FEASIBILITY STUDY FOR ORGANIC COCOA CULTIVATION IN THE DOMINICAN REPUBLIC

A thorough assessment exploring the opportunities, impacts, and risks of establishing a sustainable and certified organic cocoa cultivation project in the Dominican Republic, with a focus on long-term viability and environmental benefits.

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ABOUT THIS PROJECT

INITIAL ASSESSMENT

FORLIANCE conducted a comprehensive feasibility study to explore the opportunities, impacts, and risks of investing in an organic cocoa plantation in the Dominican Republic (DR). This project aims to leverage the country's favorable climate, robust infrastructure, and established reputation for producing high-quality cocoa. The goal is to capitalize on the projected shortage of cocoa and ensure a stable, high-quality supply.

DETAILED ANALYSIS AND PLANNING

Our study included thorough due diligence, an analysis of supply and demand, competitor landscape, and market potential. We examined legal frameworks and land options, elaborated on financial requirements for land purchase, building construction, machinery, staffing, and certifications, and conducted a comprehensive risk analysis. Various scenarios, such as purchasing private land, a leasing system, and an outgrower scheme, were considered. The study involved desk reviews, interviews with experts, collaboration with local service providers, and field trips to evaluate suitable land options. 

SUSTAINABLE DEVELOPMENT AND IMPLEMENTATION

We developed a strategic plan that integrates advanced post-harvesting and storage technologies, tailored to the local environment. Our approach includes the selection of appropriate cocoa varieties and the incorporation of timber and fruit trees to enhance biodiversity and soil health. By collaborating closely with local stakeholders and leveraging our extensive expertise, we ensure the project aligns with international standards for sustainability and quality. The envisioned plantation is intended to serve as a lighthouse project, showcasing sustainable management practices, technology transfer, and added values such as Payment for Ecosystem Services. 

This project not only aims to produce high-quality cocoa but also focuses on environmental benefits such as biodiversity enhancement, soil and climate protection, and the stabilization of the microclimate in the region. Our comprehensive involvement underscores our commitment to promoting sustainable agricultural practices and improving the profitability of cocoa production in the Dominican Republic.

DELIVERING COMPREHENSIVE PROJECT SOLUTIONS

OUR KEY PROJECT DEVELOPMENT SERVICES

Due Diligence, legal framework, land options
Analysis of financial requirements and evaluation of economic viability
Risk analysis (including economic, infrastructure, project, finance as well as market risks)

PROJECT DETAILS

Project duration

April-November 2015

Location

Dominican Republic

Project Partners

ForestFinance Service GmbH
Deutsche Investitions- und Entwicklungsgesellschaft mbH

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Susann Fischer, Senior Partnerships Manager
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PROVEN EXPERIENCE

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