(VAN) The Lam San Agricultural Cooperative exported a batch of 10 tons of cocoa, valued at $ 70,000, to Europe for the first time, creating new opportunities.
Mr. Nguyen Ngoc Luan, Director of Lam San Agricultural Cooperative (wearing glasses), inspecting the cocoa batch before exporting it to Europe. Photo: Nguyen Thuy.
According to Mr Nguyen Ngoc Luan, Director of Lam San Agricultural Cooperative (Dong Nai), recently, cocoa has mainly been exported to the Japanese market.
“This is also a meticulous market, but we still ensure quality standards so that Lam San cocoa can be used as raw material for Japanese chocolate manufacturers”, Mr. Luan said. He added that from Lam San’s cocoa beans, Premarche (Japan) won the Bronze Award at the Chocolate Alliance Global Awards 2024.
However, this 10-ton cocoa shipment marks the first export to Switzerland for Lam San Agricultural Cooperative. Mr. Nguyen Ngoc Luan emphasized that ensuring 10 tons of export-quality cocoa to the European market at this time is no easy task.
“Finding 1,000 tons of pepper now is easier than finding 10 tons of cocoa. We have to carefully select high-quality cocoa plantations that meet the importer’s requirements. Specifically, the cocoa fermentation rate must be above 85%. Only then will they agree to buy from us”, Mr. Luan explained.
According to Mr. Nguyen Ngoc Luan, the first shipment of Lam San Agricultural Cooperative to Europe is valued at $ 70,000. “This shipment can be seen as a trial to explore each other. After the customer assesses the quality, negotiations will continue, opening up opportunities for Vietnamese cocoa”, Mr Nguyen Ngoc Luan said. He also mentioned that he is currently working with partners to expand cocoa development.
However, to expand market share not only in Switzerland but also in other European countries, it is necessary to focus on linking value chains, training farmers, improving quality, meeting market demand, and ensuring sufficient supply. Particularly, achieving sustainability criteria such as no deforestation, organic farming, and no residual pesticides…
Cocoa is a versatile ingredient used in various products such as chocolate, cocoa powder, cocoa butter, cocoa ice cream, cocoa tea, functional foods, cosmetics, and fertilizers… The cocoa industry is experiencing strong growth, with global cocoa consumption increasing. Meanwhile, off-season conditions in the Ivory Coast and Ghana (which account for two-thirds of the global cocoa supply) have led to a decline in global cocoa production.
Lam San Agricultural Cooperative’s cocoa fermentation rate reaches over 85%. Photo: Nguyen Thuy.
Specifically, in the latest quarterly report from the International Cocoa Organization (ICCO), it is projected that there will be a global shortfall of approximately 374,000 tons of cocoa for the 2023/24 season (October 2023 – September 2024). Global cocoa stocks at the end of the 2023-2024 season are expected to decrease to 1.395 million tons, equivalent to 29.2% of the ground cocoa mass, marking the lowest level in 45 years.
The decline in supply contributes to pushing cocoa prices to historically high levels in the world market. Cocoa prices are expected to remain high for an extended period, presenting an opportunity to promote Vietnam’s cocoa industry due to favourable natural conditions.
Cocoa has been an important commodity contributing to Vietnam’s export revenue for many years. In 2022, Vietnam’s cocoa exports reached $ 3.2 billion, a 17.5% increase compared to 2021. The Netherlands, the US, Belgium, and Germany are major import markets for Vietnamese cocoa.
According to experts, Vietnam’s cocoa industry is forecasted to continue growing at an average annual rate of about 5%. With over 600,000 ha of cocoa plantations and production exceeding 1.6 million tons, Vietnam ranks as the world’s 10th largest cocoa producer as of 2023. The Central Highlands region (Dak Lak, Dak Nong, Lam Dong…) accounts for approximately 60% of the country’s area and production.
The Mekong Delta (Tien Giang, Ben Tre, Hau Giang, Vinh Long, Soc Trang, Tra Vinh…) accounts for about 25% of the area and production. The Southeast region (Dong Nai, Binh Phuoc, Ba Ria – Vung Tau) accounts for about 15% of the area and production.
Vietnam has been recognized by the ICCO as one of the top cocoa-producing countries with excellent flavour profiles worldwide. Vietnamese cocoa beans are also noted for their high quality. Vietnamese ranked second in Asia. This is a golden opportunity for Vietnam to enhance its position and open up opportunities for access to new markets in the cocoa industry.
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