business plan for cocoa farming

How to write a business plan for a cocoa farm?

Writing a business plan for a cocoa farm can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a cocoa farm business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a cocoa farm?

• What information is needed to create a business plan for a cocoa farm?
• What goes in the financial forecast for a cocoa farm?
• What goes in the written part of a cocoa farm business plan?
• What tool can I use to write my cocoa farm business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a cocoa farm business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your cocoa farm. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your cocoa farm to be in the next three to five years.

Once you have a clear destination for your cocoa farm, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

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To get visibility on future cash flows

If your small cocoa farm runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your cocoa farm's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your cocoa farm business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your cocoa farm's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed cocoa farm business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your cocoa farm has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a cocoa farm, let's take a look at what information is needed to create one.

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Information needed to create a business plan for a cocoa farm

Drafting a cocoa farm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a cocoa farm

Carrying out market research before writing a business plan for a cocoa farm is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research might reveal that there may be a growing demand for organic and fair trade cocoa products. Additionally, it could indicate that consumers may be increasingly looking for sustainable and ethical cocoa products.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your cocoa farm.

Developing the marketing plan for a cocoa farm

Before delving into your cocoa farm business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a cocoa farm

As you embark on starting or expanding your cocoa farm, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A cocoa farm might incur staffing costs such as paying farm workers to tend to the cocoa trees, as well as administrative staff to manage the farm. Equipment costs could include purchasing tools for harvesting, fertilizers, and other materials needed to maintain the farm. Additionally, the farm might need to purchase or rent machinery and vehicles for transportation and storage of the cocoa beans.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

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What goes into your cocoa farm's financial forecast?

The financial forecast of your cocoa farm will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a cocoa farm are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a cocoa farm shows how much revenue and profits your business is expected to generate in the future.

Ideally, your cocoa farm's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established cocoa farm. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your cocoa farm

The balance sheet for a cocoa farm is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your cocoa farm's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your cocoa farm's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a cocoa farm is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your cocoa farm business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the cocoa farm is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a cocoa farm.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the cocoa farm, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your cocoa farm business plan, let's have a look at the written part of the plan.

The written part of a cocoa farm business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a cocoa farm business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your cocoa farm's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your cocoa farm's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your cocoa farm business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your cocoa farm, you could emphasize the potential for a steady climate and access to plentiful resources. The area may also have access to well-developed transportation systems that could enable easy shipping of your cocoa. Additionally, it could be situated close to other farms and agricultural centers that could provide a supportive environment. Lastly, you might mention that it is in a region that could provide access to a large consumer base.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your cocoa farm business plan should include a detailed description of what your company sells to its customers. 

For example, your cocoa farm might offer a variety of cocoa-based products such as cocoa beans, cocoa powder, cocoa butter, and dark chocolate. Additionally, you may offer freshly-made cocoa-based treats such as cakes, cookies, and pastries. Furthermore, you can offer services such as tours of the farm, educational sessions about the cocoa-growing process, and cocoa-tasting experiences. All of these products and services provide customers with the opportunity to learn more about cocoa and the unique flavors of your cocoa farm.

The reader will want to understand what makes your cocoa farm unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When you present your market analysis in your cocoa farm business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your cocoa farm, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your cocoa farm aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include people who enjoy a hot cup of cocoa on a cold winter day. This segment would include people who are looking for a high-quality cocoa to add to their morning cup of coffee, or those who want to create a hot cocoa bar in their home for entertaining purposes. This customer segment might also include individuals who are looking for a unique gift for a special occasion, such as a chocolate lover's birthday.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your cocoa farm.

5. The strategy section

When crafting the strategy section of your business plan for your cocoa farm, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your cocoa farm may face a variety of risks. One of the most common risks is unpredictable weather. Unfavorable weather conditions such as heavy rains, high winds, and droughts could damage the cocoa crop and lead to lower yields. Additionally, pests and diseases could also be a risk. Pests such as cocoa pod borer, black pod rot, and mealybugs could cause significant damage to your cocoa crop if not addressed in a timely manner.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your cocoa farm.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your cocoa farm's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You could have key assets such as the land, machinery, and buildings associated with the cocoa farm, as well as the intellectual property associated with the cocoa farm, such as the recipes for the cocoa or the brand associated with it. Additionally, the cocoa farm might have certain proprietary processes or unique technologies that could be considered intellectual property.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a cocoa farm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my cocoa farm's business plan?

In this section, we will be reviewing the two main options for writing a cocoa farm business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your cocoa farm's business plan

The modern and most efficient way to write a cocoa farm business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your cocoa farm's business plan

Outsourcing your cocoa farm business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the cocoa farm business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your cocoa farm's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a cocoa farm business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my cocoa farm business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a cocoa farm business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your cocoa farm's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your cocoa farm. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• Key steps to write a business plan?
• Free business plan template

Know someone who owns or wants to start a cocoa farm? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Start Your Cocoa Farming Business in 9 Simple Steps

By alex ryzhkov, resources on cocoa farming.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Introduction

Are you considering starting your own cocoa farming business? With the increasing demand for direct trade cocoa products and the potential for profitability, now is the perfect time to enter the industry. According to recent statistics, the cocoa market in the United States alone is expected to grow at a CAGR of 3.1% between 2021 and 2026, reaching a value of $26.45 billion by the end of the forecast period. This growth is driven by the rising consumer preference for ethically sourced cocoa and the desire for direct trade products.

Direct trade has become a popular and impactful business model, benefiting both cocoa farmers and chocolate makers or retailers. By eliminating intermediaries, cocoa farmers can receive fair prices for their crops, while chocolate companies can establish long-term partnerships with reliable suppliers, ensuring a stable supply of high-quality cocoa. Moreover, direct trade contributes to improving the economic and social conditions of cocoa farmers and their communities.

In this blog post, we will guide you through the process of starting your own cocoa farming business using a direct trade model. By following the nine steps outlined in this checklist, you will be well-equipped to enter the market, tap into the growing demand for ethically sourced cocoa, and establish a successful and sustainable business. So let's dive in and discover how you can turn your passion for cocoa farming into a thriving enterprise!

9 Steps to Start a Cocoa Farming Business: Checklist

Before launching your cocoa farming business, it is important to take several steps to set a strong foundation. These steps involve conducting market research, creating a business plan, securing funding, obtaining the necessary permits and licenses, establishing partnerships, implementing sustainable practices, setting up a reliable supply chain, and continuously monitoring and evaluating your business performance.

Conduct Market Research And Assess The Demand For Direct Trade Cocoa Products.

Before starting a cocoa farming business, it is crucial to conduct thorough market research to assess the demand for direct trade cocoa products. This will help you understand the current market dynamics, consumer preferences, and potential competition.

Here are some steps to guide you in conducting market research:

• Identify target market: Define your target market segment, whether it is chocolate makers, retailers, or consumers who value ethically sourced cocoa. Understand their preferences, purchasing behavior, and willingness to pay a premium for direct trade products.
• Analyze competition: Identify existing cocoa farming businesses and assess their direct trade offerings. Study their pricing strategies, marketing efforts, and customer feedback to gain insights into the competitive landscape.
• Explore market trends: Stay updated on the latest trends in the chocolate industry, such as the demand for organic or fair trade products. Determine if there is a growing interest among consumers for direct trade cocoa and assess its potential for sustainable growth.
• Survey potential customers: Conduct surveys or interviews with potential customers to gather insights into their preferences, expectations, and awareness of direct trade cocoa products. This will help you tailor your offerings to meet their needs.
• Understand industry regulations: Familiarize yourself with the regulations and certifications required for direct trade cocoa farming. Determine if there are any specific licensing or labeling requirements you need to comply with.
• Utilize online resources, industry publications, and trade associations to gather relevant market data and industry insights.
• Consider working with a professional market research firm to conduct a comprehensive analysis of the cocoa industry and identify potential opportunities.
• Stay connected with industry events, conferences, and trade shows to network with potential customers and stay up-to-date on market trends.

By conducting proper market research and assessing the demand for direct trade cocoa products, you can make informed decisions for your cocoa farming business and align your strategies with the needs of the market.

Develop A Comprehensive Business Plan Outlining Goals, Strategies, And Operations.

A comprehensive business plan is essential for the success of your cocoa farming business. It serves as a roadmap that outlines your goals, strategies, and operations, helping you stay focused and make informed decisions. Here are the key components to include:

• Market Analysis: Conduct thorough research on the cocoa industry, assess the demand for direct trade products, and identify potential competitors and target customers. This analysis will guide your marketing and sales strategies.
• Business Goals: Clearly define your short-term and long-term goals for the cocoa farming business. These goals should be specific, measurable, achievable, relevant, and time-bound (SMART).
• Strategies: Outline the strategies you will implement to achieve your business goals. This may include direct trade partnerships, sustainable farming practices, product differentiation, or marketing campaigns.
• Operations: Detail the day-to-day operations of your cocoa farming business, including cultivation methods, harvesting processes, quality control measures, and distribution channels.
• Financial Projections: Develop a financial model that estimates the cost of establishing and running the business, pricing strategies, projected revenue, and potential profitability. This will help you assess the financial feasibility of your venture and attract potential investors.

Tips for developing a successful business plan:

• Research and understand the cocoa industry to confidently identify your target market and competition.
• Clearly define your business goals, ensuring they are specific, measurable, achievable, relevant, and time-bound (SMART).
• Strategically position your cocoa farming business by differentiating your products, emphasizing direct trade benefits, and promoting ethical sourcing.
• Consider incorporating sustainable farming practices to meet the growing demand for ethically sourced cocoa.
• Regularly review and update your business plan to adapt to market changes and ensure alignment with your goals.

By developing a comprehensive business plan, you will have a clear roadmap for your cocoa farming business and increase your chances of success in the direct trade market.

Create A Financial Model To Determine The Cost, Pricing, And Potential Profitability Of The Business.

Developing a financial model is crucial to understand the financial feasibility of your cocoa farming business. This model will help you assess the cost of production, pricing strategies, and potential profitability.

To create an accurate financial model, consider the following:

• Research and estimate the initial start-up costs, including land acquisition, equipment, seeds, and labor.
• Identify ongoing expenses such as maintenance, labor, fertilizers, pesticides, and utilities.
• Analyze market trends, supply, and demand to determine the potential selling price for your cocoa products.
• Factor in any additional costs associated with processing, packaging, marketing, and distribution.
• Consider seasonal variations and potential risks that may impact your business's profitability.
• Evaluate the potential sales volume based on market research and projected demand.
• Estimate the breakeven point and determine how long it will take to generate a positive cash flow.
• Assess potential risks and develop contingency plans to mitigate them.
• Consult industry experts or financial professionals to ensure the accuracy and reliability of your financial model.
• Consider using financial modeling software or templates to streamline the process and make calculations easier.
• Regularly update and revise your financial model as your business evolves and market conditions change.
• Continuously monitor key financial indicators such as profit margins, return on investment, and cash flow to make informed decisions.

By creating a comprehensive financial model, you will have a clear understanding of the costs involved, appropriate pricing strategies, and the potential profitability of your cocoa farming business. This knowledge is essential for making informed decisions and ensuring the long-term success of your venture.

Secure Funding Through Investments, Loans, Or Grants To Finance Start-Up Costs And Initial Operations.

Securing funding is a vital step in starting a cocoa farming business. It provides the necessary capital to cover start-up costs, purchase equipment, and support initial operations. Here are some strategies to secure funding:

• Conduct thorough research to identify potential investors, lenders, or grant opportunities that support agricultural ventures.
• Prepare a compelling business plan that outlines the market potential, competitive advantage, and financial projections of the cocoa farming business.
• Seek investments from individuals or organizations interested in supporting sustainable and ethically sourced cocoa production.
• Approach financial institutions to explore loan options specifically designed for agricultural businesses.
• Explore government grants and programs that support agricultural initiatives and provide funding for start-up costs.
• Consider crowdfunding platforms as an alternative source of funding, appealing to consumers passionate about supporting local and ethical farming practices.
• Network and build relationships with industry professionals, investors, and organizations that share similar values and goals in cocoa farming.
• Highlight the potential social and environmental impact of your cocoa farming business when seeking funding from socially responsible investors or organizations.
• Include a detailed breakdown of how the funding you are seeking will be used to cover specific start-up costs and initial operations in your funding proposals.
• Consider offering incentives or benefits to potential investors, such as profit-sharing agreements or discounted purchases of your cocoa products once the business is established.

