inevitably posed a major problem to sustain the surge in demand for cacao occurring at the time. As a result, the Spanish had taken Central American cacao from Nicaragua to the valleys of Venezuela’s central coast and the Hispanic Caribbean Islands, including the island of Trinidad. This led to a boom in Venezuelan cacao, which began to supply both Mexico and Europe. Mexico, once one of the main producers of the crop, now became a net importer of Venezuelan cacao in the 17th century. However, by 1725, diseases that destroyed cacao crops through Central America found their way into Venezuela, wiping out entire plantations throughout the country as well as crops on the neighboring island of Trinidad by 1727. In the following years, growers began to reestablish their cacao plantations with forastero trees from eastern Venezuela around the Orinoco River Basin. The mainland trees of Venezuela were grown side by side with the remains of the old criollo trees of Trinidad. This resulted in a new crossbreed, which turned out to be hardier than criollo and tasted better than the forastero. They named this new hybrid of cacao trinitario after the island of Trinidad.[60]
Physical Characteristics of Cacao
Theobroma cacao can be recognized in both the plantation and the rainforest mostly by its distinct leaves, flowers, and pods. The leaves are especially distinguishable as the tops of the trees are often marked by new flushes of bright red foliage. The bright new flushes of red leaves stand out in contrast to the mostly dense and lush green rainforest. The red foliage color is a result of the plant pigment class referred to as anthocyanins. By definition, anthocyanins are certain flavanoid compounds complexed to sugars. How anthocyanins can assist in sugar production and affect any of the above processes has never fully been explained.[61] Anthocyanins occur naturally as chemical compounds and are responsible for the color of various fruit, vegetables, and plants, including the bright changes in the colors of leaves in autumn. In the case of the autumn leaves of temperate plants, anthocyanins are a result of the movement of sugars from leaves to other parts of the plant. In other cases, they can be produced in response to environmental stresses such as nutrient deficiency, water stress, physical damage, and fungal attack.
The Fruit of Theobroma Cacao
Aside from these bright red leaves, it is the fruit of cacao that attracts attention to the tree in both an agricultural setting and in the rainforest. The fruit of the cacao tree is in the form of a large pod and contains around thirty to forty seeds, each of which are about the size of an almond. After about forty days following pollination, the new pod grows slowly from the flower where the zygote (formed as a result of the fusion of an egg nucleus with a nucleus from a pollen grain) undergoes the first cellular division. Once this occurs, the cacao seed then grows out incredibly fast over the next seventy-five days. After five or six months, the pods reach complete maturation with a total of thirty to forty seeds that are neatly arranged in rows inside the pod and centrally attached to a fibrous placenta.
The mature pods may take on a variety of different morphological characteristics being bright yellow, green, or red, with an elliptical form with either a smooth or rough-ridged surface. Though very few flowers are successfully pollinated for fruit-set, there is enough fruit grown so that a thinning process called “cherelle wilt” occurs, where immature pods shrivel up, turn black and die. The cherelle wilts do not hold however and fall off the tree. They are sometimes mistaken for young pods killed by fungal disease, especially Phytophthora, commonly called black pod disease, which will be discussed in detail later. [62] Inside the pods, the seeds are totally engulfed in a white sticky and sweet mucilaginous pulp. After the pod has been opened - chewed through by arboreal animals such as monkeys, squirrels, etc., the seeds fall to the forest floor and may begin to germinate and set forth a tiny rootlet. The stem shoot, or hypocotyl, then arches to raise the closed cotyledons an inch or so above the ground.
When the cotyledons open, four tiny leaves are exposed and grow in a spiral arrangement of new leaves on the seedling. The third phase of growth involves the growth of sideways-stems, called the jorquette (when the first whorl of primary branches will be sent out from the trunk). The jorquette is at the end of the stem where five buds grow out laterally at the same time to form side fan branches, which are at approximately 0-60 degrees angle to the horizon. These fan branches continue to grow sideways as the main stem grows vertically. If the main stem is damaged before jorquetting, then buds below the top grow upright and semi-vertical with a spiral leaf arrangement. These are chupons, or secondary roots, which grow from the base of the tree’s trunk and can replace the main trunk if the tree falls over. Cuttings can be taken from chupons to grow new chocolate trees and will grow vertically where those taken from fan branches grow horizontally. Chupons can grow to exceed the height of the tree’s original canopy. It can result in a wild tree reaching more than forty feet in height, whereas cacao in plantations usually only reaches twenty feet in height in their twenty to forty year life span. Height reduction in plantation chocolate trees is due to pruning, which makes it easier to harvest the pods.[63]
Cacao Flowers
The flowers of the cacao tree stand out amongst its blackish branches as they break through the thick mats of moss that grows on the bark. Though the fragrance of the flower is chemically complex, it emits only a weak scent.[64] With respects to the variety, cacao flowers range from pink to white with most having characteristically red lines that run down to the inner surface of the petals. They have a very subtle fragrance, which is barely detectable. It has five petals and five anthers are located outside the stigma - the point of the pistil where pollen is deposited by insects located at the center of the flower. Between the petals and the stigma are five staminoids, arranged alternatively with the petals that form a type of circular fence to enclose the stigma. This floral design reflects what botanists refer to as a fairly conservative breeding strategy that has a tendency to favor cross-fertilization between different trees within a species. The barrier or fence around the stigma makes it difficult to transfer pollen from the anthers to the stigma of the same flower. In fact, most, but not all cacao trees are genetically self-incompatible where pollen from one flower cannot fertilize the same flower or other flowers on the same tree.[65] The flowers of the cacao tree also change sexes during their life cycle. They are female first and then become male in what is termed protogeny. This is another way for cacao to help prevent self-pollination, which lowers the genetic interchange and thus diversity as more adaptive pollen from one tree is not capable to spread to another. Cross-pollination from different trees also frequently results in higher seed quality and reproductive success. Therefore protogeny ultimately contributes to the overall success of cross-pollination and ensures genetic diversity of the trees helping to ensure it ability to adapt to its environment.
One of the greatest mysteries surrounding cacao in the past is why only one to five percent of flowers each year produces fruit. However, research carried out by Allen M. Young speculate that this lack of fruit-set is mainly a result of a deficiency of cacao’s natural pollinators. The flowers generally begin to open slowly within the late afternoon and continue through the night until they are fully open at about 5:00 AM the following morning. The timing appears to be consistent with the early morning daylight activity of cecidomyiids midges, its natural pollinators.[66] At dawn, the anthers release pollen, which remains available for one or two days. Pollination has the greatest chance in the first day of flowering. The stigma of the cacao flowers are very receptive for pollination during the early morning hours coinciding with cacao’s peak flowering and release of pollen grains by the anthers.[67] If they are not pollinated, the flowers fall off the tree at the end of the second day. In fact, adult populations of midges occur at very low densities in the plantations and they usually only pollinate about ten percent of the flowers during peak bloom periods.[68] Hundreds of thousands of the small white flowers that don’t end up being pollinated to eventually form into pods can be seen covering the ground in a typical cacao plantation.[69]
Pollination
Up until Young’s extensive research into the pollination strategy of Theobroma cacao, very little was known of cacao’s natural pollinators, tiny little midges or gnats, that are barely visible to the eye and whom the tree has an intimate relationship with. Young actually began his research looking at bees as potential pollinators of cacao as they have been noted to visit cacao flowers in the past. However, he quickly found that though the bees visited the flowers, they did not effectively pollinate them.[70] He then moved onto a more believable theory, which was that it was the tiny flies, or midges, mainly in the dipteran family Ceratopogonidae (biting midges) and Cecidomyids (gall midges) that were the chief pollinators of cacao. Pollination of cacao occurs when these midges brush up against the pollen onto the pistil or stigma after entering the flower. Young observed that the structure of the cacao flower is highly supportive of a specialized relationship with one or more different kinds of midges. However, while the cacao may be dependent on these midges, midges on the other hand are not dependent on cacao as they may extract pollen from flowers of many different plant species.[71] The rate of midges to cacao flowers is often exceptionally low. For example, a low range of only 0-63 midges might be found for every 1000 flowers.[72] Interestingly, Young’s observations also indicated that there was a female midge preference to cacao flowers. On or inside the cocoa flowers the females were found more abundantly for the genera and species most commonly associated with the flower.[73] While the birth rate between male and female populations is even being 1:1, Young attributes this pattern due to their reproductive physiology. They’re need for certain kinds of nourishment, possible from certain amino acids from high-protein pollen grains, is similar to the way that only female mosquito’s are found to feed on blood for egg-building amino-acids.[74]
While the general rate of midge population to flowers is low around the world, the numbers of pollinators may vary based on location. In another series of studies, the total number of pollinated flowers per tree in Guatemala’s Pacific coast was found to be 14 times greater than that of the Atlantic Coast of Turrialba, Costa Rica with one midge to 10 flowers. In Mexico (Pacific), Mexico (Atlantic), and Nicaragua (Pacific), the rate was shown to be 12, 1.5, and 0.5 times greater than that of Turrialba respectively. The research based around Turrialba, Costa Rica, showed peaks of rainfall at different times
with no well-defined dry
period. On the other hand, there is
one wet season per year and one prolonged dry season on the Pacific zones,
which can be attributed to its climatic conditions with its total amount of
annual precipitation.[75] In these studies it was shown that midges
were much more predominant on the Pacific coasts rather than the Atlantic and
a direct correlation was found between rainfall and pollination in these
locations.
