Llamas, Machu Picchu and Chocolate

Peru and Fine Flavoured Cacao

Cover Photo by McKayla Crump on Unsplash

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23 September 2020

As we begin this chocolate adventure, I became fascinated with Peruvian chocolate and the makers behind it. I recently tasted Nina Chocolate and I’m eager to taste more - it was a 70% bar but packed a punch of berries and flavour. I started looking into Peruvian chocolate and cacao production out of curiosity.

So, Peru chocolate has been winning accolades the world over - the aroma, the taste and the texture continue to attract chocolate lovers and the ongoing virtual Salón del Cacao y Chocolate (Cacao and Chocolate Show) is testament to that with loads of things to explore and learn, but that will be another article.

Fine Flavoured Cacao is a Thing

That splash of colour

Peru is considered a major cacao bean producing country but occupies a fraction of the production output compared to other countries. Less than 2% of the world’s cacao beans are produced by Peru i.e. it is the 13th largest country by production. To give some background, the world’s production of cacao beans is centered in countries 20 degrees north and south of the equator. Cacao bean plants in general are finicky and require certain conditions such as shade of other trees, the right humidity, the right soil and even at times have to ward off diseases that make them particularly vulnerable. Although approximately 50 countries in the world can grow cacao beans, but 70% of the world’s cacao beans come from

Ivory Coast, Ghana, Nigeria and Cameroon.

Yet, Peru is the one of the largest producers of organic cacao beans and fine flavoured cacao. Within a span of seven years, Peru moved from 10th to become the second largest specialty cacao producer in the world. So how and why did Peru achieve that?

Market Systems Development Approach means…

I'd love to smell fresh cacao too

One of the organisations that I started looking into when asking those questions is the Peru Cacao Alliance or also known as Alianz Cacao Peru. The Peru Cacao Alliance is a public-private partnership organisation supported by USAID (United States Agency for International Development) made up of businesses and farming cooperatives. The Peru Cacao Alliance began in 2011 and utilised a market systems development approach to develop the cacao farming ecosystem in three regions - San Martin, Huanuco, Ucayali.

The market systems approach helped to develop a thriving and inclusive eco-system for cocoa production. Based on a 2016 report, the results are impressive to say the least and provide proof that public-private partnerships can thrive if incentives are tangible for each stakeholder - farmers, cooperatives, government bodies, investors and the international buyers of chocolate.

In a nutshell, the Peru Cacao Alliance developed innovative ways to create an alternative development programme that is sustainable both to the environment and the farmers, yet profitable for investors.

The Challenge was Real

Convincing farmers to eradicate wage-generating illicit crops and replace it with risky licit crops such as cacao and on top of it, it was going to be specialised varieties of cacao that they had never grown before. I can imagine that there was much opposition in the beginning from stakeholders who did not see that as a viable value proposition. Carana Corporation (now The Palladium Group) initiated the bold proposal and leveraged USAid Peru in establishing the Peru Cacao Alliance. From launch to sustainability, below are some takeaways:

1. Going after the fine-flavoured cacao market.

The visionaries at Carana saw a gap in the market and where Peru could compete in growing speciality and more lucrative varieties of cacao and create more appeal to international buyers

1. Skin in the game: Farmers and Private Sector as co-investors in the value chain.

Highlights of the co-investment from farmers came in the form of land preparation activities, growing and planting of plantain tree seedlings which would go to provide shade for cacao plants in other participating farms and grafting to convert regular cacao trees to fine flavoured cacao producing trees - where farmers would contribute “sticks” from existing plots to other newly enrolled farmers. These contributions in the form of manhours, resources, land usage and logistics would amount to nearly US$28M.

The pursuit by the Peru Cacao Alliance and leveraging the Carana business network to attract private sector players to form an alliance of supply chain partners would then help to elevate Peru’s cacao industry.

Reaping the rewards

By 2016, 17,000 farmers were part of the programme and planted 28,000 hectares of new cacao - of which 81% was fine flavoured cacao. And the world is all the better for it, since I got to taste Nina Chocolate halfway across the world and learned a thing or two about the Peru Cacao Alliance.

Peru’s Craft Chocolate Community

2020 started out good and then went on a trajectory of crazy - too many bad things have happened: Pandemic (I cannot believe it’s already been 9 months), so many lives lost, economic and social upheaval, no travel or holidays. Yet, it’s also the year I lived my best retired life in my mid-30s. Yeah, I’ve also taken to walking my dogs multiple times a day and spending time preparing fresh meals for them.

Generally, I spent time while working from home to examine life (not just living) priorities and develop a budding relationship with chocolate. I truly believe chocolate makes everything better.

So, I’d really like to head to Peru one day to check out the following craft chocolate places and of course Machu Picchu. Do you have a favourite place to get your chocolate fix? Let me know in the comments below!

Nina Fine Chocolate, San Martin

The chocolate that started this post - creamy berries - that's all I can say!

El Cacaotal Tasting Room, Lima

Roselen Chocolate Boutique Shop and Tasting Parlour, Lima

Cacaosuyo, Lima

Magiapiura, Piura

Chaqchao Chocolate Factory, Arequipa