10 tips on how to do business with European cocoa buyers

Europe provides many opportunities for cocoa exporters. In this study we provide practical tips for doing business with European cocoa buyers. As the cocoa trade is a people’s business, it is important to invest in personal relationships and be aware of differences in business cultures. It is also critical to understand and meet buyer requirements and expectations. In addition, framing any unique selling point (USP) effectively is crucial to branding oneself in a highly competitive market.

1. Understand the business culture in the European cocoa sector

To successfully export cocoa from origin countries to the European market, it is important to understand European business culture. Proper business etiquette, punctuality and looking professional are expected. Take time to make personal connections but keep initial interactions more formal. Be aware of and sensitive to some notable differences between countries. Table 1 presents differences in the business cultures of some European countries. Overall, while Germany, France and Belgium emphasise punctuality and hierarchical structures, the UK is more flexible and values personal connections. Communication styles vary, with Germany and the Netherlands being direct, France expecting impeccable etiquette, and the UK using openness and humour. Gift-giving practices are generally conservative across all countries. Passport to Trade 2.0 provides a good overview of differences in business cultures in Europe: for example, Northern European buyers are often straightforward and will tell you what they think, whereas Southern European buyers tend to be less direct.

Table 1: Some differences in the business culture of few European countries to take note of

Source: Passport to trade 2.0

Be familiar with common terms and jargon in the cocoa sector

In communication, it is very important to know and understand certain language terms and jargon used across the entire European cocoa sector. While there is no single universal slang or vernacular language, in Table 2 we present certain industry-specific terms around cocoa quality.

Table 2: Cocoa industry-specific terms and jargon frequently used with regard to cocoa quality

Here are additional common terms you can encounter in the cocoa trade:

1. Supply Chain Terms

• Traceability: The ability to track cocoa beans from farm to consumer, ensuring transparency and accountability.
• Bean-to-bar: Chocolate production process that involves sourcing cocoa beans directly from growers and overseeing all stages of production.
• Direct trade: A business model where cocoa buyers purchase directly from farmers, often emphasising fair prices and long-term relationships.
• Bulk cocoa: Large quantities of cocoa beans being traded.

2. Market Trends and Demand

• Craft chocolate: Artisanal chocolate made in small batches, focusing on quality ingredients and unique flavours.
• Single-origin chocolate: Chocolate made from cocoa beans sourced from a specific region or plantation, highlighting terroir and flavour diversity.

3. Logistics and Shipping Terms

• FOB (free on board): This term means that the seller is responsible for the products until they are placed aboard the vessel for shipment. After that, the buyer takes responsibility.
• CIF (cost, insurance and freight): A pricing word that includes the cost of the goods, insurance and freight charges up to the final port. These charges are the seller’s responsibility until the items arrive at the destination port.
• Certificates of provenance: They certify the provenance of the goods, namely cocoa beans. They may be required by tariff rates and guarantee adherence to trade agreements by customs authorities.
• Phytosanitary certificate: This document certifies that the exported cocoa beans meet the phytosanitary standards of the nation of import by being free of pests and illnesses.

• The International Chamber of Commerce (ICC) publishes Incoterms, which are standardised words used in international trade. EXW (Ex Works), FCA (Free Carrier) and DDP (delivered duty paid) are also examples of frequently used Incoterms that outline the obligations of the buyer and seller in a transaction.

The language and terminology can vary based on the specific European country or company, or an individual’s background. But in general, cocoa traders and processors use this specialised vocabulary to efficiently communicate about bean quality, sourcing and logistics. Use of acronyms like ICCO (International Cocoa Organization) and HACCP (Food Safety Certification) is likewise common jargon in the cocoa sector.

Be cautious about giving gifts

Gift-giving practices in business relationships can vary significantly across cultures, and it is essential to approach this aspect with caution when engaging with European buyers, particularly during the initial stages of establishing a professional relationship.

