Imports and Exports in Nicaragua.
Although Nicaragua is a large exporter of coffee and gold, it exports relatively little cocoa or chocolate. Very few people think of Nicaragua when they think of cocoa producing countries around the world. For my final project, I decided to explore more about cocoa production in Nicaragua as a possible source of income for the country.
Cocoa is a “strategic crop” in Nicaragua because it is relatively easy to grow and suitable in Nicaragua’s terrain and climate. Cocoa also has a lot of potential for generating more income in Nicaragua. In the past year, cocoa exports have generated US$4.2 million in profits for Nicaragua.
There are risks involved with cocoa production. Threats of climate change are worrisome for cocoa producers as a year’s crop can easily be destroyed by a change in climate. Cocoa producers are particularly worried about the abundant rainfall that falls in the RAAN, the largest cocoa producing region. Excessive rain in the RAAN can cause a macroscopic impact on Nicaragua’s exports of cocoa. Although there is a lot of potential for income and growth of cocoa production in the RAAN, there is also tremendous risks involved.
Nicaragua has suitable land to cultivate cocoa in almost all parts of the country, from coast to coast. More than 500 thousand manzanas can be potentially cultivated under systems of agroforestry.
The 2014-2015 production plan set by the Nicaraguan government is to cultivate 13 thousand manzanas to produce 128 thousand quintals of cococa. The “Desarrollo del Cacao” program lead by the government includes encouraging the seeding of 60 thousand manzanas under a system of agroforestry in the RAAN, RAAS, and central regions of the country. However, it is important to note that there are possible environmental ramifications of increased cocoa production as many natural forests and areas of land would have to be cleared out and replaced by cocoa plants.
In addition to chocolate, cocoa can be used to make liquor, wine, pastries and more. Many producers are beginning to focus on theses specialty products made out of cocoa. By advertising cocoa products, the demand for cocoa would increase even further and cocoa producers would be able to scale up production and gain from the extra income.
Tourism to more rural parts of the country have also increased. Cocoa producers have begun profiting off the increased tourism, creating more cocoa products to be sold domestically.
A possible way of increasing efficiency in cocoa yields is by installing a local collection center to ferment, dry and process the cocoa in batches instead of having each individual cocoa grower conduct the process themselves. This method would generate more jobs and increase income for cocoa families. Cocoa producers would be able to increase their capacity to produce to 30 quintals a day. Additionally, they would be able to increase exports and enter the competitive international market.
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