The agronomic benefits to find ways to increase natural pollinators to induce and increase pollination and thus pod-set have made this an important area of research. Young began his work by identifying the different midge populations found in cacao groves in Costa Rica to look for ways to ultimately build up populations around the farms. He gathered samples of distinctive looking larvae and pupae of the midges while looking at spatial relationships between midge populations in heavily shaded cacao and those in less shaded thinned-out rainforests.[76] It was found that cocoa trees covered with epiphytic mosses and shade cover generally had more adult cecidomyiids midges present during the morning hours. Also, as most cocoa pollinating midge’s breed close to the ground, the presence of rotting organic materials such as epiphytes or rotting cocoa pods become important to help maintain their lifecycle. In one case, a total of six large cocoa pods in various stages of rotting with large woodpecker cavities yielded up to 158 cecidomyiid larvae. In shaded areas of cocoa, it is more common to have rotting cherelle's, which fall of the tree and form suitable habitat for several larvae that live inside the pods. This is especially important during drier months, when the midges may accumulate easier in more shaded areas to live through thermal and moisture stress within cocoa farms.[77]
Pathogens of Cacao
“After the efforts of the agronomists,
soil scientists, plant breeders, and entomologists to improve cocoa
production, there is one final enemy to overcome before harvesting the crop
and risking all in the minefields of the commodity market: pod disease.”[78]
Most of the pod diseases that affect cacao are an array of fungal pathogens.[79] The estimated global losses reach anywhere from 10 to 30 percent of total cocoa yields. There are serious ecological implications tied to controlling the spread of fungal disease of cocoa, especially in the Amazonian ecosystem. In the last decade, the Comissiao Executiva do Plano da Lavoura Cacaueria (CEPLAC), a government institute in Brazil, show that several hundred thousand trees are affected among Brazil’s estimated 300 million cocoa trees.[80] Nevertheless, in the Amazon, cocoa is seen as a stabilizing force reducing the impact of other exploitative methods of subsistence farming and cattle ranching. If cocoa is severely affected, abandoned groves could provide not only more grounds for the spread of the disease to run rampant, but also the likelihood that the farm would be cut down and left for poor pasture.
“Cocoa, at least, has some merit as a substitute for the rain forest because there is within the cocoa plantation a cycling of nutrients which mimics in part that of the forest ecosystem.” [81]
The main diseases that affect cacao plantations are included here with a special emphasis on witches broom disease as it provides a good example to highlight the severe consequences that rampant fungal disease can have on a cocoa farm:[82]
¨ Black Pod - Phytopthora palmivora
¨ Monilia Pod Rot: Moniliophthora roreri
¨ Witches Broom: Crinipellis perniciosa
¨ Cacao Swollen Shoot Virus (CSSV)
¨ Vascular-Streak Dieback: Oncobasidium theobromae,
(See APPPENDIX A: Review of the Major Fungal Pathogens of Cacao, for a detailed description of each of the major fungal pathogens of cacao including their main characteristics, severity of infection, and methods of control)
These diseases
geographically occur in almost all the major cocoa producing countries in
Central & South America, West Africa, and Asia. They are the major constituents behind both decreasing the
amount of value of cocoa and making it an unstable crop due to the ruinous
effects of the diseases. To
complicate matter further, the diseases Black pod, Monilia, and Witches Broom
can even concurrently affect areas of South America making early stages of
development of disease difficult to detect as symptoms can be confused with
one another.[83] Ironically, while researchers around the
world are working to solve this problem, the losses from these diseases are
so significant that if they were completely wiped out, it might have a
tremendous negative impact on farmers.
The sudden influx of cocoa on the world market would shoot down prices
so drastically that it would probably ruin many growers and lead them to
altogether reevaluate their cocoa as oil rather than a beverage/food
crop. However, because of the complexity
of fungal diseases that affect cocoa, this is not likely to occur.[84]
Cultural Practices, Biocontrol, & Trichoderma stromaticum
There are many considerations that affect the spread of fungal disease, which often include cultural practices used by the farmer. Basic knowledge of the complex ecological interactions between the fungal pathogen in rainforest environments can be very useful. In the rainforest for instance, fungi act as an important way to balance the complex web of life where interdependent networks of specialized relationships form between species. This balance helps control the tendency for one species to dominate over another in a predator-prey type scenario. Outside of this balanced environment however, with large-scale plantations of cacao, the trees are much more prone to infestations of fungi.[85]
The control of fungal disease is one of the major constraints affecting the successful cultivation of cocoa for many farmers.[86] It seems that some of the most efficient cultural methods used to control the disease are good crop sanitation, making this an essential practice, especially among organic producers.[87] In Colombia, for example, a complete cultural control package involves regular harvesting, which can greatly reduce the rate of disease. By frequent harvesting alone, there have been reports of losses from fungal disease to fall from 53% to 22% and an almost three-fold increase in yield. In terms of spraying crops, when growers do spray, in many circumstances they will not spray consistently and will stop altogether when prices are low. This can lead to a build up of the fungal disease and reduces the tree’s vigor. In addition, common high volume or low-volume sprays can be extremely inefficient. For example, frequent intervals of spraying miss most of the target as the fungicide drips from the target.[88]
Recently, an international effort funded by the United States Department of Agriculture (USDA) involved several different cocoa research organizations including the American Cocoa Research Institute (ACRI), the Smithsonian Tropical Research Institute, Pennsylvania State University, Agricultural Research Services (ARS), and M&M Mars. Significant advances were made towards helping control the rampant fungal sieges of cocoa with the development of biocontrol. This is a form of Integrated Pest Management to help prevent the spread of disease. In fact, biocontrol products are already currently being marketed to control several pathogens of greenhouse fruit and vegetable crops. Prospects in biocontrol have emerged largely as a result of decades of unsatisfactory results from spraying fungicides, which have had major shortcomings mainly that the practice is costly, the results are poor, and the available products are not fitted or formulated effectively for the actual targets.
Microbiologist Prakash K. Hebbar, working with M&M Mars, explains: “chemical controls for the fungi don’t work very well and are expensive. But, cultivars tolerant of the fungal diseases are largely unidentified or have not been propagated in sufficient quantities.”[89] This makes looking at biocontrol an attractive alternative. In fact, the new research has already piloted the discovery of beneficial Trichoderma fungi, which can help control crop destroying pathogenic fungi. Trichoderma is one of the most often used biofungicides used to control diseases caused by the Phytopthera species. This newly discovered fungus, which parasitizes witches’-broom, has been named Trichoderma stromaticum.[90] This fungus occurs naturally in the Amazonian forests growing over the unwanted mushrooms effectively preventing spore dispersal. While its distribution of the Trichoderma is erratic, it can be increased artificially. Through initial field and lab tests conducted in Brazil, the T. stromaticum could reduce formation of fruiting bodies, called basidiocarps, of the witches’ broom fungus by 99% when the brooms were in contact with the soil, 56% in brooms on trees, and 31% on pods.[91] The problem with this method is that hitting the target broom on pods in the canopy can be difficult as there are many.[92]
Though these new developments in biocontrol are encouraging, there has not yet been a sufficient amount of research in biological control as an alternative to battling fungal diseases and this practice is yet to experimented on in a commercial scale. However, there is work in progress to determine the commercial potential of T. stromaticum though right now the successful application is doubtful. It was found also that combinations of biocontrol agents were more effective than a single strain and that time of application and shade conditions are important conditions for biocontrol to be most effective. In the words of Prakash K. Hebbar: “Biocontrol is not a magic bullet that will suppress all three major fungal diseases. Applying biocontrol sprays along with pruning, proper plant nutrition, and use of disease-tolerant cultivars should improve yields by lessening the incidence of disease.”[93]
Genetic Diversity & Research in Genetically Modified Cacao
With an ancient history of cultivation by natives in Central and South America all the way through colonial and modern times, cacao as a species has inevitably gone through innumerous crossings and back-crossings between its criollo and forastero varieties. Because the trees pollinate by themselves, when growers began to plant both the criollo and forastero genotypes together in the same plantations, they mixed together even more. Now, only analysis of DNA samples taken from the trees can help to distinguish different genotypes. However, after the mass commercialization of the crop, there have been three main varieties grown distinguished as criollo, forastero, and trinitario trees. Of these three varieties, forastero trees currently produce more than 90% of cacao in the world market today.[94] Therefore, the potential to discover new wild species in the rainforests can be a valuable storehouse of genetic diversity. Scientists are interested in looking for trees with certain advantageous genetic characteristics such as better environmental adaptations, increased disease and pest resistance, higher yields, or improved taste. In fact, there have already been reported findings of wild Theobroma cacao, or non-cultivated species, detected in the past within secluded and isolated clusters of the Amazon rainforest.
Expeditions in the upper Amazon in Peru and Ecuador date back to the 1930’s when trips were taken deep into the tropical rainforests in an attempt to trace wild relatives of cacao to find plants resistant to fungal pathogens.[95] In these expeditions and others, the most basic way to determine a unique variation is to look for any differences in physical characteristics of the tree, which is a good sign of genetic variation. Phenotypical differences can also result from local environmental conditions. Because trees will evolve to better adapt to their environment, spatial separation between populations within a species can often times determine the amount of morphological genetic variation found in the seeds and fruit.[96] These variations are molded by the differences in habitat found throughout the tropical regions of the world including the possible birthplace of cacao in the Orinoco and Amazon River systems.
