Cocoa supply chain

The Dynamic Journey: Unveiling the 8 Stages of the Cocoa Supply Chain

Cocoa Supply Chain: From Bean to Bar

The cocoa supply chain plays a vital role in the global chocolate industry. From the cultivation of cocoa trees to the retailing of chocolate products, each stage contributes to the production and distribution of cocoa and chocolate products. This article provides an in-depth exploration of the cocoa supply chain, highlighting its significance and addressing the environmental and social factors associated with cocoa production.

Overview of the Cocoa Supply Chain The cocoa supply chain encompasses a series of interconnected stages that transform cocoa beans into chocolate products. At each step, specific tasks and processes are undertaken to ensure the quality and traceability of the final product. The cocoa supply chain is a complex system involving multiple stakeholders, from smallholder farmers to chocolate manufacturers and retailers.

>>Seemore: cacao powder<<

The Stages of the Cocoa Supply Chain

Step 1: Growing Cocoa Trees

Cocoa, primarily cultivated by smallholder farmers on farms averaging 2 to 4 hectares in size, thrives in hot and humid regions, notably West Africa (Côte d’Ivoire and Ghana), Latin America (Ecuador), and Southeast Asia (Indonesia). It is worth noting that cocoa trees predominantly consist of three main varieties: Criollo, Trinitario, and Forastero (Amelonado).

In their natural habitat, cocoa trees often benefit from the protective shade provided by companion plants such as banana, plantains, and palm trees. While they can adapt to various soil types, cocoa trees are particularly susceptible to water scarcity. The yield of cocoa trees is predominantly influenced by rainfall patterns rather than other climatic factors. Ideally, rainfall should be abundant and evenly distributed throughout the year, ranging between 1,500mm and 2,000mm. Dry spells, lasting no more than three months and with monthly rainfall below 100mm, should be avoided. Adopting sound agricultural practices, including weeding, pruning, fertilization, and effective pest and disease control, is crucial for the optimal growth of cocoa trees. While cocoa trees have a lifespan of up to 100 years, their peak productivity occurs within the span of approximately 25 to 30 years.

Step 2: Harvesting and Pod Breaking

The Cocoa supply chain encompasses the intricate process of cocoa production, from the growth of cocoa trees to the extraction of cocoa beans. At the heart of this chain lies the critical stage of harvesting, where ripe cocoa pods are carefully collected from the trees and meticulously opened to extract the wet beans. It is essential to note that the harvesting period for cocoa pods spans approximately 3 to 4 weeks, as the beans begin to germinate after this timeframe. As a result, regular intervals of harvesting are necessary since the pods do not all ripen simultaneously.

The task of harvesting cocoa pods is predominantly a manual endeavor, requiring the skilled hands of farmers. With a well-sharpened blade, they make clean cuts through the stalk, separating the ripe pods from the tree. Subsequently, within a week to 10 days after harvesting, farmers proceed to open the pods and extract the beans. This process typically takes place either within or at the periphery of the farm. Notably, when the pods are opened within the planting areas, the discarded husks can be strategically distributed across the fields, serving to replenish the soil with valuable nutrients. To achieve efficient pod opening, farmers commonly employ a wooden club. When skillfully struck at the central area of the pod, the impact causes it to split into two halves, facilitating the subsequent manual extraction of the beans.

A key aspect to consider is that cocoa trees exhibit a cyclical pattern of flowering and pod production within a crop season. These cycles occur twice within a span of six months, contributing to the periodic availability of cocoa pods for harvest. This temporal rhythm necessitates meticulous planning and timing by farmers to optimize the harvest and ensure the continuous supply of cocoa beans for subsequent stages of the Cocoa supply chain.

Step 3: Fermentation and Drying

Upon harvesting and splitting the cocoa pods, the pulp-covered beans are carefully stored. They are either placed in boxes or baskets or heaped into piles, which are subsequently covered with mats or leaves from banana or plantain trees. This arrangement allows for the natural heat generated by the pulp layer, coupled with the heat from the sun, to initiate the fermentation process. Over a period of three to seven days, the fermentation of the beans takes place, contributing to the flavor profile of the cocoa. It is worth noting that proper fermentation is crucial, as inadequately fermented beans may lack the desired cocoa flavor, while over-fermented beans can result in an overly acidic taste.

