INTRODUCTION OF AYITIKA

AGENDA

Cocoa Sector

• Worldwide Trend • Opportunity for Haiti

Issues and Solution

• Problems for Haiti Cocoa Production • Proposed Solution

Sustainability

• Ayitika’s Vision: Sector Development• Collaboration with Ministry of Finance (Taiwan ICDF)

WORLDWIDE COCOA MARKET TRENDS Shortage of supply

2014 2015 2016 2017 2018 2019 2020 2021 2022 20234.00

4.25

4.50

4.75

5.00

5.25

5.50

Demande

Offre

Mill

ions

Ton

nes

Caca

o M

arch

and 3%/an

1%/an

- New cocoa consumers arising.- African countries are producing

almost at full capacity.- Big gap between supply and

demand. - Main buyers investing to get

higher yield

Cocoa Sector

Issues & Solution

Sustainability

WORLDWIDE COCOA MARKET TRENDS African trees either more than 60 years old and/or suffering from diseases

0

200

400

600

800

1 000

1 200

1 400

1 600'0

00 t

onne

s ca

cao

Années

Evolution des productions dans les principaux pays producteurs

Côte d'I voire

Cameroun

Ghana

Nigéria

Brésil

Equateur

Indonésie

Malaisie

Decreasing production

Cocoa Sector

Issues & Solution

Sustainability

WORLDWIDE COCOA MARKET TRENDS Price of fermented cocoa is going up

37 % increase in 2014

The market price trend positive

Cocoa Sector

Issues & Solution

Sustainability

WORLDWIDE COCOA MARKET TRENDS Demand for sustainable cocoa is increasing.

EU show its concerns about the lack of good practices Holland have as a target to have 100 % of sustainable cocoa by 2025 (consumes 25 % of worldwide cocoa

production) Germany is strongly committed to improve the production of sustainable cocoa Private companies aiming 100 % of sustainable cocoa purchase by 2020

Cocoa Sector

Issues & Solution

Sustainability

OPPORTUNITIES FOR HAITI IN THE COCOA BUSINESS Genetic varietal heritage of high quality cocoa if fermented [*]

All the three main types of cocoa: Forastero (Low quality), Criollo and Trinitario are present in Haiti

CRIOLLO TRINITARIO TRINITARIO

Cocoa Sector

Issues & Solution

Sustainability

OPPORTUNITIES FOR HAITI IN THE COCOA BUSINESS New players go for fermented cocoa in niche markets

Fine and aromatic/fermented cocoa counts around 5% of the total cocoa production

7 out of the 17 fine production countries are located in the Caribbean area.

Cocoa Sector

Issues & Solution

Sustainability

OPPORTUNITIES FOR HAITI IN THE COCOA BUSINESS High production potentials and profitability of fermented cocoa

Production can be multiplied by 4 within 10 years. With the fermentation of cocoa the farmers

can earn three times the average annual income Farmers can get between $3,000 to $8,000 per year Revenues estimated to be around $ 2,000 to $ 6,000 per hectare annually 40 years of expected production and minor maintenance fees annually

Cocoa Sector

Issues & Solution

Sustainability

WORLD TRENDS Shortage in supply

HAITIAN OPPORTUNITY Haiti can produce 4 times more, upto

20,000 tn/year within 10 yearsFit

African trees outdated with

deseases

Young trees, no diseases found in Haitian

cocoa treesFit

Market price for fermented

cocoa going up

Need for more income in Haitian households.

Higher price + higher production = higher income

Fit

Increase in demand for

organic and fairtrade certified

cocoa

Haiti has the opportunity to set up its

production with organic and fairtrade certified

cocoa

Fit

Cocoa Sector

Issues & Solution

Sustainability

Lack of

Flavor

Quality

Inconsiste

ncy

Dis-organized

Plantation

Low productiv

ity

PROPOSED COCOA BUSINESS MODEL

Fixed

Price to

Farmers Mar

ket P

rice

Selling Date

Cocoa Sector

Issues & Solution

Sustainability

LESS REVENUE

FOR THE

FARMER

PROPOSED COCOA BUSINESS MODEL

Mar

ket P

rice

Selling Date

Cocoa Sector

Issues & Solution

Sustainability

- Organized plantation in cocoa ecosystem, with variety control (traceability) and higher yield

- Optimized central unit to leverage out the costs

- Fermentation process brings Haitian flavor

- Awards to farmers base on transparent market price

SOCIAL/ENVIRONMENTAL/ECONOMIC IMPACT

Increase revenue of the farmers

Increase quality of the product

Teaches farmers the best

techniques

In profitable years, farmers

get extra rewards

Contribute to the planet

Contribute to Haitian brand awareness

Protection mountains from erosion

Build consciousness with the natural

resources of the area

Cocoa Sector

Issues & Solution

Sustainability

ONGOING PROJECTS FOR AYITIKA COCOA production and sector development

Support farmers in order to be able to crop cocoa in an efficient way. Investment needed $4200 /hectare

(aprox. 250 households willing to start cropping cocoa around 80 hectare just in Moreau) Technical assistance in order to successfully implement the business model

Ayitika is a Social Enterprise who searches for its own credit lines through financial institutions Ayitika will provide services to the farmer such as technical support and selling the seedlings of the plants.

Cocoa Sector

Issues & Solution

Sustainability

Knowledge center: platform of cocoa Project in planning phase (400m2 land) with approx. total construction and initial running expenses at

around $300,000 Collaboration project in the development of the knowledge center

Laboratory of quality control Hub of cocoa for producers of cacao in Latin America Education center for farmers about the system agroforestry, PHD students (investigation), technical,

environmental awareness Hold conferences about cocoa to bring knowledge in the island

Agro-tourism in Moreau (area protected by UNESCO) Area with rich natural resources Possibility to provide job for locals in the tourism sector Creating local awareness of the values of the area

ONGOING PROJECTS FOR AYITIKACocoa Sector

Issues & Solution

Sustainability

Investment needed to start up the cocoa production. US $200,000

Land preparation and purchase Fermentation area (1 hectare)

DISCUSSION IN FINANCING OF THE AYITIKACocoa Sector

Issues & Solution

Sustainability

謝謝Merci Beaucoup

Mesi BokouThank You

Moltes Gracies