There is continued interest to search back to this region in the depths of the rainforests to collect genes and hopefully uncover new genetic varieties. This is yet another reason why it is important to preserve rainforests as it maintains a diverse gene pool. There might be wild relatives with beneficial characteristics yet to be found. As for now, the wild types that have been collected are kept at two major centers including one that specializes in Central American cocoa varieties located in Costa Rica, and the International Cocoa Genebank located in Trinidad, which specializes in cocoa varieties from South America. As the seeds inside cocoa pods die in just weeks after separation from the tree, the only way to preserve genetic diversity is to grow entire trees. At the Genebank in Trinidad for example, 16 trees each of around 2500 types of cocoa are grown.[97] Though this can be a daunting task, it may prove to be an important storehouse of genetic diversity for the future. However, looking deeper into the Amazon to detect different varieties of wild cacao may open up the door for another new variety of chocolate that has yet to be experienced.[98]
Looking at indigenous knowledge throughout the Amazon to learn about previously unknown varieties of cacao, if they exist, may also unveil hidden genetic varieties of cacao. It is interesting to note that without any understanding of modern day genetics, the ancient peoples of Amazonia were able to selectively propagate plant species of cacao. They did not have a dire need to grow the cacao tree thousands of years ago out of necessity for survival. They simply had the time to live in and explore the various fruits of the forest and enjoyed the pulp of the cacao pod and thus chose to experiment and propagate species of wild cacao. In modern day Amazonia for example, the Arawate and Asurini Indians who occupy the Terra Firma rainforest region, cultivate Theobroma speciosum. This tree is mainly used for its sweet pulp, but the seeds are sometimes ground to make a crude low-quality chocolate.[99]
Genetically Modified Cocoa
Within the past three decades, scientists have been trying to understand the genetics of T. cacao in hopes to breed a more productive and disease-resistant tree. Because of the high cost and minimal success of using chemicals to protect cacao trees from disease, genetically resistant trees are seen to be the best way to yield better harvests. A research project in South America and the Caribbean conducted by the International Cocoa Organization (ICCO) is currently spending millions of dollars to create a breeding program that utilizes biotechnology for cocoa varieties. Molecular markers can be used to speed up the breeding process to select certain traits that are economically beneficial such as having a high yield of beans or resistance to witches broom disease.[100]
Raymond J.
Schnell of the U.S. Horticultural Research Laboratory in Miami, Florida has
worked extensively to find resistant trees to deadly fungal diseases and
increase overall production of trees.
He has traveled throughout Central and South America to find resistant
cacao trees. In these experiments,
germplasm is first sampled to study the trees genetic makeup including
protein and DNA structure. Resistant
strains are then cross-pollinated with trees growing at the research station
in Miami. These experiments can be a
very time consuming process as it can take up to five years for the tree to
grow from seedling to its first harvest and larger harvests require five to
eight years.[101]
However, while the field of biotechnology is growing in popularity, it should not be looked at as the end of all problems for cocoa producers. Traditional research in agricultural practices, plant pathology, and government funded education projects all play significant roles in disease control.[102] What might be most important in improving the economic output of the cacao tree is to better understand the tree’s relationship with the environment. The low pollination rates found in cacao plantations reflect the lack of adaptability of cacao as a plantation crop, which has been an issue for cacao cultivators since colonial times. It is evident that cacao is well adapted to the rainforest and less so to the agricultural setting that it has been limited to over the last five hundred years.[103]
Part III
A Snapshot of Cacao in the Global Marketplace: Production,
Distribution, and Consumption
|
Ingredients: Global Consumption
of Cocoa, Global Production of Cacao, Historical Shifts in the Market &
the Cocoa Cycle, Structure of Cocoa Farm, The Marketing Process,
International Cocoa Agreement, A Growing Market for Chocolate and Organic
Products, The Value and Price of Cocoa, & Major Organic Chocolate
Companies, Organic Commodities Products: A Case Study |
Global
Consumption of Cocoa
“Chocolate consumption and import demand in each country group is
expressed as a function of both population and income growth; the increase in
demand for cocoa and intermediate products is a function of the changing
demand for chocolate.”[104]
The bulk of increased
demand and consumption for cocoa is concentrated within the countries of
North America and Western Europe. In
the US for instance, the average American consumes 11.7 pounds of chocolate
per person per year. In terms of
production, approximately three million tons of cacao beans are produced
every year generating more than three billion dollars worth of exports, 90%
of which are used to make the raw material for chocolate.[105] Giant chocolate companies such as
Hershey’s in the US dominate both local and international markets. Hershey’s alone produces the leading
chocolate bar of the world selling 2.808 billion dollars worth annually
followed closely by Mars Inc. with 2.691 billion dollars in annual sales.[106] According to the USDA’s Foreign
Agriculture Service (FAS), the US imported over one billion dollars worth of
cocoa beans and cocoa products in 1990 and it is estimated that the retail
value made from finished cocoa products amounted to more than eight billion
dollars.[107]
According to the US Census
Bureau and its Annual Survey of Manufacturers (ASM) conducted every four
years, cocoa also plays an important role in the workforce and influences
other areas of the agriculture sector.
In the US, there are approximately 164 companies with over 10,509
employees accounting for over 405 million in payroll.[108]
Another important facet of the chocolate industry that deserves mention is its impact on other agricultural sectors of the economy. For instance, only 20-30 percent of the ingredients that make up the average milk chocolate bar includes cocoa beans. Milk solids constitute another 20-30 percent, and sucrose (sugar) 40-50%. Therefore converting cacao beans to chocolate is one of the largest industries supporting agricultural business worldwide. In the US, for every dollar of cacao imports, $1.50 in other agricultural commodities will be used to produce chocolate confections. Manufacturers in the US will use around 250,000 tons of dry milk, 400,000 tons of sugar and 350,000 tons of peanuts in chocolate products annually. In the year 1997, the chocolate industry in the US used more than three billion dollars worth of other agricultural products aside from cacao beans in chocolate products. Not surprisingly, the US is also a significant exporter of chocolate with 600 million worth of chocolate exported each year.[109]
In Europe, both imports
and exports of chocolate products are increasing as large companies are
beginning to grow in size by merging with one another and are expanding out
past traditional markets. In
Switzerland for instance, a major cocoa processing company was formed in 1996
when Callebeaut A.G., a unit of the Swiss company Klaus J. Jacobs Holding,
bought out the French cocoa processor Cacao Barry. A new company was formed, based in Zurich, Switzerland known as
Barry Callebaut, which now processes approximately 15% of the world market
for cocoa beans.[110] These types of trends for major chocolate
manufacturers and processors to merge or takeover other companies has
escalated within recent years resulting in an increased concentration of
wealth within the industry.[111]
|
Table 1: Major Chocolate Manufacturers in the World: Top Five Companies[112] International
Nestle Rowntree, Mars, Jacobs Suchard, Hershey, Cadbury UK
Cadbury, Nestle, Mars, Suchard, Ferrero Rocher European
Market Nestle, Mars, Suchard, Cadbury Shweppes, Ferrero Rocher United
States Hershey, Nestle,
Mars, Cargill, Grace |
Though the predominance of chocolate manufacturing has been centered in Western Europe and the United States for more than a century now, the market for cocoa has recently been expanding to new areas. According research conducted by International Trade Center, the international market for cocoa and cocoa products countries in Eastern Europe might offer potential increased markets in the future for both importing beans and exporting chocolate products. There is currently a low per capita consumption of cocoa based products and projected room for growth according to the Trade Centre. Poland in particular, with its large population and low consumption has good potential for becoming a major chocolate-consuming country in the future.[113]
On the producing end of chocolate, it is interesting to note that the majority of cocoa is not consumed anywhere near the amount where it is grown as it is in Western Europe and North America. For instance, statistics from the International Cocoa Organization (ICCO) in 1993/94 show consumption figures in Western Europe to be 962,000 tons. In Africa, where the majority of the worlds’ cocoa is actually produced, only 30,000 tons are consumed. In fact, Africa consumes only 3% of the cocoa it produces, Latin America 7%, and Asia 9% and it is believed that these are some of the markets that have the most potential for future growth.[114] In terms of finished chocolate products, Switzerland is considered to be the worlds leading chocolate consuming country with an average of nineteen pounds of chocolate consumption per person annually (though this total is skewed by the total purchases of visiting tourists).
