The Solution to Thailand’s Cocoa Price Crisis: Chula’s “Innovation Center for Research and Development of Sustainable Thai Cocoa (ISTC)” Brings Hope to Farmers and the Thai Cocoa Industry 

Chulalongkorn University has provided funding for the Innovation Center for Research and Development of Sustainable Thai Cocoa (ISTC) to address the cocoa price crisis by providing farmers with knowledge about the cultivation, harvesting, and fermentation of cocoa. The center aims to promote local cocoa-processing businesses, emphasizing that Thai cocoa has potential but must focus on the “quality market,” showcasing its unique aroma and flavor. 

Climate change and global warming are the main causes of decreasing cocoa yields in Africa and South America, the regions that have long been leading producers in the market. As a result, the global cocoa industry has turned its attention to production in Asian countries like Thailand, as its equatorial location, terrain, climate, and humidity are suitable for cocoa cultivation. 

In recent years, cocoa has become a “new promising economic crop” with an increasing number of Thai farmers becoming interested in growing it. In Nan province, for instance, many farmers in almost every district have been growing cocoa, which Nan has been dubbed the “Cocoa Province.” However, produce prices have since plummeted, with no buyers, leading to significant wastage. 

What happened to the cocoa market? What should farmers who have invested in cocoa do? Is cocoa still a promising new economic crop? How can the cocoa price crisis be resolved? These are the questions that prompted the School of Agricultural Resources at Chulalongkorn University, under the leadership of Asst. Prof. Dr. Thansiphorn Na Nan, to establish the Innovation Center for Research and Development of Sustainable Thai Cocoa (ISTC) in 2023 to seek solutions for farmers and related businesses in the Thai cocoa economic ecosystem.

Asst. Prof. Dr. Thansiphorn, Head of the ISTC, reflects on the problems and opportunities within the cocoa crisis, stating “There is still a prospect for the crop. Some companies purchase and process cocoa products. However, the main problem lies in the farmers’ lack of proper knowledge about cocoa, from cultivation, care, and harvesting, to fermentation. It can be said the current practice is based on the lack of knowledge. Farmers aim for high yields and prices but often neglect the plants, leading to poor-quality, unwanted crops, which leads to the price crisis.” 

ISTC operates under the structure of Jamjuree Innovation Products Co., Ltd., to promote new sustainable economic crops for farmers, communities, and related businesses. Its main mission is to conduct research, develop innovations and technology, and enhance the management of Thai cocoa product quality, with emphasis on providing information and knowledge to boost the capabilities and potentials of “cocoa people” across all cocoa business units, from upstream, midstream, to downstream, alongside the “improvement of the quality of Thai cocoa beans and products.” The center also offers quality certification services using innovative cocoa quality management and a cocoa bean quality certification system to elevate the quality and standards of Thai cocoa on the global stage. 

Reflecting on the Cocoa Crisis: A Rocky Start 

“Cocoa is a crop with good prices and a promising future” was the key message in the campaign to draw more farmers to start growing cocoa. According to ISTC surveys, farmers decided to grow cocoa for four reasons: 

1. Cocoa tree is a long-living plant, with a life span of 70 years; 
2. It bears fruit year-round; 
3. It is resistant to pests and diseases, requiring low maintenance; 
4. The produce price is guaranteed at 5 baht per kilogram, with constant demand in the market. 

“These incentives, particularly the selling price, led farmers nationwide to start growing cocoa. When the first batch was harvested, it was sold for seven times the guaranteed price at 35 baht per kilogram. With a profit like this, farmers rushed into growing cocoa, clearing other crops to make room for it. In Nan, for instance, almost the entire province turned to cocoa cultivation, making it the leading cocoa-producing province in Thailand,” Asst. Prof. Dr. Thansiphorn said. 

Soon after, however, cocoa prices dropped sharply, as buyers did not want to purchase substandard harvests. A random sampling of 100 kilograms of cocoa from farmers revealed that less than 15% met the standard for the cocoa pods. 

“This means that buyers had to discard 85% of the crops, making the purchase risky. Growers also faced the risk of not being able to sell all of their harvests. The lack of knowledge in cultivation, harvesting, and business management led to a situation where farmers, buyers, and every party involved in the cocoa business chain were destined to fail from the start,” explained Asst. Prof. Dr. Thansiphorn. 

Reviving the New Economic Crop Through Research, Cultivating Knowledge for Farmers 

Asst. Prof. Dr. Thansiphorn said that even though Thailand has been growing cocoa for over 40 years, knowledge about cocoa, from production to harvesting and fermentation, is still new to farmers. Therefore, to solve the crisis, the Thai cocoa industry must re-establish its foundation based on knowledge, and research. It is the process of “starting over” by educating farmers with the correct knowledge – the key mission of ISTC. 

