Cocoa Processing Partner for an Offtake Agreement
The Cocoa and Coffee Marketing Cooperative (the Cooperative) in Trinidad and Tobago is seeking to expand their cocoa processing output capacity. In light of this, the Cooperative requires a partner for an offtake agreement to achieve this goal.
Investment Opportunity
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Partner for Offtake Agreement
Fine/flavour Cocoa
Trinidad and Tobago (T&T) has been an exclusive cocoa-producing location for over 200 years and is one of the few countries in the world that produces a fine/flavour cocoa. Some of the world’s finest and best varieties of cocoa such as the Trinitario, Criollo and Forastero are indigenous to the islands.
Fine/flavour cocoa beans from T&T and other Caribbean islands command a premium price on the international market. Additionally, T&T has the advantage of being a leading centre for cocoa germplasm research. (Jacque & Neptune, 2007)
According to the International Cocoa Organization (ICO), fine/flavour cocoa accounts for five percent (5%) of the total cocoa production worldwide. This 5% was estimated at three hundred thousand (300,000) metric tons of cocoa.
Offtake Agreement
The Cocoa and Coffee Marketing Cooperative is the largest purchasing body for cocoa in the country with a market share of over 50% and produces approximately 200 metric tons of fine/flavour dried cocoa beans annually.
Currently, the beans are collected from over 250 farmers in East Trinidad and are fermented within 24 hours at a central fermentation center, where each batch of cocoa is dried separately to ensure region types are disaggregated to suit taste preferences.
The finished cocoa fetches US$6200 per metric ton on the international market. By the end of 2017, the cooperative aims to produce 60% natural gas and 40% sun dried beans. A partner is required in order to achieve this goal.
Competitive Advantages
- Our cocoa flavor profile is dominated by medium cocoa notes blending into pulsating fruity notes and ancillary floral, nutty, caramel, spicy and licorice flavours.
- Three (3) consecutive annual victories at the Cocoa of Excellence in Paris have established our reputation for par excellence flavor.
- Through CARICOM, the country has trade agreements with Colombia, Costa Rica, Cuba, Dominican Republic and Venezuela, which allows for greater market access.
- Reduced business costs are available due to cheap energy rates.
- Fewer work disruptions from natural disasters because of the country’s geographic position below the hurricane belt.
- Low transportation costs reduce agricultural operational costs, which makes the crop output more competitively priced on the open market.
Incentives
- Exemption from customs duties on the construction
- Exemption from value-added tax
- Exemption from income tax on dividends or other distribution, other than interest, out of profits or gains
- Duty-free treatment of raw materials, machinery and equipment