Once a solid business relationship has been developed and a foundation of trust has been built, small regional gifts or items representative of your company’s origin or culture can be appropriate gestures to strengthen ties and demonstrate appreciation. These gifts should be modest in value and presented in a professional manner, without any expectation of reciprocation or favouritism.

When presenting any gift, you must provide context and explain the cultural significance or regional connection behind the item. This adds value and meaning to the gesture, showcasing your appreciation for the business relationship and your desire to share a piece of your origin with your European partners.

2. Be professional in communicating with buyers

In general, Europe is characterised by more direct communication styles compared to many cocoa-producing regions. It is therefore important to be aware of cultural protocols, such as formality in greetings and the role of hierarchies in business dealings.

When approaching a potential European cocoa buyer or partner for the first time, you should adopt a formal and professional communication style. The cocoa trade in Europe tends to be relationship-driven, but initial interactions should be respectful and follow established business norms.

Ideally, the first contact with a buyer is in person, such as meeting in origin, at a trade show like the Amsterdam Cocoa Week - CHOCOA, ISM Cologne, World Cocoa Conference, CHOCOTEC or the Salon du Chocolat conference. These settings provide a great opportunity to establish a strong initial connection, discuss products in detail, and demonstrate commitment to quality and partnership. 

Alternatively, you can also begin with an introductory email: start your outreach with proper due diligence, knowing what a buyer is looking for. Are they looking for specialty cocoa or single origin, or working more in the bulk markets? Knowing your customer is the starting point of any conversation. In the email, introduce yourself; your company; your cocoa offerings, such as varieties and certifications (e.g. Fairtrade, Organic, Rainforest Alliance); and your production and processing capabilities. Describe how your products create value for the buyer considering what they are looking for. Highlight your USPs such as exceptional quality, distinct flavour profiles, or sustainable production practices.

After providing the initial introduction, politely request an introductory call or video meeting to discuss potential partnerships in more detail. An initial call or meeting should focus on understanding your client. In this meeting, explore how you can be of service to your potential client. Also, propose attending major cocoa conferences or events, where you can arrange in-person meetings with European buyers. Be prepared to discuss your company’s capabilities, quality control measures, certifications, and commitment to sustainability and compliance.

You can phrase your request as follows:

“I would be delighted to arrange an introductory call or video meeting to discuss a potential partnership and answer any questions you may have about our cocoa offerings. Additionally, we plan to attend [Event Name, e.g. World Cocoa Conference] in [Date/Location], where I would welcome the opportunity to meet with you in person, share our cocoa samples, and explore how we can collaborate to meet your specific requirements.”

In building this relationship, demonstrate knowledge and control of your value chain, and answer emails and phone calls promptly. 

One important thing to also note is that direct trade cocoa is becoming a growing trend within Europe, particularly in the specialty segment. This means building personal relationships with buyers can enhance direct trade of your cocoa. You can invite potential buyers for a visit to your producing region and offer them samples of micro lots. If an in-person visit is not possible, you can ask for a video conference call or virtual tour, where you can show them what you have to offer that meets what they’re looking for. 

Figure 1: Example of a virtual tour offered by Maui Ku’ia Estate (Hawaii)

3. Prepare well for and attend cocoa events and conferences

Attending cocoa events and conferences is an essential strategy for you to enhance your network, stay updated with industry advancements, and uncover new business partners and potential buyers. These events are crucial for learning and professional development. They provide a platform to build and maintain connections with industry peers and like-minded individuals. Moreover, conferences offer excellent venues to showcase your organisation and ideas, and work with others.

As the saying goes, ‘success is where preparation and opportunity meet’. This is particularly true when aiming to connect with potential buyers interested in your cocoa. Effective preparation involves thorough research and planning: define your objectives, outline what you want to achieve during the conference, identify attendees, and select sessions that align with your goals.