Nevertheless, changing old beliefs and practices is not easy. 

“Thailand has a considerable amount of area dedicated to cocoa cultivation. To be specific, there are nearly 20,000 rais of registered land, with many more being unregistered. But given our limited resources, in the first year, the center could only work with 200-300 families in six provinces, namely Nan, Chiang Mai, Chiang Rai, Loei, Phitsanulok, and Nakhon Si Thammarat,” Asst. Prof. Dr. Thansiphorn said. 

“We want to educate cocoa farmers across the country, but farmers are often against new knowledge, holding onto old methods and beliefs that cocoa can be left to grow naturally with little care, and the crops can be harvested and sold right away, which is a misconception. However, once some farmers followed our advice and saw good yields and prices, others became more interested in learning from us.” 

Time and knowledge are essential for farmers interested in growing cocoa, Asst. Prof. Dr. Thansiphorn emphasized. “Farmers need to understand how to choose suitable areas for cocoa planting, such as places with a good irrigation system. They also need time to care for the cocoa, providing water and fertilizer, and must have the knowledge and understanding to harvest the yields correctly.” 

Asst. Prof. Dr. Thansiphorn noted that the ISTC is currently developing an application that provides information on selecting suitable areas for cocoa cultivation for those interested in taking up cocoa farming, whether they are newcomers, current farmers, or those who have stopped and want to return to the cocoa business. 

In addition to planting, farmers also lack knowledge about cocoa harvesting, which is crucial to the quality of the crop and the selling price. 

Asst. Prof. Dr. Thansiphorn explained that “cacao” and “cocoa” refer to the same thing in English. The fruit that has been harvested and has not yet undergone fermentation is called “cacao” or “cacao pod.” After fermentation, it is referred to as “cocoa beans.” 

“When harvesting cocoa, farmers must select the highest quality pods. However, due to the lack of knowledge, farmers believe that any pod can be harvested and sold, which is not the case.” 

Asst. Prof. Dr. Thansiphorn then discussed certain research findings which show that the cocoa pods harvested on the first day and those left for 7-15 days after the day of harvest are obviously of different qualities. 

“The quality of cocoa harvested on the first day is the best. The longer the cocoa is left unprocessed after harvesting, the worse the quality becomes, leading to the crisis of unsellable yields. This is the knowledge that farmers do not have, and no one has told them.” 

Moreover, the white pulp inside the cocoa beans is crucial for effective fermentation. The fluffier the pulp, the higher the quality of the fermented cocoa beans. Bitterness and astringency decrease and the taste note is more distinctive. In essence, the quality of cocoa beans depends on perfect fermentation, and perfect fermentation relies on the white pulp in the fresh beans at harvest. If the pulp is in good condition, it will result in a better-quality product. 

Maintaining Cocoa Quality by Promoting Local Processing (Fermentation) 

ISTC not only provides knowledge to “upstream cocoa people” (farmers) but also addresses the overall cocoa ecosystem, focusing on “midstream cocoa people” (initial processors). 

“The survival of farmers depends on that of processors,” Asst. Prof. Dr. Thansiphorn said, referring to ISTC research which shows the success and profitability of cocoa are reliant on local initial processing or fermentation. 

“There are plenty of cocoa growers across the country, but there are only a few who can process (ferment) the crop to a quality that can be sold. This is the group we need to educate and help develop businesses in their areas.” 

Asst. Prof. Dr. Thansiphorn explained that in the areas where cocoa is planted, there should be local facilities for initial processing, at least in the stage of drying the beans to maintain cocoa quality. 

“Transporting cocoa from Nan to a processing factory in Chiang Rai, for example, would reduce cocoa quality during transit, making it an unprofitable investment.” 

Aiming for Grade-A Cocoa to Establish Thai Cocoa Standards 

Harvesting affects fermentation quality, which in turn determines the cost and profitability of cocoa beans. Therefore, ISTC has established a cocoa quality grading system to establish a standard that everyone can recognize and accept regarding what kind of cacao pods can be purchased, their ripeness levels, and grading. 

“The center only buys grade-A pods for fermentation and production into cocoa beans.” 

Asst. Prof. Dr. Thansiphorn explained that selecting A-grade pods for fermentation into dried cocoa beans is a step that will give Thai cocoa its unique identity, adding both value and price. When made into chocolate, it can fetch prices of several thousand baht per kilogram. 

“The fermented dried cocoa beans from the center are of high quality and fetch good prices in the market, unlike those sent to industrial factories. We want those who taste our cocoa to have the impression that it has a unique aroma and flavor.” 

