Cocoa farmers will soon be paid more for their crops. Food Production Minister Devant Maharaj, who made the announcement at the launch of T&T Fine Cocoa Company Limited's new factory on Wednesday, said the Cocoa Development Company of T&T (CDCTTL) approved a price increase for the 2015/2016 cocoa crop which starts in October.
It includes an increase of $2 per kg of cocoa beans, as well an increase of $3 per kg to farmers supplying quantities which exceed their previous production by 25 per cent.
This will be called a volume incentive bonus (VIB) and production data from the 2013/2014 crop will be used as the baseline to measure the increase in production.
The minister said there will also be adjustments in the price of wet cocoa.
Maharaj said this is the first time in history of the local industry that a cocoa processing facility had been constructed in to "move from bean to bar."
"Over the years there have been many prescriptions by the former administration to remedy cocoa's fall from grace, all of which remained stillborn and failed to move King Cocoa out of its plantation economy mode," he said.
"Prescriptions focused on the archaic system of ramping up production, only to sell our unique raw cocoa at paltry prices to foreign markets. Prescriptions whereby our cocoa farmers' blood, sweat and tears were rewarded by a meagre pittance."
Maharaj said that plantation economy approach to cocoa production resulted in historic cocoa plantations being all but abandoned.
He added: "There is the looming loss of niche markets due to an insufficient and unreliable supply. This administration is determined to change this."
Maharaj said T&T produces a unique and highly sought after type of cocoa categorised as fine or flavour and only five per cent of the cocoa produced in the world falls into that category.
It commands a premium price exceeding US$5,000 per tonne compared to the US$2,000 per tonne price tag placed on bulk cocoa.
The chocolate factory, which will be located on the La Reunion Estate, will be equipped with eight pieces of high tech, state of the art processing equipment. It will be used as a regional model chocolate facility.