EC$35 Million Generated in 5 Years
Jouvay Chocolate Adding Value to Agriculture/ Farmers
Mr. Samuel Brathwaite please tell me your relationship with the Grenada Cocoa Association.
I am the accountant at Grenada Cocoa Association, and Diamond Chocolate Factory, Diamond Street, Victoria, St. Mark home of Jouvay Chocolate. At our organisations we do more than our job area suggests because of our small staff; everyone has learned to multitask.
As you celebrate your fifth year in existence has The Diamond Chocolate Factory accomplished the mission that it has set out to do?
I think as an organisation we did much better than is expected. In the first year we produced a fair enough product to ship a container load to the USA. We expected in the first five years to give more than administrative support to the factory but from the outset it attained financial independence.
One of our primary goals was to produce a chocolate that would find full acceptance here in Grenada, little did we know that Jouvay Chocolate would conjure up euphoria and national pride only seen by the Grenada Revolution and having Kirani James winning the Olympics.
Surely this is a different activity, but Jouvay is the primary gift taken for friends and family overseas and we stand back with pride seeing our friend or guest sample the unforgettable taste of the Isle of Spice. We have not reached there yet, but we have made tremendous strides in terms of production, quality and marketing. The market is the most important factor in our growth.
The ability to produce a premium product and how to sell our chocolate making it acceptable especially in Grenada, the region and internationally is a task we take seriously and have made acceptable strides for which we must give thanks to God.
You said youíve made tremendous strides in the area of production when you started what were you producing and how have your production portfolio increased over these last five years?
In the first two years, we started with three 85 grams of chocolate bars (60%, 70% 100%). We did a 2 lb block couverture in the same percentage %. Our main focus then was to produce chocolate for our partner business in the USA. So, therefore, we had to produce in the first and second year a container load to go to the USA, plus selling our chocolate in Grenada. To meet that demand we were only using just over 40,000 lbs thousand pounds of Cocoa beans.
In the years 2017 and 2018, we were producing mainly for sale in the Grenadian market which comprised local consumption and soft export (persons taking the chocolate overseas). This means we are not producing so much couverture but are producing mainly bars. Since we have added four new chocolate, cocoa butter, cocoa powder and cocoa balls to our list of products. Even with producing fewer couverture blocks use of cocoa increased to over one hundred thousand pounds (100,000 lbs). Our objective is to be able to bring benefit to the farmers, first by to stabilising price then to be able to pay a higher price for cocoa. We still cannot do it; we still are dependent on the world market price for Cocoa. We must be able to use up enough cocoa to start making a difference.
So your value-added components to the cocoa which is chocolate as a means of giving greater benefit to the farmers?
Yes, and giving greater benefit means that we can stabilise price for them. In the past, when the world market price went down, our price for the farmers goes down, and that has its repercussion in how much cocoa the farmers could reap from the field, because if the price is not good some of them will leave it on the trees to burn.
Since the advent of Jouvay five years ago what has been the attitude of farmers towards harvesting the cocoa?
I will start that from the benefit that we bring to Grenada and the knowledge of knowing from Grenada; we have a product that can take its place in the world in terms of chocolate. A lot of farmers have been coming on board saying they will be planting cocoa. And our records will show a lot of people have started back into the field. The number of farmers has grown steadily.
How has Jouvay affected the attitude of the average Cocoa farmer the chocolate aspect?
Besides the intrinsic satisfaction and pride of knowing that their cocoa is making quality chocolate right here in Grenada has not yet transcended in bumper sales that would bring the tangible benefits that our cocoa farmers seek. Maybe I am getting excited as them in expecting fruit from a baby tree, in reality we know that it will take hard work to grow the Diamond Chocolate Factory.
There are benefits, but they are not so much feeling it; the benefits are like small ripples of in a gentle stream because we are still not big enough in terms of how much produce we are taking from them so that the price can be stabilized. For instance, at the beginning of this cocoa year, we had to lower the price to the farmers because the world market price went down. Because of Jouvay chocolate, we held onto the higher price paid to the farmer a bit longer; but in terms of saying that the world market price goes down and we will keep on giving you a stabilised price and we could not make that happen. But one our objective is to make that happen.
What is the single most important contribution Jouvay chocolate has made to farming in Grenada and the cocoa industry in general?
In Grenada, before Jouvay Chocolate or any chocolate company we use half of one percent of the annual production of our cocoa locally; in 2014 it was 12,610 lbs. In 2018 the amount of cocoa used by locally amounted to over one hundred Thousand pounds. This represents a significant increase in usage of our beans in Grenada for chocolate making.
When you started what product were you producing then and what are you producing now?