Acquire Necessary Permits And Licenses To Legally Operate A Cocoa Farming Business.

Acquiring the necessary permits and licenses is a critical step in setting up a cocoa farming business in the US. These legal requirements ensure that your operations comply with regulations and help establish your business as a legitimate and trustworthy entity. Here are some key steps to follow:

• Research local regulations: Start by researching the specific permits and licenses required to operate a cocoa farming business in your area. Contact your local agricultural department or relevant governing bodies to gather detailed information.
• Identify the permits needed: Determine the specific permits and licenses you need based on your business model and the scope of your operations. This may include agricultural permits, business licenses, zoning permits, and environmental certifications.
• Submit applications: Once you have identified the necessary permits, submit your applications to the appropriate regulatory authorities. Provide all required documentation and fulfill any additional requirements, such as paying application fees.
• Comply with regulations: Throughout the application process and beyond, ensure that your business operations comply with all relevant regulations. This includes adhering to safety standards, environmental guidelines, and any specific requirements related to cocoa farming.
• Research and start the permit application process well in advance to allow for any potential delays.
• Consult with legal professionals or experts in agriculture to ensure you are aware of all necessary permits and licenses.
• Maintain accurate records of all permit applications, approvals, and renewals to stay organized and up-to-date.

By diligently acquiring the necessary permits and licenses, you can establish your cocoa farming business as a fully compliant and legally operating entity. This not only protects you from potential legal troubles but also instills trust and confidence among potential partners and customers.

Establish Partnerships With Chocolate Makers or Retailers Interested in Direct Trade

One of the key steps in starting a cocoa farming business is establishing partnerships with chocolate makers or retailers who are interested in direct trade. This direct trade model allows you to sell your cocoa products directly to these buyers, eliminating the need for intermediaries and ensuring a fair price for your crops.

Here are some tips to help you establish these important partnerships:

Conduct research and identify potential partners:

Attend industry events and trade shows:, reach out and make a proposal:, negotiate fair terms:, build long-term relationships:.

By establishing partnerships with chocolate makers or retailers interested in direct trade, you can create a reliable market for your cocoa products and contribute to the growth of your farming business.

Implement Sustainable And Ethical Practices To Meet The Demand For Ethically Sourced Cocoa.

In order to meet the increasing demand for ethically sourced cocoa, it is imperative to implement sustainable and ethical practices within your cocoa farming business. This not only ensures the long-term viability of your operations but also helps build trust and loyalty among chocolate makers, retailers, and consumers who prioritize ethically produced cocoa.

Here are some important steps to consider when implementing sustainable and ethical practices:

1. Promote environmental stewardship:

• Implement sustainable farming methods that minimize the use of harmful agrochemicals and protect biodiversity.
• Adopt practices such as agroforestry, which involve growing shade trees alongside cocoa plants to create a more sustainable and resilient ecosystem.

2. Ensure fair labor practices:

• Provide fair wages and good working conditions for your employees, including access to healthcare and education.
• Avoid forced labor and child labor by strictly adhering to international labor standards.

3. Engage with local communities:

• Collaborate with local farmers and communities to improve their livelihoods through initiatives such as training, infrastructure development, and access to finance.
• Promote gender equality and empower women within the cocoa farming industry.

4. Utilize responsible sourcing:

• Establish transparent and traceable supply chains to ensure the origin and quality of your cocoa beans.
• Source from farms and cooperatives that follow sustainable and ethical practices, and have appropriate certifications like Fairtrade, Rainforest Alliance, or UTZ.

5. Educate consumers:

• Educate consumers about the importance of ethically sourced cocoa and the impact their purchasing decisions can have on farming communities and the environment.
• Create marketing campaigns that highlight your commitment to sustainability and ethics, and the benefits of choosing your direct trade cocoa products.

By implementing these sustainable and ethical practices, you can not only meet the growing demand for ethically sourced cocoa but also contribute to the overall well-being of cocoa farmers, their communities, and the environment.

Set Up A Reliable Supply Chain And Establish Relationships With Suppliers And Farmers

One of the key factors for success in the direct trade cocoa farming business is establishing a reliable supply chain and building strong relationships with suppliers and farmers. This ensures a consistent and high-quality supply of cocoa, which is crucial for meeting the demands of chocolate makers or retailers.

Here are some important steps to consider when setting up your supply chain and cultivating relationships with suppliers and farmers:

• Research potential suppliers: Identify and research potential suppliers who align with your ethical sourcing standards and can provide the quality and quantity of cocoa you require.
• Visit cocoa farms: Take the time to visit cocoa farms personally to assess their operations, sustainability practices, and product quality. This will help you make informed decisions about potential partnerships.
• Establish contractual agreements: Once you have selected reliable suppliers and farmers, establish contractual agreements that outline the terms of the partnership, including pricing, quantities, delivery schedules, and quality assurance standards.
• Regular communication: Maintain open and regular communication with your suppliers and farmers to ensure a smooth flow of information, address any concerns, and maintain a strong working relationship.
• Support sustainable practices: Encourage and support sustainable farming practices among your suppliers and farmers to improve the quality of cocoa and protect the environment. This can include promoting organic farming methods, fair labor practices, and biodiversity conservation.
• Offer fair pricing: Fair and transparent pricing is essential for building trust and a long-term partnership with your suppliers and farmers. Ensure that the prices you pay provide a fair income for the cocoa farmers and incentivize them to maintain high-quality standards.
• Regularly evaluate and monitor the performance of your suppliers and farmers to ensure they meet your quality and sustainability requirements.
• Consider offering training and support programs for your suppliers and farmers to improve their farming practices and knowledge.
• Participate in industry events and conferences to network with potential suppliers, farmers, and experts in cocoa farming.

Establishing a reliable supply chain and cultivating strong relationships with suppliers and farmers may take time and effort, but it is a crucial aspect of running a successful direct trade cocoa farming business. By prioritizing ethical sourcing and quality, you can create a mutually beneficial partnership that ensures a sustainable and high-quality cocoa supply for your chocolate-making or retail business.

Continuously Monitor And Evaluate The Business Performance To Adapt Strategies And Ensure Long-Term Success.

Once your cocoa farming business is up and running, it is crucial to continuously monitor and evaluate its performance. This ongoing assessment allows you to identify areas of improvement, adapt your strategies, and ensure long-term success in the competitive cocoa industry.

Here are some key steps to consider:

• Track key performance indicators (KPIs): Identify and regularly measure the KPIs that are most relevant to your cocoa farming business. These could include metrics such as crop yield, revenue, customer satisfaction, and sustainability practices. Monitoring these KPIs will help you assess the overall health and progress of your business.
• Conduct regular financial analysis: Regularly review your financial statements to understand the profitability and cash flow of your cocoa farming business. Analyzing your finances will enable you to make informed decisions regarding pricing, costs, and investments needed for growth.
• Seek customer feedback: Regularly engage with your customers, chocolate makers, and retailers to gain insights into their satisfaction and preferences. This feedback will help you tailor your products and services to meet their expectations and stay ahead of the competition.
• Stay updated on market trends: Continuously monitor the cocoa industry and keep up-to-date with market trends, consumer demands, and emerging technologies. This knowledge will enable you to identify new opportunities, adapt your strategies, and stay competitive in the ever-evolving cocoa market.
• Consider implementing a robust data tracking system to streamline the process of monitoring and evaluating your business performance.
• Regularly review and adjust your business plan based on the insights gained from the monitoring and evaluation process.
• Stay connected with industry experts, attend conferences, and join relevant networks to stay informed about industry best practices and innovations.
• Embrace a culture of continuous improvement and encourage your team to actively participate in the monitoring and evaluation process.

By continuously monitoring and evaluating your business performance, you will be well-equipped to adapt your strategies, optimize your operations, and ensure the long-term success of your cocoa farming business in the direct trade market.

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How to Start Cocoa Plantation Farming with Small Investment

Want to start a cocoa farming business? If yes, here in this article, we provide you with the steps to follow in carrying out cocoa cultivation on a small farm for beginners.

Actually, cocoa yields cocoa beans. And cocoa beans are the source of cocoa butter and cocoa mass. And these are the important ingredients in a commercial bakery, confectionery, and sweet production. Hence, cocoa is an important commercial plantation crop in the world.

The primary center of the diversity of cocoa is the upper Amazon basin in South America. And you can find the greatest range of variation in the natural population. Currently, there are several countries that grow cocoa commercially.

The scientific name of cocoa is Theobroma cacao . And it belongs to the Mallows family. Some of the major cocoa-producing countries are Cote d’Ivoire, Ghana, Indonesia, Nigeria, Cameroon, Brazil, Ecuador, Mexico, and Peru. India produces cocoa in small quantities. Some of the major cocoa-producing states are Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh.

Table of Contents

Economic Importance of Cocoa Cultivation

First of all, cocoa is a companion cash crop and is irrigated with coconut and areca nut gardens because it needs partial shade. Additionally, different value-added cocoa products like cocoa powder and butter have huge export potential.

Africa holds a dominant position with almost 70% of production volumes, 40% coming from Côte d’Ivoire. And the USA and European countries are the major importing countries of cocoa. Currently, Eastern Europe and Asia are the most emerging markets of cocoa.

Health Benefits of Cocoa

• First of all, cocoa aids in lowering blood pressure and improving the elasticity of blood vessels.
• Also, cocoa offers anti-inflammatory, anti-allergenic, anti-carcinogenic, and antioxidant qualities.
• The flavanol-rich cocoa may aid in maintaining a healthy brain.
• The consumption of cocoa has been shown to be effective in improving insulin resistance and glucose metabolism.
• Additionally, cacao beans contain xanthine and theophylline, which aid in relaxing bronchial spasms and opening constricted bronchial tubes.
• Also, cocoa helps to prevent high-fat-diet-induced obesity.

Things to Consider in Commercial Cocoa Cultivation

First of all, commercial cultivation includes different types of costs. So, financial planning is essential in commercial farming.

You can consider cocoa cultivation with other crops like coconut to get the maximum profitability from a particular area of land.

Before initiating the plantation, test the soil of the land. It will help you in plant protection and nutrient management.

In the commercial cocoa plantation, you must concentrate on the marketing of cocoa beans. Generally, small-scale cocoa product manufacturers are the major consumers of cocoa beans.

Best Varieties of Cocoa

There are three varietal types in cocoa namely Criollo, Forastero, and Trinitario. Also, there is some improved Indian variety of cocoa.

It comes with green medium-sized pods. and it changes to yellow on ripening. The trees are self-incompatible. Generally, the mature pods weigh 385 gm with 46 beans. On average, a tree yields 56 pods per year with a yield potential of 72 pods.

This variety comes with purple-tinged large pods. And it turns yellow on ripening. Generally, the mature pods weigh 402 gm with 45 beans. On average, a tree yields 66 pods per year with a yield potential of 93 pods.

This variety comes with elliptical green large pods. The pods turn yellow on ripening. Generally, the mature pods weigh 425 gm with 45 beans and 0.8 gm oven-dry bean weight. The average yield is 38 pods per tree per year with a yield potential of 55 pods.

it comes with very big-sized pods. Mature pods weigh 895 gm with 48 beans and 1.9 gm after oven drying. The average yield is 50 pods per tree per year with a total yield potential of 180 pods.

Basically, it comes with large, elongated green pods. Generally, the mature pods weigh 526 gm with 47 beans and 0.9 gm after oven drying. The average yield is 78 pods per tree with a yield potential of 95 pods.