Following the fermentation stage, the beans proceed to the drying phase, ideally taking place under the warm rays of the sun. The drying process spans approximately five to seven days, during which the beans are spread out on mats, trays, or even concrete floors. This controlled exposure to sunlight effectively halts the fermentation process while simultaneously enhancing the storability of the beans. To ensure optimal drying conditions, the beans are regularly turned or raked to promote aeration and maintain uniformity throughout the batch. The rate at which the beans dry is of paramount importance as it directly influences the final quality of the cocoa. A balance must be struck, avoiding excessively quick drying to prevent the development of acidic flavors, while also avoiding prolonged drying that can lead to diminished acidity, poorer coloration, and an increased presence of mold.

By meticulously managing the stages of fermentation and drying, farmers play a pivotal role in shaping the flavor nuances and preserving the overall quality of the cocoa beans within the Cocoa supply chain. These carefully curated processes form the foundation for the subsequent stages of the supply chain, paving the way for the sourcing, processing, and production of cocoa and chocolate products that captivate consumers worldwide.

 

Step 4: Sourcing and Marketing

Within the intricate Cocoa supply chain, once the cocoa beans have completed the drying process, they undergo essential post-drying procedures to prepare them for further distribution. The first step involves meticulously cleaning the beans to eliminate any defects or impurities that may have arisen during the drying phase. This meticulous cleaning process ensures that only high-quality beans proceed to the subsequent stages of the supply chain.

Following the cleaning process, the beans are accurately weighed and meticulously packed into durable jute sacks. These sacks serve as protective containers, safeguarding the beans during transportation and storage. At this stage, farmers typically sell the sacks of cocoa beans to intermediaries who represent buying companies that have established direct relationships with the farmers. This direct sourcing model fosters a more streamlined and transparent Cocoa supply chain, facilitating efficient communication, trust, and fair economic exchanges between the different actors involved.

Once the beans are securely packed, farmers undertake the responsibility of transporting the sacks to an exporting company. The exporting company assumes a pivotal role in the supply chain, as it conducts thorough inspections and applies grading systems to assess the quality and characteristics of the cocoa. This meticulous grading process ensures that only cocoa of the highest standards proceeds to the subsequent stages of the supply chain. Subsequently, the graded cocoa is transported to a strategically located warehouse in close proximity to a port. In some cases, additional drying may be necessary at this stage to optimize the moisture content and overall quality of the beans, further ensuring their longevity during storage and transit.

It is important to note that the structure and length of the Cocoa supply chain may vary depending on the specific circumstances and actors involved. For instance, intermediaries such as small traders and wholesalers can act as key facilitators between cocoa farmers and exporters, bridging the gap and facilitating the exchange of goods. Additionally, alternative models exist, whereby cocoa beans are directly sold to exporters by cooperatives or even exported directly by the farmers themselves. Such direct sourcing approaches enhance various aspects of the supply chain, including traceability, proximity, trust, and overall operational efficiency.

By incorporating diverse models and forging direct connections within the Cocoa supply chain, stakeholders can cultivate a sustainable and resilient network that promotes fair trade practices, fosters transparency, and ultimately delivers high-quality cocoa products to consumers around the globe.

Step 5: Packing and Shipment

Graded cocoa beans are packed into cargo vessels, either in new jute bags or shipped in bulk. The bulk shipment method, which involves containers or direct loading into the ship’s hold, has gained popularity due to its cost efficiency. This section explores the different packaging options and shipping methods employed in the cocoa supply chain.

Within the Cocoa supply chain, once the meticulous grading process is complete and the cocoa beans have been deemed of superior quality, they are prepared for transport to their destination. The transportation method employed can significantly impact the efficiency and cost-effectiveness of the overall process.

Traditionally, cocoa beans have been shipped in new jute bags, carefully loaded into cargo vessels. However, in recent years, there has been a growing trend towards bulk shipment of cocoa beans. This alternative method has gained popularity due to its potential cost savings, with estimates suggesting that bulk shipment can be up to one third cheaper than the conventional approach using jute bags.

Bulk shipment entails loading loose cocoa beans directly into the hold of the ship or within shipping containers. The latter approach, known as the “mega-bulk” method, is commonly adopted by larger cocoa processors. It involves the utilization of specialized containers designed to accommodate the bulk cocoa beans efficiently. This mode of shipment offers several advantages, including streamlined loading and unloading processes and improved utilization of cargo space, thereby maximizing efficiency.

