Research Analysis On The Cocoa Activity In Venezuela

From late sixteenth century till the beginning of nineteenth century, cacao in Venezuela represented the principal good of export and production of the economy, bearing great reputation on the international markets. Till 1825, in Venezuela only fine or flavor type of cacao, named "criollo", was produced with outstanding quality attributes, that same year other types of cacao, name "Forastero" and "Trinitario" was introduced due to its relative productivity per area, thus more resistant to plagues and diseases.At the beginnings of twentieth century, in Venezuela there were dramatic changes in production and foreign trade. The Great Depression (1930) crisis produced the downfall of the agro export model in the country, mainly due to the price crisis of raw materials in the international market. Moreover, the development of the petroleum industry in Venezuela, motivated structural changes beyond economic spheres.Given the highly fiscal incomes coming from the petroleum rent, the government showed little interest in developing and incentive agriculture. In addition to this, some agriculture producers did not make an adequate manage of the agronomic practices and post-harvest of this item, particularly the process of classification and fermentation of the grains, negatively affecting the quality of the product.Even though the lack of proper incentives that the cocoa activity in Venezuela had in the last ten years, still Venezuela own a huge capital in terms of the quality of its type of cocoa. According to Sanchez and Jaffe (1989), from 22 specifies of Theobroma cacao that exists and are known worldwide,19 are found in Latin-America, and 13 particularly in Venezuela. Therefore, Venezuela is recognize in important markets, such as Europe, for the prestige and exquisiteness of its cacao, particularly for the type of cacao known as "criollo". This type of cocoa compete in the international market for having a differentiation attribute linked to quality.Currently in Venezuela, there are three main types of cocoa known. The "fine" or flavor cocoa called "Criollo" which is recognized for its aromatic and intense flavor, "Trinitario" which aroma and flavor is softer, represent a mix between Criollo and another specie called "Amazonia" aimed to increase the productivity of the crops and get more resistance to plagues and diseases; and "Forastero", which name comes from "foreign" as it was produced on the Amazonian Basin and is the world most produced type of cocoa, also known as bulk cocoa.Cocoa production in Venezuela in the period 1995-2014, averaged 16,811 tons per year. Of this figure,40% corresponds to the cocoa type "criollo" and the remaining to cocoa with low fermentation which affects the quality of this category. The yields are very low, about 50% below the world average yield, due to the abandonment of plantations, poor agricultural management and low density of plantation.The diagnosis of the cocoa production in Venezuela made through this research concluded that concerted action and coherent state and local policies are necessary to increase the production of cocoa in the country. On a first scale, efforts must be directed to increase competitiveness in the domestic and international markets and that starts from promoting the production of "fine" flavor cocoa ("criollo") given the differentiated attributes and prestige that it has worldwide and where Venezuela holds its competitive advantage for having tradition in the production of this type of cocoa. On the other hand, efforts should also be putted on encourage technology transfer in order to disseminate the achievements of research and technological development obtained.In Venezuela, there have been a dichotomy between the needs of the productive sector and researches promoted due to the fact that most of the research focused on encouraging the replacement of the fine cocoa "criollo" for the hybrids types "Forastero" and "Trinitarios" in order to increase productivity and resistance to plagues.Cocoa producing regions in Venezuela are characterized for its accentuated poverty as there are territories with little diversification, limited access to services and insufficient income. This situation has caused territorial inequalities that has encouraged the migration of young workforce to the cities. Therefore, promoting human development in these area is crucial.State and local policies should also be aimed to promote and support small farmers and producers, as well as to invest in the maintenance of the plantations with a culture of sustainable productions. That would attack private investment for the development of new plantations.The objective of this research is to analyze the situation of cacao production in Venezuela. The specific objectives are focused on:a) Introducing the cocoa activity, definitions and its supply chain features as well as characterizing the current cocoa world market.b) Presenting the recent evolution of the cocoa activity in the country through a review and analysis of its historical back ground, production, types of cocoa produced, geographical location and its local peculiarities;c) Identifying obstacles and strengths for the agro productive chain of the cocoa activity inthe country through the elaboration and analysis of a SWOT (Strength, Weaknesses,Opportunities and Threats) matrix;d) Suggesting recommendations on how to promote the cocoa activity in the country.The work is sustained by bibliographic consultation, including sources of information in electronic version, which are of explicative form. MethodologyThe type of research is explanatory and the methodological design is based on a review of specialized literature.