The Glory of Thousands of Farmers

The new plant of Norandino is a historic statement for associativity in the area

CSF I San José June 12, 2019.

What started as a dream it became a reality. Organized farmers families from the north of Peru, are now the owners of the only and first cocoa processing plant of micro-lot and premium cocoa of Latin America. This is an unexpected accomplishment that impressed and surprised the Peruvian companies, and that excites and make proud around 7 thousand small scale agriculture producers.

Norandino’s cocoa processing plant is the first one of its own in Peru. It is the perfect example that is possible to add and create something valuable when people work together.   

It is designed to process 500 kilos of liquor per year. The processing capacity is estimated to be 4000 tones. Its Works with a batch system, which is a plus because it makes  Norandino producers the pioneers in Latin America in the maquila of premium cocoa liquor for the demanding industries like  Bean To Bar and the small certified fair trade and organic chocolate companies, which seek to ensure the traceability of free agrochemical chocolates.

A Market Opportunity

Nowadays, the cocoa liquor maquila is controlled by a few hands and big processing plants in Europe and North America. These plants generate a high processing cost for small chocolate producers, and it is a risk for traceability and quality of their products. Big manufacturers prepare different types and qualities of cocoa. They not only process organic cocoa or premium coffee, which is delivered by small scale chocolate producers, but they also process regular cocoa from different origins. The residues of this conventional cocoa stick on the equipment and mills, which is going to contaminate the finished liquor and it is going to alter the origin, quality of the delivered cocoa and the buyers' trust. Chocolate producers buy high-quality cocoa, but this quality is lost when the cocoa gets mixed with the 15% to 20% of leftover residues that stayed on the equipment.

Stability, Solidity, and Trust

With an investment of 7 million dollars, Norandino plant is one of the most ambitious projects. This would not be possible without the stability and proper financial organization that the Cooperative has shown during 25 years of working with international markets. Also, the constant trust in them from their buyers that has been stable due to their quality products, commitment, and highly competent staff.

The main markets were the liquor is sold are going to be the Netherlands, France, and Germany, which have the most outstanding brands that buy the products such as Chocolate Makers, Valhrona, Ethiquable, and Roginal Beans, who besides processing Piurian cacao beans, they are planning on manufacture cocoa from Ecuador, Colombia, and Central America. Also, they are planning to processes higher quality cocoa like Chunncho from Cuzco or Amazonian native cocoa that is being produced and sold by other cooperatives from Peru.

Cocoa manufacturers will expand their production area to the Northoriental Peruvian zone. They will assign 70% of the production to developed liquor, and the other 30% is dedicated to the commercialization of unique cocoa bean producers who prefer to process their own liquor.

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The Only Way is Associativity

With the active new plant, the producers of Norandino will receive a better price for their cacaos. Also, it will promote associativity in Peru through the incorporation of new families to the economic activities, which is going to cause the activation of the economy in the rural communities, these means that it will generate new job opportunities for the communities from Piura and other related zones.

Being referents for small scale producers organizations from Peru and Latin America; Norandino show us, that once again associativity is the proper mechanism to embrace the difficulties that are a consequence of globalization (market concentration). At the same time it is the way to generate value, better quality, and productivity, access to technology, new markets, and financing, and reach high levels of competitive and technological innovation just as big companies do it.

The Plant Numbers

From the total investment, 4.7 million are attributed to requirements of the newest technology from the Brand Duyvis Wiener; 2.3 million is from construction and accessories. According to the manager of Norandino, Fernando Reyes, it is a business with a combined structure, in which different financial institutions participate like Rabobank from the Netherlands with 1 million USD; Banco de Credito del Peru with 5.5 USD millions; European chocolate producers; and the Cooperation entity PASI of the Netherlands with 500 thousand USD.

Written by Natalia López

Translated by Débora Solís