DR-1, DR-2, DR-21, and DR-35 are resistant to the cocoa moth.

ICS-1, ICS-45, and ICS-92 are high-yielding selections showing varying degrees of tolerance to witch’s broom.

Some of the drought-tolerant varieties are NC 23, NC 29, NC 31, NC 39, and NC 42.

Agroclimatic Condition for Cocoa Cultivation

First of all, you can grow cocoa at altitudes up to 900m. The tree can’t withstand high winds, drought, or sudden falls in temperature. Additionally, it grows well in regions where the temperature ranges from 10° to 38°C. Cocoa prefers well-distributed rain. The requires a minimum of 100 to 150 cm rainfall per annum. Also, the crop prefers a relative humidity of 80%.

Suitable Soil for Cocoa Cultivation

You can grow cocoa successfully in a wide range of soils. However, well-drained, rich soils, acidic to neutral in the reaction are the best suited. Additionally, the soil must have a minimum soil depth of 1.5 m. Very coarse sandy soils are not suitable for cocoa plantations. Furthermore, a pH ranging from 4.5- 8.0 with the optimum being 6.5- 7.0 is suitable for commercial plantation.

Basic Cocoa Cultivation & Plantation Steps

Tissue culture in cocoa plantation.

You can opt for micropropagation for the mass multiplication of elite materials as a supplement to conventional propagation. In most cases, cotyledonary tissues show the best response to callus induction.

Propagation

You can opt for both seed and vegetative propagation in commercial cocoa plantations. Generally, seed propagation is desirable to collect the seeds for biclonal and polyclonal seed gardens. The seeds start germinating in about a week. About 90% of seeds germinate in this process. Then, you will need to transplant the seeds into perforated polythene bags. Generally, you can plant the four to six months old seedlings in the main field.

For a large-scale plantation, you must go for vegetative propagation. Through vegetative propagation by budding, rooting of cuttings, and grafting are feasible, and budding is widely popular.

In soils of low fertility and gravelly lateritic zones, dig pits of 50 cm X 50 cm X 50 cm in size. hen, fill them with a mixture of topsoil and organic manure. In soils of good texture and depth, there is no significant advantage to making big planting pits. Additionally, you must plant on the soil surface, since, feeding roots are confined to the surface irrespective of the depth of planting.

Aftercare & Management on Cocoa Plantation

Immediately after planting, you must mulch the basins with organic manure. Remove the shoots which emerge from the lower portions of the bud patch periodically. Actually, it ensures the healthy growth of scion shoots. During the first 3 to 4 years of planting, it is essential to keep the field weed-free.

Manuring & Fertilization

According to the soil test report, you will need to apply manure and fertilizers. Generally, you can apply NPK fertilizer in 2 equal split doses. In trees that yield more than 60 pods per year, double the dose. Also, you can apply dolomite @ 100gm per plant per year from the third year onwards. Generally, the best method of fertilizer application is to rake in and mix fertilizers with soil in shallow basins of 150 cm radius for grown-up plants.

Pruning in Cocoa Plantation

Cocoa grows naturally in tires. Under good management and adequate shade, its plants grow at a height of 1 – 1.5 m producing 3 to 5 fan branches. For convenience, you must restrict the growth to one tier at a convenient height. You must do pruning and shaping of grown-up plants gradually without much shock to the bearing plants.

Irrigation in Cocoa Plantation

Under the condition of well-distributed rainfall, cocoa grows up well as a rain-fed crop. In that case, you may not need to provide irrigation. In areas where the rain-free period extends to 4 to 6 months, you will need to provide supplemental irrigation. Generally, you may provide irrigation once in 5 days. It helps in better growth of plants and precocity in bearing.

Top Working in Cocoa Plantation

Generally, top working is very useful to rejuvenate old and unproductive cocoa plants. Also, it converts genetically poor yielders to high yielders. After the pre-monsoon shower is the best time for top working in cocoa. The top working technique consists of snapping back the desired trees below after cutting halfway.

Plant Protection

Generally, plant protection includes protecting your cocoa farm from harmful pests and diseases. There are several potential pests and insects you can find. So, you must have the financial arrangements for protecting the farm.

Harvesting & Post-harvest Management

Generally, the cocoa pods take 150 to 170 days from pollination to harvesting. You can judge the stage of maturity of pods best by the color change of the pods. You can store the harvested pods for up to 4 days. Generally, it enhances the pre-fermentation activity inside pods and helps to get good-quality cured beans. You can break the pods by hitting them against a hard surface. And finally, extract the beans without placenta and keep them for fermentation immediately.

In commercial cocoa plantations, proper plant protection is essential to get optimum profits. And you must control the cocoa pests and diseases properly. This article includes detailed cocoa pests and a disease management guide for sustainable farming.

Generally, proper management of pests and diseases helps to reduce the damage. Hence, it ensures better yield and profitability. So, in initiating a commercial cocoa plantation business, you must have a clear conception of the potential harmful pests and diseases and control methods. Actually, there are over 1500 insects in different cocoa-growing countries.

List of Potential Cocoa Pests & Diseases

#1. black pod disease (phytophthora palmivora).

Actually, this is the most important disease of cocoa in all cocoa-growing regions. And it becomes severe in the rainy season. Pods of all age groups are susceptible to this disease.

Generally, circular brown spots appear. And it enlarges concentrically and evenly covering the whole pod surface. Ultimately, the color of the pods becomes dark brown or black. In immature pods, beans remain partly or wholly unaffected.

How to Control?

First of all, you must remove the infected pods as and when they appear on the tree. Additionally, the provision of good drainage and aeration in the garden is important during the monsoon period. Also, you can spray the Bordeaux mixture 1% with adhesive before the onset of monsoon immediately after removing infected pods.

#2. Vascular-streak Die-Back (Oncobasidium Theobromae)

Generally, this disease occurs on the main stem of seedlings or on a branch of an older tree. The first symptom is the yellowing of one leaf. Usually, the second or third is behind the growing tip with the development of green spots or islets scattered over the yellow background.

Generally, the infected leaves fall off within a few days, and subsequently leaves above and below it, turn yellow and shed. It results in a distinctive situation where the youngest and the oldest leaves on a branch are still present while all the middle ones have fallen.

Leaf scars from the fall-off of chlorotic leaves are sometimes covered by a white, loosely adherent fruiting body of the fungus. If the diseased stem is split longitudinally, the xylem appears as discolored brown streaks.

You may find effective pruning the plants 30 cm below the discoloration of vascular tissue. Also, you can consider the application of the Bordeaux mixture of 1% at 45 days interval from the onset of monsoon to prevent its spread.

Fan branches and small twigs are generally infested by the pathogen. It is severe during heavy rains. The first indication of the disease is the death of the branch. generally, you can notice characteristic pinkish encrustation of fruiting bodies of the fungus on the bark of infected branches.

Finally, it turns greyish-white. Before the appearance of visible external symptoms, many fine, white, silky mycelia already spread over the surface. And into the cortex of the bark leading to defoliation and death of the distal part of the branch.

first of all, remove and destroy all the infected and dried branches. Apply Bordeaux paste at the fork region and at the cut ends of twigs. Additionally, spray with a Bordeaux mixture of 1% before the onset of the monsoon.

#3. Charcol Pod Rot (Botryodiplodia Theobromae)

Actually, this disease is characterized by the formation of water-soaked lesions on pods either at the tip or stalk end at all stages of maturity. Initially, the lesion is chocolate-brown and then dark. In due course, the complete pod develops a black sooty appearance as a result of the formation of dark-colored spores of the fungus all over the pod surface.

Remove all the infected pods and spray with a Bordeaux mixture of 1%.

#4. Colletotrichum Pad Rot (Colletotrichum gleosporioides)

Generally, the initial symptoms appear as chlorotic spots on the surface of the pods. And it later turns dark brown and necrotic. The spots enlarge in a circular manner surrounded by a prominent chlorotic yellow halo.

Fully developed spots are dark brown and depressed in nature. It later coalesces to cover large areas on the surface of the pod. Additionally, pink-colored fructifications of the fungus develop on the necrotic spots. In the advanced stage, the pods dry and remain as a mummified structure on the tree.

Remove the infected pods and spray with captafol 0.2% or Bordeaux mixture 1%.

#5. Red Borer (Zeuzera coffeae)

Larvae burrow into the main stem of young plants and fan shoots of older trees. It causes drying up.

Prune off and burn affected fan shoots. Also, you can spray Carbaryl 0.1% on the main stems of young plants as a prophylactic measure.

#6. Tea Mosquito (Helopeltis Antonii)

The bugs mainly attack the pods. Circular water-soaked spots develop on the infested pods, around the feeding punctures. and it later turns pitch black in color, causing the deformity of the fruits.

You can control the pest by spraying Endosulfan 0.05%.

#7. Mealy Bugs (Planococcus Lilacinus)

The bugs occur in Cherelles, developing pods and shoots and de sap the tissues leading to the formation of scabs. Generally, this pest occurs throughout the year but attains peak population levels during July-October.

You can control it by spot application of Quinalphos 0.025% or Phosalone 0.1%.

#8. Grey Weevil ( Myltocerus spp)

A number of species of Myltocerus weevils infest cocoa. The attack is severe on young plants. Additionally, the peak period of infestation occurs from July to September. The adults occur in groups on the underside of leaves and feed on the green matter leaving the veins intact.

Spray Carbaryl 0.1% or Fenthion 0.05% on under the surface of foliage twice a year during May and September.

#9. Aphids ( Toxoptera Aurantii)

Generally, the colonies of pink aphids infest flower stalks, tender leaves, and shoots. On leaves, aphids are confined to the lower surface.

In this case, chemical control is not essential. You must collect and destroy the severely affected plant’s part immediately.

#10. Cock-chaffer Beetle (Leucopholis spp)

The grubs feed on the surface roots of young cocoa plants and sometimes on grown-up plants causing wilting. Generally, the infestation is more frequent in the coconut-cocoa intercropping situation. Because the same pest attacks coconut as well.

You can protect the seedlings by application of Carbaryl 10% DP @ 10 gm per pit. Also, you can drench the grown-up plants with the wettable formulation of Carbaryl 0.1%.

#11. Red Banded Thrips

Adults and nymphs of the thrips appear in colonies on the undersurface of leaves and pods. They feed on fluid excluding the scrapped tissues. Generally, infected leaves turn pale green to pale brown and dry up later.

You can control this by the application of Quinalphos 0.05%, Phosalone, or Fenthion.

#12. Storage Cocoa Pests

When you store the cocoa beans for more than 2 months, you may find damaged beans. There are several cocoa pests and insects behind this damage.

However, the rice meal moth (Corcyron Cephalonica) is the most important one. The larvae of the moth feed on the internal contents of the beans and construct silken galleries using frass and broken-down particles of the beans.

You can mix the cocoa beans with neem leaves for long-term storage @ 2% by weight. Generally, it helps to protect the beans for up to 6 months.

#13. Non-insect Cocoa Pests

Stripped squirrels and rats cut irregular holes in the walls of maturing pods and extract the contents completely. Additionally, they feed on mucilaginous pulp around beans.

Considerably, you can reduce the damage by harvesting the pods at the right stage when burrows start bronzing. Also, poison baiting with Fumarian bars is quite useful.

#14. Civet Cat (Paradoxus hermaphoditus)

They gnaw holes in the pods, bite and break the husk. The civets swallow the beans and as such no trace of beans will be visible under the tree. Instead, piles of defecated beans are seen scattered around the farm.

Generally, you can control the civet cats by poison-baiting ripe bananas with Carbofuran.

#15. Physiological Disorder

Actually, Cherelle wilts are a physiological disorder characterized by the drying and wilting of young pods. And wilted pods remain attached to the tree. Competition for carbohydrates when the tree is overloaded with pods and mineral nutrients is a major cause.

You can control this situation by applying the right nutrients and fertilizer according to the soil test report.

Generally, the harvested beans need fermentation. And also you can consider initiating a cocoa processing unit to produce different value-added products from your cocoa plantation business.

The Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium-scale businesses.

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How to Start a Profitable Cocoa Farming Business

Do you want to start a cocoa farming business for profit? Find here a detailed cocoa farming business plan checklist with cost, profit, farming process, and yield.

Post-harvest management and processing of cocoa beans are important to get the consumable form of cocoa. This article includes a cocoa farming business plan with a flowchart for a small unit.

Read: Most Profitable Livestock Farming Business Ideas 

Actually, raw cocoa is not a consumable item. One needs to process cocoa beans and cocoa powder to produce cocoa as a consumable item. Also, proper post-harvest management is important after the immediate harvest of cocoa pods.

Actually, the demand for processed cocoa is growing globally. And if you live in a cocoa-producing area, you can consider initiating a cocoa farming business.  Actually, the bakers, confectioners, and chocolate manufacturers are the major consumers of processed cocoa.

Here are the 5 Steps to Start a Cocoa Farming  Business

Step 1. craft a business plan.

In starting this business, crafting a business plan is mandatory. Your business plan must include some basic topics like business description, Products offered, Organizational structure, Marketing plan, Competitive Analysis, Operations Plan, and Financial data.

Step 2. Secure a Space

In initiating the unit, you must have a wide space. However, the exact requirement depends on the level of processing you start and the volume of the product. Also, this type of business has a wide space for the storage of raw materials and finished items. So, depending on your business plan, you must secure a space for the processing operation.

Step 3. Obtain License & Permission

Actually, cocoa processing and producing value-added products come under the food processing industry. So definitely, you will need to check the licensing requirements in your area.

Step 4. Establish the Unit

Establishing the unit needs machinery installation, electrification, etc. Also, you will need to hire skilled manpower for operating the unit smoothly

Step 5. Select a Cocoa Processing Method

After the immediate harvest of the pods, you can store them for a maximum of four days. Actually, it helps to enhance the pre-fermentation activity inside pods and helps to get good-quality cured beans. You can break the pods by hotting them against a hard surface. And you can extract the beans without a placenta and keep them for fermentation immediately.

Step 6. Fermentation

First of all, cover the raw beans with a sugary mucilaginous pulp. The beans with pulp around are called ‘wet beans’. The kernel or ‘nib’ is a useful part and is bitter without any aroma or flavor. Generally, the different methods of fermentation essentially involve keeping together a mass of a reasonable quantity of wet beans for four to six days. And also mixing thoroughly on alternate days.

The pulp around the mass is lost. Also, you can notice a series of biochemical changes in beans. And there are highly necessary for imparting the chocolate flavor. You must produce and conserve the heat by keeping fresh beans compactly. It helps to complete the chemical changes inside.

Step 7. Biochemical Changes During Fermentation

Generally, the pulp contains about 80% water, 10-15% glucose, and fructose, and 0.5% non-volatile acids largely citric acid. You must sterile initially. The presence of sugars and high acidity (PH 3.5) provides excellent conditions for the development of microbes.

Initially, yeasts start to proliferate and they convert sugars to alcohol. The watery contents of the pulp flow off as sweating due to the breakdown of cells of the sap. Actually, it happens due to enzyme action or by simple mechanical pressure which continues for 24 to 36 hours.

The activity of yeasts leads to the production of CO2 which includes anaerobic conditions and allows the development of lactic acid bacteria. And it assists in the breakdown of sugars.

Actually, the activity of bacteria leads to the production of organic acids. When sweating has run off, the conditions become more aerobic. Also, acidity gets reduced by the removal of citric acid. The presence of oxygen allows the acetic acid bacteria to take over from yeasts and convert alcohol to acetic acid. These reactions cause a rise in temperature in the mass of beans.

Step 8. The Temperature in Biochemical Changes During Fermentation

Generally, the temperature rises steadily during the first 2 days reaching 40 – 45°C and after first mixing to about 48 – 50°C. This rise in temperature and acidity causes the death of beans, followed by the loss of selective permeability of the membrane. Also, it causes the diffusion of materials from outside into the beans. And this causes the breakdown in the internal cell structure. Additionally, the PH of the cotyledon is around 6.6 and when the contents enter the bean, they lower the PH to about 4.8 and of fermentation.

The acetic acid diffusing through the testa causes the breakdown of polyphenol and lipid membranes of the vacuoles of the cell and cell contents are mixed. Also, various enzymatic reactions take place and polyphenol gets oxidized. The reaction is partially responsible for the removal of the bitter taste from the beans.

Step 9. Different Methods of Fermentation of Cocoa Farming

Actually, different cocoa-producing countries adopt various methods for fermentation. However, the heap box and tray methods are the most standard ones.

a) Heap Method

This involves keeping a mass of not less than 50 kg of wet beans over a layer of banana leaves. You will need to spread the banana leaves over a few wooden sticks to keep them a little raised over the ground level. Actually, it facilitates the flow of sweating.

Then fold the leaves and keep them over the heap. And keep a few wooden pieces over it to keep the leaves in position. Then the heaps are dismantled and the beans are mixed on the third and fifth days. It needs about 6 days for the completion of fermentation. Finally, you can take out the beans for drying on the seventh day.

b) Tray Method

Wooden trays of 90 cm x 60 cm x 13 cm size with battens or reapers fixed at the bottom with gaps in between are filled with beans. Each tray contains about 45 kg of wet beans. Then, stack the six such trays one over the other and keep an empty tray at the bottom to allow the drainage of sweating. After stacking, keep the beans on the topmost tray covered with banana leaves. After 24 hours of sitting, keep the stack of the trays covered with gunny sacking to conserve the heat that develops.

You don’t need to mix the beans. Generally, it takes 4 days to complete the fermentation. On the fifth day, you can take out the beans for drying. You need to stack the minimum 6 numbers of trays. However, you can use as many as 12 trays simultaneously.

c) Box Method

In this method, you can use 1.2 m x 0.95 m x 0.75 m wooden boxes with holes at the bottoms. Fill the sides of the boxes with wet beans. Generally, these boxes can hold one tonne of wet beans. You will need to mix the beans on every alternate day. As the quantity of the beans is high, this is best done by changing the beans from one box to another at the time of mixing.

d) Small Scale Methods of Fermentation

For a small-scale operation, you can adopt both the tray method and the box method. However, the tray method is the best one. You can operate with a few beans. Generally, a number of factors influence the duration of fermentation. Mainly, the weather changes and seasons are the most important aspects. Also, you can’t go for fermentation with unripe pods. Additionally, Criollo beans ferment more quickly than those of Forastero. Well-fermented beans are plump. They are filled with a reddish-brown liquid. The testae become loose and detached from the cotyledons.

Step 11. Drying

You can dry the fermented beans either in the sun or by artificial means. You can sun-dry the beans in thin layers of 2-3 cm depth and stir from time to time. Under normal sunny weather, you can complete the drying within 4-5 days. However, during the monsoon, you can adopt mechanical drying. However, you must provide proper care to avoid exposure to beans to smoke and fumes. After drying the beans properly, they produce a characteristic cracking sound on compressing a fistful of beans in the palm.

Step 11. Storage of Cocoa

Under prevailing conditions in cocoa-growing belts, beans absorb moisture and attain equilibrium moisture content. Generally, it is not safe for long-term storage. Therefore, you can store the beans without spoilage only for a short period. You can pack the dried beans with a moisture content of 6-8% in polythene-lined gunny bags. However, you must clean and break the beans before storage.

You must provide a sufficiently ventilated store. Also, keep the bags on a wooden platform with an air space of about 15-20 cm below the wooden planks set over the floor. You must control the humidity under 80% to prevent mold development and pest incidence in the beans.

As cocoa can absorb and retain any odor in its surroundings, you must avoid keeping foodstuff near it. Also, avoid the nearness to smoke or kerosene fumes. The success of cocoa processing and manufacturing the chocolates in the development of flavor by roasting the beans followed by several steps. Generally, it includes the extraction of cocoa butter from the nib and sugar to produce chocolate. You can follow the flowchart to get the various steps in detail.

Actually, there are several aspects that influence the character of chocolate taste and the aroma of cocoa products. It depends on each step of the manufacturing process. Precise standardization is necessary to make good quality cocoa products for the reputed processed food brands. In commercial cocoa processing, you must consider adopting sustainable strategies to minimize the loss and optimize the profit revenue.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.

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• Business Idea: 5 Step Guide to Starting a Cocoa Farming Business

A business plan is required while launching this firm. Business description, products offered, organizational structure, marketing plan, competitive analysis, operations plan, and financial data are all essential elements to include in your business plan.

Starting a cocoa farming business can seem like a daunting idea, but when you have a step-by-step guide to follow through and execute the idea, it can be a huge success! Here's our guide to starting a cocoa farming business.

Craft a Business Plan

A business plan is required while launching this firm. Business description, products offered, organizational structure, marketing plan, competitive analysis, operations plan, and financial data are all essential elements to include in your business plan .

Secure a Space

You'll need a lot of room to start the unit. The actual demand, however, is determined by the amount of processing you begin and the volume of the product. This sort of business also requires a large amount of storage space for raw materials and completed goods. As a result, you must acquire a location for the processing operation based on your company strategy .

Obtain License & Permission

Cocoa processing and value-added product production are within the food processing business. As a result, you should need to check the license requirements in your location.

Establish the Unit

Establishing the unit necessitates the installation of machinery, as well as the wiring of the facility. You'll also need to engage trained labor to keep the machine running efficiently.

Cocoa Processing Method

You can keep the pods for a maximum of four days after harvesting them right away. It helps in the enhancement of pre-fermentation activity within pods and the production of high-quality cured beans. By heating the pods against a hard surface, you can break them. You may also extract the beans without a placenta and ferment them right away.

Are you interested in Cocoa Cultivation? Know everything about it

Cocoa cultivation is spread over 58 countries. However, African countries contribute about 70 per cent of global cocoa production. Coco…

Fermentation

Cover the raw beans with a sweet mucilaginous pulp first. Wet beans are beans that have pulp on them. The 'nib,' or kernel, is a useful portion that is bitter and flavorless. In general, the various fermentation processes include maintaining a mass containing a reasonable number of wet beans together for four to six days. On alternating days, properly combine everything.

The pulp that surrounds the bulk has been gone. Beans have also undergone a variety of metabolic modifications. They're also essential for adding the chocolate taste. Fresh beans must be kept compactly to create and conserve heat. It aids in the completion of internal chemical changes.

Biochemical Changes During Fermentation

The pulp typically comprises around 80% water, 10-15% glucose and fructose, and 0.5 percent non-volatile acids, primarily citric acid. You must first sterilize the initially. The abundance of carbohydrates and high acidity (PH 3.5) create ideal conditions for microbial growth.

The temperature increases steadily throughout the first two days, reaching 40–45°C, and then drops to around 48–50°C after the initial mixing. The mortality of beans is caused by an increase in temperature and acidity, which is followed by a loss of selective permeability of the membrane.

Different Methods of Fermentation of Cocoa Farming

Heap Method 

This entails retaining a pile of wet beans of at least 50 kg on top of a covering of banana leaves . To keep the banana leaves a bit elevated above the ground level, put them across a few wooden poles. It aids in the flow of perspiration.

Tray Method 

Beans are placed in 90 cm x 60 cm x 13 cm wooden trays with battens or reapers mounted at the bottom and spaces in between. Each tray holds approximately 45 kg of wet beans. Stack the six similar trays one on top of the other, leaving an empty tray at the bottom to enable perspiration to drain. Keep the beans on the highest tray after stacking and cover them with banana leaves. To conserve the heat that emerges after 24 hours of sitting, cover the stack of trays with gunny sacking.

Use 1.2 m x 0.95 m x 0.75 m wooden boxes with holes in the bottoms for this procedure. Fill the boxes halfway with wet beans. These crates can typically carry one tonne of wet beans. Every other day, you'll need to stir the beans. Because the number of beans is large, this is best accomplished by switching the beans from one box to another throughout the mixing process.

