Toowoomba – Michmutters
Categories
Business

Australian chocolatiers ditch cocoa’s murky colonial history in favor of new trade routes

When you stand in the confectionery isolate, how do you choose a block of chocolate? Is it decided by your taste buds? Or maybe your wallet?

The reality is that few of us consider the farm the cocoa was grown on.

If you do, your mind might reach for hazy images of western Africa’s Ivory Coast.

Yan Diczbalis, chief horticulturalist of the Queensland Department of Agriculture and Fisheries, says the region supplies more than half of the global cocoa commodity market.

It is a market that feeds the likes of Nestle, Hershey and Mondelez International, which produces the Cadbury brand.

But it is an old market, one long muddied by allegations of child labour, slavery and underpayment of the farmers who grow the beans.

“A lot of the pre-existing chocolate trading houses are out of Europe and have been around for 100, 200 years, which have grown out of this colonial commodity trade,” Dejan Borisavljevic, owner of Indonesian-based trading company Biji Kakao Trading, said.

“It’s an incredibly old trade route, and of course it’s had lots of issues with transparency.”

Almost all the chocolate on supermarket shelves is sourced in bulk from this commodity market — and when you are talking about the trade of over 4.5 million tonnes of cocoa, it can be difficult to trace a bean’s origin any further than the continent it was grown on .

For consumers, this makes it almost impossible to guarantee that any of your dollars make it to the farmer.

“I suppose [payments for cocoa are] beyond the remit of ours — all we know is we can’t influence the commodity market at all,” Mr Diczbalis said.

Cocoa farmers growing for the commodity market rely on corporate morality and schemes like Fairtrade to ensure growers are being justly paid for their product.

Mr Diczbalis says it is a system that lacks accountability.

Mulch around the cocoa beans
The cocoa beans grow inside a “mulch”, which is removed before roasting.(Courtesy: Igor Van Gerwen)

A modern take on the historic cocoa trade

While container upon container of cocoa beans is unloaded onto the ports of Amsterdam and Hamburg another, albeit smaller, market is emerging.

Between the tall, corrugated iron sheds that line Toowoomba’s industrial area sits a small, unimposing building — one that you are likely to smell before you see.

That aroma comes from a factory owned by a pair of Swedish chocolatiers who make Australian chocolate using cocoa beans sourced from the Solomon Islands and Indonesia.

Trevor Smith
Trevor Smith at his Toowoomba chocolate factory only sources cocoa from farms in the Solomon Islands and Indonesia.(Rural ABC: Alys Marshall)

When Magda and Trevor Smith moved from Sweden to Australia, they wanted to continue their chocolate-making, but quickly realized that they would prefer a new trade route.

“Europe has an established cocoa industry, that spice trade has been going on for many hundreds of years,” Mr Smith, co-owner of Metiisto Chocolate, said.

“It makes sourcing cocoa [from Europe] really easy, but what it does is distance you from the actual farms.”

“You can’t check where your cocoa is coming from; you’ve got too many people in between you and the cocoa farmers.”

Instead of buying from the global commodity market, the Smiths buy their chocolate direct from Pacific farmers.

Those farmers include the likes of Robert Waisu, who has been growing cocoa in the Solomon Islands for the past 35 years.

Robert Waisu
Robert Waisu harvesting cocoa pods in the Solomon Islands.(Supplied: Robert Waisu)

An opportunity for Pacific cocoa growers

Mr Waisu sells his cocoa direct to “bean to bar” chocolatiers like the Smiths of Toowoomba.

“I’m selling my cocoa as premium cocoa that’s sun-dried at an attractive premium price,” Mr Waisu said.

“The domestic market pays us here 12 [Solomon Islands] dollars per kilogram of dry beans; they [the specialty buyers] pay us more like 50 per cent on top of this.”

He and other Solomon Islands cocoa farmers are proud of their cocoa’s quality, something he says the rest of the world is yet to recognize.

“Other people, globally, they don’t really know what’s going on here. But myself, I am really proud; we are really proud,” he said.

cocoa bean
Cocoa bean samples displaying the farm’s origins.(Rural ABC: Alys Marshall)

Chocolatiers like the Smiths are working to provide this recognition, labeling each of their bars with the name of the locality the cocoa was grown in.

Heather Smyth, a flavor chemist at the University of Queensland, describes it as something of an emerging market.

“For big companies in the likes of Cadbury, they’re really looking for a very consistent cocoa flavor that matches the flavor that they had before and the year before that and the year before that,” Dr Smyth said.

