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Replying to @stephen_yeboah @JonathanSaid1
Yet most chocolate manufacturing centres have managed without the advantage of being centres of cocoa farming. So it is not clear that it is an added advantage! e.g.
@cesifoti 's work on product space depending on capabilities1 reply 0 retweets 0 likes -
Certainly, there are benefits to adding value to
#cocoa: bringing economic spin-offs to#Switzerland, the Netherlands, US. etc. It can be done in#Africa too. This is why governments are beginning to rethink the whole chain, not just producing and exporting raw beans.1 reply 0 retweets 0 likes -
Right but'$100bn market' - big chunk is retailing, then manufacturing (inc branding, blending, cost of other ingredients etc.. ) Value add at processing/grinding not huge - Maybe cocoa producing countries can be competitive in other parts of chain but theres not $100bn in it!pic.twitter.com/GFqX42PeR6
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This is a good article on this topic. With a focus on fixing binding constraints & the targeting of the growing market in
#Africa, there is scope to capture a larger share of the pie. See Cemoi and Olam new chocolate factories in#cotedivoire https://qz.com/981562/ghana-ivory-coast-are-marketing-more-chocolate-to-the-world/ …1 reply 0 retweets 2 likes -
Replying to @JonathanSaid1 @MForstater and
Re product space, while
#cocoa doesn't score all that well I think this is partly due to West Africa's dependence on commodity exports & lack of value addition efforts. It can support cost reduction in other agri & light manuf sectors eg cosmetics, soaps, animal feed, beverages1 reply 0 retweets 0 likes -
Thanks interesting article. Yes agree. opportunities. Just, narrative "unacceptable that Africa produces 75% of world’s cocoa, receives only 2% of $100bn annual choc market" (which I've seen a lot) seems wrong way to think about opportunities & barriers to competitive sector
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I see your point, tho if it leads African governments to manage the value chain in a way that actually fixes the binding constraints in the sector, inc for businesses investing in local processing, then I'd take it. It's only in this way that it'll find what its real potential is
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I hope so! The 75%/2%/100bn
#s don't say much on mkt for new small choc brands. same#s often linked to better storage & mass trade - potential in both but wonder what realistic#s are? https://www.afdb.org/en/news-and-events/high-hopes-for-cocoa-farmers-in-africa-as-afdb-plans-big-for-producing-countries-17247/ …1 reply 0 retweets 1 like -
Hard to say though there must have been a business case for Olam & Cemoi to build their factories there. Raising Africa's share to 10% or 20%, inc through new market growth, might be doable. At least, we don't know that it isn't.
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Agreed!
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