Thailand’s domestic chocolate industry faces challenges in the form of limited local supply as well as high cost of imported cocoa, as the country is not a major producer of the crop.
Nevertheless, a growing bean-to-bar movement and rising prices of cocoa has motivated some farmers to pick up back cocoa farming.
In the 1990s, annual production of cocoa is at all time low of just 400 tonnes, but it started to pick up to 1,400 tonnes in the 2000s, only to retreat back again in 2010 onward as farmers shifted their priorities to more lucrative fruits like durians.
Meanwhile, high import tariff on raw cocoa beans intended to protect domestic growers backfired, forcing Thai chocolate producers to shut down because of supply shortages. With no local buyers, farmers lost the incentive to sustain production.
Nevertheless, there is a sign of revival for the chocolate industry in Thailand due to the growing bean-to-bar movement fuelled by chocolate cafes and small-batch chocolate producers. Some farmers are starting to pick up cocoa farming as an extra income stream apart from growing other common fruits like durian and mangosteen. The advantage of cacao is that the plant yields fruit throughout the whole year, unlike other fruits which are more seasonal, thereby assuring these farmers with a steady income stream.
The global chocolate industry is now estimated to be worth US$170 billion, transforming cacao and cocoa bean into a lucrative commodity with most of the cocoa supply coming from West Africa. There is a lot of demand for sustainable cocoa and craft chocolate, and Thailand could fit into this niche segment offering quality chocolate products with unique taste. For example, at a farm in Chantaburi in eastern part of Thailand, a Thai version of craft chocolate was manufactured offering consumers different kinds of fruity notes like banana, mangosteen or mango flavors. This industry is niche and small but it could pave the way for sustainable cocoa practices, setting a new standard for the rest of the world.
Thailand’s cocoa and chocolate industry has potential to develop into a craft industry offering premium products for local and export market in the near future.