“SW [major corporations] will actually source cocoa from a whole lot of different regions to come up with a flavor profile which is recognizable to their customers.”

Heather Smyth
Heather Smyth believes there are growing opportunities to market cocoa by region. (Supplied: University of Queensland)

“But just as we recognize that wine and coffee have diverse flavor types, we need to recognize that with cocoa as well.”

“Within different regions there can be spicy notes, there’s often fruity notes that are present, even citrus notes, then of course your typical chocolate and coffee flavours.”

“It allows the community to receive payment for their specialty beans and for the quality of cocoa that they produce.”

legitimate transparency

While work is being done to reform the traditional cocoa trade system, Mr Diczbalis says that these emerging “bean to bar” trade routes are a good alternative for consumers looking for a transparent supply chain.

“All that sort of plantation cropping — for want of a better term — was sort of instigated during the colonial era,” Mr Diczbalis said.

“We can’t go back and change the way that it was. But what we can do is work with producers currently to improve their outlook.”

.

Categories
Business

Sydney couple build $1.2m property portfolio in just three months

A Sydney couple, who had been priced out of upgrading their family home, have managed to create a property portfolio worth $1.2 million in the space of just three months.

Amit Kumar and his wife Astha had bought a townhouse in the Sydney suburb of Quakers Hill for $610,000 six years ago.

Despite saving hard and their family home growing in value to $780,000, the couple who have two children aged three and five, discovered Sydney’s skyrocketing property market would mean it was impossible for them to find a new property in the city.
They had discussed the idea of ​​buying other homes but were nervous.

“It was the fear of the unknown,” Mr Kumar said. “You just don’t know what to do, you don’t want to overpay, you don’t want to buy the wrong place and then have it vacant for long periods and with no tenants,” he told news.com.au .

“You don’t know where the growth is going to be and you don’t know what the projects are in certain areas and things like that.”

But the couple met with a buyer’s agent and took the plunge in April, snapping up two properties in that month alone.

The first was in Adelaide in the southern suburb of Christie Downs, a three-bedroom, two-bathroom house.

They purchased it for $425,000 and it has already grown in value by approximately $60,000.

The second property was purchased in Toowoomba, Queensland – a three-bedroom house for $455,000, which has also jumped in value by $50,000.

“We were very nervous, particularly because they actually settled very close to each other… the settlement was two days apart,” he said.

“And also complicating things further was the Easter break and the Anzac Day long weekend happened as well, so it was all on short notice.

“I think at the time there was an election coming up, we didn’t know what the policies were going to be, we didn’t know what the interest rate was doing and how it’s going to affect us.”

But the gamble has paid off so far with Mr Kumar revealing they had 20 rental applications for the Adelaide house before the open home was even held.

“So we had a very large number of applications to actually choose from and we actually managed to get more than what we actually hoped to achieve in terms of rent,” he said.

“So when we bought the place, we were told $410 is a realistic expectation in terms of rent, but we actually ended up achieving $420.”

The Toowoomba home was already tenanted but Mr Kumar said it was at a significantly lower amount to the market rate.

They were told they would get $450 for the place, but after the previous tenant moved out, it was only empty for three days and then rented out for $470, he said.

Their latest buy has been in Bundaberg, a house for $387,000 snapped up in July, which is expected to rent out for $460.

All three properties were also bought sight unseen, Mr Kumar added, while the rents cover their mortgages.

The couple paid $65,000 to $70,000 for each place including stamp duty, using a 12 per cent “sweet spot” deposit recommended by their mortgage broker.

Mr Kumar, who works in sales, said the couple still plan to use their portfolio as a “stepping stone” to buy a bigger place in Sydney in the next 12 to 24 months, but they won’t stop there.

The 39-year-old never believed it would be possible to build a property portfolio but now the couple have a goal to buy eight to 10 properties in the next five to seven years.

He advised others to get into the property market as soon as they can, adding people shouldn’t be influenced by the market, but instead focus on the long-term goal of building value in their property.

“One of the things the buyer’s agent said to me and it’s just stuck out in my mind is that the earlier you buy, the sooner you buy, then the more time you’re allowing for capital growth and timing is not as critical as just getting into the market,” he said.

“Because if you buy the right property at the right price, timing is not such an important factor.

“All three properties that he’s bought for me, we’ve actually managed to get all of them under market value, so what it means is indirectly like even already now by the time we settle, we already have some equity.”

Read related topics:sydney

.