Natural, organic chocolate from the tropical rain forest
Helping indigenous people of the Amazon basin to create a chocolate industry
Tacana indian gatherers in Madidi rain forest -
Tacana indian farmers in a natural forest that has wild cocoa trees, close to their community.
Little is known about Bolivia’s small cocoa bean production or its potential for growth and genetic material. Most of the cocoa bean production is done by small farmers and is based on high-yielding hybrid plants that have been introduced in the country. Little or nothing has been done to promote “wild cocoa bean" production in the natural rain forest. Bolivia still has rich tropical forests (50% of the land) with cocoa plants that are part of the natural ecosystem. These forests are threatened by continuous deforestation from unplanned and uncontrolled timber enterprises. An objective of this project is to help preserve the remaining forest by consolidating markets for extractive natural forest products, such as cocoa beans and Brazil nuts. The wild cocoa beans from the forest are rich in fat content and have excellent aroma. The project is currently establishing new plots of cocoa bean production, using this natural forest variety of cocoa beans, in agroforestry systems that combine cocoa plants with medicinal, fruit and lumber producing trees. Therefore, the project has a strong reforestation component. Additionally, most cocoa production in the world has been affected by a disease called “witches’ broom". Interestingly enough, the wild cocoa variety that exists in Bolivia is very resistant to this disease.
This project is based on a “Genetic Improvement Plan for Wild Cocoa Production, Through Population Management", currently being designed in Bolivia by Dr. Martien Beek, PUM expert and specialist in cocoa from The Netherlands who is providing assistance to this project.
The project aims to raise the standard of living of at least 2,000 families of farmers and gatherers, organizing and strengthening cocoa growers’ associations, introducing organic production and establishing direct access to markets that pay higher premiums for good quality organic chocolate. This will be accomplished by establishing a processing plant that will purchase cocoa beans from the farmers at market values and will produce cocoa liquor, butter, powder and some end-user products such as energy bars produced with cocoa, brazil nut paste (a product recently developed by our company) and quinoa. This energy bar will be targeted to the celiac population of Europe, North and South America, since it will be gluten free.
The processing plant will be operated by our company and 30% of the shares will belong to the farmers. This plant can also be capitalized by a European partner through the PSOM program.
The Business
Our business concept is to develop a line of natural and organic products, made from natural chocolate from the rain forest (not hybrids or genetically modified varieties), Brazil nut paste and Andean grains that do not have gluten and are rich in nutritional content (quinoa). We plan to develop our products by first producing and introducing to the market simple products like cocoa liquor, butter, dark chocolate bars and pills for cooking. While we produce these products, we will continue to develop an energy bar, made with Brazil nut paste, mixed with coconut, honey and quinoa and covered with chocolate.
The first products will be sold locally and in regional markets (Bolivia, Argentina, Peru and Chile). First, our client base will be food processing companies that produce bonbons and chocolates and specialized bakeries. At the same time, we will have products for home cooking that will be introduced in local markets. The energy bar will be tried in local and regional markets first, to test levels of acceptability. Then, in a second phase, after we have identified a European partner, have transferred adequate technology for the new processing plant, have put in place quality control standards and have quality production with HACCP certification, we will be ready to export to Europe. Our primary market target for energy bars will be the celiac population that can only eat gluten-free products. At that time, we will be developing second generation products that can also be exported to Europe and the US, such as natural multi-grain cereals and muesli bars.
During the first 2 years, our customers will be about 6 food processing companies in Bolivia, 3 in Argentina, 2 in Chile and 1 in Peru. Thus, we intend to cover costs and generate profits by year two. The second year, our customer base will include the local markets for chocolate bars and pills for cooking. Also we expect to have our energy bar ready to enter the local markets in year two and be able to export to Europe and the US by year three.
Our end-user products will be aimed at final consumers both in regional markets as well as in international export markets. Therefore, our business strategy is to develop a strong partnership with a European based company that can import and distribute these products.
Our customers will prefer our products because they have excellent quality, are natural and organic, taste good, have competitive prices and also because their consumption will help preserve the rain forest and will guarantee much needed income for poor families in Bolivia.
Our marketing will emphasize the following concept: “Natural and organic chocolate from the tropical rain forest". Therefore, the main marketing strategy will be channelled through the natural and organic products market. A second strategy will be directed toward an ecological and environmentally sensitive audience, who is willing to pay a premium for products that help save the rain forest. A third approach, will be to market our products with a social responsibility label, to participate in the “fair trade" or “just commerce" networks in Europe. We think we can use the third approach, because we comply with all social and ethical considerations, since our business will be owned in part by indigenous groups of farmers and forest gatherers and is directed to help directly around 2,000 of these poor families.
