Revitalizing the Cocoa Industry: Latin America's Path to Sustainable Growth

For American investors a delicious chance presents itself in Latin America's evolving cocoa industry. The global supply chain landscape is shifting, and Latin America, with its rich history and diverse cocoa varieties, is ready for change. Recent global events have underscored the urgent need to redesign cocoa production for a more resilient and sustainable future.

The Current Landscape: A Bittersweet Mix

The cocoa industry confronts formidable challenges. Despite generating billions of dollars, this sector sees a stark contrast between the wealth of the chocolate industry and the poverty experienced by millions of small-scale farmers, who also grapple with issues like child labor. Furthermore, cocoa production contributes to deforestation and environmental damage in major producing countries. Although small farmers in West Africa produce 70% of the world's cocoa, persistent challenges remain. Latin America has the opportunity to reflect on these issues and develop innovative models for improvement.

Latin America's unique Advantage

Latin America, with its diverse cocoa varieties, indigenous knowledge, and local traditions, offers a promising path towards a sustainable future. IDB Invest, in collaboration with Forum for the Future, is exploring the potential for sustainable cocoa production in Ecuador, Peru, and Colombia. Each country brings unique strengths to the table:

• Ecuador: The world's third-largest cocoa exporter, offering exciting possibilities for innovation.
• Peru: Renowned for its organic cocoa exports.
• Colombia: Colombia consumes the majority of its own cocoa, showcasing a robust domestic market and potential for even greater self-sufficiency.
  More about Colombia's Agriculture

Colombia's Cocoa Triumph

• In the Gold category of the International Cocoa of Excellence Contest, Colombia wins the title of producing the best cocoa in the world.
• Fedecacao from Arauquita and San Vicente is included in the winning cocoa blend, which is the result of more than thirty years of research under Fedecacao's direction.
• The victory demonstrates the commitment and know-how of Colombian cocoa growers, who received priceless support from international allies, especially the cooperation of Canada and Germany.
• Colombia's triumph establishes a new benchmark for excellence in the sector and confirms its status as the world leader in the production of aromatic, fine-flavored cocoa.

Read more about the Triumph

Driving Systematic Change: A Collaborative Effort

Transforming the cocoa supply chain requires collaboration across the board. Small-scale farmers, processors, multinational corporations, and financial institutions must all play their part.

• Financial models: New models are crucial to ensure the full participation of small producers, who form the backbone of the global cocoa industry. 

A Sustainable Future Beckons

For American companies, Latin America's cocoa industry presents a strategic investment opportunity. Building a resilient system demands a shift in focus, prioritizing long-term sustainability and inclusivity over short-term gains. This is a call to action for all stakeholders – investors, producers, processors, and financial institutions – to join forces in creating a just and sustainable future for Latin America's cocoa industry.

In this collective effort, Ongresso stands ready to facilitate and streamline the necessary transformations. Ongresso holds immense potential in developing financial solutions that cater to the needs of both buyers and sellers. With a focus on innovative solutions and strategic partnerships, we can help bring together the essential pieces to ensure the success and sustainability of Latin America's cocoa industry.