The precious value of the cocoa bean has long been known. It has even been used as a form of currency in Central and South America before the Spanish conquest. Just as it was a royal luxury in Renaissance Spain, cocoa today is predominantly enjoyed by the wealthier economies such as the U.S., Netherlands, and Germany. Today, it is recognized that cocoa futures represent the benchmark for the world cocoa market.
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Cocoa Facts
Cocoa is a powder derived from the fruit seeds of the cacao tree. It was referred as “the fruit of the gods” when it was first discovered in South America and was used as both a currency and a base of a drink. Historical evidence tells us that cocoa has been consumed for thousands of years. Today, about 3 million metric tons of cocoa are produced each year. The largest user of cocoa is the chocolate industry, but cocoa is also used in many non-food products including makeup and soap.
Cocoa is produced in warm climates like rainforests, near the equator. There are four major West African cocoa producers: the Ivory Coast, Ghana, Nigeria and Cameroon. These nations account for two-thirds of the world’s cocoa production. Other producers include: Indonesia, Brazil, Malaysia, Ecuador, and the Dominican Republic. Cocoa begins as a seed that eventually germinates and produces a plant. The plant can be grown in many soil types. Cocoa trees usually take 3-5 years to mature and can live for up to 50 years. When cocoa beans are produced, it takes about 6 months for them to ripen.
Source: CME Group, ICCO, Barchart
Last updated May 2013.