Global Production of Cacao
The global production of cacao has changed drastically over the past century in both quantity and geographical location. In 1900, approximately 100,000 tons of beans were produced every year and this figure grew dramatically to 1,500,000 tons in just seventy years in the 1970s. In the last thirty years alone, production then doubled to 3 million tons of cacao beans produced annually.[115] Another remarkable change in the industry involves the major global geographical shift of cacao production around the world since the early 1900’s. In 1900 for instance, only around 15% of the worlds cocoa came from West Africa. However, in just fifty years, the geographical heart center of the cacao trade completely shifted so that by 1970, West Africa produced more than 80% of the world’s crop. West Africa is now the largest producer followed by South and Central America.[116] The largest producers in West Africa today are Ivory Coast, Ghana, and Nigeria. The bulk of cocoa grown in these countries is a variety of the Forastero tree known as Amelonado (meaning melon-shaped). This variety now accounts for approximately eighty percent of the world’s cocoa.[117]
Though there has been a steady increase in production over the years, this in reality does not reflect the wide fluctuations in production that can occur during any given growing season. Large outbreaks of diseases can affect the leaves, pods, or the entire tree and can greatly diminish production. In order to guard against such outbreaks and other hazards that may affect the tree, governments within major cocoa producing countries in West Africa have developed extensive measures to research, monitor, and protect their valuable cocoa crops.[118] The following table highlights the trends of major producing countries in the last decade (See Appendix A for a complete table of the amount of imports/exports of cocoa products by country and quantity from 1989-1999).
Table II: Production of Cocoa Beans, by Country, Quantity, and as Percentage of total:
|
|
1990/91 |
1995/96 |
1989/99 |
1999/00 |
||||
|
Country |
% |
000 tons |
% |
000 tons |
% |
000 tons |
% |
|
|
32 |
1200 |
41 |
1163 |
41 |
1325 |
44 |
||
|
Ghana |
12 |
404 |
14 |
398 |
14 |
440 |
15 |
|
|
Indonesia |
6 |
285 |
10 |
390 |
14 |
410 |
14 |
|
|
Nigeria |
7 |
158 |
5 |
198 |
7 |
165 |
5 |
|
|
Cameroon |
4 |
135 |
5 |
124 |
4 |
120 |
4 |
|
|
Ecuador |
4 |
103 |
4 |
75 |
3 |
95 |
3 |
|
|
9 |
115 |
4 |
75 |
3 |
60 |
2 |
||
|
The Eight |
89 |
2631 |
90 |
2561 |
91 |
2740 |
91 |
|
|
Other
Countries |
11 |
282 |
10 |
237 |
9 |
263 |
9 |
|
WORLD
|
100 |
2913 |
100 |
2808 |
100 |
3003 |
100 |
|
Source: International Trade Centre
UNCTAD/WTO 2001
Historical Shifts in the Market & the
Cocoa Cycle
Though there has been enormous growth in cocoa production in the twentieth century, it has not been at a steady rate. Cocoa is typically characterized as having periods of stagnation followed by strong rates of production in what is known as the cocoa cycle. The cycle might begin with producing countries experiencing enormous increases in output in short periods of times, which gives way to more stable production followed by an either steep or gradual decline/crises. This in part explains the reasons for such a wide and inconsistent geographical distribution of cocoa on a global scale. The cocoa cycle can also occur within a national level. For instance, 80% of Ghana’s cocoa was produced in its Eastern and Central Region’s in the 1940s, but then shifted so that 60% of the national production occurred in the Western Region by the 1990’s. Therefore when there is a cocoa boom, it is almost always a result of a shift in geographical production.
This shift can be seen historically from colonial times. As cacao was cultivated in Mexico and Central America throughout the 15th century, in the 16th century, production began to decline already and shifted to Guayaquil and Venezuela in the 17th century. In Venezuela, the wealth created through cacao in transatlantic freights was enormous as regular shipments were being carried to Spain consistently during the period of 1701-1777.[120] When the growing demand for chocolate spread throughout Europe, production moved further south to Brazil where it was collected along the banks of the Amazon.[121] Then in the 20th century, cacao made its major leap across the Atlantic and began to be produced in Ghana, which soon became the world’s largest producer. After a relatively stagnant period of global cocoa production in the 1970s, the next boom came from Ivory Coast, which replaced Ghana as the world’s largest cocoa producer when Ghana’s production began to fall.
While geographical
location plays an important role in the cocoa cycle, there are also other
factors at work that include such as land, labor, and price of cocoa on the
international market. Most cocoa
booms in the past have required a significant supply of land such as tropical
rainforests for cultivation.
Countries or regions that can supply the cheap land needed for
extensive cultivation in the right climate are at an advantage. At first, the soils are rich in nutrients
and diseases are scarce. However, the
decline of sufficient nutrients in the soil might be significant and attempts
at maintenance strategies and fertilization become increasingly
important. If too burdensome, farmers
may choose to move from their old farms and go to other forests as is done in
Ivory Coast and Ghana. After several
successions, this can lead to widespread deforestation if cocoa is grown
heavily within a region. Therefore
the availability of cheap and available land plays an important role of
whether farmers want to pursue cocoa as a crop. In the context of labor, the availability of cheap labor is
another factor that helps initiate a new shift in the cocoa cycle. For instance, the cheap available labor in
Ghana and later Ivory Coast make it more competitive against other countries
such as Brazil where labor is more expensive and. In Ivory Coast and Ghana, labor is generally provided by a
large migrant working pool from Burkina Faso that often cross borders to work
and this is how most of the cocoa is produced in those countries.[122]
After the initial boom
phase when these three factors- land, labor, and price, seem to be at the
producing countries advantage for several years, problems begin to occur
leading to the decline of cocoa in its crisis stage of the cycle. This can occur for a variety of reasons
such as increasing susceptibility to pest and fungal infections, which often
advances rapidly in monoculture settings.
When the farmer’s trees are declining, they can either choose to
invest in more disease control or simply risk lower levels of
production. If the crisis is
particularly devastating, they may abandon their cacao groves
altogether.
In Costa Rica for example,
the cycle permeated as a result of the fall of the banana industry, which led
to heavy investments in cocoa in the country. In 1916, the Atlantic seaport of Limón was for a time the most
important banana port in the world exporting a yearly average of 11 million
stems. However, by the 1920s, due to
the notorious Panama Disease caused by Fusarium
wilt, exports to Limón dropped to under a million stems. Bananas were replaced by substitute crops,
of which cocoa was the principal choice.
In the 1950’s, 1960’s, and 1970’s, prices were high and cacao was the
dominant perennial crop with more than 247,000 acres of trees planted. However, this drastically changed in the
1980’s when prices began to drop.
Added to this, the deadly Monilia
disease plummeted through many regions of Central America. Many farmers simply abandoned their farms
and production then fell by as much as 80%, from 35 million pounds in 1978 to
4.5 million.[123] As a result, farmers began to grow bananas
again and other alternatives such as timber and cattle pastures. The few growers that stayed in their cacao
groves in Costa Rica began to rely heavily on the use of fungicides and
fertilizers to help fight disease and increase production.[124]
Structure of Cocoa Farms
The farmer that decides to plant cocoa is
making a long-term investment, as it requires a relatively long development
period to produce new trees. The
cocoa trees are carefully grown and many times are the main capital assets
from which a farmer makes an annual income for 30 to 40 years. Investment in cocoa farms attracts farmers
because of the relative ease of maintenance, management, and the economic
return from the sale of the output.
In major cacao producing regions such as Ghana, farmers will consider
the stability of their investment not only within their own lifetime, but
also the lifetime of their children.
Given relatively stable growing conditions the children are likely to
continue with the cocoa farm after their parents. In the worst case scenario, if the market for cocoa in the
farmers country has been particularly unstable or unprofitable for various
reasons, this may result in converting the old cocoa farms to other food
crops rather than replanting them.[125]
The size of cacao farms and the way they
are maintained varies greatly throughout the world. A farmer may have anywhere from 20 acres to more than 400 acres
of land, though the former is more common.[126] This holds true especially for West Africa
where cocoa is grown almost entirely by farmers who hold usually less than 20
acres of land. As mentioned cacao
does not require heavy capital expenditure for processing equipment and
having the skills and the finance for expensive processing technology is not
necessary for farmers to gain a higher price for their cocoa. It then becomes more cost efficient for
farmers to produce the crop and process it through their own means and sell
to the market than it is for manufacturers to grow their own cacao through
large plantations.[127]
The Marketing Process
As mentioned earlier, since the turn of the
century, cocoa production has increased from 100,000 tons to 3 million tons
per year. Over the years, a highly complex and sophisticated marketing system
has evolved to make the transactions between farmers to the manufacturer a
smooth one.
Flavor & Bulk Cocoa’s and Marketing Boards
To better understand this complex system
and the way it functions, it is first important to differentiate between bulk
cocoa, which accounts for 90 to 95 percent of total cocoa production, and
fine or flavor cocoas. The market for
Fine or Flavor cocoa is a highly specialized one that generally secures a
higher premium than for Bulk cocoa.
Flavor cocoa has a unique and distinct flavor and is grown mostly from
Criollo and Trinitario trees. It is
generally available in small quantities used by manufacturers to blend with
bulk cocoas. As a premium quality
cocoa, it is a highly specialized market that is a miniscule and diminishing
percentage of the industry today.
Flavor cocoas are generally marketed in a very individualized manner
where buyers will purchase a sample directly from a plantation or from shippers
who take great care to guard their reputation. As these cocoas make up only 2% of the market, there are direct
relationships between manufacturer as planting material, production
practices, and quality is of great concern.