Just as athletes practice for competitions, you should treat the conference as your game time. Structure your attendance by creating a strategic plan. Review the conference website, examine (or request) the attendee list, and highlight individuals you wish to meet. Research the speakers and sessions to identify presentations most relevant to your business objectives. Schedule and prepare for meetings with key stakeholders in advance. During the bustling conference everyone is busy, making it challenging to catch people. However, being prepared helps you deliver your message efficiently, even with limited time or opportunities to speak with your targets.

Whether it is a virtual or in-person meeting;

1. Engage with attendees before the event: Use social media and the event’s hashtag to create buzz and engage with potential attendees. If you plan to have a booth to showcase your cocoa offerings, send personalised invitations to key contacts to ensure they visit your booth.
2. Bring essential materials such as samples of your cocoa varieties, properly packaged for evaluation. Include key cocoa data and your contact information on the label attached. A comprehensive documentation should include:

• Detailed product specifications (variety, origin, processing methods, quality scores, etc.).
• Certifications (e.g. Fairtrade, Organic, Rainforest Alliance).
• Traceability records and supply chain information.
• Compliance documentation (e.g. food safety, labour standards).
• Promotional materials or visual aids highlighting your capabilities, quality control measures, sustainability initiatives and unique value propositions. Ensure your promotional materials are updated and fit the objectives of your attendance. Prepare leaflets or a digital presentation of your organisation, including key data on your business, services and contact information.

3. Create an attractive booth: Ensure your booth is visually appealing and professional. Avoid worn-out displays and invest in high-quality materials that reflect your brand’s image. Offer something unique to draw attention, such as a fun contest or a visually striking video presentation about your brand.
4. Leverage testimonials and branding: Highlight testimonials from well-known brands and feature their logos prominently to create buzz and lend credibility to your cocoa offerings. Use these endorsements in your marketing materials to attract more visitors.
5. Prepare your team: If you attend with your team members, be sure that you have a knowledgeable and friendly team that can engage with attendees and effectively represent your brand.
6. Follow up: After the event, follow up with the contacts you made. Send personalised emails referencing your interactions at the event to keep the conversation going and turn leads into business opportunities.

4. Provide good-quality samples with the right information

Offer to send interested buyers a sample of your product. This sample should represent the overall quality of your cocoa (known as representative samples). Your potential buyers will assess both the physical and sensory quality of your cocoa. If a buyer is interested in receiving a sample, agree on what kind of sample and the delivery date. Also, make agreements on quantities, packaging (example: it is quite common to send the samples in a simple plastic bag or Ziplock), labelling and accompanying documentation.

Regarding the documentation, samples are often sent together with a fact sheet providing information such as variety, altitude, soils, average rainfall, location, annual production by grade of cocoa, harvest season, harvest and post-harvest practices, warehousing, distance to port and shipping options. Samples include a label containing basic information, such as weight, moisture and ferment percentages, dates of collection, drying and entry into the warehouse, as shown in Table 3.

It is important to know your product offering and the characteristics of your sample. Greenplanet, a cocoa exporter from Venezuela, successfully maintains strong relationships with cocoa buyers, particularly in the bean-to-bar market, by investing in a portable laboratory where they conduct physical and chemical examinations of the cocoa in video conference calls with potential buyers. Following these live evaluations, they provide buyers with detailed technical data sheets and laboratory test results (see Table 3). They follow up by sending cocoa samples directly to buyers, allowing them to cross-check the phytosanitary information and quality claims. This approach, which combines virtual evaluations, detailed documentation and physical samples, has enabled Greenplanet to build trust and credibility with cocoa buyers in the competitive bean-to-bar market.

Table 3: Sample datasheet of Greenplanet

Source: the Greenplanet Team

Figure 2: Example of fermentation curve

Source:  the Greenplanet Team

Figure 3: Example of sensory analysis curve

Source: Jose Fuentes Bolivar of the Greenplanet Team

As a general rule, you should offer samples of about 1 kg. With this amount, interested buyers will have enough beans to conduct tests. Also, keep a 1-kg sample for yourself and document well which sample you send to which company. This is important to ensure consistency in testing and to track which beans were sent to each buyer for accurate follow-up and quality control.

