Why cocoa needs a DEI strategy

These days, “diversity” might as well be a four-letter word. But if you want your grandkids and their grandkids to enjoy real chocolate, DEI is exactly what the cocoa industry needs.

No, no, not that DEI. I posit that the cocoa industry needs this DEI: Diversification, Expansion, and Innovation. It might be the only thing standing between chocolate lovers and an increasingly bitter reality.

For decades, the world has leaned far too heavily on a single region for the vast majority of its cocoa – West Africa. And now that fragile dependence is buckling under the weight of climate chaos, farmer attrition, and new regulations. The supply chain has shifted from strained to strategically reckless.

But there’s still time to build a better system. From Brazil to India, Vietnam to Saudi Arabia, new origin stories are playing out. With smarter farming, better incentives, and real investment, these regions could provide a framework for what a future-proofed cocoa supply could look like. 

Cocoa cultivation 101: Location, location, location

Before we get into it, here’s a quick background on why origin diversification is important.

Cocoa is a high-maintenance crop. It grows best in countries located between 10 degrees north and south of the Equator. Within this “cocoa belt”, a precise combination of steady heat, high humidity, and regular rainfall create the perfect environment for cacao plants to thrive. It takes 5 years for the cacao tree to start producing seeds that can then be processed into cocoa to make chocolate. 

The three largest producers today are Côte d’Ivoire, Ghana, and Ecuador, but cocoa is also grown across Central and South America, Southeast Asia, and other tropical regions. Cocoa trees grow best under the shade of taller trees, making agroforestry systems ideal for sustainable production.

But too much heat or irregular weather patterns, now increasingly common due to climate change, can stress trees, reduce flowering, and invite pests and disease. That’s why finding new, resilient growing regions has become an urgent priority.

West Africa’s cocoa crisis: A wake-up call

Côte d'Ivoire and Ghana in West Africa between them currently produce around 54% of the world’s cocoa, according to the FAO’s 2023 stats. For decades these two West Africa nations have been feeding the insatiable beast that is the chocolate market. But the industry’s reliance on these two countries has now become its biggest liability.

Climate change has turned once-reliable growing seasons into high-risk bets. Extreme heat, erratic rainfall, and disease outbreaks have slashed yields and sent prices soaring. But the deeper problem isn’t just environmental.

Farmers, the backbone of this multi-billion-dollar industry, are walking away. Why? Because cocoa no longer pays – for them, it probably never did. In parts of these countries, smallholders earn less than $1 a day, and the sector is rampant with child labor. It’s no surprise that many are leaving their fields for illegal gold mining, smuggling, or anything else that will allow them to survive.

At the same time, the European Union’s Deforestation Regulation (EUDR) is tightening the screws. The EUDR demands full traceability of cocoa origins and proof of no deforestation – as they rightly should! But these are requirements many West African supply chains are unprepared to meet and they risk being shut out from major export markets.

What was once the world’s chocolate engine now looks like it might collapse if it doesn’t get the love it deserves soon. So, the question isn’t whether we need new cocoa origins; it’s how fast we can scale them.

Indonesia

Indonesia is the third largest cocoa producer today, accounting for a little over 11% of the global production in 2023 (according to the FAO), and the sector is making a quiet comeback after years of decline. Aging trees and poor prices had driven many farmers to abandon the crop, but a new wave of farmer-focused initiatives is reshaping the industry.

Local brands like Krakakoa have trained farmers in pruning, grafting, and fermentation, while also offering premium prices and purchase guarantees. In return, farmers are producing higher-quality cocoa and building stronger, more resilient cooperatives.

Agroforestry is at the heart of this shift. By growing cocoa under the canopy of banana, coffee, or pepper, farmers boost biodiversity and diversify their incomes. Public-private partnerships, such as the Cocoa Sustainability Partnership, and collaborations with Mars are introducing new disease-resistant varieties to raise yields.

Indonesia’s approach isn’t flashy, but it’s working. With consistent support and fairer pay, cocoa is once again a viable crop. And it’s being built on stronger, more sustainable foundations.

Vietnam

Vietnam may only currently produce only about 0.02% of the world’s cocoa, but the country is quickly gaining a reputation for high-quality flavor beans. 

Cocoa had been all but wiped out due to low productivity and economic efficiency, but it is being revived partly due to the EU-funded project, “Circular Economy in Cocoa Production: From Cocoa Beans to Chocolate Bars”. The project has a budget of EUR1.9 million (US$2.1 million) to promote sustainable production and consumption models in Asia.

Vietnamese farmers are trained by Switzerland’s Helvetas development organization and the Community Development Center to turn every part of the cocoa fruit, including beans, pulp, shells, and waste, into value. Cooperatives are being taught to ferment to international standards and convert by-products into organic fertilizer, animal feed, and biochar.

Companies like Puratos Grand-Place offer purchase incentives and Marou, Vietnam’s leading craft chocolate maker, sources organic beans directly from these local farms. With an eye on exports, Vietnam is already preparing for the EUDR: mapping land, improving traceability, and locking in sustainability credentials. 

Like what you’re reading?

India

India’s cocoa production is expanding rapidly, driven by rising prices, government support, and strong domestic demand. Though still a minor player globally, and limited to the south of the country, its potential lies in the diversity of growing regions and the intercropping model that makes cocoa attractive to farmers. Here's how the key states are shaping the sector:

Kerala 

Kerala was one of the first states to experiment with cocoa in the 1960s and remains the country’s R&D hub. The Kerala Agricultural University (KAU), in conjunction with Mondelez India, has developed 15 new high-yielding, disease-resistant hybrid varieties that thrive even at 40°C. KAU is also developing over 600 cacao varieties that have been planted in a couple of different states. Thanks to strong research and farmer training programs, yields here reach up to 2.5 kg per tree, which is 10 times the global average.

