 "Cocoa pods are harvested in Azaguie, Ivory Coast. African cocoa farmers have faced higher costs and shortages of fertilizers and pesticides. Photographer: Andrew Caballero-Reynolds/Bloomberg")
After China, Cote d'lvoire -- the world's largest producer of cocoa -- is eying investments from India to establish cocoa processing units and for direct sale of cocoa products.
State-owned Transcao, established in February 2019, to encourage production of value-added products of cocoa to ensure better returns to local farmers, has already received an investment of 255 million Euro from China for two greenfield projects here.
With demand for cocoa reaching a saturation point in the US and Europe, Cote d'lvoire, known as Ivory Coast, is focusing on transformation of cocoa and exploring collaborations with Asian countries.
"With India having the largest consumer base. Cote d'lvoire is very keen to have stronger ties with South Asian nations," Transcao General Manager Colulibaly Konan Theodore told PTI in an interview.
Currently, Transcao -- also called Societe De Transformation De Cacao Cote D'lvoire -- is in the process of setting up two greenfield projects with a total processing capacity of 100,000 tonnes a year with a Chinese investment.
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"The total project cost is 300 million euro. We have received 85 per cent investment from China in the form of a loan and the rest is funded by us," Theodore said.
In lieu of the loan, Transcao will supply 40 per cent of the total production from these two greenfield units to China for the next 15 years, he said.
Chocolate liquor, cocoa butter and cocoa powder are some of the processed products -- used in the making of chocolates, confectionery, beauty and health products -- that will be manufactured at the greenfield units.
"Once we finish with the Chinese project. We will start another greenfield if India is keen to invest," Theodore said, adding that a delegation led by the country's cocoa regulator is visiting India next month to explore partnership.
Transcao is looking at both options -- sell processed cocoa products directly to India and get investors in Cote d'lvoire on the lines of Chinese investment, he added.
Transcao is focusing on processing in a big way because cocoa bean cannot be stored for more than 45 days, while processed products have a shelf life of more than two years.
The state-owned company is currently operating a processing unit of 30,000 tonnes a year. It is exporting its cocoa products to the US and Europe directly. It is also encouraging local chocolate and coffee makers to set up businesses.
Transcao aims to increase its annual processing capacity to 250,000 tonnes by 2025.
Currently, Cote d'lvoire processes 45 per cent of its total production of 2 to 2.5 million tonne of cocoa. Much of the processing is undertaken by private companies from other countries.
(The PTI journalist was in Abidjan on the invitation of the Cocoa regulator Le Conseil di Caf -Cacao).
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
