By: Daniel Nardini

Strangely enough, while the economies of Western Europe and North America are just sputtering, the price of cocoa beans is going through the ceiling. Chocolate, and the cocoa bean growing countries that benefit from the growing demand of chocolate, are reaping tens of billions of dollars. This trend is likely to continue. Cocoa bean growing countries are not all located on one continent, and in fact there are 33 countries that actually produce cocoa beans. However, there are seven countries that lead in the production and export of cocoa beans. In Africa, the three leading cocoa bean producing countries are Ghana, Nigeria and Cote D’Ivoire. In the Americas, the two leading cocoa producing countries are Brazil and Ecuador. In Asia, the two leading cocoa producing countries are Indonesia and Malaysia. The strong demand for chocolate will surely help cocoa bean farmers and help this sector of the agriculture industry.

The same cannot be said for Venezuela. Venezuela has the potential for becoming a truly leading cocoa bean producing country. It has the right climate (tropical), the soil, and those who know how to grow and nurture the best cocoa beans possible. Sadly, the last part of the equation was taken away by former Venezuelan President Hugo Chavez. In order to provide land for many of the country’s urban residents, Chavez broke up the estates of Venezuela’s leading cocoa bean producers. This put many of Venezuela’s best cocoa bean producers out of business and gave land to people who had no idea how to farm it. Worse, Venezuela has largely lost what could have been and should have been a vital market. Because of Chavez’s “socialist policies,” the large estates, which produced some of the best cocoa beans in the Americas, now are useless small plots where many former urban residents and some farmers can barely eek out a living at all.

Chavez has left Venezuela a legacy of ruin, mismanagement, runaway inflation and a soaring crime rate since many Venezuelans cannot even get basic services or afford to buy food. And on top of that, the country chocolate industry lies in ruins. Many of the managers of those former cocoa bean estates who knew how to grow the best cocoa beans can only watch in despair what they have lost and what Venezuela has lost. At a time when Venezuela needs money, the chocolate market should be an important asset. But maybe there is still hope. An election for the new president since the death of Hugo Chavez may set Venezuela on a new course. Hopefully, the Venezuelan people may pick someone who understands something about economics and the global markets.