Small Scale Methods of Fermentation

You may use either the tray approach or the box method for a small-scale operation. The tray approach, on the other hand, is the most effective. With just a few beans, you can get by. Fermentation length is influenced by a variety of variables. The most essential features are the weather variations and seasons. Unripe pods are also ineligible for fermentation. Furthermore, Criollo beans ferment faster than Forastero beans. Beans that have been well-fermented are plump. The liquid within is a reddish-brown color. The testate separates from the cotyledons and becomes loose.

Storage of Cocoa

Beans absorb moisture and reach equilibrium moisture content under the circumstances seen in cocoa-growing belts . It is not recommended for long-term storage. As a result, you can only keep the beans for a limited time without their spoiling. Dry beans with a moisture level of 6-8 percent can be packed in polythene-lined gunny bags. However, before storing the beans, you must clean and shatter them.

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Cocoa flowers are small and white and are produced year-round on the trees. Small insects called midges pollinate these flowers, and the resulting fruit, known as a cocoa pod, contains around 20-40 cocoa beans. The pods are harvested by hand, and the beans are extracted and processed to make cocoa products. With careful cultivation and proper management, Cocoa can continue to be a sustainable and profitable crop for years.

Cocoa trees take around three to five years to start producing cocoa pods containing the seeds used to make cocoa products. The pods are harvested by hand, and the seeds are extracted, fermented, and dried before they are shipped to processing facilities. This guide will provide an in-depth look into cocoa farming, from getting started to the challenges you may face. It will provide you with the necessary information to make informed decisions and help you establish a successful cocoa farm.

How to start Cocoa farming from scratch

There are many uses for Cocoa in various industries and applications. Some common uses for Cocoa include:

• Food and Beverage Industry: Cocoa is a key ingredient in many chocolate products, including chocolate bars, chocolate chips, and chocolate drinks. It is also used in baked goods such as cakes, cookies, and brownies.
• Cosmetic Industry: Cocoa is rich in antioxidants and has anti-inflammatory properties, making it a popular ingredient in skincare products such as face masks and moisturizers.
• Medicine : Cocoa has been shown to have potential health benefits, including reducing blood pressure and improving cardiovascular health. As such, it is being studied as a potential treatment for certain medical conditions.
• Animal Feed: Cocoa meal, a byproduct of cocoa processing, is often used as a feed ingredient for livestock and poultry.
• Industrial Uses: Cocoa butter is used in producing candles, soaps, and other personal care products. It is also used as a lubricant in certain industrial applications.

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• Kerala : Kerala is India’s top cocoa-producing state, with an annual production of around 36,000 metric tons. The state is home to several cocoa plantations, and its favorable climatic conditions are ideal for cultivation.
• Tamil Nadu : Tamil Nadu is India’s second-largest cocoa-producing state, with an annual production of around 20,000 metric tons. The state has several cocoa estates, and its warm and humid climate is well-suited for cocoa cultivation.
• Karnataka : Karnataka is India’s third-largest cocoa-producing state, with an annual production of around 15,000 metric tons. The state has several cocoa plantations, and its tropical climate is conducive to cultivation.
• Andhra Pradesh : Andhra Pradesh is India’s fourth-largest cocoa-producing state, with an annual production of around 12,000 metric tons. The state has several cocoa estates, and its warm and humid climate is ideal for cultivation.
• Maharashtra : Maharashtra is India’s fifth-largest cocoa-producing state, with an annual production of around 10,000 metric tons. The state has several cocoa plantations, and its tropical climate is well-suited for cocoa cultivation.

Step-by-step guide for beginners in Cocoa farming

Cocoa is grown from cocoa beans, which make chocolate, cocoa powder, and other chocolate-based products. The cocoa plant can grow up to 30 feet tall and has dark green leaves, small white flowers, and oval-shaped pods that contain cocoa beans. The beans are harvested by hand and then processed to extract the cocoa butter and cocoa solids, which are the main ingredients in chocolate. The cocoa plant requires warm, humid conditions and well-draining soil to thrive. It is also sensitive to frost and drought, so it is typically grown in areas with consistent rainfall and high humidity.

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• Forastero : This is the most commonly cultivated cocoa variety known for its hardiness and high yield. It is often used in bulk chocolate production.
• Criollo : This variety is known for its delicate aroma and flavor and is often used in high-quality chocolate production. It is more delicate and less hardy than Forastero.
• Trinitario : This is a hybrid of Forastero and Criollo and is a cross between the two varieties in terms of flavor, aroma, and hardiness. It is also used in high-quality chocolate production.
• Nacional : This variety is native to Ecuador and is known for its high quality and unique flavor. It is a rare variety and is often used in fine chocolate production.
• Amelonado : This hybrid of Forastero and Trinitario is known for its high yield and disease resistance. It is often used in bulk chocolate production.
• Porcelana : This pure, high-quality cocoa variety is known for its light-colored beans and delicate flavor. It is often used in high-end chocolate production.

Temperature, climate, and rainfall requirements for Cocoa farming : Cocoa farming requires a humid tropical climate with consistent temperatures between 20-32°C. Cocoa trees need to receive plenty of rainfall, ideally between 1,500-2,500mm per year. However, cocoa trees can tolerate short dry periods and survive irrigation.

Cocoa trees also require high humidity levels, preferably over 75%. Cocoa farming is typically found in countries located within 20° north and south of the equator, such as West Africa, South America, and Southeast Asia Cocoa trees thrive in tropical climates with high humidity and rainfall. However, they also need at least 2-3 dry months per year to allow the trees to rest and produce fruit.

Soil type: Cocoa trees prefer well-draining, slightly acidic soil with a pH of 5.5-6.5. The soil should also have a good supply of organic matter and nutrients.

Access to water: Cocoa trees require a consistent water supply, especially during the dry season. It is essential to choose a site with access to irrigation or a reliable source of water.

Market access : Choosing a site close to a market selling cocoa beans is essential. It will help ensure that the farmer can get a reasonable price for their product and minimize transportation costs.

Cocoa plants require well-draining soil that is rich in organic matter and nutrients. The ideal soil pH for cocoa farming is between 5.5 and 6.5. The soil should also have good water retention capabilities, as cocoa plants require a consistent moisture supply to thrive. In addition, cocoa plants prefer a sunny location with plenty of direct sunlight. They also do well in high humidity and warm tropical climates.

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• Clear the land: The first step in preparing land for cocoa farming is to clear any weeds, grass, or debris that may be present. This can be done manually or in primary tillage Operations or with herbicides.
• Remove stumps and roots : Any stumps or roots on the land should be removed to create a clear and level surface for planting. It can be done by using a stump grinder or manually digging them out.
• Plow the soil: The next step is to plow the soil to loosen it and prepare it for planting. It can be done with a tractor or manually with a plow.
• Apply fertilizers: Once the soil is plowed and cleared, it is crucial to enrich the soil and provide the necessary nutrients for the cocoa trees to grow. It can be done with organic or chemical fertilizers.

The cocoa plant is propagated by planting cocoa seeds or cuttings taken from mature trees. To propagate cocoa seeds, the seeds are first removed from the cocoa pods and dried in the sun for a few days. They are then planted in well-draining soil and covered with a thin layer of soil. The seeds should be watered regularly until they germinate and sprout. Once the seedlings are strong enough, they can be transplanted to a permanent location in the field.

A cocoa nursery must have enough shade, irrigation, and wind protection. The nursery should have at least 50% shade. The land should be level and devoid of rodents and pathogens. A micro sprinkler provides irrigation. To propagate cocoa trees through cuttings, cuttings are taken from mature trees and planted in pots or directly in the field. The cuttings should be watered regularly until they are well-established and ready to be transplanted to a permanent location in the field.

Cocoa farming involves planting cocoa trees in a specific spacing pattern to allow for optimal growth and production. Cocoa seedlings are planted in 50 cm3 compost-filled pits. The spacing between cocoa trees can vary depending on the farmer’s specific farming techniques and goals. Still, generally, it is recommended to plant cocoa trees at a spacing of 4-6 meters apart.

This spacing allows enough space for the trees to grow and reach their full potential while also allowing for efficient management and maintenance of the cocoa farm. Additionally, this spacing can help to reduce the risk of pests and diseases spreading between trees, as it reduces the likelihood of the trees being near each other.

• Forest spacings of 2.5 x 2.5 m to 3.0 x 3.0 m are suitable.
• Cocoa is planted at 2.7 x 5.4 m spacing in the areca garden, while the main crop is planted at 2.7 x 2.7 m.
• When grown as an intercrop with coconut, two systems are usually followed by a single hedge 2.7 m apart or a double hedge 2.5 m apart.

Some common crops intercropped with Cocoa include plantains, cassava, pineapple, and legumes such as beans and peanuts. These crops can provide shade for the cocoa trees, improve soil quality, and provide additional food sources for the farmer and their family. The canopy height should be limited to two storeys when grown as an intercrop of palms. According to studies on spacing and pruning, a spacing of 2.7 x 5.4 m and a canopy area of 15-20 m2 yielded the highest bean yield.

To maintain a healthy canopy, the cocoa tree should be pruned regularly. Formation pruning is required in young cocoa plants. It is primarily done to adjust the height of the first jorquette. The jorquette can grow to 1-2 metres, aiding cultural operations. Pruning in mature Cocoa is classified into two types: sanitary pruning and structural pruning. Diseased or unnecessary branches are removed during sanitary pruning. The canopy is pruned structurally to achieve the desired size and architecture. To avoid self-shading of leaves, pruning practices should maintain maximum leaf area.

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In cocoa farming, manures and fertilizers are necessary for maintaining soil fertility and providing essential nutrients to cocoa trees. Manures are organic materials derived from animal or plant sources and used to enrich the soil. They can be applied directly to the soil or used as mulch around the base of the cocoa trees.

Several fertilizers can be used in cocoa farming, including nitrogen, phosphorous, and potassium (NPK) fertilizers, the primary macronutrients that cocoa trees need. Cocoa needs 100 g N (220 g urea), 40 g P2O5 (200 g rock phosphate), and 140 g K2O (235 g potash muriate) per plant per year.

• Nitrogen fertilizers : Nitrogen is an essential nutrient for cocoa plants, as it promotes leaf growth and helps form chlorophyll. Nitrogen fertilizers can be applied as a liquid or a granule and can be derived from natural sources such as compost or synthetic sources such as urea.
• Phosphorous fertilizers : Phosphorous is essential for root development, flower and fruit production, and overall plant growth. Phosphorous fertilizers can be applied as a liquid or a granule and can be derived from natural sources such as bone meal or synthetic sources such as triple superphosphate.
• Potassium fertilizers : Potassium is essential for the proper development and growth of cocoa plants, as it helps to regulate water uptake and the synthesis of proteins and carbohydrates. Potassium fertilizers can be applied as a liquid or a granule and can be derived from natural sources such as wood ash or synthetic sources such as potassium chloride.

Other essential micronutrients that cocoa trees require include zinc, manganese, iron, and boron.

Irrigation in cocoa farming artificially supplies water to cocoa trees to support their growth and production. It is essential in areas where there is limited or inconsistent rainfall. Drip irrigation is the most common method, as it delivers water directly to the roots of the cocoa trees through a system of tubes and emitters. Sprinkler irrigation involves using sprinklers to spray water over the entire area.

Cocoa responds well to drip irrigation. Maximum yields are obtained when Cocoa is drip-irrigated at a rate of 20 litres per day per tree. Without sufficient water, the trees may become stunted or even die. Additionally, irrigation helps to control the spread of pests and diseases, as moist conditions are often necessary for their growth.

Pests & disease management in Cocoa farming

Cocoa farming can be affected by various pests and diseases that can significantly impact crop yields and quality. Therefore, effective pest and disease management is essential for the success of cocoa farming operations.

