Europe eyes local market, but cocoa company bogged down with challenges

There is a lucrative market for TT’s cocoa industry in Europe, says Netherlands ambassador Raphaël Varga van Kibéd.

Business Day met with him last week at his residence in Goodwood Park to get an insight into trade and investment opportunities in his country and the rest of Europe.

Varga van Kibéd explained that agriculture generally has a big space in Europe, but the local sector was not producing enough to make a significant dent in the international market.

“Agriculture is important for TT, and I know that it has been neglected in the past, but it is very important now with the pandemic, which has brought about huge rises in products. I know there are good plans, but please TT go forward to have sustainable agriculture with home grown products.

“You have so many possibilities in local agriculture, especially with the cocoa industry because the quality of cocoa in TT is amazing, it is the highest quality in the world.”

Varga van Kibéd said TT’s cocoa was already a hit in Europe and was being used in small amounts in countries across the region in many chocolate products.

He said the European Union, to which the Netherlands belongs, was already looking into several projects to assist TT with its cocoa and chocolate productions for export.

In July last year, EU ambassador Peter Cavendish hinted at several projects in the local cocoa sector, including working with UWI, the Ministry of Agriculture, Land and Fisheries and other stakeholders to find solutions to cadmium contamination in the soil.

Cavendish said then, “As an example of what we are doing is to work with the International Cocoa Organisation and Ecuador, Peru, Colombia and TT to treat the effect of cadmium in cocoa.”

He added that the cocoa industry brought in an estimated US$100 billion a year, and it was unfortunate that TT has not been able to share that wealth.

As steps were being taken to revitalise the cocoa sector, TT Fine Cocoa, headed by Ashley Parasram, announced in November 2021 that it would be setting up its own manufacturing plant for cocoa products.

The $2.5 million facility was said to be part of a wider investment which was scheduled to get going by mid-2022 and have exports hit US shelves by the end of 2022.

TT cocoa has been in the spotlight many times, having won several international awards and accolades.

Meanwhile, Montano's Chocolate Co Ltd (MCCL) opened a factory in Arouca, where it manufactures chocolate bars, cocoa butter, cocoa powder and cocoa nibs; and the Grande Riviere Chocolate Company produces dark chocolate and cocoa-based products using Trinitario cocoa.

But while these projects were happening on the sideline, the Cocoa Development Company (CDC) TT Ltd in March called for urgent action to save the industry.

The CDC falls under the remit of the Ministry of Agriculture, Land and Fisheries and is responsible for facilitating the development of the cocoa sector in keeping with international standards of quality.

Appearing before a parliamentary joint select committee in March, the CDC board said the sector was threatened by a lack of investment, climate change, agri-related diseases.

CDC’s acting CEO Mala Partap on Wednesday said the company has been operating with reduced staff but was trying to attend to the critical needs of its stakeholders, which included facilitating exports, certification and documents for export and regular visits to cocoa estates to monitor quality.

She said while there were short-term fixes, the survival of the industry required more sustainable, long-term solutions.

“One of the main challenges in attracting investors and bringing investment to fruition is the availability of planting materials. We do have the capacity in the short term to rehabilitate the cocoa lands, and this would boost production in the short term.

“For the longer term, though we do need to address the matter of planting materials. At the JSC several issues were raised, issues facing the company and the sector, and the CDC has prepared strategic plans to address the issue.

"We are not just saying what the issues are, but formulated solutions, and hope we can get the opportunity to share this with the minister.”

Agriculture Minister Kazim Hosein has indicated that he will meet with the CDC to discuss the issues plaguing the company, but Business Day learnt that that meeting has not happened as yet. A response from the ministry’s communications department via WhatsApp confirmed Hosein has not been able to meet with the CDC but “he has been in communication with the PS (permanent secretary) and will be doing so soon.”

Doing business in TT, areas of interest

Varga van Kibéd added that there were many areas of interest for the Netherlands, but TT has to strengthen its policies and make it easier and attractive to do business.

He said it was seeking to strengthen ties between TT and Curacao, and hoped to sign several memoranda of understanding by the 60th anniversary of bi-lateral co-operation between TT and the Netherlands,

“Doing business in TT has been difficult. From the Netherlands we have oil and gas investments in companies like Peterson (Energy Logistics), and other investments like KLM (airline) which started in October 2021.

“The red tape, that bureaucracy, is something that a lot of companies have problems with, and transparency in doing business is very important,” he said.

Varga van Kibéd added that there were tremendous possibilities and opportunities for tourism in Tobago, but a proper marketing strategy was important to attract more tourists and investors.

He explained, “Tobago is different from Trinidad and is more of a tourism island, with lots of beautiful beaches and almost no industries. There are beautiful forests and the possibilities for eco-tourism are there. But there is a need for infrastructure.

“We have a lot of expertise in the hospitality business and that something for the embassy can assist with, the possibilities that can line up with the Netherlands. You need to have a special attitude towards tourists and what they want.

“TT must have a good plan on what kind of tourism it wants. If you want mass tourism, then you’re in trouble. You have to find a niche and focus on that which would include infrastructure.”

Varga van Kibéd said green energy, water and waste management and maritime investments were also areas his country will be looking into in the coming years.