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Cocoa produced in Peru and distributed globally

key facts:

  • Peru, is the world’s second largest producer of organic and fine flavoured cocoa.
  • Cocoa can be a driver of deforestation.
  • Ucayali is the third largest cacao producer in the country.
  • European demand for cocoa accounts for about 50% of the current production, and it is expected to grow even further (by 3% per year).
  • European countries export about 70% of the total chocolate on the market.
  • The majority of the producers earn less than S/. 1,000 (USD 263) per month. About 20% of cocoa farmers are registered in an association or cooperative movement.

Key stakeholders:

  • Suppliers of agricultural and genetic material.
  • Organised producers.
  • Collectors.
  • Artisanal and small-scale processors, large-scale processors.
  • Exporters of cocoa beans and processed products.
  • Wholesalers and retailers (national or international industries, supermarkets, etc).
  • Consumers.
  • Research institutions.
  • Governing bodies and policy makers.
  • Civil society and NGOs.
  • Farmers’ associations (The Peruvian Association of Cacao Farmers (APPCACAO).

Aims, needs and challenges:

  • Increasing productivity and profitability (producers and collectors).
  • Access to organic production technology packages (suppliers, producers, collectors.
  • Expand research on local/native cocoa varieties and production to address market opportunities.
  • Combat illegal crop competition.
  • Protect biodiversity.

Value chain and impact on biodiversity:

  • The Amazon Forest is home to the largest proportion of terrestrial species on our planet, and stores approximately 500 tonnes of CO2 per hectare over a total area of more than 630 million hectares. 
  • Cocoa farmers in Peru are expanding their production areas into forest and natural habitats to meet the growing market demand while compensating for the lack of inputs and poor agronomic practices. 
  • The department of Ucayali is currently experiencing one of the highest deforestation rates in the country (470,118 ha of forest was lost between 2001 and 2020). 
  • Due to the increase in global chocolate consumption and the rise in international cocoa prices, many local and international companies are expanding their cocoa-related activities in Peru, leading to a transformation of the sector from traditional production, rural assembly, and sales to a competitive market for cocoa bean procurement. Approximately 60-70% of the cocoa produced in Peru is processed outside of the country.