On the other hand, bulk cocoas make up over
95 per cent of the total tonnage of cocoa produced annually on the global
market and they’re marketing process is much more complex with a different
set of grading standards and quality control.[128] Bulk cocoa is mainly grown from the Forastero
variety trees found throughout West Africa and Brazil by farmers that sell
their cacao beans to commercial businesses or government agencies that
control the bagging, grading, and ultimate sale of the crop to the
manufacturers. Cacao beans from Ghana
for instance are considered to be the premier grade in the bulk market
because of its consistent quality control and flavor preferred in milk
chocolate, which is a result of the countries grading and inspection system
that ensures farmers sell well-fermented, dry beans. In countries such as Cameroon, Nigeria,
and Ivory Coast, there are less stringent grading standards and beans from
these countries are considered to be of lower and less consistent quality.[129]
Marketing Boards
In many of the larger producer countries of
West Africa such as Ghana and Nigeria, marketing boards are established in
order to monitor the sale of all cocoa and ensure the quality and consistency
of production. In Nigeria for
instance, the Cocoa Marketing Board of Nigeria has been a major component in
the successful marketing of cacao in the country. A few of its roles might include helping to strategically plant
cacao, using its reserves to support prices through periods of depression, and
maintaining favorable terms of trade over time.[130] In order to do this; the farmers are
insulated from the markets by being paid a fixed price for their cocoa, which
meets the minimum grading standards set up by the Marketing Board. The Marketing Boards then arrange for the
sale of cocoa on world markets through subsidiary marketing companies
situated in major cities such as London (England), Accra, (Ghana), and Lagos
(Nigeria).
Aside from the case of Nigeria, most
countries have their own individual marketing structure with policies and
regulations to help control the level of protection offered to farmers in
commercial markets. Depending on the
market situation, this can range from total government intervention such as
the example with the Marketing Boards set up in Ghana and Nigeria, to having
no regulations or protection at all, where the producers are free to complete
commercialization. In Brazil, for
example, the marketing tactic used borrows from both ends of the spectrum. On the one hand, the selling arrangements
of bulk cocoa are controlled by the governments foreign trade department
through the Bank of Brazil, known by the Portuguese abbreviation of
CACEX. Its main purpose is to control
when the shippers are selling.
However at the same time, they do not offer farmers complete protection
from world prices and the price they pay the farmers varies from day to day.[131] This is just one example of the
possibility for different marketing strategies used by countries to monitor
their bulk cocoa production.
Actuals & Terminal Market
The actuals market involves the buying and
selling of cacao beans. Because small
shareholders produce the majority of the world’s crop, most of the selling of
cacao is done by a small number of marketing companies or shippers through
government or commercial contracts.
These marketing companies and shippers are centered in major cities of
cocoa producing or importing countries such as Accra (Ghana), Lagos
(Nigeria), Abidjan (Ivory Coast), Douala (Cameroon), and Salvador
(Brazil). Each center sells a
standard type of cocoa that is sold for shipment for a present or future
date. Buyers can purchase cocoa from
the shippers or marketing companies through the actuals market, though there
is usually a minimum quantity of cocoa they are prepared to sell. For example, the marketing companies in
Ghana and Nigeria, this minimum amount is usually around 200 tons.
Manufacturers, Dealers, & Brokers
Dealers, brokers, and agents will operate
mostly in the United States and Western Europe.[132] The market demand for the cacao are split
between the manufacturers who want the beans for their own use, dealers who
want to resell the beans or fulfill a sale they already made, and brokers who
make contracts between the two. To
begin with, dealers will first buy cacao either in store, on a ship, or
awaiting shipment, and then sell the beans even before they physically have
it in their possession. Brokers on
the other hand play a key role in bringing the buyer together with the
dealer. Buyers use brokers for a
variety of reasons. In some
occasions, they may not be fully invested in the industry and need the
broker’s expertise of the market. In
other situations, large suppliers, users, or dealers may want to use a broker
as an intermediary to keep their identity anonymous. The broker then plays the important role
of making contracts for the transaction and will even go so far as to advise
both the buyer and seller and arrange contract details. For this, the broker is paid a commission
which is in some cases is half a percent of the contract value.
The Secondhand Market
The ‘second-hand’ market consists of mostly manufacturers that are too small to go directly to the source of the actuals markets. In the secondhand market, dealers will buy cacao beans to resell to manufacturers and other dealers. They will also sell cacao that they have not yet physically purchased. Even larger manufacturers sometimes find it convenient to use the secondhand market, as the actuals market may not be offering the shipping period they need. The principal secondhand markets are London (England), New York (USA), Amsterdam (Netherlands), Hamburg (Germany), and Paris (France), with London being the largest.[133]
Terminal ‘Futures’ Market
Traders who
prefer to use the terminals market (commonly referred to futures markets)
choose to do so mainly for financial risk management or speculation.[134] The terminal market deals with future
shipment or delivery of cocoa and allows for contracts to be bought back or
resold before it is physically delivered.
A cash settlement is given to cover for any changes in price that may
have occurred between the time when the contract was signed and when the
cacao was actually delivered. There
are two principal terminal markets: The London Cocoa Terminal Market and the
New York Cocoa Exchange, both formed in the 1920’s to provide a selling floor
for trade of cacao. Using the
terminal market, cacao can be traded for delivery up to eighteen months in
advance.
Cocoa Contracts
Most sales in cacao beans
are made on standards contract forms that are drawn up and controlled by a
small number of respected trade associations that have developed as trade
expanded. In the United States, there
is the Cocoa Merchants Association, which consists of dealers, brokers,
manufacturers, producers and 
shippers and regulates disputes and looks after the interests of those
involved in the trade. There are
usually three types of contracts that can be issued:
1. FOB: Free On Board. The buyer accepts responsibility for all charges from the point where the beans are loaded into the ship from the producing country.
2. CIF: Cost, Insurance, and Freight. The seller is responsible for all charges involved until the beans reach its final port destination.[135]
3. EX STORE: The sale of cacao in a warehouse normally confined to the secondhand market in consuming countries. The cacao may be immediately available for the buyer.[136]
Shipping
After cacao is harvested, it must be shipped. It is usually the exporter’s responsibility to make an arrangement for the shipment.[137] All beans shipped from major producing countries are placed in bags ranging in weight depending on the country’s standards. The market requires that the bags are marked to indicate the country of origin, the grade, and the time of year the crop was harvested, whether it was a main crop or light, mid or summer crop. Both cacao and coffee beans are known to be two of the most difficult commodities to ship as thermal shock and condensation can occur, two of the most severe problems for shippers. Thermal shock occurs when the beans pass from tropical to temperate zones, for example from West Africa to Europe, which is an intense shift from the main cocoa harvest in November coinciding with Europe’s winter. These are important considerations when shipping and there are many different methods of packaging along with technology that can be used to minimize potential losses as a result of thermal shock and condensation.[138] (See Appendix B: Alternatives to Chemical Fumigation that fit Organic Standards).
The Value and Price of Cacao
The international market for cacao beans is known to be a volatile one. Because of rampant fungal infections, attacks from pests, and the extreme weather conditions that can occur in the tropics, the size of the harvest can vary greatly from year to year.[139] This can greatly affect the price when it is traded. Three of the other major factors that affect the overall value before the beans are traded include:
1. Quality:
This is determined by a sample taken from a group of bulk cacao beans to derive statistics about the physical characteristics of the beans that helps determine its value.
2. Demand:
The demand for cocoa can greatly affect its price. For instance, if there is an oversupply of cocoa in the marketplace, this may bring the price down as supply as exceeded demand. Likewise, if there is an increase in the amount of demand for cocoa, but a lack of supply, this will inevitably bring prices up.
3. Period:
The price is also affected by the period of shipment. A buyer will generally have to pay more for the beans the further ahead the shipment period requested. This is mostly to cover the cost of storage and finance to carry the surplus beans, which would be much higher than if they were to simply purchase the cacao for later shipment.
With all these factors combined, the daily prices of cocoa beans can shift dramatically from day to day, week to week, and year to year. For example, in the past thirty years, the market prices for cocoa peaked in the late seventies, and then gradually dipped down to their present cost.
Table III: Daily Prices of Cocoa 1971-2001
Source: International Cocoa Organization
(Note: graph created from statistical data from the International Cocoa Organization (ICCO).
