2. AGENDA
Cocoa Sector
• Worldwide Trend
• Opportunity for Haiti
Issues and
Solution
• Problems for Haiti Cocoa Production
• Proposed Solution
Sustainability
• Ayitika’s Vision: Sector Development
• Collaboration with Ministry of Finance (Taiwan ICDF)
3. WORLDWIDE COCOA MARKET TRENDS
Shortage of supply
4.00
4.25
4.50
4.75
5.00
5.25
5.50
2014 2015 2016 2017 2018 2019 2020 2021 2022
MillionsTonnesCacaoMarchand
Demande
Offre
3%/an
1%/an
- New cocoa consumers arising.
- African countries are producing
almost at full capacity.
- Big gap between supply and
demand.
- Main buyers investing to get
higher yield
Cocoa
Sector
Issues &
Solution
Sustaina
bility
4. WORLDWIDE COCOA MARKET TRENDS
African trees either more than 60 years old and/or suffering from diseases
0
200
400
600
800
1 000
1 200
1 400
1 600'000tonnescacao
Années
Evolution des productions dans les principaux pays producteurs
Côte d'Ivoire
Cameroun
Ghana
Nigéria
Brésil
Equateur
Indonésie
Malaisie
Decreasing
production
5. WORLDWIDE COCOA MARKET TRENDS
Price of fermented cocoa is going up
37 % increase in 2014
The market price trend positive
Cocoa
Sector
Issues &
Solution
Sustaina
bility
6. WORLDWIDE COCOA MARKET TRENDS
Demand for sustainable cocoa is increasing.
EU show its concerns about the lack of good practices
Holland have as a target to have 100 % of sustainable cocoa by 2025 (consumes 25 % of worldwide cocoa
production)
Germany is strongly committed to improve the production of sustainable cocoa
Private companies aiming 100 % of sustainable cocoa purchase by 2020
Cocoa
Sector
Issues &
Solution
Sustaina
bility
7. OPPORTUNITIES FOR HAITI IN THE COCOA BUSINESS
Genetic varietal heritage of high quality cocoa if fermented [*]
All the three main types of cocoa: Forastero (Low quality), Criollo and Trinitario are present in Haiti
CRIOLLO TRINITARIOTRINITARIO
Cocoa
Sector
Issues &
Solution
Sustaina
bility
8. OPPORTUNITIES FOR HAITI IN THE COCOA BUSINESS
New players go for fermented cocoa in niche markets
Fine and aromatic/fermented cocoa counts around 5% of the total cocoa production
7 out of the 17 fine
production countries are
located in the Caribbean
area.
Cocoa
Sector
Issues &
Solution
Sustaina
bility
9. OPPORTUNITIES FOR HAITI IN THE COCOA BUSINESS
High production potentials and profitability of fermented cocoa
Production can be multiplied by 4 within 10 years. With the fermentation of cocoa the farmers
can earn three times the average annual income
Farmers can get between $3,000 to $8,000 per year
Revenues estimated to be around $ 2,000 to $ 6,000 per hectare annually
40 years of expected production and minor maintenance fees annually
Cocoa
Sector
Issues &
Solution
Sustaina
bility
10. WORLD TRENDS
Shortage in supply
HAITIAN OPPORTUNITY
Haiti can produce 4 times more, upto
20,000 tn/year within 10 years
Fit
African trees outdated with
deseases
Young trees, no diseases found in Haitian
cocoa trees
Fit
Market price for fermented
cocoa going up
Need for more income in Haitian households.
Higher price + higher production = higher income
Fit
Increase in demand for
organic and fairtrade certified
cocoa
Haiti has the opportunity to set up its
production with organic and fairtrade certified
cocoa
Fit
Cocoa
Sector
Issues &
Solution
Sustaina
bility
12. PROPOSED COCOA BUSINESS MODEL
MarketPrice
Selling Date
- Organized plantation in
cocoa ecosystem, with variety
control (traceability) and
higher yield
- Optimized central
unit to leverage out
the costs
- Fermentation process
brings Haitian flavor
- Awards to farmers
base on transparent
market price
13. SOCIAL/ENVIRONMENTAL/ECONOMIC IMPACT
Increase revenue
of the farmers
Increase quality
of the product
Teaches farmers
the best
techniques
In profitable
years, farmers
get extra
rewards
Contribute to the
planet
Contribute to
Haitian brand
awareness
Protection
mountains from
erosion
Build consciousness
with the natural
resources of the area
Cocoa
Sector
Issues &
Solution
Sustaina
bility
14. ONGOING PROJECTS FOR AYITIKA
COCOA production and sector development
Support farmers in order to be able to crop cocoa in an efficient way. Investment needed $4200 /hectare
(aprox. 250 households willing to start cropping cocoa around 80 hectare just in Moreau)
Technical assistance in order to successfully implement the business model
Ayitika is a Social Enterprise who searches for its own credit lines through financial institutions
Ayitika will provide services to the farmer such as technical support and selling the seedlings of the plants.
Cocoa
Sector
Issues &
Solution
Sustaina
bility
15. Knowledge center: platform of cocoa
Project in planning phase (400m2 land) with approx. total construction and initial running expenses at
around $300,000
Collaboration project in the development of the knowledge center
Laboratory of quality control
Hub of cocoa for producers of cacao in Latin America
Education center for farmers about the system agroforestry, PHD students (investigation), technical,
environmental awareness
Hold conferences about cocoa to bring knowledge in the island
Agro-tourism in Moreau (area protected by UNESCO)
Area with rich natural resources
Possibility to provide job for locals in the tourism sector
Creating local awareness of the values of the area
ONGOING PROJECTS FOR AYITIKA Cocoa
Sector
Issues &
Solution
Sustaina
bility
16. Investment needed to start up the cocoa production.
US $200,000
Land preparation and purchase
Fermentation area (1 hectare)
DISCUSSION IN FINANCING OF THE AYITIKACocoa
Sector
Issues &
Solution
Sustaina
bility