• Capsids are small, green insects that feed on the leaves and shoots of cocoa trees. They can cause significant damage to the plant and reduce crop yields.
• Mealybugs: These insects feed on the sap of cocoa trees and can cause damage to the leaves, stems, and fruit. They can also produce a sticky, sugary substance that can attract ants and other pests.
• Scale insects: These pests can damage the bark and branches of cocoa trees, reducing the tree’s ability to produce fruit.
• Spider mites: These small, spider-like insects can cause damage to the leaves of cocoa trees, reducing the tree’s ability to photosynthesize and produce fruit.
• Black pod disease : This fungal disease affects the fruit of cocoa trees, causing the pods to turn black and rot. It can significantly reduce crop yields.
• Root rot : This fungal disease can attack the roots of cocoa trees, reducing the tree’s ability to absorb nutrients and water. It can lead to the death of the tree if not treated.
• Witches’ broom : This fungal disease causes the cocoa tree to produce abnormal, broom-like growths on the branches and leaves. It can reduce crop yields and the quality of the cocoa beans produced.

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• Cultural controls include crop rotation, pruning, and proper irrigation to reduce the risk of pests and diseases.
• Chemical controls: Pesticides and fungicides can be used to control pests and diseases, but care must be taken to ensure that they are used in an environmentally responsible manner.
• Biological controls: Using natural predators or parasites to control pests and diseases can be a more sustainable option.
• Identifying when the cocoa pods are ready for harvest: Cocoa pods are ready for harvest when they turn yellow or orange and are slightly soft to the touch. It usually occurs after about 5-6 months of growth.
• Cutting the pods from the tree : Cocoa pods are typically cut using a small knife or machete. Care is taken to avoid damaging the tree or the surrounding pods.
• Breaking open the pods : Once they are cut from the tree, they are broken open to reveal the cocoa beans inside. It is typically done using a hammer or mallet.
• Removing the cocoa beans : The cocoa beans are carefully removed from the pod and placed in a basket or container.
• Drying and curing the beans : The cocoa beans are then dried in the sun or in a drying facility to reduce their moisture content. After drying, they are placed in a curing process, which involves heating and turning the beans to ensure they are evenly cured.
• Grading and sorting the beans : After curing, the beans are graded and sorted according to size, shape, and quality.
• Packaging and shipping the beans : The final step in the harvesting process is packaging and shipping the beans to buyers or processing facilities for further processing into cocoa products such as chocolate.

Cocoa is the dried, and fermented seed of the cacoa tree used to make chocolate. “Cocoa” can also refer to the drink known as hot chocolate; cocoa powder, the dry powder made by grinding cocoa seeds and separating the cocoa butter from the dark, bitter cocoa solids; or the combination of cocoa powder and cocoa butter.

The yield of cocoa farming varies depending on various factors such as location, weather conditions, soil quality, and farming practices. A cocoa tree can produce around 25-30 kilograms of cocoa beans yearly. However, yields can range from as low as 10 kilograms to as high as 50 kilograms per tree per year. Factors such as tree age, irrigation, pruning, and pest and disease control can also affect the yield of cocoa farming.

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Thanks for this information i’m a cocoa farmer and i’ve learnd alot from this

Iam a first time cocoa farmer in Nigeria and I find this very useful and helpful. Thank you for the write up.

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Home » Commodities » Cocoa

The Rainforest Alliance cocoa certification program is the world’s largest scale initiative to drive more sustainable cocoa farming. We work with cocoa farmers to regenerate their land while improving their incomes. In partnership with diverse allies, we drive positive change across critically important cocoa landscapes.

This page features information about the Rainforest Alliance's work in cocoa and links to our cocoa-related content and resources.

We work as an alliance on both the supply side of the cocoa market (helping one million cocoa farmers implement more sustainable practices, and communities to restore landscapes), and the demand side (helping companies source more sustainable cocoa and understand and communicate their impact).

Quick Links

Rainforest alliance certified cocoa.

The Rainforest Alliance Cocoa Program tackles human rights, environmental and economic issues in the cocoa sector. Read more about our approach here.

Rainforest Alliance and the EUDR

Learn how the Rainforest Alliance is supporting cocoa and coffee farmers and companies in preparing for the EU Deforestation Regulation.

Shared Responsibility

For the cocoa sector to be truly sustainable, we believe that both the value and the risks must be shared across the supply chain – read more about our shared responsibility approach here.

Building Climate Resilience in Ghana

This public-private partnership supports cocoa farmers in the production of deforestation-free cocoa, while also tackling related issues like productivity and pest control head-on.

Understanding the Sustainability Differential in Cocoa

Our 2020 Certification Program includes two financial requirements for the buyers of Rainforest Alliance Certified commodities: the Sustainability Differential (SD) and Sustainability Investments (SI). For cocoa, we will require a minimum SD of $70 per MT as of July 2022.

Innovative Ways to Enhance Living Income for Cocoa Farmers

At the Rainforest Alliance, we believe in a shared responsibility approach that encourages companies to do their part in ensuring a living income for farmers. This is the basis of our initiatives, the Living Income Module and the Living Income Fund.

An Entrepreneur Championing Women Cocoa Farmers in Côte d'Ivoire 

Meet Kpomin Minrienne Kole Edi, a successful farmer and entrepreneur who has spent her life breaking barriers—from helping other women farmers in her community to advocating for global policy reform. This is her story.

How Your Company Can Support Regenerative Agriculture

Regenerative agriculture is crucial to adapt and mitigate our food system to the climate crisis. Whether your company is just starting to assemble a regenerative supply chain policy or is looking to amplify its existing strategies, the Rainforest Alliance can help.

All resources for Cocoa

Commentary: cocoa prices skyrocket, but farmers left behind  .

Cocoa prices have reached record highs due to severe supply shortages globally. The worsening impact of climate change, plant diseases, and socioeconomic challenges faced by cocoa-producing countries have all played a role. Smallholder farmers in West Africa, who supply around 70% of the world's cocoa, bear the brunt of these challenges despite being crucial players in the industry. 

Published on April 16, 2024

Easter egg prices soar as cocoa crops are hit by climate change

Published on April 3, 2024 | BBC News

Our Director of Global Programs, Kwame Osei, shed light on the impacts of climate change on cocoa farmers in West Africa. In the context of the soaring cocoa prices, he outlined urgent actions needed to address these challenges, underscoring the need for better pricing and supporting farmers in transitioning to sustainable, regenerative agricultural practices.

Rainforest Alliance 2020 Labeling and Trademarks Policy

Use and approval of the Rainforest Alliance Trademarks View more

Published on March 21, 2024 Available in: English, Japanese, Chinese (Simplified), Spanish, Portuguese, French, Italian, German, Korean, Indonesian

Researchers find concerning repercussion of our love of chocolate: ‘Cocoa farmers are also on the front lines’

Published on March 12, 2024 | The Cool Down

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COMPLETE COCOA FARMING GUIDE ( Illustrative guide and information about cocoa cultivation)

Have you ever wondered how cocoa trees are grown? or have you ever desired to grow cocoa trees, but couldn’t find any good direction or guide about it, if the above questions concern you, then you have found the total guide and step by step direction and every information you will need about cocoa and it’s farming process, not minding the country you reside in, be it Nigeria,Ghana, USA, Canada, UK, Ivory coast etc.

Cocoa is a tropical plant that grow well in rain forest and does well in a good fertile soil with pH of 5.5 to 7.5.

This plant has one of the very best and lucrative economic potential and lucrative income nature as it can last for years while producing fruits which are very costly both domestically and internationally.

Cocoa is very powerful that it have sustained the economy of some countries in the past like Nigeria before oil was discovered.

READ: SOURSOP CULTIVATION GUIDE

Top countries producing cocoa on a commercial quantity are Ghana, ivory coast, Nigeria etc.

In this article, I am going to explain all the information involved in cocoa farming and it’s uses.

TABLE OF CONTENTS

What is cocoa

Types of cocoa for planting

Locating a good farm land for cocoa plantation

Preparation of land for cocoa farming

Planting of Cocoa/Methods of cocoa planting

Care of cocoa farm/trees

Harvest of Cocoa plants

Uses/Important of cocoa

WHAT IS COCOA

Cocoa is a tropical plant that is found mainly in the rainforest, which can also be grown in non tropical areas too with much care!. It produces fruits which are oval in shape and when ripe can be broken and the white membrane and the seeds inside licked.

READ: TRUTH ABOUT ALOE VERA

Cocoa is very sweet when licked and the seeds also called bean seeds can be used to produce many things in the industry, that is why it is very costly all around the world.

This plant has the potential to last for many years once planted and taken care of at the initial stage, and it also can sustain people financially because it lasts for a long time and produces good amount of fruits.

A cocoa tree could produce up to 20 to 50 fruits at a time.

It can be very tall, gaining up to 15 to 20 feet in height and above 8 or 10 inches in width or thickness when matured.

It does not make a good plank, but, it makes a good fire wood.

TYPES OF COCOA

Before embarking on the cocoa cultivation journey, it is great to first of all know the types or Varieties of cocoa and their characteristics, so that you make your choice on which type is best for you and your environment to grow.

There are three main types of cocoa, they are:

Forastero: Forastero is considered the most popular type of cocoa because it is grown by majority of the people in every country, so it accounts for about 80 percent of the world’s cocoa production.

This type of cocoa has the highest yield when cultivated, no wonder it is popularly known as the father of all cocoa.

Although Forastero is less aromatic when compared to Criollo, but it has it’s own level of cocoa smell and flavour.

Trinitario: This type is a descendant of both the Criollo and Forastero, but it belongs to Forasteros. Trinitario planting started in Trinidad and spread to Venezuela and then to Ecuador, Cameroon, Samoa, Sri Lanka, Java and Papua New Guinea etc.

Trinitario combines the hardiness of consumer cocoa with the pleasant flavours of luxury cocoa. Trinitario cocoa has a powerful, aromatic cocoa taste and is only slightly acidic

Criollo: This type of cocoa is known to be the best of amongst the types of Cocoa plant because is has a mild cocoa taste and a very strong cocoa aroma. It is only mild, acidic and has no atom of bitter taste at all.

This type or Variety of cocoa is very prone to diseases, especially fungal, this made it hard to grow and so very expensive to get.

LOCATING A GOOD LAND FOR COCOA FARMING

Before thinking of starting a cocoa farm, the first thing to arrange for is a good land, cocoa unlike so many trees is not picky about the type of soil and weather condition they live in, but that does not mean they cant be affected by some certain things such as poor quality soil particles or nutrients, clay soil, wind and waterlogged land.

Although this plant is a lover of water, that’s why it requires good amount of rainfall of about 1,500mm to 2000mm per year, but it can only last for a short while in a waterlgged land, so when siting a farm land to grow Cocoa trees, the amount of rainfall in such place should be considered and the level of soil drainage should also be looked into, avoid waterlogged land!.

READ: TRICK FOR DRY SEASON MAIZE FARMING

Wind is also a thing of concern to be looked into when selecting a land to grow cocoa, due to the fact that this plant is a very tall plant and wind could harm them, and also wind plays a very big role in drying the soil which is not good for this plant.

Some other things to consider in land selection is wether the place is exposed to good amount of sunshine as it is highly needed by cocoa plants. Also the soil should be of good quality with a pH of 5.0 to 7.5, soil acid and alkaline should not exceed pH 3, anything above this could be catastrophic to the plants, the optimum total nitrogen / total phosphorus ratio should be about 1.5.

Cocoa is a big plant, so the land should be enough to contain the trees, although it solely depends on the quantity of cocoa products you want to be producing, but in my honest advise, to start this business, even to start with the minimum quantity, to start with the minimum quantity should be above a plot of land so that the trees could be spaced well enough.

PREPARATION OF LAND FOR COCOA FARMING

Once a good land is sited, “from the above description of a suitable land conditions I gave above”, the the next step is to prepare it and make it ready for the cocoa farming.