The concept of natural and organic chocolate is not new, except that we will market a “newly" discovered variety that exists in the tropical forest of Bolivia as part of its natural habitat. Most cocoa bean producing countries in Latin America, including Brazil and Ecuador are using improved varieties of cocoa plants, through genetic modification and the use of hybrids. These improved varieties have higher yields and bear bigger fruits, factors that account for their preference by agro businesses. Some of this production is being certified with an organic label. The same trend occurs in Bolivia, except now our project has chosen to work with the natural variety known as “criollo" in Bolivia. Our decision is based on the fact that these plants exist in great numbers throughout a vast territory that involves communities of poor indigenous groups. Also, one important reason to use this natural variety is its excellent aroma, much higher fat content and its natural resistance to plagues such as witches’ broom that has decimated much of the cocoa bean plantations in Brazil and other countries. We think a definite trend in the international market is directed toward natural and organic products, away from genetically modified varieties.
Currently, our partners are national groups of producers and gatherers. They will benefit from this project in 2 ways: first, the project will transfer technology to them in organic production and will implement new plots of cocoa bean plantations in agroforestry systems in reforested areas. Secondly, these groups will participate in the processing and export business, by owning up to 30% of the shares of the processing company to be created.
Nonetheless, a partner in Europe is needed to guarantee a distribution system for our products there and to acquire much needed technology in processing.
We started working this project two years ago, by transferring technology and implementing new plots of cocoa bean plants through reforestation, in indigenous lands in 2 separate areas of the tropical rain forest of Bolivia: Madidi and Baures. Soon, we will start a third project in the region of Chapare. In these areas we have established newly formed cocoa-bean producer associations, which will now participate in the processing and export business. The reforestation and technology transfer projects have been partially funded, which has facilitated the start up of the project in general. Nonetheless, we need more funds if we want to add more communities and associations to the project. We have identified 5 major areas where wild cocoa grows naturally and abundantly in the forest and where we can help organize producer associations. We also need fresh funding for the implementation of the processing plant. Therefore, we hope to qualify for funding through the PSOM program of The Netherlands and we think that this can be accomplished once we start up the processing plant with Bid Challenge prize money.
Development
This project will generate 33 newly created jobs. Although, the main impact will be felt by 2,000 farmers and gatherers who make up the bulk of the beneficiaries of this project, because they will improve substantially their current level of personal income. These impoverished rural families have a per capita income of $us 500.- per year. This project aims to improve this level of income in 200% with the production of one hectare of cocoa per farmer.
Our intervention in rural communities is directed toward human development, which includes economic growth but also takes into consideration improving the quality of living standards. For example, Carmen del Emero in the Madidi region is a community that has been part of our cocoa project during the last 2 years. This community is isolated since its only means of transportation is by boat, through a river. They have always been dependant upon middlemen who barter with them for their cocoa beans, giving them in exchange sugar, salt, food stuffs, school supplies, etc. at much higher prices than market value. Here, we have installed a community shop, run by the same community, which provides these goods at market prices and receives from the gatherers fermented cocoa beans in exchange. This way, these families are now more empowered and less dependant on middlemen.
The technological transfer component is very important in the project since it involves management plans for organically grown cocoa beans, post harvest technology in fermenting and drying the beans properly and in packing and transportation.
Last year we were able to obtain a certificate for organic production of cocoa beans in the natural forest. Being the first time that this happens in the region of Madidi, it has motivated the local population and has brought renewed hope to these communities since they expect to receive higher revenues for their newly certified production. The certification implies that certain rules need to be complied with. These rules guarantee that the natural habitat of the forests will be respected and preserved, which in turn will protect the rich biodiversity that exists there. For this purpose, an Internal Control System has been designed and is being implemented by the community, with monitoring from local promoters and technicians from the certifying agency and our company.
Finally, the spin-off impact of this project is great, since the likelyhood for its replication is very high. Many more producer associations can be organized, providing higher incomes to tens of thousands of farmers and gatherers in the tropical forest of Bolivia after the first 5 years. By year 10 we expect to have about 20,000 farmers and forest gatherers, with an average per farmer of 3 hectares of reforested land, producing cocoa beans in agroforestry systems, in addition to the natural production of cocoa beans that comes from the forests.
