sustainable cocoa in the dominican republic - forestfinance
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Sustainable CocoaIn the Dominican Republic
05/01/2023 Global Landscapes Forum / London, June 2016
Corporate Structure
DesertTimber Consulting eG is the only consulting company specialized in afforestation projects in arid regions using pre-treated sewage water. The company is owned and managed by several specialists and scientists from Germany and Egypt.
ForestFinest Consulting is a leading land use and carbon forestry consulting company, based in Germany. Special areas are forest management, carbon certification, GIS and drone services and arid region afforestation
Nature Bank will form the new umbrella brand for Offsetters, FForestFinest Consulting and ERA. Nature Bank will establish itself primarily as a specialized asset management firm on investments in sustainable cultivation and processing of agricultural commodities and forests. NatureBank is a Canadian company.
CO₂OL is an expert for corporate climate protection and high quality carbon credits derived from afforestation and reforestation projects all over the world. The Co2ol-team is part of ForestFinest Consulting GmbH (FFC) .
ForestFinest Consulting
ForestFinest Consulting is a leading consultancy and investment service provider for sustainable land use projects. With a highly qualified core team and a wide network of leading experts, we assist investors and project owners in the development, establishment and management of forestry and agroforestry projects worldwide.
Our MissionTo establish and manage customer shaped investment opportunities with meaningful impact and attractive returns for investors.
We believe that investment capital can be key to solve global challenges
Countries of Corporate Activities
International Group with project experience and experts around the world
Delivered – Best Practise Examples
Cocoa project Peru (since 2012)• Composition of plant systems adjusted to local
conditions, including the selection of appropriate cocoa varieties
• GIS mapping and adjusted planting concept• Supervision of own field management team• Farm installation and supervision of the farm
management• Design of management plans• Planning of adjusted harvest and post-harvest
technologies• Preparation of UTZ certification processes
Cocoa project Panama (since 2009)• Composition of plant systems and selection of cocoa
varieties• Farm installation and supervision of the service
provider• Design of management plans• Running post-harvest technologies to produce stable,
high crop qualities since 2014• Conduction of tests and optimization of flavor
Successfully UTZ certified since 2014
Kakao – Weltmarktsituation
Angebot und Nachfrage
Despite the yearly fluctuations, market trends published by ICCO in March 2015 suggest that in the next 10 years both supply and demand will steadily increase to reach on average 4.7m tons in 2019/2020 as shown on the graph above.
Investing in Cocoa – increasing global demand in cocoa
Source: ICCO
Forecast of the World Cocoa Supply and Demand
Cocoa bean price still at relatively high levels, other raw materials below prior year
Investing in Cocoa – uncorrelated from other commodities
Source: BARRY CALLEBAUT roadshow presentation 2015
Cocoa demand will rise by 30% by 2020
Investing in Cocoa – increasing demand
Source: http://www.theguardian.com/sustainable-business/fairtrade-partner-zone/chocolate-cocoa-production-risk
Source: http://www.mars.com/global/brands/cocoa-sustainability/challenges.aspx
Investing in Cocoa – key success factors:Sustainability
The Hershey Company committed to source 100 percent certified cocoa for all chocolate products around the world by 2020.
In 2009, Mars Inc. committed to having all of its cocoa volume certified sustainable by 2020.
Key success factor 1: Sustainability
Italian confectioner Ferrero has announced is short term goals towards sourcing 100% third-party verified sustainable cocoa by ist 2020 target. Source: www.confectionerynews.com
Cloetta, Bahlsen, etc. give commitments for UTZ certified cocoa.
Investing in Cocoa – key success factors:Sustainability
“Many 1000 hectares of Amazonian rainforest deforested to establish cocoa farms for international market.”At long term: negative impact on site conditions such as soil fertility and microclimate, thus affecting cocoa productivity!!! No certification (UTZ, FLO, RA etc.) possible !!!Source: Environmental Investigation Agency Report
Child Labor and Slavery in the Chocolate IndustryAffects up to 12,000 of the 200,000 children working in cocoa plantations of Côte d'Ivoire. It is estimated that more than 1.8 million children in West Africa are involved in growing cocoa.
Source: World Cocoa Foundation
Key success factor 1: Sustainability
Non sustainable cocoa production is a key risk for future business and success!
Investing in Cocoa – key success factors:management approach
Key success factor 2: long term management experience
We have real experience along the whole production chain!
Establishment
• optimized clone mix• Structured planting
pattern• Mixed culture with
temporary and permanent shade trees
• Pollinating insects• Low impact soil treatment
Project choice
• Soil and topography• Climate and water• Contamination risks• Staff and wages• Transport and logistics• Security
Poor
soil
Poor
shad
ow
Best
Pra
ctise
Best
Pra
ctise
Investing in Cocoa – key success factors:management approach
Maintenance
• Site-adapted management
• Frequent disease controls• Adjusted harvesting
methods• Mechanization, where
possible
Key success factor 2: long term management experience
01.05.2023 Conference on Land Use 12Non sustainable cocoa production is a key risk for future business
and success!
Post-harvest
• Fermentation and drying adjusted to site, varieties and quality requirement
• Optimization of processing protocols
• Cacao quality assessments
Poor
ba
d
good
good
Key success factor 3: CountryAvailability of young qualified human ressources in the Dominican Republic
• Almost the entire country is cocoa production area. • Experienced and motivated people are available in the proposed project areas
Investing in Cocoa – key success factors:Country
Source: Consejo Nacional de Zonas Francas de Exportación
Key success factors 3: CountryThe Dominican Republic is an etsablished and important cocoa producer
Investing in Cocoa – key success factors:Country
• Largest organic cocoa producer• Fine or Flavor country (ICCO
Appendix C)• Number 8 cocoa producer• Low disease rate due to seasonality
and absence of certain deseases
• Excellent soil and wheater conditions
• Proposed planting areas are outside of hurrican pathways
• Large fincas with appropriate soil and existing infrastructure available
Sources: ICCO; SSI Review 2014; CONACADO
Côte d´Ivoire
Ghana
Indonesia
Brazil
Nigeria
Ecuador
CameroonDominican
Republic
0 200 400 600 800 1000 1200 1400 1600 1800
1631
1020
410
227
220
210
210
70
1550
950
430
220
230
230
210
70
1597
950
438
224
234
238
218
73
Main cocoa producing countries(thousand tonnes)
Forecasts for 2015/2016 Estimates for 2014/2015 Estimates for 2013/2014
Organic production 2011 (MT)
Working Group – Discussion Topic
Sustainable cocoa production at scale is still a recent challenge.
How can be ensured that significant positive impact for the 40,000 cocoa smallholders on the island can be generated?Discuss potential: • negative effects such as increasing prices for inputs, competition to
smallholders for processing capacity• positive effects such as increase in production quality, outgrower concept,
etc.
Positive Impact on Nature and Livelihoods
Baumschulen
Management & Monitoring
Zertifizierung
Produktion & Weiterverarbeitun
gZertifizierung
Vermarktung
Tracability
360° Konzept
Forest Finest Consulting GmbHEifelstr. 20
53119 BonnGermany