Cash crop

 

Cocoa crops are growing in Central America, partly because of a long-running price rally, but also by growth in demand.

Any significant increase in output will take time.

However, the governments of Mexico, Switzerland and the United States recently committed $75 million to various cocoa projects in El Salvador, Honduras and Nicaragua.

For its part, Ritter Sport, a leading European chocolate maker, last year bought a 2,500 hectare plantation in Nicaragua, from which is expects to source 30% of its demand.

Central America produces a high grade of cocoa.

Nicaragua is the largest producer, followed by Honduras, Guatemala and Costa Rica.

West Africa produces two-thirds of the world’s cocoa.