Meanwhile, ISTC is researching ways to add value to lower-grade cocoa by using it as feed for beef cattle. 

Adding Value Through Various Stories of Thai Cocoa Identity 

Despite its being an island with limited land area and cold climate – conditions not ideal for cocoa cultivation – Taiwan has managed to grow cocoa successfully. While the cultivation can be challenging and yields relatively low, the price of the country’s cocoa products exceeds 1,200 baht per kilogram. In contrast, with more suitable terrain and climate and larger cultivation areas, Thailand currently sees its cocoa priced at only 170-300 baht per kilogram. 

“There are praises that ‘a bite of Taiwanese cocoa is packed with a burst of floral scent.’ This statement reflects the high quality of cultivation and fermentation, creating an identity and narrative that adds value in the market.” 

Thai cocoa also has potential, with a distinctive identity and stories. Asst. Prof. Dr. Thansiphorn mentioned that cocoa has different identities depending on the cultivation area. Even if it’s the same variety (the popular variety in Thailand is Chumphon 1), when planted in different areas, the resulting products differ in aroma and taste notes. Besides the cultivation area, the fermentation process, which involves microorganisms from different areas (microorganisms play a significant role in the fermentation process), also leads to differences in aromas and tastes. 

“The weakness of cocoa is that it is very susceptible to crossbreeding. Seedlings from the same cacao tree, planted in the same garden, can produce distinctly different-looking fruits. This is hard to control, but we can address that by grafting or budding to ensure uniformity in both the pods and the quality of cocoa. Farmers can then produce beans from a single origin. With a unique fermentation process, this can be an appealing storytelling, adding value to the product.” 

Asst. Prof. Dr. Thansiphorn mentioned that the ISTC Center attempts to promote knowledge on the cultivation and care of cacao trees, as well as the innovation in the fermentation process. Moreover, an electronic nose, an aroma-sensing device, is utilized to distinguish the scents during fermentation. All of this is to achieve distinct aromas and create a unique identity for Thai cocoa. 

“Regarding its direction, the Thai cocoa industry should focus on quality products and markets, emphasizing the level of craftsmanship in producing the unique aromas. Craft is a high-valued market, and when combined with storytelling, Thai cocoa will stand out, with a certain guarantee for a decent price, as gastronome and enthusiasts are interested and willing to pay. This is another step towards adding value to Thai cocoa. In addition, we are trying to enlist Thai cocoa beans into international competitions to gain a reputation in such contests.” 

Quality is key to the Future and Sustainability of Thai Cocoa. 

Producing cocoa on an industrial scale comes with risks, said Asst. Prof. Dr. Thansiphorn. Several countries that produce cocoa on an industrial scale focus on minimizing the cost. Given the price mechanisms and suppression of its price, cocoa cannot become an economically valuable crop, especially for farmers. 

“Thai cocoa still has a future, but we must be in the quality market only. Thai cocoa products will be bought by consumers who want to indulge in art. Thailand and the Thai cocoa market should continue in this direction,” said Asst. Prof. Dr. Thansiphorn, emphasized that the quality of Thai cocoa must be based on knowledge, research, innovation development, and the enhancement of the capacity of ‘cocoa people’ from upstream to downstream. 

“Cocoa trees can live up to 70 years, and farmers can harvest year-round. With knowledge of proper planting, harvesting, and quality fermentation, we can control appropriate prices and ensure products are in the right market. These are the things that will truly make cocoa a future economic crop for us.” 

ISTC Center Promotes the Cocoa Business Ecosystem 

Currently, the ISTC Center is the buyer and grader of cocoa products. Farmers who join the project are responsible for taking care of the seedlings according to the proper practice of harvesting and fermenting the cacao beans before delivering them to the center for grading. The center then sends the products to partners for chocolate production. 

“Farmers who join the project with the center and follow the guidelines and knowledge we provide will see their products attain higher prices than the market rate because the products are of sellable quality. Farmers who join the project can be confident that if they follow this path, cocoa will be a crop that provides stable and sustainable income.” 

Farmers and those interested in growing cocoa can contact the Innovation Center for Research and Development of Sustainable Thai Cocoa (ISTC), located in six provinces: Nan, Chiang Rai, Chiang Mai, Loei, Phitsanulok, and Nakhon Si Thammarat, to learn more about cocoa cultivation, harvesting, and fermentation. You can also subscribe to the center’s membership to receive knowledge and news to get opportunities to participate in the center’s events and to build up networks among members. For more information, visit https://www.facebook.com/cusarcocoa or call +66 92 538 4328. 

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