Forum Activity for @Frank Homann

Is there such a thing as GREAT Fair Trade chocolate?

Posted in: Opinion

Clay,Agreed. Being a business man, I think the whole issue is around supplier power vs. buyer power. I think the big chocolate manufacturers can get away with paying too low prices for cocoa because suppliers are disperse and relatively un-sophisticated. Also, of course, because suppliers have not been able to differentiate their cocoa products -- here is a great opportunity with "fine cocoa". Once consumers learn to distinguish different flavours and look for a more sophisticated product, then there is a opportunity for suppliers to gain power. Today, even in gourmet chocolates with 70% cacao, the cost of the cocoa represents less than 20% of retail price, often less than 10%. Probably quite out of balance if compared to other gourmet food products, where the raw materials represent a higher percentage.My five cents. Frank

Is there such a thing as GREAT Fair Trade chocolate?

Posted in: Opinion

There probably arent good chocolates with fair trade beans. The logic is this: If you have fine cocoa beans, which you need to make great chocolate, you get a substantial premium from that. You dont need fair trade premiums that are often quite moderate. Fair trade is sought by cocoa producers who dont have a good product (forastero "bulk" beans) but would like to make some more money. So as quality cant be used as an argument for getting more money, they try the argument of "look I am poor, I should make some more money". In my opinion, this is actually detrimental to development. You teach poor farmers that they should make a business out of being poor, rather than focus on making a better quality product (or increase productivity). That way they stay poor. Which of course is good for the people in the developed world who make a living of being in NGOs, promoting "fair trade". Harsh? Well, perhaps, but actually true if you think about it.