Armajaro considers winding down cocoa ops in Ecuador

By Oliver Nieburg contact

- Last updated on GMT

Related tags: Ecuador, Cocoa bean, Trade

'Adverse market conditions' in Ecuador, reports Armajaro
'Adverse market conditions' in Ecuador, reports Armajaro
Cocoa trader Armajaro is considering closing its operations in Ecuador, but says it is business as usual in the Ivory Coast.

A spokesperson told this site that Ecuadorian cocoa trading was currently under review.

“We have withdrawn from our up-country buying operations because of adverse market conditions on the ground. “

“We are now considering the remaining operations on the ground, as we look to optimise the returns from all our businesses. It is Armajaro's strategy to focus on higher-margin businesses, and this review is part of executing on that strategy."

Small crop for fine flavor beans

Ecuadorian cocoa is much sought-after given its status as a flavor bean or fine flavor. ADM Cocoa and Cargill R&D chiefs have also identified​ Ecuadorian beans as their personal favorite origin.

Ecuador produces the largest volumes of all other fine flavor bean countries, but its crop total in 2010/11 was only 161,000 MT, just 4% of the total global production.

The crop has also been hit by adverse weather, which may explain why Armajaro doesn’t see Ecuador as a high-margin business.

Bloomberg reported last year that Ecuador may lose a quarter of its cocoa harvest after heavy rainfall.

Reuters said in a recent article that Armajaro was also considering shutting down its Ivorian operation based on insider sources, however this was denied by an Armajaro spokesperson.

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