We started with three products; we started with sixty, seventy and a hundred percent. Since we used sixty the percent and added flavours like (ginger, nutmeg and cocoa nibs to make crunchy chocolate) we added seventy-five percent later on. We moved from three products to seven and then we are now adding two more products. But additionally we have plans, and we are taking steps to build a milk chocolate factory. Already the equipment is purchased and the building is fabricated to accommodate the equipment.
How acceptable is Jouvay chocolate locally and internationally and where do you sell that chocolate to abroad?
Grenada cocoa got a name on the market because over three hundred years weíve been selling cocoa to the world. In fact, at one point in time, Grenada used to do around seventeen percent of the total world production. Grenada is known, especially, throughout Europe, they know our cocoa. We are piggybacking on the knowledge of bringing Grenada cocoa to the world to now sell our chocolate to the world.
What is so renown about Grenadaís cocoa that caused the raw cocoa to give the Jouvay chocolate the push across the world?
Grenada cocoa is known for its favour, we sell trinitario which is fine flavour. Grenada cocoa is one hundred percent fine flavour, we sell trinitario and a lot of people, friends in Trinidad which is the home of trinitario basically boast the best cocoa in the world but we know, and our users know that our flavours are very rich and can compete with any trinitario, anywhere in the world.
Can we boast the best cocoa in the world?
I will like to think so.
You talked about the flavour, what else is unique? The atmosphere is naturally unpolluted, talk about the strength of the cocoa that gives it its fine flavour?
The cocoa is planted and in intercrop with nutmeg and spices, so that adds flavours to the cocoa. Some tasters will say theyíre tasting nutmeg or cinnamon. So because of the intercropping. Additionally how cocoa is grown, it must have a canopÈ over it so to protect it from too much direct sunlight and in some cases, itís planted alongside forest tree and side trees, so youíll see trees that do not have any fruit benefits growing alongside the cocoa but a lot of these trees have medicinal benefit.
The benefit of the cocoa is that inter-planted it with spices, it blends; they share each otherís flavour and flavour each other.
Additionally, the history of Grenada, whatever is planted in Grenada, itís always rich in flavour, for instance, our clove gets the best price on the world market, and our cinnamon is superior to everybody, and itís grown in Grenada. During the days of when the Europeans first come here, the French fought the Carib for the tobacco leaves as the biggest anyway they can find in the world. Grenada is blessed with rich soil, and because of the tegwar soil, they are blessed with it. The prime minister of St. Vincent said anything you send to Grenada; it will grow, even on the concrete, it will grow.
So weíre blessed. You said your cocoa is well renown across Europe, where is the chocolate sold and how much great is the demand for it?
Most of our chocolate is sold locally, but itís taken worldwide because during our cruise season is when we will sell about 60-70 percent of our chocolate
And in terms of bars, how much will that represent?
There was no calculation given
What percentage of that plant is utilised?
We used all of the plants as it stands but not all the time. We still running one shift and we are capable of doing two or three shifts.
So 1/3 of your time?
Itís 1/3 of your production capacity is used up.
How many pounds of chocolate did you produce last year?
We used over one hundred thousand pounds, that will be around seventy thousand pounds of chocolate
And that has been increased over the year before.
Yes, it increased.
Over the last five years, how much you produce? About four hundred thousand pounds?
No, maybe about two hundred fifty to three hundred pounds.
What is the local acceptance to the chocolate you sell? But I see locations where Jouvay should be, why arenít you there?
In Grenada when we first started we did our market survey and Grenadian was paying about two million dollars for chocolate annually. And we set out to at least get about fifty percent. I think we are forty-five percent
Jouvay chocolate has about fifty percent of the local chocolate market. Of all the chocolate sold in Grenada about fifty percent is local?
Yes, Iím talking about milk chocolate and dark chocolate. I think is about fifty percent of the market.
Is diamond chocolate factory a public company or a private company?
It is a private company.
You canít tell me how much money you generated last year in chocolate sales?
No
What does the future look like for Jouvay chocolate?
In terms of the Caribbean Jouvay chocolate is slowly building a market in St. Lucia. Trinidad market is very difficult at this time; therefore, the Diamond factory is not concentrating on the Trinidad market at this time. Jouvay chocolate is slowly building sales in the and USA. Europe is a challenge to go into however, there some interest in some of the European countries.
What is the goal?
The goal is to sell worldwide. One of the biggest challenges Diamond will face is that in getting a really big seller of chocolate, whether diamond factory production will be able to match it.
Would your production be able to match it?
There was company who bought chocolate from Diamond chocolate factory and I have been behind to them to take chocolate for their other stores they have Worldwide and they laughed at me, they said in Argentina alone one of their big chocolate suppliers could not meet their demands.
Based on our economy scale we cannot meet many large demands but what if we can produce a quality chocolate. What is your quality chocolate? Tell us about your quality chocolate.
