Going loco over cocoa for chocs

08 January 2015 - 02:02 By Bloomberg
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Bioactive ingredients found in cocoa sharply reversed age-related memory decline in a group of volunteers, recent research indicated.
Bioactive ingredients found in cocoa sharply reversed age-related memory decline in a group of volunteers, recent research indicated.
Image: AFP Relaxnews ©Sven Hoppe

With chocolate prices surging, a former Credit Suisse banker wants to help revive cocoa farming in the Amazon basin, where the beans are thought to have evolved about 15000 years ago.

His campaign, located in Peru, is part of a Latin American push to gain more control of an industry now dominated by West African farmers who provide 70% of the market.

The effort comes as drought, disease and government price controls have cut into the ability of Africa's suppliers to meet demand, boosting prices by 7.4% in 2014.

Enter Latin America, where academics believe cocoa originated.

At one time, the confection was known by the Aztecs as the drink of the gods, and eventually it was introduced into Europe by Spanish conquistadors.

Now, the former banker, Dennis Melka, is joining a push by Brazil, Ecuador and Colombia to return a legacy product to its roots.

"The market is growing faster than Africa's ability to supply it," said Melka, CEO and founder of United Cacao.

"It's an incredible window of opportunity to supply and change the confectionery industry."

Cocoa is a temperamental crop, and can only grow within about 10 degrees of the equator. With land readily available in the South American jungle and ideal conditions, Melka said the Amazon region is emerging as a key supplier for chocolate producers.

Cocoa prices have been rising since 2011, and presently stand at about $2900 (almost R34000) a metric ton.

"We're rushing to plant because it's an incredible price," Melka said.

The International Cocoa Organisation predicts a shortfall of 100000 metric tons in the current growing year.

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