The cocoa value chain

From cocoa beans to chocolate bars

Most cocoa beans are produced on millions of smallholder farmers across Africa, Asia, Latin America, and Oceania. It requires numerous processing steps to turn the beans from freshly harvested cocoa pods into chocolate and other cocoa-based products. Cocoa beans have a long journey from the farmers to the final consumers.

Production
Cocoa trees grow in the tropical belt between 20° north and 20° south of the equator. They need a warm, humid climate. Most varieties thrive best in the shade of larger trees. The fruits of the trees, the cocoa pods, grow directly from the trunk or old branches and can be harvested during two peak harvests per year. The pods are harvested by hand and cut open to remove the cocoa beans from the husks. The fresh beans are fermented and dried to develop their chocolate flavor and aroma.

Trade and processing
Once fermented and dried, the cocoa beans are packed in bags, bought by distributors or governmental agencies and brought to central warehouses. A small proportion of the beans are processed in the country of origin, the rest is shipped to processing plants. The beans are cleaned, shelled and roasted, and ground into cocoa mass. Some of the mass is pressed to produce cocoa butter and cocoa powder.

Chocolate manufacturing
To make chocolate, chocolate manufacturers mix the cocoa mass with cocoa butter, sugar, and sometimes milk powder. Depending on the desired taste, nuts and other ingredients are added. Some manufacturers roast and grind the cocoa beans in their own plants before molding chocolate or creating other cocoa-based products.

The food trade
Food retailers buy the finished cocoa products either directly from manufacturers or through wholesalers. A small but growing proportion of products are sold via internet channels.

Consumption
Consumers buy chocolate and other cocoa-based products and thus represent the final link in the cocoa value chain. Consumer behavior and willingness to pay have a major impact on the entire cocoa sector.