The situation is that there are possible 2 million lbs of cocoa in Grenada. 2 million lbs of cocoa can give you 10 million chocolate bars annually.
That is if all the chocolate stays in Grenada and goes into chocolate production?
Yes, if we can do so, we will extend our manufacturing facilities because at the moment we are doing about 3 thousand lbs per fortnight however that can be increased.
For local and foreign consumptions?
Yes, for local and foreign consumptions.
As a manufacturer you must be constrained by electricity?
Yes!
How about the use of raw materialsÖ do you have more farmers returning to the field to give you that extended amount of cocoa should you have a greater demand from outside to supply. Have you been able to move farmers back to the field with your incentives and all that you do?
Based on our production that is not a constraint now, it can be constrained down the line.
Do you need farmers to go back into cocoa to make sure that you always have the supplies that is necessary; what method are you using to them marketable?
We need farmers to see that it is the way to go for the future, anyone planting new fields it will take them about 5 to 7 years to start reaping economically any benefits from planting and because of the chocolate productions some farmers are saying that they are going into cocoa. The chocolate is encouraging them to go into cocoa.
Is Cocoa Association proactively encouraging farmers to go into cocoa production because eventually there will be value added products that would need your services? Have you seen responses to that?
Yes, definitely in terms of persons coming and saying that they are now going into cocoa production.
In your own words put in prospective the present state of the cocoa industry with the Diamond Chocolate and what you see for the future?
Any farmer who want to economically go into production, price is a big factor. At the moment we see Diamond Chocolate factory as the means of or the savior to farmers in terms of getting and ensuring that they are getting the price of the product.
Can I quote you as saying that?
Yes! But as it stands now, we are still dependent on the world market price we hope that in the next few years the Diamond Chocolate factory will be able to change that.
To date you are capable of making 10 million bars if you use up all the cocoa; where do you want to take this business in terms of production?
The vision is to produce 10 million bars because with 10 million bars the farmers would be well off but it is not only bars there are many other things that are more economically beneficial to the farmers than just making bars.
Where would you like to see production level reach?
In terms of strategy we would still need to maintain our raw beans market. That is what gave us the edge.
To maintain your raw beans market and to produce these 10 million bars of chocolate, what production increase would you like to see?
We would like to see a 50-75% increase in production.
In terms of numbers what would you like to see?
Anyway between 2.5-2.8 million
Over what period you would like to see that happen?
Over 5 to 7 years.
So you are saying within the next 5 to 7 years you want to see production increase in terms of cocoa to about 2.75 million that would allow you to continue serving the external market with your raw beans and to develop 10 million bars of Jouvay chocolate?
We can say 5 to 10 years or 7 to 10 years.
In terms of technology, do you have the technology and do you have the staffing to accomplish what you are proposing?
The question is whether Is the technology available? Yes, it is available. When we went into chocolate making we did not know anything about producing chocolate. But today we have learnt from chocolate making, and the ability of Grenadians to be able to come and work in the area to do a very good job is that we are not afraid for our young people as most of our staff came from NEWLO and these young people have been doing an extra normal job.
They came from knowing nothing about cocoa, far-less chocolate to be able to work in Diamond and doing very well good job.
How much money has the Cocoa Association generated in the last 5 years?
The Cocoa Association made about 6 million dollars to pay the farmers every year.
Are you above that average?
In a couple of the years we went above our requirements.
The Cocoa Association have made close to 40 million dollars in the last five years?
Maybe not quite.
Almost more Than $35 Million?
Yes, just about $35 million there about.
Anything else?
Out of the monies made farmers would have received over 85 %. Whatever we receive farmers get the bulk of it.
Is this a market that has good potential in sustaining local farmers?
Yes!
Jouvay with itís added value has an additional benefit to farmers?
Yes, there is an additional benefit. We have talked about one type of benefit that filters down to the farmers in terms of paying and maintaining the price. Additionally, the farmers are first given free shares in the holding company and soon they will be able to buy shares.
How Many Farmers Are Associated With Cocoa Association And Diamond?
At the moment we have 3000 farmers.
What is the value of the shares?
The shares are valued at $10 per share
In your own words that is how much?
There was an entitlement period and those who are entitled are 1200 farmers at 3 thousand shares per farmer at $10.00 each a total of $30,000.00.
These shares can only grow in value, that is just the start, soon farmers again will be able to buy shares as the first set of shares were given free the others will have to purchase.
One of the additional benefits is that we will be using local products like ginger an added benefit to ginger farmers we will be using nutmeg as well.
We are looking at using other local fruits like other tropical fruits and spices Bois Bande, guavas and mangoes, bringing in additional benefits to farmers.
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