January 9, 2015

Former Credit Suisse banker and founder of Asian Plantations Ltd, Dennis Melka, has formed United Cacao Ltd as part of his campaign in Peru to revive cocoa farming in the Amazon. Currently West Africa provides 70% of the global cocoa market, however, drought, disease, and government inefficiencies are hindering African suppliers from meeting demand, causing prices to climb 7.4% in 2014. As the market grows faster than supply, United Cacao Ltd is part of a push by Latin America to re-emerge as a key region of production and supply. United Cacao Ltd expects its first harvest from 3,250 hectares (8,000 acres) in the second half of 2015 with an additional 2,000 hectares (4,942 acres) to be planted by the end of 2016. Ecuador displaced Cameroon in 2014 as one of the world’s top cocoa exporting countries after producing 240,000 tons, and the country’s cocoa exporter association, Anecacao, raised its forecast for 2015 production to 280,000 tons. While in Brazil, cocoa farmers are still carrying high levels of debt after fighting an outbreak of witches’ broom in the 1990’s followed by a period of low prices. However, the area of Bahia, which was once the second largest export region in the world, could become an exporter once again within 15 years if growers can regain access to financing.

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