United Cacao: How not to invest in cacao farms in Latin America.
I understood that too.
The price of U $ 8000 / ton is of the criollo cacao benefited.
I have to study the subject, thank you very much for the lesson.
I'll tell you what I'm doing.
I have to disagree with your entire economic premise.
- When you export the whole fruit, you are shipping several kilos of weight to get maybe 40-50gr of dry beans.
- The density of what you're shipping is low - pods relative to seeds. You need maybe 20-30 times more volume to ship the same amount of dry beans.
- You have to ship in refrigerated containers - and maintain the cold chain - from the point of harvest to the point of opening. This makes shipping MUCH more expensive.
- Variations in the amount of time from harvest to opening will affect fermentation, making consistent, good, fermentation extremely difficult. A difference of a couple of days could completely change the fermentation.
- Because the outside of the pods probably need to be sterilized (before export) it will be necessary for the chocolate maker to use special inoculants.
- The chocolate maker has to build fermentation facilities.
- The chocolate has to build drying facilities.
- Your cost model does not take into account what it will cost (labor, energy, rent, etc.) for the chocolate makers to do the work. No chocolate maker is going to pay $8000/MT for beans and then pay to ferment.
- Keep in mind that environmental regulations are stricter in NYC than they are in the countryside outside Itajuipe. The juice is highly acidic and in some countries is classified as hazardous waste. Fermentation is smelly and attracts insects ...
I think, more importantly, is to ask the question, "Why would the chocolate maker take the risk?" There is no way to arbitrage it.
My recommendation, before you do anything, is to ask chocolate makers what they think, rather than assume it is a good thing.
Finally ... when you export the dried beans you are exporting the nutritional content of the soil. Pods are usually left to compost on the farm. When you export the pods you need to replace not only the nutritional content of the seeds but also the nutritional content of the pods. This means you will be spending a lot of money on fertilizers. Have you factored that into your economic model? Where before you might have been exporting 40-100gr per pod you'd now be exporting 500gr-2kg (or more!) per pod. That is a LOT of fertilizer.
Again, my recommendation, before you do anything, is to ask as many - like at least 100 - chocolate makers what they think, rather than assuming that if you do it they will buy them.
I get it.
Normal cocoa beans cost US $ 1.88 / kg in Brazil.
The entire fruit $ 0.5 / kg and the freight to Amsterdam is $ 0.50 / kg.
One infrastructure to extract pulp and dry almonds costs $ 10,000.
Our cocoa is special, organic and creole, the cost of 1.0 ton of special cocoa can cost $ 8,000.
I think these values can make the idea workable. Maybe for an investor who wants to do the right thing for cocoa ??
To export the fruit of the entire forest is less complicated for us than exporting it benefited. So that's my idea.
I have thought of setting up a beneficiary in Portugal, and from here to Europe.
Thank you very much!
@EdilsonSilva - The only use for whole fruit is decorative and for tasting at festivals and the like. Chocolate makers have trouble enough to work from fermented, dried, beans, asking them to do the fermentation and drying is not cost-effective.
- Phytosanitary regulations make it tough. The outside of the pods would need to be sterilized and probably fumigated, so there is a food safety issue.
- The pods are too heavy, relative to the seeds in side, to ship profitably.
- The pods are too perishable - by the time they make it to the chocolate maker there is probably no way to ferment consistently.
- Chocolate makers know nothing about fermentation and drying.
- Few chocolate makers have the space for fermentation and drying facilities.
- Labor is a lot less expensive in countries where cacao grows.
I personally don't see that it's worth investing resources into figuring out a way to export pods to chocolate makers to make chocolate. However, exporting fresh pods for exhibition purposes, even if air-freighted, is a small but growing market.
Whole fruit refrigerated, not frozen. So that the chocolatier himself makes his own chocolate. This is a good idea? The cost of freight compensates for the value of the product and chocolatiers would have the guarantee of an excellent product. You understand me?