Caribbean Export OUTLOOK 2016

This combined effect of increased productivity of

the cocoa trees and improved labour operational

efficiencies is leading tomuch greater profitability

andmore income for the new generation of cocoa

farmers adopting these methods.

Competitive Positioning,

Value-add & Attracting

Greater Investment

Although fine cocoa production levels account

for only 5% of the weight of total cocoa global

figures, there is a high premium price on the

product, vis-à-vis bulk cocoa. For generations, the

prevailing quality of cocoa frommost Caribbean

countries has been universally classified as fine

cocoa and that classification alone attracts a price

premiumof 50% to over 100% of bulk cocoa bean

prices. Fine cocoa and its derivatives are in essence

niche products and competitive positioning in the

marketplace will be on quality and differentiation

and not price.

Located at Centeno, in Trinidad and Tobago, is

the world’s largest repository of genetic material

for cocoa – the International Cocoa Genebank,

about 40hectares of diverse varieties of cocoa trees

imported fromtheAmazon andCentral America.

This resource initially gave rise to the Trinitario

fine cocoa variety through hybridisation. Now,

tantalisingly, even more quality differentiation

is possible with innovative genetic manipulation

linked to flavour profiling, and the Genebank

can be used for further competitive advantage,

providing new tastes in premium priced

cocoa with greater market segmentation and

specialisation. Geographical Indications (GIs)

is another marketing mechanism for extracting

higher prices for the cocoa derived products

which include health foods, confectionery, drinks,

cocoa powder, cocoa liquor, and cocoa butter.

The Caribbean also has an excellent track record

of innovative value-added agro-processing of its

crops into globally marketed foods and drinks.

For example, rums (from the sugar industry), Tia

Maria & Sangster’s Liqueurs (from coffee), Ting

soft drink (from grapefruit), Angostura Bitters,

exotic cuisine such as “jerk” fromherbs and spices.

So it comes as no surprise that over the past 10

years or so, the Caribbean marketplace has given

rise to a growing list of indigenous chocolatiers

– Cocobel (Isabel Brasch, Trinidad), Chocolate

Dreams (Michelle Smith, Jamaica), Tobago

Estates Chocolates (Duane Dove, Tobago), Exotic

Caribbean Mountain Pride (Astrida Saunders,

Trinidad) and the Grenada Chocolate Company,

amongothers.Betweenthem,thereisanimpressive

array of high quality, world-class, cocoa-derived,

innovative food, drinks and health products

for local markets. There exists tremendous

opportunity for these businesses to grow further

and for new entrants to emerge to supply the 30

million tourists that visit theCARIFORUMregion

withhigh quality branded chocolate products sold

at premium prices. Increased demand can only

serve to increase the prices paid to the local growers

for their cocoa beans.

Further afield, access to the largest andwealthiest

export markets in the USA, Canada and the EU

also makes the value-added in this sector an

attractive proposition for overseas investors.

Indeed, a few foreign investors are already

present with Hotel Chocolat (Saint Lucia) and

the Diamond Chocolate Company (Jouvay,

Grenada) being in the vanguard of this investment

activity. They each provide useful insights into

possible models of investment in the Caribbean,

particularly when it comes to joint ventures.

The increasing availability of more affordable,

modern, integrated, mini “bean to bar” chocolate

processing factorieswill only accelerate these types

of investment ventures across the Caribbean in

the years ahead.

Trade in cocoa beans within the Caribbean

needs to be carefully facilitated (no tariffs or

duties; strong disease control measures, etc.)

to fully realise the synergies of comparative

advantages available across the region. For

example, low energy costs in Trinidad favour

energy-intensive processing of the beans,

whereas the larger tourist traffic in Jamaica

favours sale of finished cocoa products to this

market.

Trade in cocoa beans within the Caribbean needs to be carefully facilitated

(no tariffs or duties; strong disease control measures, etc.) to fully realise the

synergies of comparative advantages available across the region.

OUR COMPETITIVE ADVANTAGE