Calculating the daily price of cocoa beans is done through averaging the quotations of the nearest three active future trading months on the London Cocoa Terminal Market and the New York Coffee, Sugar, and Cocoa Exchange at the time of the London close (ICCO). The London prices are converted to US dollars by using the current six-month forward rate of exchange in London at closing time. The time of shift to the next three-month period is the fifteenth of the month before the nearest active maturing month).[140]
According to the United Nations Cocoa Conference held in 2000, there was a general shared view among producer and consumer members that the current world market prices were too low. This type of situation has the most impact on farmers who depend on cocoa for their livelihood. Organizations such as the World Bank Task Force on Price Risk Management, the United Nations, and The International Cocoa Organization, are all beginning to implement several projects designed to provide better price guarantees to aid farmers.[141]
The International Cocoa Agreement & the Cocoa Council
The goal of the International Cocoa Agreement (ICA) is to stabilize import/export prices for cocoa. The Agreement took sixteen years of negotiation to complete and was signed into effect on October 1, 1973 and is continually renewed every 8 to 12 years to adapt to significant changes occurring within the industry.[142] The time elapsed to form the negotiation in itself implies the complexity and careful deliberation that was needed to control the export and price of cocoa in the global marketplace. One of the main purposes of the agreement was to establish a minimum price for cacao beans to control the wide fluctuations of the price for cacao in global markets. In order to do so, the ICA has the power to restrict exports if prices fall and hold the surplus in buffer stocks that will eventually be sold when prices rise up again. While the ICA can help prices from falling below the minimum, it can do nothing to prevent the price from rising once cocoa from the buffer stock is sold. In other words, there is not a maximum price range nor can the top end of the price range be controlled.[143] By doing this, the ICA helps to reduce wide fluctuations in price of cocoa and establishes a minimum price by restricting cocoa exports as prices fall holding buffer stocks when they rise.[144]
The newest International Cocoa Agreement at the United Nations Conference was signed in March 2001. It highlighted issues such as farmer’s needs, environmental concerns, creation of a new role for the private sector, and the replacement of market intervention mechanisms. Eliminating interventionist mechanisms means that it will no longer use production quotas and buffer stocks, but rather use a new Market Committee to monitor developments and ensure a healthy balance between supply and demand.[145]
All major producers and consumers, except for the United States, are members of the ICA. Trade of cocoa in the United States is controlled through a separate organization known as the Cocoa Council. Before the start of each crop year, October 1st – September, the Cocoa Council will decide on the level of total world exports needed to keep prices around the middle range based upon predicted levels of demand. The Council maintains alliances with member and non-member countries and even has a quota system set up based upon production in past years in order to control the amount of beans imported. Generally speaking, there are no restrictions for flavor cacao and for countries that export less than 10,000 tons a year. If a country produces more than its quota, it can sell its surplus to the buffer stock, but the buffer stock also has an annual limit. If that annual limit is exceeded, beans will be bought by the buffer stock and sold to vegetable oil processors. In this way, the supply can be controlled to prevent loss in profits due to oversupply.[146]
A Growing Market for Chocolate and Organic Products
Organic chocolate is currently only a miniscule portion of the total chocolate industry, consisting of less than one percent of the global market. Though it is such a small percentage, organic chocolate is part of a much larger movement of the organic foods industry, the fastest growing niche within the agricultural sector today. The organic foods industry has been growing steadily throughout the past three decades and is expected to increase by approximately 1-10% percent in the next five years. The increase in demand has especially taken root in European countries within the past two decades and Germany currently leads the world in consuming organic foods, accounting for one third of the total European market.
Countries that are located within the tropics are important exporters of many organic foods such as coffee, tea, and cocoa along with other tropical fruits and vegetables. Some have even begun to adopt government policies that support organic farming initiatives. This may include assistance in important processing techniques and marketing. Therefore, an overall increase in demand for organic foods has opened up new opportunities for expanded production including organic chocolate.[147]
Currently, the International Cocoa Organization (ICCO) does not have exact figures of the amount of organic cocoa produced worldwide and so it is difficult to detect what type of impact organic cocoa might have on other industries, though the percentage is likely to be small. However, as a whole the organic cocoa industry is expected to grow in upcoming years. Many organic chocolate products have already found their way into mainstream supermarkets and health food stores around the world. A brief description of these products and their missions will be overviewed here.
Green & Blacks: Maya Gold
Green & Black’s Organic Chocolate launched Maya gold in 1994 in collaboration with the Fairtrade Foundation and Mayan farmers from Belize. Added to the Fair Trade mark, the Soil Association has certified the line Maya Gold as organic with organic cocoa beans, organic sugar, and organic vanilla. The Maya Growers Organization from which the beans are grown is a cooperative system of 350 farmers that receive a contract extended beyond five years, which guarantees them a higher price. Green & Blacks chocolate bars are popular throughout Europe where it is found in supermarkets, health foods stores, and co-ops. It has also been introduced into US and Japanese markets.[148]
Mascao Chocolate Bars
A chocolate bar endorsed by the European Fair Trade Association, Mascao chocolate bars can be found in Oxfam shops, whose stores promote the organization based in England dedicated to finding solutions to poverty and suffering around the world. The beans are produced in Bolivia organically and are purchased in direct trade from a confederation of cocoa farmer cooperatives. Unrefined muscovado sugar is used in the bars, which is grown in the Philippines by small farmers. Manufacturing is done in Switzerland.[149]
Cloud Nine Chocolates
This is the largest manufacturer of chocolate bars and chocolate chips in the natural foods industry and distributes products under four different brand names including: Cloud Nine, Tropical Source, Environments, and Enchantments. It was the first company in North America to manufacture and market organic chocolate and its suppliers for organic cocoa are mainly from Costa Rica and Panama. The company will pay a 30% premium over market prices to local co-op growers to support organic initiatives. It has a few innovative environmental policies, which include using only flavor oils that are made without propylene glycol (which can be environmentally hazardous), and its bar wrappers are printed from recycled paper with post-consumer waste. As a socially responsible business, it is a member of the Social Venture Network and donates 10% of its profits towards ecologically and sustainable tropical food products.[150]
Rapunzel Chocolates
This company was originally founded in Germany in 1975 and has since opened up a US branch in California. The ingredients comes from socially responsible and organic sources which is certified by the company’s trademarks “Eco-Trade” with the claim that:
“The
environment is best protected when farmers who grow our ingredients are paid
a premium to tend their land organically and become self-sufficient…Eco-trade
means that the World environment is actively protected and that farmers are
paid more money.”
Some of the farmers come from the unique El Ceibo cooperative in Bolivia where they may receive up to twice the international price. The cooperative has been very innovative having developed an independent transport system, processing facility, and warehouse for storage. The milk used in the chocolate comes from free ranging cows that eat organic grasses and grains. However, even though the chocolate is in accordance with The California Organic Foods Act of 1990 and is certified by Farm Verified Organic (FVO) certifiers, the Eco-Trade program is a company trademark and not an independent certification program.[151]
Risks of Organic Market
Is it too idealistic to consider that reciprocal situations can exist between commerce gaining a profit through organic products while at the same time eliminating the amount of chemicals released into the environment? While there might be examples that could be highlighted here that would illustrate both successful and unsuccessful applications, the potential risks focused on here in order to consider important risks before converting or initiating an organic cocoa farm or organic chocolate brand. In some cases it is argued that: “win-win opportunities become insignificant in the face of enormous environmental expenditures that will never generate a positive financial return.”[152]
Another significant risk especially relevant to the organic chocolate industry is market saturation of organic cocoa beans and chocolate products. The oversupply of organic cocoa can outpace demand, which is good for the consumer in the short term as the prices will drop, sometimes even dramatically, but at the same time it can put the people who produce the food or beverages out of business. Increasing numbers of organic foods such as organic chocolate products have already led to a certain degree of market saturation where small companies are struggling to compete with each other and larger companies such as Barry Callebaut are beginning to enter into the market developing new lines of organic chocolate.
Organic Commodities Products (OCP): A Case Study of the Wholesale Organic Cocoa Industry
Organic Commodities Products (OCP) was recently the largest US buyer and marketer of organic cacao beans. Based in Boston, the head of the OCP operation, Joe Whinney once stated: “what the embryonic organic chocolate market needs most, is a stable, expanding supply from tropical growers”[153] The following case study is based on conversations with two employees of OCP before and after the company filed for bankruptcy.
Interview with David Barash
I was able to speak with David Barash, one of the chief business consultants for OCP, to find out more details about the situation. As a very successful small business in their first years of operation, I was initially surprised to find out that early in 2003 they had filed for Chapter 11 bankruptcy. They’re main suppliers of cocoa were from Central and South America which provided the organic beans which were processed into cocoa and sold as powder to different companies. They also had partnered with companies such as Newman’s Own, which is a non-profit company that sells a variety of organic products in health food stores around the country. They supplied cocoa to 2nd and 3rd tier companies such as Stonyfield and Keefer and others in the natural foods industry that use organic cocoa in their yogurt, milk, cookies, and chocolate products, which was roughly 80% of the market. As a first tier chocolate company, they processed the raw beans into powder. 2nd tier companies generally process the powder into bulk chocolate while 3rd tier molds the bulk chocolate into specialty products such as yogurt, milk, cookies, truffles, chocolate bars. While some major chocolate manufacturers such as Hershey’s have the capacity to incorporate all three processes, many smaller companies do not. They fall into one of the above categories such as Lake Champlain Chocolates in Burlington, VT which is an exclusive 3rd tier chocolate company producing high quality chocolates and candies such as truffles, chocolate bars, and other specialty chocolate products.
As a first tier chocolate company, Organic Commodities Products was unique in the sense that they made a tremendous effort to initially create the demand for processed organic cocoa and then the supply to match it. This is what David described to me as the business model of a new category emerging on the supply demand chain that of innovation as at first there was no supply and no demand for organic chocolate. David described that anytime you go out and try to build an organic business it is out of balance, you have to create the demand, or “leverage the demand” to bring more of a balance so that the demand and supply are in close proximity. On the other hand, if there is a demand for something and not a supply than this creates a business opportunity. Organic chocolate simply did not exist seven years ago in the US. The demand for organic chocolate created by OCP was forged out of the growing demand for organic foods, which is one of the fastest growing niches within the agricultural sector and is continually expanding to introduce new organic commodities to consumers. Therefore the company both met and created a business opportunity in the sense that demand for organic commodities are expanding for new products every year and at the same time they created a demand for purchasing processed organic cocoa powder. They built strategic business partnerships with 2nd and 3rd tier manufacturers and convinced them there was a demand for organic chocolate while they then provided the supply for wholesale organic cocoa powder they could use in their products. One of the company’s biggest challenges was to establish a steady supply of the beans that they imported from an extensive network of small farmers and cooperatives from around the world that they had very close relationships with. They had to build both trust among the farmers so that they could receive better wages for growing organic and also be able uphold organic standards while constantly expanding to different cocoa regions to provide for more cocoa as the business was expanding. Originally focusing on farmers from Central and South America mainly in Brazil, Trinidad/Tobago, Costa Rica, and Panama, they expanded to West Africa, which is the predominant cocoa growing region in the world, to obtain cocoa from more than 3,000 small growers. They had to work through government regulations and deal with issues such as transport and processing, refining, packages, and chemical fumigation, integrated pest management, and many other issues.
