Cocoa - the global picture

While today was mostly dedicated to my thesis, I took a lunchtime break to explore cocoa a little. Where is it from? Where does it go? I hope you enjoy my findings (courtesy: FAOSTAT).

Production (2010):

Ivory Coast - 29%
Indonesia - 19%
Ghana - 15%
Nigeria - 10%

These 4 countries alone produce 73% of the worlds cocoa, wow! The entire Americas produces 12% of the entire cocoa production in the world, 9% from Brazil and Ecuador.

Imports of cocoa beans (2010):

Netherlands - 24%
United States - 14%
Germany - 11%
Malaysia - 9% (from Indonesia?)
France - 5%
Belgium - 5%
UK - 5%

These 7 countries buy almost 70% of total imports, which is 50% of all cocoa beans produced in the world. (73% of cocoa beans are exported unprocessed).

What does this conclude: the worldwide cocoa market is very concentrated in "pockets" of production and processing. Is this an open door for countries like Nicaragua that are placed strategically close to the US, a huge cocoa market? Or does it suggest that economies of scale (large quantity) is a "must" in the cocoa industry?

My job is to do the research, I'll let you decide!

Why FairTrade? Many small farmers in LICs get cheated - either they get paid an unreasonably low price, or they never get paid at all. Here, a cocoa producer in Nicaragua gets his fair share of the profit.