To prepare the land, cut down any other tree or trees in the farmland, clear the bushes or forest, then spread a very good amount of organic manures, more especially animal dungs such as cow, goat, sheep and fowl dungs etc and leave them in the farm for rain to break them down into smaller particles and mix them with the soil so that it can boost the soil fertility which will in turn improve the overall growth of the cocoa trees.

The best time to prepare the land and start cocoa farming is at the beginning of the year when the rain is just starting, so that it will help the plants to grow to some certain level that the roots will be matured enough to give the trees enough water from the ground, so that you won’t have to water them frequently.

Like I mentioned earlier on this topic, cocoa likes water but it does not last long on a waterlogged land, so if the land is waterlogged, it is good to construct a good drainage system that will reduce the amount of water being stored in the land, this will help to retain good amount of water needed by the plants and reduce excess water.

METHODS OF PLANTING COCOA/PLANTING OF COCOA TREES

When the land is prepared and ready, the next step to take is to plant them!

There are few methods of planting cocoa trees, they are:

Planting with the seed.: Planting cocoa with seed is the most common way to grow this tree, mainly because it seems simple or traditional, unlike the other method.

To grow cocoa with the seed, here are the steps, get good quality cocoa seeds from seeds stores ( Check below at the end of this content to see my remommended online seed store) or you can get cocoa fruit, lick them and get their seeds, this method is not very good compared to buying from seed stores which are of good quality and treated.

When the seeds have arrived, grow them in a container and transplant later or sow them in the farm directly.

To sow in the farm, dig holes of about 8 inches deep in the soil and give a gap of about 5 feet from each other, then sow them on a maximum of 1 each hole and cover them with earth.

To grow in a container, pour in large amount of good quality loam soil into the container and make holes of about 5 inches and sow the seeds. Pour water at least once a day on them and take the container out to the sun once in a while.

When they sprout out and start growing, give them a few weeks or a month, then transplant them to the farm.

On an average, cocoa seed takes about 3 weeks to sprout and start growing.

Once they have been sown, water them immediately, and continue to do so if rain is not cooperating.

Planting with the stem/Cutting: This method of cocoa planting does not involve the seed, but the stem of cocoa tree.

It is very simple to do, go and cut some stems/ cocoa tree branches from cocoa trees with their leaves on the stems and get them into polyethylene, they will germinate and grow roots in a matter of weeks or even days depending on the weather and climate condition.

Once they are strong enough to be transplanted to the farm, then transplant them!.

CARE OF COCOA PLANT/FARM

Once the cocoa plants start growing, there are some number of things that are necessary to do in order for them to grow healthy and and also be protected, if not, they might have stunt growth, the yields might be nothing to talk about and they may also die which will be both waste of money, labor and time.

Some of the cares to be given to this tree are:

Irrigation: Water is a very necessary thing for this plant and it is one of the factors that must be involved for the survival of any plant.

Cocoa plant is a heavy drinker and a lover of water, “although it detests waterlogged land” , so having a good irrigation is very necessary, more especially for those in the non tropical regions of the world where there is minimal amount of rainfall.

The watering or irrigation process should start immediately the seeds are sown until they have matured enough and have started getting enough water from the soil through their roots.

Water them once in a day, in the dry season and in the non tropical regions when they are still small and reduce the rate to once in a week when they have grown, half a liter of water per tree is okay for the young plants and 5 liters is good for the grown up cocoa trees.

Mulch: mulch is another great strategy to care for the trees and also to reduce the work of watering.

This is very effective during their early days or their infant days, this time their roots have not fully developed and during the dry season, they tend to suffer from lack of water due to the dryness of the soil, so mulching will play a very vital role in sustaining the water in the soil and keeping the soil Fresh and cool.

Mulching does not only maintain the water in the soil, it also discourage weeds from growing around the trees and also serve as a compost manure when it decay.

To mulch, when the plants sprout out or germinate, allow them to grow a bit and then gather some green leaves and heap them around each of the plants and don’t cover the plants totally.

Note – mulching is very important only in the dry season and it should only be done when the plants are small because the trees will shield themselves when they grow.

Weeding: Weeding cocoa farm is another great ways to take care of them!

Although cocoa is a huge tree and weed should not be a problem once the plants have grown, but when weed becomes a problem is when the plants are still in their infant stage.

After the plants might have started growing, so many weeds might come out, so be sure to remove them immediately so that they don’t compete with the plants in terms of soil nutrients and water.

Remove them with weeding hoe or herbicide.

Fertilizing: Manure and Fertilizer is very important, although not as important as water, because this plant might survive without it if the soil is fertile enough.

But it is needed to improve the soil and grow the trees faster.

The process of the application of Fertilizer to cocoa farm should start before the planting of the trees by leaving organic manures on the empty land so that it could improve the soil.

Apply later in 4 or 5 months and the next one should be when they have started growing fruits.

COCOA PEST AND DISEASES CONTROL

Cocoa is know to be prone to some pests and diseases,that if not properly taken care of might incur into losses, some of them are:

Mirid bugs like Helopeltis are one of the most significant and frequent occurring pests of cocoa. The cocoa pod borer is a major cocoa pest in many regions.

The Mealy bug is not the major pest itself, but is a well recognized vector for viruses of Cocoa.

In some regions, animals like rat, squirrel and monkeys might feed on the seeds and also on the fruits.

Caterpillar is another pest that do feed on the leaves.

Broad mite and Yellow peach moth are also cocoa pests.

To take care of the insects mentioned above, use insecticide and protect the cocoa seeds from animals by keeping them very well.

Some of the cocoa diseases are

Swollen Shoot Virus

Vascular Streak Dieback virus

Witches Broom fungus

Frosty Pod Rot fungus

HARVEST OF COCOA FARM

On an average, cocoa tree takes about 3 or 4 years before it could be matured enough to start flowering and grow fruits, when the fruits are out, they will start getting ripe and when they do, they will turn from Green to yellow.

When they turn yellow, know that they are ready to be harvested!.

To harvest them, you can use garden ladder, climb on it, reach the cocoa fruits and pluck them with hands.

Or you can get the appropriate cocoa harvester and use it.

After harvesting, sell the fruits or open them yourself and get the seeds which is the valuable thing in cocoa fruit.

USES/IMPORTANCE OF COCOA

Like I have explained earlier in this article, cocoa is a very economic and cash crop plant, because the seed is used for many things such are the production of chocolate, ice cream, jelly etc, that’s why the Major buyers of the cocoa seeds are the industries.

The leaves are used in many cultures as a natural cure.

When cut down, the tree serves as a very good fire wood.

MY RECOMMENDED SEED STORE

This article is a very well researched article and a proven guide, apply all I have taught and you will stand a very good chance to grow cocoa.

Although results are not topical!.

If you enjoy reading this content, please share it on social media and also subscribe to my newsletter.

If you have any enquiry, feel free to chat me up via email, details below.

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Gone are the days when Cocoa farming was thought to be non-profitable and left for the oldies in our Villages. With modern technologies, powerful financial models and better equipment, Cocoa farming remains one of the most profitable businesses you can venture into as far as Agro business in concerned in Nigeria.

This unique excel template presents a 5 year financial projection and plan for a viable and profitable Cocoa farming business in Nigeria. Using the unique business models the template offers, your investors will be convinced beyond reasonable doubts of a proper and feasible road map to your business venture.

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Sample Cocoa Bean Processing & Marketing Business Plan for FREE

• Post author: Ane
• Post published: July 26, 2019
• Post category: BUSINESS-PLAN-AND-FEASIBILITY-STUDY
• Post comments: 0 Comments

Sample Cocoa Bean Processing & Marketing Business Plan for FREE

Table of Contents

Sample Cocoa Bean Processing & Marketing Business Plan for FREE, is a business plan that shows details of your Cocoa Bean processing and export business plan. It’s a composite business plan that highlights every other Cocoa bean related business plan contents. Therefore, those for farming plantation, cocoa project proposal, processing/Chocolate factory, and in fact, online cocoa business plan are taken care of by this Free business plan.

As a matter of fact, its sales and marketing strategy segment is a full scale marketing strategy designed to generate revenue and maximize profit in the agro processing cum food industry globally. So, get your cocoa farming and cocoa powder business feasibility study in Nigeria here. Sample Cocoa Bean Processing & Marketing Business Plan for FREE is what you need now to harness all of these. 

Sample Cocoa Bean Marketing Business Plan for FREE

So, are you thinking about starting a cocoa bean processing company? Are you worried as to how to market it? Here is a complete cocoa bean processing and marketing business plan with feasibility analysis for your use for FREE.

Therefore, in this post we have considered all the requirements for starting a cocoa bean processing business. It also has sample cocoa bean processing plant marketing plan analysis. We have tried our best to back it up by actionable guerrilla marketing ideas for your cocoa seed processing businesses.

Why would you embark on Cocoa Bean Farming, Processing & Marketing Business?

Our research has shown that cocoa bean is such a global commodity with high income earning rate. We reveal in this post how America, Europe and Asia consume a lot of cocoa bean. This is because, cocoa bean/seed is a raw material for chocolate production.

Our research also reveal that the farming areas re the tropical areas of the world, which Nigeria is part of. In fact, all West African countries are included. We have also seen that the weather conditions are currently favourable to this plant and its seed production.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – Business Opportunity:

Certainly, we can see that cocoa bean has become very popular globally. We noted also from our research that the farming and production area is majorly the tropical areas of West Africa. Nigeria is included here. So, this is a wakeup call for prospective entrepreneurs. Nigerian entrepreneurs should consider this advantage a business opportunity.

On the other hand, processing cocoa bean is a time consuming task. The process includes peeling, separation, fermentation and drying, grading and then packaging. However, this business can be regarded as lucrative as any enterprising entrepreneur can make quick money out of it.

COMPLETE FULL MARKS CONSULTANTS (CFMC) LIMITED:

As an entrepreneur, one important aspect of your business plan you must not overlook is getting a business consultant that understands the business and the industry thoroughly. CFMC Limited will therefore offer insight on how you can run your business. On the other hand, we will also look through your business concept and determine if you re likely to make it with the attributes that will allow you compete favourably against your competitors.

Your business plan;

As a matter of fact, another important process you will need to kick start your business is the development of a business plan for your business. A business plan is very useful. The business plan will certainly compel you to take a feasibility analysis of your business from on set. With it you get to determine how well your business will fare. In addition, a business plan is like a guide that details how the end results of your business will look like after you have inputted the facts and figures.

Furthermore, it’s important that you have a comprehensive business plan especially if you intend to approach a commercial bank or an external investor for loan in starting your business. The type we do for you will also influence actions and decisions that you will be making during the course of running your business.

While you may look at developing a business plan as costly, or intimidating, you could either hire a business plan writer (CFMC Limited) to write one for you or you do it by yourself. Use this sample Cocoa Bean business plan to try it.  You could also go online and get free posts like this and use them as an aid in writing your business plan. So, below is a Sample Cocoa Bean Marketing Business Plan for FREE to use.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – BUSINESS OVERVIEW:

Our research has revealed a lot of favourable indices for cocoa seed and marketing business in Nigeria. These re the opportunities we want to harness in this business.

 Global Cocoa Consumption:

As a matter of fact, cocoa is a popular consumer product globally. It’s an important raw material for production of chocolate.  Cocoa Per capita consumption has been on the increase in Europe for years. The Swiss eat the most chocolate in the world. Therefore, on average, the Swiss per capita consumption tends towards 10 kilos per person yearly.

On the other hand,

The Netherlands ranks eighth in per capita consumption. It has nearly 5 kilos of chocolate consumed per person in a year. In recent years, there are emerging counties in cocoa consumption.  Other cocoa consumer countries include China, Indonesia and India. The low per capita consumption in these countries is an indication that the potential for further growth in demand in these countries is high.

In 2018 the import of cocoa into China increased by 16%, while the import of cocoa in Indonesia grew by 2%.  Consequently, the number of grindings of cocoa beans is also increasing sharply. This is a good indication of rise in the demand for cocoa.  Until September 2018, the number of grindings in Asia had also increased by 8.4%.

