About Cocoa (CC)

The Cocoa tree is found only in tropical climates, typically not ranging more than 20 degrees from the equator. The fruit of the Cocoa tree appears as pods primarily on the tree's trunk and lower main branches. When ripe, these pods are cut down and opened, and the beans are removed, fermented and dried. Cocoa was originally cultivated by the Aztec Indians in South America, but has since been widely cultivated in all nations which have the tropical climates required for growth.

The Cocoa Tree thrives in the lower storey of the evergreen rainforest where the climate has the following conditions: temperature is relatively high ( average temperature between 66 F to 92 F); rainfall must be plentiful and well distributed, with average monthly rainfalls in excess 1500mm (rainfall below 100mm per month for 3 months will damage Cocoa trees); shade and humidity are preferable.

The top 10 producing Cocoa countries and their 1999/2000 production in thousand tones are as follows:

Cocoa trees take roughly three to five years before a cocoa crop can be harvested. The average Cocoa tree is productive for up to 25 years, so the long lag time between the original planting and production is not a major issue. Cocoa trees do not reach full production capacity until they are roughly 10 years of age.

The Cocoa tree typically produces two crops each year. In Cote d'Ivoire, the largest Cocoa producing nation in the world, the main Cocoa harvest runs from October to March, which is roughly 5 to 6 months after the wet season. The mid crop harvest runs from May through August. The main crop accounts for roughly 75 to 80% of the total Cocoa produced in Africa, while the mid crop accounts for roughly 15 to 20% of production. The Main crop and mid crop seasons for the rest of the major producing countries is as follows: Ghana (main: Sep/Mar, mid: May/Aug), Indonesia (main: Sep/Dec, mid: Mar/Jul), Brazil: (main: Oct/Mar, mid: Jun/Sep), Nigeria: (main: Sep/Mar, mid: Jun/Aug), Cameroon: (main: Sep/Feb, mid: May/Aug) and Malaysia (main: Oct/Dec, mid: Apr/May).

Because Cocoa has such a long production cycle and the fact that production tends to centered in lesser developed countries, disease is a constant threat to the Cocoa market. Common Cocoa tree disease are Witches Broom and Black Pod, which are devastating to a Cocoa orchard. The International Cocoa Organization (ICCO), which is a cartel established to ensure fair international trade in Cocoa and to ensure steady supply and support prices, has been fighting these two common disease for the past several years with moderate success.

The main demand for Cocoa Beans is from processors, who either ferment or grind the bean to be used in a variety of products ranging from When ripe, these pods are cut down and opened, and the beans are removed, fermented and dried.

The cocoa butter extracted from the beans is used in a number of products, ranging from cosmetics to pharmaceuticals, but its main use is in the manufacture of chocolate candy. The Cocoa bean is fermented and dried. The waste water and shells are removed, and the remaining "nib" is roasted. The roasted nib can then be grind into liquor for Chocolate or liquor for processing. Liquor for chocolate is combined with sugar and milk (optional), blended and refined producing a liquid chocolate (couverture) which can molded or stored as a liquid. Liquor for processing can be refined into either Cocoa cake or Cocoa butter, which are used by confectioners and other industries.

The major consumers and processors of Cocoa are as follows with their 1997/98 grindings in thousand metric tonnes:

Most consumption of Cocoa and Cocoa by-products is done in Europe and the United States. The estimates for 1998/99 cocoa year show that world cocoa consumption was around 0.525 kilo per head (or 0.972 kilo per head excluding China, India and Indonesia whose large population has a disproportionate effect on world per capita consumption). There are, however, wide variations in consumption levels between the regions. Countries in Western Europe consume on average around 1.729 kilos per head, the Americas 1.299 kilos, Asia and Oceania 0.093 and Africa 0.146kilos.

» Click here to learn more about Cocoa Prices
» Click Here for Cocoa Quotes
» Back to Commodity Info Index