Andhra Pradesh

Andhra Pradesh (AP) leads in annual production volume, with over 10,900 metric tonnes (as of 2020-21 data). Farmers are supported by state schemes that promote cocoa as an intercrop in palm and areca nut plantations. New hybrids developed with the help of KAU and state government extension programs are looking to expand cultivation by 5,000 hectares annually.

Telangana

With similar agroclimatic conditions to AP, Telangana has become a fast-growing cocoa zone. The state is seeing 4-5 kg yield per tree in some regions, significantly higher than global standards. 

Karnataka

In Karnataka, cocoa fits neatly into multi-crop farms alongside coconut, nutmeg, and bananas. Farmers are turning to cocoa not only for income, but also for value-added products, like fermented nibs, powder, butter, and bits. This region also has strong ties to processors like Campco, offering reliable offtake and price support.

The focus in India is on expanding acreage with improved plant material, but challenges like weak post-harvest infrastructure, limited farmer training, and inconsistent market access still hamper its full potential.

Brazil

Brazil is leveraging its rich biodiversity and innovative agricultural practices to revitalize a sector once devastated by disease.​

Bahia

In Bahia, Schmidt Agricola is spearheading a US$300 million project to establish the world's largest cocoa farm, utilizing high-density planting and advanced irrigation to potentially increase Brazil’s cocoa output from 200,000 to 1.6 million tons over the next decade. This initiative has attracted interest from Cargill. 

Barry Callebaut is said to be in talks with farming group Fazenda Santa Colomba to form a cocoa farm of 12,355-17,300 acres in Bahia as well. 

There are also efforts to support small-scale farmers through sustainable agroforestry systems and know-how. The Kawa Fund, for example, aims to raise $176 million by 2030 to provide loans and technical assistance to small producers in Bahia and Pará.

The Amazon

In the Amazon, cocoa is part of a broader bioeconomy strategy that promotes sustainable development by integrating traditional knowledge with modern practices. Projects focus on producing high-quality cocoa while preserving the rainforest, offering an alternative to deforestation-driven industries.

Despite these advancements, Brazil faces challenges such as ensuring genetic diversity to prevent disease outbreaks, maintaining cocoa quality in full-sun cultivation systems, and balancing large-scale industrial projects with the needs of smallholder farmers.​

Looking for product innovation support?

Saudi Arabia: A surprising newcomer

Not exactly the first place you’d think of when you picture a cocoa farm, but Saudi Arabia is eyeing its place on the global cocoa map. And it has some strong reasons for this.

First of all, there’s massive local demand. In 2024, Saudi Arabia imported 123 million kg of chocolate, with spikes during Ramadan, Eid, and tourism seasons. Cocoa imports are expensive, with some premium chocolate retailing for up to $80/kg. Local production could ease dependence and costs.

Cocoa cultivation also fits in well with Saudi Arabia’s broader Vision 2030 goals: to diversify the economy, boost food security, and create jobs. US$10 billion has been allocated to strengthen global food supply chains and boost domestic agricultural production.

In 2020, as part of a pilot project, 200 cocoa shrubs were planted in Jazan, a southern region with a tropical microclimate. Jazan offers year-round warmth, seasonal rainfall, and fertile soil, similar to cocoa-producing regions near the Equator.

Cocoa isn’t native to Saudi Arabia and it requires shade farming, irrigation, and skilled labor. But with the right investment and R&D, Saudi Arabia could develop a niche industry focused on innovation and desert-adapted agriculture.

Venezuela: A cautionary tale 

Venezuela is home to some of the world’s most prized cacao – porcelana, criollo, chuao – but is a shockingly underutilized crop. In fact, Venezuela was once the world leader in cocoa production. Today, it barely registers on the map, with output hovering around 0.05% of global supply, thanks to the shift of focus to oil. 

But there are other systemic issues plaguing the sector as well. Farmers face land insecurity. Exporters face red tape. And cocoa often can’t leave the country in the condition international buyers require.

In some ways, Venezuela today reflects what’s starting to happen in West Africa: farmers walking away, supply chain dysfunction, and lost competitiveness. The difference is Venezuela hit that wall earlier, and never recovered.

For emerging cocoa regions, this is the cautionary tale: it’s not enough to have the right trees in the ground. Without investment, infrastructure, and farmer support, even the best cocoa story can fade out.

Explore what a future-proofed cocoa
portfolio looks like.

🔊 We want to hear from you! 🔊

Tell us what you thought about today’s topic, if there’s any topic you’d like us to cover, or just drop a line to say ‘hey’!

Just hit “reply” to this email. We read and answer all messages. 💌

About Us: GourmetPro is a global network of elite food and beverage industry talents. We provide fractional hiring solutions, allowing international managing directors to scale and transform their local resources and teams with high flexibility and expertise in more than 30 countries. Explore our services.

Made with ❤️ by GourmetPro - your network of Food & Beverage experts, on demand.

💖 And if you think someone you know might be interested in this edition of Market Shake, feel free to simply forward this email or click the button below. 💖

👉 P.S.: GourmetPro is also on LinkedIn and X!