World of Cocoa: Cocoa from Central and South America - Insight into our sourcing approach

Our focus on Central and South America is not the result of a later strategic shift but follows directly from our company structure. Managing director Gonzalo Toro is from Venezuela. Language, cultural understanding and personal networks have shaped our access to producers and exporters from the very beginning.

This proximity remains a key element of our sourcing today. It facilitates communication, builds trust and is particularly valuable when developing long-term partnerships.

Our portfolio in detail
We primarily source fine flavour cocoa from Peru, Ecuador and Venezuela, with Madagascar as an additional origin and, in smaller volumes, origins such as Colombia and the Dominican Republic. We are currently expanding our portfolio to include Nicaragua, with a first test container already on its way.

The qualities we trade are mainly in the range of Grade 1 and Grade 2. As cocoa grading is not standardised globally, different naming systems are used depending on origin and trade practice, with terms such as F1 and F2 referring to comparable quality levels. Our focus is on genetic varieties such as Criollo and Trinitario, which are suited to complex flavour profiles.

Examples within the portfolio include:

• Ecuador with Nacional as a reference for aromatic cocoa
• Venezuela with a high share of Criollo genetics
• Peru as one of the largest exporters of organic cocoa

At the same time, we also handle standard qualities with lower levels of fermentation where these are required for specific applications.

It is important to note that origin alone does not define quality. Even within Latin America, quality varies significantly.
In Ecuador, for example, large volumes of CCN 51 are produced, which are typically assigned to the bulk segment. Fermentation and post harvest processes remain the determining factors.

Position within the global market
Fine flavour cocoa represents a relatively small share of global production, often estimated at around 10 percent, and differs significantly from the volume driven bulk market. We therefore operate in a segment that is clearly distinct from the bulk market. West Africa dominates this segment with Forastero varieties and highly standardised processes, enabling large volumes and consistent baseline quality.

Latin American cocoa offers different characteristics. It is generally less bitter and less astringent, with greater aromatic complexity. At the same time, production structures are often smaller scale, allowing more control over individual lots but also leading to higher variability.
These differences are a key factor in how the market is structured.

Customer requirements
Most of our customers operate in the premium segment, with clearly defined expectations regarding raw material quality.

Key parameters include:

• homogeneous bean structure
• mould levels below 1 percent
• moisture below 7.5 percent
• minimal foreign matter

Beyond these technical criteria, origin, flavour profile and traceability have become increasingly important. Many customers are willing to pay above market price for higher quality, provided consistency and reliability are ensured.

Collaboration and processing
We primarily work with exporters with whom we maintain regular contact. Direct interaction with producers is complemented, where possible, by visits to origin. These are carried out by Gonzalo Toro together with members of our sourcing team, including Antonio López and Rodrigo Molina.

A significant part of our quality control lies in processing. Many of the lots we handle come from smaller fermentation units with a higher degree of control.

Cocoa is typically shipped in jute or PP bags rather than in bulk formats. This allows for clearer lot separation and more precise quality assessment.

Traceability and regulatory requirements
With the introduction of the EUDR, traceability has become a key requirement. We only proceed with shipments once the necessary geolocation data is available. Each lot can therefore be traced back to farm level.

We are certified under Fairtrade and Rainforest Alliance and apply these standards where relevant. At the same time, requirements regarding social and sustainability data are increasing across the market. While availability of such data still varies depending on origin and exporter, we work closely with our partners to ensure that relevant information is provided wherever possible.

Complementary origins
Our activities in Africa are intended as a complement to our core focus. Madagascar has been part of our portfolio for many years, particularly in the organic segment.

We continue to monitor other origins, including Côte d’Ivoire, in response to market developments. There are currently no plans for a structural shift away from Central and South America.

Bottom line
Our sourcing focuses on Central and South America, with selected additions such as Madagascar where they fit specific quality requirements. Across all origins, quality is not determined by country of origin alone, but by variety, fermentation, processing, traceability and the reliability of the partners.