After talking to David about the some of the reasons for the companies folding, I realized that my initial presumptions were wrong. I believed that it was due to market saturation (where demand outweighs supply creating an imbalance which often drives out companies) for organic chocolate products. This was an educated guess considering the timing of the introduction of organic cocoa from major giants in the chocolate industry such as Barry-Callebeut, which recently began to produce bulk organic cocoa for the first time only a few months before OCP filed for bankruptcy. Therefore, with Barry-Callebeut being one of the world’s largest cocoa processors selling processed cocoa powder and products around the world, it would essentially have flushed out its smaller competitors, mainly Organic Commodities Products. However, David explained to me that this was not the case. One of the major lessons learned from the business venture of OCP was not necessarily the introduction of new competitors, but rather that without bringing a value added product directly into the supply chain, a company is vulnerable to competitive threats. OCP was an intermediary in the sense that it bought the cocoa beans, processed them, and then sold them to manufacturers. They bought the beans, shipped them into the US, and processed them at a processing plant that they rented out in Boston. They were only one step up the marketing chain and were vulnerable in the sense that manufacturers could choose to import the beans on their own therefore bypassing their position on the supply chain. Therefore without developing and manufacturing their own brand of organic chocolate, OCP became vulnerable because much of the value and profit gained from cocoa comes from manufacturing process to make finished chocolate products. Drawing on his previous experiences as a business consultant for Ben & Jerry’s and other natural foods/ environmental businesses, David explained that the case of OCP wasn’t explicit to organic cocoa, but served as a good microcosm in the natural foods industry.
It was evident after my phone conversation with David that I was only scratching the surface, but David did his best to generalize the details for me so that I could write a brief overview on the topic. However, it helped being able to talk with one of the companies chief business consultants as this was a fairly recent event and any information or reviews in the media are limited or non-existent. David Barash now works for start-up businesses in Vermont to help with operations and finance. He is currently involved with Vermont Apple Pie, providing ready to bake apple pies distributed all over the US. Though no longer in business, the following interview conducted with Stephanie Daniels, who worked with research and development for OCP, highlights important and revealing trends within the industry:
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Personal Interview with Stephanie Daniels of Organic Commodities Products Question #1: How did you get involved with OCP? Random fate! I was working in Central America for a few years and was given Joe Whinney’s name when I moved back to MA. All was history from there. Because I spoke Spanish and had a background both in environmental issues and Latin America it was a good fit. Question #2: What are some of the biggest challenges that you are confronted with in terms of maintaining your environmental mission and holding a successful business? The cost and competitive market issues. We are unique in the amount of development work we do with farmers and it is a constant struggle to maintain those investments and stay competitive in the marketplace. Cost pressures are unrelenting for manufacturers to lower their cost of goods and be more competitive, this is especially true as the number of companies getting into organic is increasing. Most of them do not have programs with farmers so this is an additional cost we have that others don’t. Also we don’t have a market brand so we cannot communicate our mission and message to consumers directly. We have to educate manufacturers that investments in sustainability and fair trade will indeed bring them increased supply security and quality guarantees. Question #3: What are some future issues that you see
in the organic chocolate industry? (e.g. market saturation, labeling standards, etc.). The oversupply of low quality organic cocoa is a big issue now. It is driving prices for farmers down as competition grows. It will be a struggle for organic chocolate companies to regain a position in the market as suppliers of high quality products, not only products with environmental value. Fairtrade is also sure to be a subject in the future. Organic certification equivalency between countries (Japan, European Union, USA, others) continues to be a challenge although standardization is slowly making headway. Question #4: In the next five years, do you plan on creating your own organic chocolate brand? Perhaps, although as our core competency is the development of organic programs in the field and supply chain security would probably focus more on an industrial, ingredient brand rather than a retail one. |
Major Issues in Cacao Cultivation
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Ingredients: Aligning Ethical/Fair Trade Standards and Cocoa Cooperatives, The Benefits of Shade Management Systems, Child Labor in West Africa, Certification and Organic Chocolate, Post-Harvest Treatment of Cocoa, The Carob Tree – An Alternative to Chocolate, Government Policies and Perverse Subsidies: The Case of Nigeria, By-products of Cocoa, Secondary Cacao Forests: the Case of Costa Rica, Cameroon, and Ghana, Studies of Cacao Groves as Suitable Habitat for Tropical Bird Species |
Aligning Ethical/Fair Trade Standards and Cocoa Cooperatives
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Table IV: The Aims of Fair Trade 1) To improve the livelihoods and well-being of producers by improving market access, strengthening producer organizations, paying a better price and providing continuity in the trading relationship. 2) To promote development opportunities for disadvantaged producers, especially women and indigenous people, and to protect children from exploitation in the production process. 3) To raise awareness among consumers of the negative effects on producers of international trade so that they exercise their purchasing power positively. 4) To set an example of partnership in trade through dialogue, transparency and respect. 5) To campaign for changes in the rules and practice of conventional international trade. 6) To protect human rights by providing social justice, sound environmental practices and economic security. |
The terms ethical/fair trade are used to describe trade in goods produced under conditions which are socially, environmentally, and economically responsible.[154] The movement was originally initiated as a result of social concerns for third world producers to ensure that farmers are awarded a fair price for their products and also to help protect them from wide fluctuations of world market prices. Organizations that are involved in fairly traded products will generally guarantee farmers a price and step in as an intermediary marketer. This way they can bypass the typical intermediaries, or middle- men, that are notorious for reaping the bulk of the profits and shortchanging farmers. According to organic cocoa farmer Gabriel Nate, who joined a fair-trade cooperative known as El Ceibo in Bolivia:
“You know,
tradesmen rip you off, they don’t pay cash.
They used to pay us with clothes and, even worse, with alcohol. They bartered for our crops with it, it
wasn’t convenient.”[155]
Ethical/Fair trade is especially popular in Europe with entities such as Transfair International and Fairtrade Labeling Organizations International (FLO). While the principles of fair trade are picking up in the US, most of the attention has been focused on coffee products. The Rainforest Alliance is one organization in particular within the US that has researched taking an innovative approach to establish a double or even tri-certification to include ‘fairly traded’, “organic” and “ECO-O.K” biodiversity friendly, into one label.[156] The ECO-O.K. certification program of the Rainforest Alliance has researched the environmental impacts of specific commodities drafting guidelines for environmentally sound production. A host of different groups and individuals from industry, government, scientists and environmentalists assign the environmental standards that are to be met for the ECO O.K. label. The standards are also continually revised to improve conservation efforts with new developments in research, technology, and practices.[157] However, in terms of combining the standards of fair trade, organic, and ECO O.K., there is currently a need for more research in this area to determine the logistics of weaving these separate certifications into one label.
With
fair trade specifically, there are already many case studies that can be
highlighted to examine the success it has had around the world. In Ecuador for instance, there are a few
prominent fairly traded organizations that have emerged involved with cocoa
production. The non-governmental
organization (NGO) Maquita Cushunchic
Comercializado como Hermanos (MCCH) has set up ethical trade schemes
available to producers and collectors of commodities in the area. MCCH is one of the largest church based
operations in Ecuador working with cocoa production in two of the countries
coastal provinces. The trading arm of
the MCCH, the Maquita Agroexportadora appoints traders from different farmer
organizations and communities that are supported by zonal buyers who are also
employees.[158] By having a controlled marketing system
with the cacao beans going directly from farmer to the trading arm of the
MCCH, the organization is able to be competitive with Ecuador’s largest
producers, which farmers would not have been able to do alone. In addition, through its preferential
buying program, MCCH pays a premium between 8 and 15% over the standard
buying price. The program has thus
far been a success so much so that from its initial exports in 1992, it has
become one of the top five cocoa exporters in all of Ecuador.
Another organization based in Ecuador, called Conservaición y Desarrollo (CyD) has formed a partnership with the Rainforest Alliance to find ways to help farmers caught in a cycle of poverty. They organized the Luz y Guia or “Guidance and Light” cooperative with over twenty families to learn how to improve the quality of their cocoa without the use of any pesticides or fertilizers. Through the co-op, they learned how best to process the beans to ensure a good price. By forming a group they were able to collectively improve their livelihoods, a task that would have been unfeasible had they done it individually. In addition, the women in the cooperatives have begun to make jams and jellies from the mucilage within the cocoa pods. They hope to sell these types of value-added products in the future. In the long run, they have ensured greater financial stability for their families while learning strategies to maintain forest resources and biodiversity in the area to secure the Rainforest Alliance certification.[159]
These types of cooperatives have had many advantages to benefit farmers and improve the quality of their cocoa. They can serve as an important teaching mechanism to inform producers how to both prepare high quality cocoa and receive a premium price. Marketing has also always played an important role to ensure economic security by putting producers in more of a direct contact with their exporters. Cooperatives can have other significant advantages helping farmers to establish cocoa fermenting and drying houses which they can bring their crop in groups making their job much easier and less costly in terms of labor and facilities needed to properly dry cocoa.[160] For these reasons cooperatives have been successful in the past proving to be an effective way to educate farmers how to align production with the standards of ethical/fair trade.