The decision to opt for bulk shipment or the conventional jute bag method depends on various factors, including the scale of operations, cost considerations, and logistical arrangements. While the use of jute bags offers certain advantages in terms of handling and preserving the beans, bulk shipment provides a more cost-effective solution for larger cocoa processors and can contribute to overall savings within the Cocoa supply chain.

By leveraging the appropriate shipment method, stakeholders within the Cocoa supply chain can enhance the efficiency of transportation, reduce costs, and ensure the timely delivery of cocoa beans to their intended destinations. These strategic considerations enable the industry to meet global demands for cocoa while optimizing logistical processes and maintaining the integrity of the beans throughout their journey from the source to the end consumer.

Step 6: Processing:

Within the Cocoa supply chain, the processing stage plays a crucial role in transforming raw cocoa beans into the various products used in the chocolate industry. Traditionally, the processing operations were primarily conducted in importing countries. However, there has been a notable shift in recent years, with origin countries increasingly engaging in cocoa processing as well.

Roasting is a fundamental step in the processing stage, as it serves multiple purposes. Firstly, roasting reduces the water content present in the beans. Additionally, it imparts rich aromas and flavors to the cocoa beans, enhancing their sensory characteristics. Roasting can be performed on the whole beans before shelling, known as bean roasting, or on the nibs after shelling, referred to as nib roasting. In some cases, the discarded shell is sold and repurposed as agricultural mulch or utilized by fertilizer producers, contributing to sustainable agricultural practices.

Following the roasting process, the cocoa beans undergo further treatments, such as alkalization. Alkalization is a process that darkens the color of semi-finished cocoa products and reduces their acidity. This step is important for achieving the desired flavor profile and enhancing the versatility of cocoa products in various applications. The duration and temperature of the roasting process are critical factors in determining the final flavor characteristics of the semi-finished cocoa products.

Once the beans have been shelled and roasted, the resulting nibs are ground under high temperatures to produce fine cocoa liquor. Cocoa liquor serves as a primary ingredient in chocolate production and contributes to its distinct taste and texture. Alternatively, the cocoa liquor can undergo additional processing by being pressed through a fine sieve, separating it into cocoa solids and cocoa butter. The extracted cocoa butter is filtered and stored in liquid form, ready for use in chocolate manufacturing. The remaining solid material, known as cocoa cake, can be further processed by breaking it into smaller pieces for sale in generic cocoa markets or pulverized into a fine cocoa powder. The fat content of the cocoa cake varies depending on the amount of fat that has been pressed out, determining its end use, which can range from drinking chocolate to bakery products.

By comprehensively understanding and executing the processing stage within the Cocoa supply chain, stakeholders can unlock the full potential of cocoa beans, creating high-quality products that satisfy consumer demands and contribute to the success of the global chocolate industry.

Step 7: Manufacturing and Distribution

Within the Cocoa supply chain, the manufacturing and distribution stage plays a pivotal role in transforming cocoa liquor and butter into the diverse array of chocolate products that consumers enjoy. This stage involves combining the cocoa liquor and butter with various ingredients, including sugar, vanilla, emulsifying agents, and milk, to create the desired chocolate recipe.

The mixing process ensures that all the ingredients are thoroughly blended, forming a homogeneous mixture. This step is crucial in achieving the desired taste, texture, and consistency of the final chocolate product. The proportions and quality of the ingredients used greatly influence the sensory attributes and overall quality of the chocolate.

After the mixing process, the chocolate mixture undergoes refining. This involves passing the mixture through a series of rollers, which work to reduce particle size and refine the texture of the chocolate. Refining also helps in homogenizing the mixture and improving its mouthfeel. The degree of refining is carefully controlled to achieve the desired smoothness and viscosity.

In some cases, an additional process called conching is employed to further enhance the flavor and texture of the chocolate. Conching involves subjecting the chocolate to heat and mechanical agitation for a specific duration, which can range from a few hours to several days. This process helps to refine the flavors, remove any undesirable aromas or bitterness, and create a smooth and velvety texture. Conching is a critical step in the production of high-quality chocolate and contributes significantly to its sensory characteristics.

The resulting chocolate mixture, often referred to as “couverture,” can be shipped in tanks in either liquid or solid form, depending on the specific requirements of the manufacturers. Alternatively, the chocolate mixture can undergo tempering, a controlled heating and cooling process that stabilizes the cocoa butter crystals, giving the chocolate a glossy appearance and a pleasant snap. Once tempered, the chocolate can be poured into molds, allowing confectioners and bakers to create a wide range of chocolate products in various shapes and sizes.

