Opportunities for Latin American Cocoa Beans in Japanese Market

Transcripción

1 Opportunities for Latin American Cocoa Beans in Japanese Market Yoshinori Doi Meiji, CO. Ltd. WCF 24 th Partnership meeting October 15-16, 2013 Santo Domingo, Republica Dominicana

2 Japan Domestic Chocolate Production & Import/Export Unit: M/T Source: Domestic Production estimated by All Nippon Kashi Association (ANKA), Import/Export by Japan Ministry of Finance Composite Index by Cabinet office, Government of Japan

3 Japan Domestic Chocolate Consumption vs. Selected Countries Unit: M/T (per Capita in KG) Source: 2010, CCAJ (International Confectionery Association, CAOBISCO)

4 Japan Cocoa Bean Import, Grindings & Liquor Import Unit: M/T Source: Import Statistics by Japan Ministry of Finance Grindings by CCAJ

5 Japan Cocoa Bean Import from Latin America Unit: M/T Source: Japan Ministry of Finance

6 Japan Population, % of 65 Years Old and Above Source: Ministry of Internal Affairs and Communications

7 Japan Market High Quality & Low Price More Health Conscious, Anti-Aging Bigger Spending per Child by Parents and Grandparents Always New Products (extremely short product life cycle) Where is an opportunity in chocolate business? Japan Population Pyramid

8 Excellent point of Latin American Cocoa Beans 1Fine Cocoa Flavor % of Each Flavor-Type in Total Aroma

9 2High Polyphenol Content Polyphenol Content in Nibs

10 Effects of Cocoa Polyphenols and Cocoa Consumption Anticardiovascular Antihypertensive (to reduces blood pressure) Antiatherosclerosis (to reduce LDL-Cholesterol) Antidiabetic (increase in Insulin Sensitivilty)

11 Problems to be solved 1. Agri-Chemical Residue to purchase beans from the specific areas 2. Higher Cadmium Content to look for the specific area and take care of recipes 3. Insufficient in Quantity of High Flavor Beans to improve the productivity

12 Conclusion 1. Future in Japanese Market 2. Advantages of Latin American Cocoa 3. Problem to be solved

13 Emerging Opportunities for Ecuador Cocoa in Asian Markets Santo Domingo, October 16th 2013

14 Table of Contents 1. Ecuador Background 2. Opportunities in Asia 3. Exports from Ecuador to Malaysia 4. Conclusions

15 1. Ecuador Background

16 1. Ecuador Background Production in Ecuador is increasing constantly due to the following factors: Investment in new big scale plantations Newer farms reaching maturity, and consequently higher production yields Intensive campaigns by the Ecuadorian Government, NGOs and the private sector encouraging the small holder farmer to rehabilitate their old cocoa farms in order to improve their income Cocoa beans and products exports have grown from between 100,000 to 115,000 MT per year 5 years ago, to close to 190,000 MT currently

17 1. Ecuador Background 350,000 Ecuador Year Exports (MT) 300, , , , ,000 50,000 0

18 1. Ecuador Background Since the early stages of President Correa s first term (2007), this Government has placed a special emphasis on cocoa, as it represents over 400,000 cocoa farmers, while thousands more are involved working in cocoa fields, commerce, logistics, industrialization and export of the product. The Government has understood that in order to keep cocoa sustainable and protect its relevancy, cocoa producers have to transition from small-holder farmers into small business people. The National Cocoa Plan, which was launched last year with the goal to increase productivity of the small holder cocoa farmer, will for sure influence positively the growth of our production in the years to come.

19 1. Ecuador Background Ecuador exports to Asia: Ecuador has been serving the Japanese market with fine flavor Arriba Nacional cocoa for many years, as one of their main ingredients for most of their chocolate makers Recently, exports of CCN-51 cocoa have become very significant to countries such as China, Indonesia and Malaysia Exports to Asia for the first 11 months of the 2012/13 cocoa year reached 32,600 MT, which is equivalent to 19% of the country exports for the period

20 2. Opportunities in Asia

21 2. Opportunities in Asia Asian cocoa industry is very vibrant, with a forecasted grinding total of 855,000 MT for the 2012/13 cocoa year Top 3 Asia & Oceania Grinders 2012/2013 ICCO Forecasts Malaysia Indonesia Singapore

22 2. Opportunities in Asia At the same time, production in the area has been declining in recent years, with a forecasted total of 515,000 MT for the 2012/13 cocoa year 700 Asia and Oceania Yearly Production / / / / /13

23 2. Opportunities in Asia This situation created a cocoa deficit for the region, which becomes an opportunity for bean exporting countries such as Ecuador Asia & Oceania Production vs. Grindings Grindings Production / / / / /13

