New cocoa processing plant inaugurated in Madagascar

MADAGASCAR- The government of Madagascar has operationalized a newly built 1 tonne cocoa processing plant through its “One District, One Factory” Program in Ambaja District.

According to information relayed by local media, S2A Chocolaterie Ambanjas, a company also involved in supporting local initiatives, has been chosen to manage the plant.

“The President of the Republic has placed the revival of industry, particularly regional industry, at the heart of Madagascar’s development,” said Irene Andriamaneho, Director of Business Promotion (DPE).

The Ministry of Industry and Commerce (MIC), headed by Minister Edgard Razafindravahy, oversees all assessments and approvals of ODOF factories across the country.

Every year, around 15,000 tonnes of cocoa are produced in the Ambanja district, mainly by the 90 legal agricultural cooperatives that bring together many small producers.

With the operationalization of the new plant, the farmers can now sell their beans at a fixed price to ODOF factories in Ambanja, including the Sambirano Manongalaza cooperative (KOSAMA).

Before the introduction of modern factories, cocoa processing was done artisanally in Ambanja, the Malagasy cocoa capital, renowned for its high-quality and “ORGANIC” certified cocoa beans.

According to their promoters, the ODOF factories provide direct and indirect jobs to many families and improve the living conditions of farmers.

The supervisory ministry in the country noted that 59 out of 75 planned ODOF factories have already been installed.

World Wide Chocolate states Madagascan cocoa is currently considered some of the best available cocoa worldwide, and actually only accounts for roughly 0.5% of the world cocoa production.

The global demand for high-quality cocoa from Madagascar is on the rise. Consumers are increasingly seeking premium and ethically sourced products, driving the market for fine cocoa.

The rise of artisanal chocolate makers and the growing interest in single-origin chocolates are significant trends contributing to this demand.

However, the new European Union law on deforestation-free products (EUDR), which is coming into effect in January 2025, will require full traceability in the cacao and other commodities as well as in derived products like chocolate.

Helvetas, an independent Swiss development organization that is building capacity across the globe, explains that in Madagascar, where the cocoa supply chain is generally poorly organized and a large share of smallholder farmers are not traceable, the short adaptation and preparation period for EUDR may hurt smallholder farmers.

This is due to their limited capacity to comply with the regulation. Sourcing companies need to put in place strong traceability systems; otherwise, smallholders risk losing access to the EU supply chain.

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