In some instances, chocolate manufacturers may use the couverture chocolate in-house to produce their own consumer products. This vertical integration allows for greater control over the quality and customization of the final chocolate products.

Through meticulous attention to detail and adherence to stringent quality standards at the manufacturing and distribution stage of the Cocoa supply chain, chocolate producers can ensure the delivery of exceptional products that satisfy the discerning palates of consumers worldwide.

 

Step 8: Retail

In the Cocoa supply chain, the final stage involves packaging, commercial marketing, and retailing, where chocolate products are made available to consumers. This crucial step ensures that the efforts and craftsmanship put into the production of chocolate reach the intended target market.

Chocolate products are primarily distributed through various channels, including grocery stores, wholesalers, and online platforms. These distribution channels play a vital role in making chocolate accessible to a wide range of consumers. Additionally, some chocolate manufacturers establish their own branded retail stores, providing them with direct access to consumers and the opportunity to create a unique shopping experience.

In the retail market, chocolate products are often categorized based on different criteria. One common categorization is by type, distinguishing between dark, milk, or white chocolate. Each type appeals to a specific segment of consumers who have distinct preferences in terms of taste and flavor profiles.

Furthermore, chocolate products can also be categorized based on sales categories, such as everyday, premium, or seasonal chocolate. Everyday chocolate includes products that are consumed regularly and cater to the everyday indulgence of consumers. Premium chocolate, on the other hand, targets discerning consumers who seek high-quality and exclusive chocolate experiences. Seasonal chocolate, like holiday-themed products, capitalizes on specific occasions and seasonal demand.

These different categories within the chocolate retailing market present unique opportunities for manufacturers and retailers to cater to diverse consumer preferences and capture various market segments. By understanding consumer needs and preferences, chocolate brands can strategically position their products to appeal to specific target audiences and capitalize on market trends.

Through effective packaging and attractive branding, chocolate manufacturers can differentiate their products and create a strong visual identity that appeals to consumers. Eye-catching packaging designs, informative labels, and clear product descriptions play a crucial role in capturing consumers’ attention and communicating the unique selling points of the chocolate products.

Successful commercial marketing strategies, including advertising campaigns, social media promotions, and collaborations with influencers, are also instrumental in raising awareness, generating brand loyalty, and driving consumer demand within the cocoa supply chain.

By effectively navigating the packaging, commercial marketing, and retailing stage of the cocoa supply chain, chocolate manufacturers and retailers can maximize their market reach, meet consumer expectations, and establish a strong presence in the highly competitive chocolate industry.

>>Seemore: Cacao mass <<

Environmental and Social Factors in Cocoa Production

While the cocoa supply chain contributes to the production of delightful chocolate products, it is not without its challenges. This section explores the various environmental and social factors that impact cocoa production, including:

A. Growth and demand of cocoa in the food and beverage industries

B. Threat of climate change to cocoa production

C. Deforestation as a major issue in cocoa-producing regions

D. Biodiversity loss and ecosystem services due to deforestation

E. Land rights and their impact on cocoa farming

F. Water use and pollution (minor issue)

G. Poor working conditions and prevalence of child labor

H. Complexity of the cocoa supply chain and profit distribution

>>Seemore: What does raw cacao taste like<<

Actions and Initiatives in the Cocoa Supply Chain

To address the challenges faced by the cocoa supply chain, various companies and organizations have taken action. This section highlights the efforts made to combat issues such as child labor, poverty, and environmental sustainability. Examples of companies, like Nestlé, implementing initiatives and investing in sustainable cocoa farming are discussed. Additionally, the section emphasizes the need for further measures to address the challenges and ensure a more sustainable cocoa supply chain.

Conclusion

In conclusion, the cocoa supply chain is a complex and interconnected system that plays a crucial role in the global chocolate industry. From the cultivation of cocoa trees to the manufacturing and retailing of chocolate products, each stage contributes to the production and distribution of cocoa and its derivatives. However, the cocoa supply chain faces environmental and social challenges, such as climate change, deforestation, and poor working conditions. Efforts have been made by companies and organizations to address these issues, but more needs to be done to ensure the sustainability of cocoa production. By taking action and implementing initiatives, the cocoa industry can work towards a more ethical, environmentally friendly, and socially responsible supply chain, ensuring the future of chocolate for generations to come.

Buy cocoa powder on Amazon