By Lourdes Páez, Writer and Sommelier
Greetings, cocoa and chocolate people!
Today I bring you a chronicle about the challenges that our sector faces in these times of climate change and new regulations. Are you ready? Go for it.
An Urgent Meeting
On May 30, 2024, at the University UDLA in Quito, the Cacao and Chocolate Summit was held. There, farmers, exporters, chocolate industrialists and chocolate micro-entrepreneurs met to discuss the current situation of the sector. The conversation revolved around the very high prices of cocoa, a situation that complicates life for all those involved in this sweet chain.
Why are prices rising?
There are several factors behind this price increase in the international market. First, we have the loss of crops in Ghana and Ivory Coast, affected by climate change. Additionally, swollen shoot disease has devastated hundreds of thousands of cocoa trees in West Africa.
Climate change is not a threat of the future; It is already here, and its impact on agriculture is undeniable. During the Summit, it was discussed how extreme weather events are affecting cocoa not only in Africa, but also in Central and South America. Other agricultural products such as sugar and olives were also discussed. It is evident that we need to adapt to this new reality, modifying our lifestyle and consumption habits.
The Green Deal of the European Union
Another hot topic at the meeting was the Green Deal that the European Union will begin to apply in December 2024. This regulation will require traceability for cocoa exported to the EU, which represents a significant challenge for many Ecuadorian farmers. Implementing traceability systems is expensive, and many small producers will not be able to afford it.
The Green Deal aims to transform the European economy towards greater sustainability, including responsible agricultural practices and the reduction of carbon emissions. But the reality for cocoa farmers in Ecuador is complicated: most own just 3 hectares of land, operate with few resources, and many (around 200,000) are unregistered and informal. This scenario poses enormous challenges to meeting the requirements of the Green Deal.
Greater Representation of Latin America
Merlin Casanova, director of the Association of Cocoa Exporters - Anecacao, stressed the need for Latin American countries, especially Ecuador, to have greater representation in the global cocoa arena. Until now, international debates have focused on Africa, but it is time for Latin America to make its voice heard and actively participate in shaping the future of the cocoa sector.
The Green Deal also involves seeking new markets outside the European Union and the United States, which will soon adopt similar regulations. The importance of exploring regional and local markets was emphasized, as well as the need to process cocoa into semi-finished products and chocolates to attract new consumers.
Adaptations in the Chocolate Industry
Faced with high cocoa prices, chocolatiers must be creative. Some proposed solutions include changing product formulas to reduce cocoa content and establishing partnerships with farmers, promoting a circular economy that benefits both parties.
The chocolate sector can learn from the world of wine, strengthening consumer education and valuing the origins of cocoa. Freddy Cabello of the Unocace Cocoa Producers Association highlighted that currently 77% of the cocoa exported by Ecuador is considered low quality, while only 2% is high quality. Improving the quality and prestige of Ecuadorian cocoa is a priority for the sector.
A Light of Hope
The Cocoa and Chocolate Summit was a reminder of the significant challenges facing the sector, but also a platform to discuss innovative solutions and strategies for a more sustainable and equitable future.
A positive note from this meeting was the award to the cocoa farmers who have achieved recognition from the Cacao of Excellence, an international competition that evaluates and rewards the best cocoas in the world. From Ecuador, Finca Costa Esmeralda, Hacienda San José de Los Ríos, and Pieandino Chocolates have achieved this award.
Spaces for dialogue and exchange like this are very necessary to coordinate joint actions, in a productive sector that is currently very dispersed. The initiative to organize this Meeting was from the company Conexión Chocolate together with the European Union, which finances several support projects for cocoa farmers, and the UDLA University.
See you in the next entry of La Chocolatada!
If you are interested in learning more about Cacao and its history, I recommend reading my book ECUADOR TIERRA DEL CACAO, available in Spanish and English. For sale in e-book format in the Amazon bookstore.
THE GOLDEN BEAN.ORIGINS OF CACAO IN ECUADOR on Amazon https://a.co/d/7DyEBIu
ECUADOR LAND OF CACOA on Amazon https://a.co/d/fwVgJsm
Visit our website www.academiadelchocolate.com for more information
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