Furthermore, the demand in Europe has also remained robust. As a result, in Western Europe, the number of grindings of cocoa beans in the first three quarters 2018 increased by 5% year-on-year. Again, in US, imports of cocoa beans has grown steadily since August and September 2018.

Global Supply of Cocoa:

With regard to cocoa seed production, the weather conditions in West Africa have been favourable for the growth of the cocoa beans. There has been enough sun and not much rain. In effect, fungi and other attacking diseases had little chance of developing. This means that supply remains robust. Even though this has a depressing effect on the price of cocoa.

Global Demand;

Therefore, globally, there is no shortage of cocoa beans. The International Cocoa Organization (ICCO) expects there to be no shortage this year.  ICCO estimates the stocks-to-grinding ratio at 38.5% this season. The number of grindings has increased by about 30% since 2008. So, inventories have increased by less than 13% within same period. The result is a lower stocks-to-grindings ratio. In effect, this points to higher prices going forward since fewer cocoa beans are available. Therefore, there’s less powder on the market. Again, this is an incentive for grinders to expand their capacity in order to meet demand.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – Executive Summary:

This business plan is for, Cocoa Bean Factory Ltd.  It’s a 3-year business forecast. Cocoa Bean Factory Ltd is a standard and leading cocoa bean processing company that is based in Orere, Ogun State, Nigeria. It will process and sell processed cocoa seeds to wholesalers and retailers. In this connection, our aim is to ensure that we sell processed organic cocoa bean of the highest quality to our various customers all over Nigeria. Other service we plan to offer include franchising and advisory and consultancy services in line with our revenue generation goals.

Revenue Generation:

As a matter of fact, our aim for establishing Cocoa Bean Factory Ltd is not only to generate revenue and maximize profit. We also aim at competing favourably against similar processed cocoa seed firms around us. We are aware of existing and upcoming similar firms around us here. As a business venture, our ultimate goal is to be known as one of the top ten cocoa seed processing factories in Nigeria within the next ten years. This is why we have taken every step in ensuring that we get the best professionals for the business. We have also on hand best equipment to enable us run a standard cocoa seed processing factory.

Furthermore, we have been able to procure the necessary licenses and permits from the relevant government agencies in Ogun State and Federal government of Nigeria.  These re to enable us carry out our business without running contrary to any laws or regulations governing food processing activities in the country. Overall, we already have in place structures and processes to ensure that when it comes to hygiene, processing and packaging, we will not be faulted.

As a matter of fact, we re set to redefine the processing of cocoa seed in Nigeria. In pursuance, we have been able to hire the best food technologist who ensures that we are doing things the right way.  In addition, he also looks into using the best ways to get things done from the processing stage, preservation and on to the packaging stage.

Our facility:

In general, our facility is located in Orere area of Ogun state, a place that is easily accessible to our employees and our clients. Our facility is structured in such a way as to be conducive at all times for our employees. This is why our employees have come to see the factory as a home away from home. This is in fact generating the urge and eagerness to always come to work. And, has actually enhanced their productive drive for the good of Cocoa Bean Factory Ltd.

In fact, because of our seriousness over our business structure, we have gone the extra miles in ensuring that we source for and hire only the best employees for Cocoa Bean Factory Ltd. Therefore, our staff don’t only come with the required experience, but also with good understanding of the industry trends. So, from onset, these staff know how best to ensure that we achieve our intention of becoming a national phenomenon right from the business take-off.

furthermore,

In all circumstance, our employees are going to be well paid. We have so planned it that their pay and welfare packages would be better than those of their colleagues in similar start-ups in Orere, Ogun State, Nigeria. For efficiency service delivery drive, we will carry out continuous performance appraisals to ensure that hardworking employees are rewarded and promoted promptly.

In addition, we have scheduled training programmes in place for our staff at all cadre level. This is to improve our workforce efficiency and productivity. For this reason, we have in place a very experienced Human Resources and Admin Manager.

On the other hand, regarding proprietorship, Cocoa Bean Factory Ltd is established and owned by Mr. Onu Okamgba whose forefathers owned several cocoa plantations. That is to say, he grew up in this business. Therefore, he has the required experience and expertise necessary to ensure that the company is able to attain all its goals and objectives.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – OUR PRODUCTS AND SERVICES

In brief, our aim at Cocoa Bean Factory Ltd is to ensure that we re able to sell processed organic cocoa to all our customers in Nigeria and to other countries from our location here in Orere, Ogun state.

Furthermore, we intend to create multiple streams of income to boost our bottom line. That is to grow our business. Therefore, we intend to organise training and consultancy services. This will help us make as much profit as is permitted under the laws of our country.

So, the products and services include;

• Marketing of packaged processed organic cocoa bean.
• Franchising
• Training Sessions

OUR VISION STATEMENT:

Our vision is to produce and sell high quality standard organic cocoa seed. This will make us the preferred brand by customers when it comes to buying processed cocoa bean.

OUR MISSION STATEMENT

To this end, our mission is to achieve our vision. Therefore, we intend dealing in the best business practices. In fact, we will build a solid business structure that will see us employing only competent and dedicated workforce that understand our corporate goals and objectives.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – BUSINESS STRUCTURE

When starting a business, for circumstances that might be beyond the control of the entrepreneur, all may not go exactly as planned. However, having a solid business structure firmly under the entrepreneur’s control would make starting the business hitch free.

Therefore, considering how seriously we regard our business structure, we re willing to go extra mile to hire only competent and dedicated staff. They must be those who understand how our sort of business works and re willing and committed to ensuring we re able to achieve all our set goals and objectives. Our management staff for instance re fully identified with our core vision and philosophies to achieve this. Therefore, they will do all they can to ensure the entire workforce implement the rules effectively.

As a matter of fact, Cocoa Bean Factory Ltd will not be running a conventional cocoa bean processing business. That means, we’ll be hiring more staff than we ordinarily should to handle the various tasks and responsibilities that re attached to the roles that we‘ll create at Cocoa Bean Factory Ltd;

Our intended business structure shall follow the following pattern;

MANAGEMENT TEAM:

• Chief Executive Officer
• Human resources and Admin Manager
• Food Technologist
• Accountant/cashier

SUPPORTING STAFF:

• Marketing and Sales Team
• Purchasing Officer
• Customer Service Executives
• Store Manager
• Delivery Drivers

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – SWOT ANALYSIS

Additionally, in our bid to ensure we run a standard cocoa seed  processing & marketing business, we have engaged the services of the finest of business consultant –  Complete Full Marks Consultants Limited, to look through our business concept note and determine how best suited  for us to run a standard cocoa bean processing & marketing business. And, to also determine how favourably we can compete with other similar businesses around us.

In collaboration with our consultants, we took stock of our strengths, weaknesses, opportunities and threats. These have enabled us to understand how we re likely to survive not only in our industry here in Orere but also all over Nigeria as well. The result we got after conducting the SWOT analysis for Cocoa Bean Factory Ltd are;

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – STRENGTHS

• Firstly, our strength lies in the fact that the cocoa bean we process are organic. This will be able to meet the dietary needs of our various clients.
• There is abundant supply of cocoa bean in Orere town and in the entire Ogun State.
• Again, we’ve got in place the best equipment that is capable of handling a large batch of processing without getting spoilt.
• We have a good preservation unit that will see our cocoa bean lasting as long as possible without going bad.

Furthermore;

• Our employees re the best in the field. They have experiences necessary to ensure we achieve our corporate goals and objectives.
• Finally, is the fact that our Chief Executive Officer has vast experience and necessary expertise that will spur us into achieving all that we set out to.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – WEAKNESSES

We re a start-up company. Associated with this is the fact that we do not have the necessary finance and staff strength needed to compete against already established cocoa bean processing businesses in Nigeria. So, we foresee a herculean task for seamlessly breaking into the industry in Nigeria.  We however have plans in place that will help us overcome this.

OPPORTUNITIES

However, there re several opportunities available to Cocoa Bean Factory Ltd in this industry. This is because there re a lot of people who understand the dietary benefits of processed cocoa seed.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – THREATS

It’s a fact that every business faces threats every now and then. So, we know that the arrival of a new competitor to our same location- Orere – offering the same services is a threat to us. Another challenge is stringent and unsteady government policies regarding the agro processing industry.

SWOT ANALYSIS SUMMARY:

In conclusion, considering the findings on our strength, weakness, Opportunities and threat to our existence, we conclude that our strength and opportunities re good enough to overcome the other challenges. With such a formidable management team as ours, no weakness or threat is insurmountable to Cocoa Bean Factory Ltd.

Sample Cocoa Bean Processing & Marketing Business Plan for FREE – Other Segments of this plan:

We wish to state that other segments of this business plan are available. If you contact us on +234 8034347851 or email [email protected] you will have it at a minimal cost.

READ ALSO :

• Cashew Nut Marketing Business Plan Analysis
• Cashew Nut Processing & Marketing Feasibility Analysis
• Simple Cashew Nut Processing & Marketing Business Plan
• Cashew Nut Processing & Marketing Business Plan Template

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As a matter of fact, we offer series of business development and support services. These re in respect of business planning,  company & NGOs incorporations.  Then, goods/services cost analysis and pricing for  feasibility analysis.  Others re those for generating  business ideas  for start-ups, and diversification ideas for growing businesses. For a customised cocoa seed processing & Marketing business Plan, comprising detailed financial analysis, call us on +234 8034347851 or send email to [email protected]

On the other hand, we help institutions and organizations write concepts notes and implement their Business Plans. We also train so many on business Plan writing in Nigeria.

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Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.

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I will love to have a good and genuine business plan for my cocoa farm.

Hi Jacob, Please call or whatsapp me on 08105636015 for your Cocoa business plan

Hello Sir, my name’s Ian Kunda and I’m from Papua New Guinea, I am operating a small local business named Kassam Cocoa Fementry, processing cocoa beans for sales, it is operated only this and it is registered local company owned by a youth group. Therefore, while viewing this page I am interested in obtaining a loan within my country through SME smart business therefore, I need a proper business plan which can make eligible for obtaining loans.. thanks

For business plan, call any of these no +23481 0563 6015, +23480 7635 9735

I am very much interested to venture into cocoa farming especially buying the process beans and selling to reliable markets. I have family’s who have large blocks of cocoa trees who harvest their fruits, dry the beans fermented but don’t have reliable buyers. This is were I want to tap in to buy and sell cocoa beans. Need your advise in this regard. Thanks Abraham.

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Business Plan for cocoa farming

Executive Summary

A.        INTRODUCTION

Management Team

The products

Personal goals

Business goals

B.        M ARKETING ANALYSIS

Sales forecast

Marketing Actions to achieve objectives

C.        ORGANIZATIONAL AND HUMAN RESOURCES PLAN

Personnel Department

Marketing Department

Number of Employees Needed

Employee Welfare Programme

Cash Flow Forecast

D.        FINANCIAL PLAN

Estimates of Capital expenditure needs

Pay-back plan

E.         CONCLUSION

EXECUTIVE SUMMARY

Miragrade Cocoa Farm is a sole proprietorship agricultural business that is registered under the Laws of Federal Republic of Nigeria. It is owned by Mr. Olu Olawale, who has a Master Degree in Agricultural Technology and a Master in Business Administration. The business is located at No, 4, Step Down, Lagos Benin Express, Ore, Ondo State. The farm is intended to sit on a fifteen acres of land that will cover the farm itself and offices for administrative purposes. The expected total capital investment is N10,000,000 (Ten Millions Naira Only) and it is expected to commence in June, 2021.Going by the operational plan, marketing analysis, intended management approach, financial plan and projection and risk management plan ;the business is expected to generate massive return on investment, and hence it is considered a profitable and viable business.

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CHARGES FOR BUSINESS PLAN/PROPOSAL 0 - 50 Millions                         -N10, 000 N51Millions - N150Millions - N20, 000 151Millions - N300Millions - N30,000 301Millions - N500Millions -N40,000 501Millions AND ABOVE    - N50, 000