The Benefits of Shade Management Systems
Cacao grown in the shade can play an important role in the overall health and productivity of the tree along with the ecology of the rainforest. To begin with the shade canopy supports a diversity of different plant and animal life while also helping protect the lower canopy from intense sun and rain. The leaf litter that is generated from the shade trees also provides additional nutrients to the soil that can be absorbed by cacao trees,[161] along with an ideal breeding condition for cacao’s pollinating midges.[162] Therefore, shade management systems can have an overall positive impact on cocoa farms in controlling pollination, disease, and pest organisms,[163] and is generally seen as the best cultivation strategy to maintain the long-term health and productivity of the tree.
To better understand the relationship between the shaded and unshaded growing conditions, a long-term research project was conducted in Ghana over a twenty-year period. In the study, three types of shade conditions were evaluated including heavy shade, medium shade, and no shade. The average economic bearing age of the trees were approximately twenty years and crops began to decline after fifteen years with rapid loss in yield. It was found that the mean yield of cocoa under heavily shaded conditions was about half that of trees under no shade. However, at the same time, swollen shoot virus (SSV), a common fungal pathogen in that area of West Africa, was found greatest under the non-shaded farms leading to sometimes significant losses in harvest potential.
The Ghanaian study also reflected the effects of tree shade densities with the available Nitrogen (N), Phosphorous (P), and Potassium (K), (referred to as NPK respectively) and fertilizers with fertilizer-pest-disease relationships. With or without shade, farm maintenance practices need to include fertilizers to increase yields over time as these nutrients are depleted in the soil. In the study, high levels of Potassium (K) were recommended for unshaded trees and high levels of Phosphorous were recommended for shaded trees.[164] In some countries such as Nigeria in West Africa which has its own domestic fertilizer industry, fertilizers are cheap and can be widely used and so the benefit of additional nutrients added by shade might not be as an important consideration as for others. However, for those who produce cocoa organically or where fertilizers can be expensive, shaded systems can therefore essentially provide a three or four year fertilizer subsidy.[165]
Choosing Different Types of Shade Trees: Cordia alliodora and Erthrina poeppigiana
Choosing the best possible trees to intercrop in shade management systems is another area of importance to cocoa farmers. The shade trees used are often chosen among native species within the region. To determine which ones are the most economically or ecologically beneficial can be a complex process as there can be many variables involved. This might include climatic conditions, how much they compete for available nutrients with cacao, the life span of the tree, and whether the shade tree itself can be harvested for additional income for food or timber.
In Central and South America for instance, there have been several studies of shade trees in relation to cocoa production of which the species Cordia alliodora (commonly referred to as Laurel), and Erthrina poeppigiana are two common shade trees currently used. Studies at the Centro Agronomico Tropical de Enseñanza, Turrialba (CATIE) in Costa Rica found that cocoa harvests during 13 years under these two shade trees were very stable. On the other hand C. alliodora, commonly referred to as Laurel, or Spanish Elm, has its own advantages. It can be found from Mexico to Argentina and often serves as shade for both coffee and cocoa growing 12-20 meters in height. Its main advantages include that it is a tropical hardwood that is easy to work with, requires little pruning, and its dark colored heartwood makes is valuable in the timber industry. On the other hand, the species Erythrina poeppigiana, another tropical tree, is primarily used to provide shade for both coffee and cocoa, but needs to be pruned diligently one to two times a year. Aside from making a good shade tree for these crops, it holds an additional value because it can be used as living fence posts due to the fact it grows so quickly.[166]
At the CATIE research station in Costa Rica, another study involved the Fine Root (FR) biomass of cacao plantations affected by both C. alliodora and E. poeppigiana over a fifteen-year trial period. The study found that the fine root biomass was always higher in Laurel, making it the more competitive tree for plant nutrients both above and below the ground. This is a significant consideration, as the loss of nutrients will reduce overall cacao productivity over time. However, in both cases, it was found that C. alliodora and E. poeppigiana will maintain soil organic matter status for at least fifteen years while promoting efficient nutrient cycling and thus can be recommended for combining timber and cacao production with values of cacao productivity slightly greater under E. poeppigiana.[167]
Other potentially beneficial shade trees include important food crops such as bananas, breadfruit, and coconut palms that grow above the canopy of cacao.[168] However, the prospects of planting cacao with other fruit crops have often been limited. As a sub-canopy tree, cacao requires a significant amount of energy to survive. It relies heavily on the upper reaches of the soil beneath the forest floor for nutrients. Competition with other food crops can be futile, stunting the tree’s growth and production. Bananas for instance are extensively grown in Central America and have been used there as shade trees for coffee as well as cocoa in the past. However, large amounts of phosphorous, nitrogen, and potassium can be absorbed from the soil by banana trees, which could limit healthy cocoa production. As the availability of phosphorous is often low in the tropics and the price of phosphorous fertilizer is expensive, this becomes an important consideration before using bananas as a shade tree.[169] As each of these trees holds their own advantages, whether for timber or as a food crop, scientists continue to experiment with the potential of different shade trees intercropped with cacao. However, it is ultimately up to the farmer to decide which type of shade tree is the most desirable one for their farm.
Child Labor in West Africa
Child labor is both a complicated and controversial issue. Child labor becomes an issue when children are exploited for their work such as having to suffer through hazardous working conditions or endure tough labor for prolonged hours. Either way, child labor has deep roots in West Africa and the “line between slave trading and the bondage of poverty is sometimes unclear.” For example, many children in West Africa leave their homes to work. They are often separated from their families for years. Unfortunately, some children might end up in the hands of smugglers and be exploited. Several reports indicating that slave labor is being used in Ivory Coast’s cocoa fields have prompted concerned citizens and humanitarian organizations to look into the issue and form a comprehensive study to determine the depth of the problem. Ivory Coast, the largest producer of cocoa in the world, is known for its wealth and it abundance. Children from poorer countries such as neighboring Burkina Faso and Mali, whose families struggle to feed their families, may choose to send them for a year or several years to earn additional income on the cocoa farms of Ivory Coast and Ghana. In fact several hundred thousand farm workers, not only children, will migrate south every year to work in Ivory Coast and Ghana to do low paying jobs that are not very popular among natives.[170]
However, with the recent reports from various governmental and non-governmental organizations of the use of exploitative child labor practices, child trafficking, and slavery among cocoa producing countries in West and Central Africa, there is reason for concern. Though the breadth and seriousness of the issue remains unknown, many major companies will not take the risk of ruining their reputations by endorsing child slavery. Some companies that purchase cocoa beans from West Africa are sincerely concerned and are working with organizations such as the Chocolate Manufacturers Association (CMA) and the International Cocoa Organization (ICCO) to deal with the issue.[171] The International Cocoa Council of the International Cocoa Organization - ICCO held a meeting to come up with a resolution to tackle this issue resolving to:
· Encourage member Governments of ICCO to investigate the issue further and eliminate any criminal child labor practices occurring in their country by working closely with UNICEF – the United Nations Children Emergency Fund, along with other organizations including the private sector.
- Design relevant ICCO projects to include activities to eliminate unlawful practices concerning child labor.
- Request the Executive Director to inform these resolutions to member governments, the cocoa producer associations, and the trade industry in cocoa producing and consuming countries.
Certification and Organic Chocolate
As for products that claim to be organic, they must be certified “organic”, which is a necessary and key condition for international trade of organic products. Certification means that a third party gives written assurance that a product labeled organic is truly produced according to the standards of organic farming. One of the major issues of certification is that there is not yet a standardized international set of regulations for organic products. Each country or certifying organization may have a different set of rules and guidelines that are followed, some more stringent than others. This can be a problem as receiving the benefits of an organic label can equate to almost double the amount of income received for the price of an agricultural good. Therefore unsupported claims will put producers using organic methods at a competitive disadvantage. According to the Rainforest Alliance, “there is increasing pressure to standardize messages to the consumer, and to weed out misrepresented or “green washed” products that are neither socially nor environmentally responsible.”[172] Unfortunately, with consumers bombarded with several different labels with varying degrees of standards, it becomes confusing and difficult to discern between products.
Another potential avenue for certification in the future might be to create a new market relationship similar to the concept of shade grown coffee. The goal of shade grown coffee has been to give producers a premium for their coffee that is grown in shade under the presumption that this is the best environmental practice. Consumers are able to distinguish this product with a certification that verifies standards of shade-grown coffee. The question of how much a niche market such as shade grown cocoa exists and whether a certification program will ever be realized is yet to be seen. However, because some organic standards for cocoa already include a shade component, classified as “ecological” in Europe, cocoa is one of the best candidates for a new marketable shade grown product.[173]