24 3. Exports from Ecuador to Malaysia

25 3. Exports from Ecuador to Malaysia Malaysia is the biggest Asian cocoa processor, and fifth in the world Yearly grindings of around 300,000 MT cocoa beans Top 10 World Grinders 2012/13 ICCO forecasts Netherlands Côte d'ivoire United States Germany Malaysia Indonesia Brazil Ghana France Spain

26 3. Exports from Ecuador to Malaysia As Malaysia s annual cocoa production is below 10,000 MT, for many years it has been a major importer of cocoa beans Historically, the main supplier for Malaysia has been Indonesia, however in early 2012, Indonesia s government taxed cocoa bean exports, as an incentive to local industry As Indonesian cocoa beans became costlier, Malaysian processors began buying heavily from Ecuador. Malaysia became the second largest buyer of Ecuadorian beans, second only to the United States

27 3. Exports from Ecuador to Malaysia Last April, Malaysia introduced new regulations for cocoa bean imports, in order to avoid the spread of the South American Leaf Blight SALB- (Microcyclus ulei) which affects rubber trees and is endemic to Central and South America These measures include that cocoa cannot be produced, post harvested, packed or stored without a minimum 50 kilometers distance from rubber trees, and that cargo must be kept at temperatures above 25 C for at least 30 days As a direct result of the above measures, exports from Ecuador to Malaysia stopped to a halt since last June

28 3. Exports from Ecuador to Malaysia 4,000 Ecuador Monthly Exports to Malaysia 3,500 3,000 2,500 2,000 1,500 1,

29 4. Conclusions

30 4. Conclusions It is clear that Ecuador has the potential to become a volume supplier for the Asian cocoa industry: Asian industry consumption is significantly higher than their cocoa production Ecuador production is growing significantly, expecting to surpass the 300,000 MT mark by the end of this decade Ecuador s CCN-51 cocoa is an ideal grade for the industry as it has excellent yields and high butter content while at the same time a very low FFA content

31 The contents of this presentation were prepared in October 2013 for discussion only

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33 JAPON Idioma único Cultura de la perfección Constelación de detalles La atracción francesa: ejemplo de la pintura (Monet, Manet, Toulouse- Lautrec, Katsushika Hokusai, Utamaro Kitagawa Respeto y distancia REP. DOMINICANA Idioma extendido Cultura de la flexibilidad Vamos al grano La atracción americana: Mc Donald, Progreso, aceptación del cambio Abrazos y besos

34 Eiffel Tower Tokyo Tower

35 Primer productor y exportador en RD de cacaos finos. Líder en cacaos finos, de domaine, a la medida Líder en Investigación &Desarrollo aplicada al cacao Microbiología y Bioquímica Lactobacillus Paracasei Rizek

36 Los Ancones Palmaritos Los Vásquez Buena vista Dos Rios Don Hector Tainori Caraibe Ramonal

37 Pequeños productores afiliados: 4,500 Aéreas certificadas: 22,000 Ha Volúmenes certificados: 12,000 TM

38 Los agricultores afiliados a FUPAROCA están actualmente certificadas por la IMO según NOP, CEE, JAS y las normas de Bio Suisse, así como de acuerdo con la norma final de Rainforest Alliance para el cacao en grano y con normas UTZ y Comercio Justo. Certificación lograda en 2013: FAIR TRADE USA

39 Ecuador Ghana Costa de Marfil Venezuela Recetas tradicionales europeas Paladares conservadores Volumen de cacao importado desde Rep. Dominicana: 49 TM Volumen total de cacao importado por Japón: 50,000 TM aprox Porcentaje de participación de Rep Dominicana = 0.09% 0 Import from RD 49TM Total Import Japan 50,000 TM

40 CAMBIOS 2005~ 1. Rompimos el hielo en FOODEX Crisis Ecuador. 3. Crisis Venezuela. 4. Crisis Agroquímicos y pesticidas 5. Interés en nuevos sabores y perfiles aromáticos

41 Importación de Cacao desde RD hacia Japón TM 940 TM 500TM 2,000TM Total de importación anual de cacao en Japón: 50,000 ~52,000TM Porcentaje de participación de Rep. Dominicana para el 2012 = 3.8%

42 LOGROS Aceptación del cacao Dominicano en el main stream Cambio de percepción del País: antes nos confundían con Dominica 3 cacaos con Denominación de Origen Meiji 100% Chocolate Café No. 20 y 32 Una flor y Rico Flor de Fuji Oil Flexibilidad en las recetas TENDENCIAS Dominicana sustituye a West Africa Certificación Orgánica Traders involucrados en la promoción Cacao con atributos saludables Nueva generación Japonesa propensa al gasto y al cambio Compradores realistas y pragmáticos

43 Alianzas en produción Cacao con atributos saludables.... Sintonizar el paladar y armonizar el vocabulario No decir siempre que sí. Fe y paciencia