When suppliers and buyers enter into direct trade relations, it is usually upon approval of a pre-shipment sample. Buyers tend to include the right of refusal on delivery (with the ‘replace clause’), meaning that a new pre-shipment sample has to be offered in place of the rejected one.

5. Follow-up, follow-up, follow-up

Following up is a crucial element for any business. It helps you strengthen your relationship with a potential buyer and may provide you with successful sales opportunities. Good communication and follow-up gives you a competitive advantage, as it shows you are a professional and reliable client to work with.

6. Be well informed about pricing strategies and providing quotes 

Cocoa is a globally-traded commodity, and its prices are determined by supply-and-demand factors in these markets. As a cocoa farmer cooperative or cocoa exporter, it is crucial to keep a close eye on both the London and New York futures markets on the International Cocoa Organization’s ICCO website. 

By keeping track of both these futures markets you can gain insights into the global cocoa price trends, which can help you hedge against price risks. It can also help you improve your selling strategies. If you are a farmer cooperative, it is critical to monitor market trends, such as changes in supply and demand, weather conditions and geopolitical factors. This knowledge can assist you in anticipating price fluctuations and making informed decisions about your production and marketing strategies accordingly. 

Meanwhile, to set a selling price effectively, understanding your production costs is paramount. By calculating these costs and considering the desired margin, you empower yourself to make informed business choices regarding quantities, timing, and pricing strategies. It also helps you provide detailed information in your quotations. This cost, profit and selling price calculator from the Cyprus Agricultural Research Institute is a good tool to help you calculate your production costs.

The base price should typically include costs related to production, processing, packaging and transportation to the EU port. When preparing a quotation for exporting cocoa beans or semi-finished cocoa products to the EU, ensure clarity and transparency. Here are some tips to consider:

1. Product descriptions: Use clear and concise descriptions of your cocoa products, highlighting their quality, origin, and any certifications they may have. Attachments such as product specifications or quality certificates can provide additional information.
2. Price structure: While both gross and net prices are used in the cocoa industry, providing net prices (excluding taxes and other charges) may simplify the quotation process. Consider offering price scales per quantity to incentivise larger purchases, with discounts applied accordingly.
3. Included in the price: Specify what is included in the quoted price, such as product packaging, shipping costs, and any applicable taxes or duties. Clearly outline any additional charges or fees the buyer may incur.

Table 4: An example of information to include in your quotation

Source: Amonarmah Consults

Specialty cocoa usually fetches higher prices than bulk cocoa, as chocolate makers are willing to pay a premium for good quality and a unique product. For specialty cocoa, the premiums paid can go as high as €500 to €5,000 per tonne (above the London or New York stock market values). Generally, prices are determined in relation to the quality, uniqueness, scarcity and origin of the particular cocoa.

Margins in the cocoa sector can vary based on factors such as product quality, market demand and negotiation strategies. For instance, higher-quality cocoa commands better prices, allowing for more favourable margins. Also, when demand is strong, margins can improve due to higher selling prices. Effective negotiation skills can impact the final margin achieved.

7. Emphasise your unique selling points

The best way to attract a buyer’s attention is by setting yourself apart from your competition. To do so, you need to define your differentiating factor, your unique selling point. When you have found your USP, actively promote it. Storytelling is very important, as both buyers and consumers love the story behind a product.

One aspect that plays a big role in the cocoa sector is origin. It is therefore a good idea to invest in online marketing to share the story of the origin of your cocoa beans. For example, build a website or create an Instagram account where you tell your buyers all about the uniqueness of your cocoa varieties, the history of your farm and the terroir (soil) where your farm is situated. Give your story a face by providing good-quality photos of the farmers, their families (ask for authorisation!) and the plantations.

Ingemann (Nicaragua) is a good example of a cocoa company that communicates this message well. Its website includes information about all aspects of production, cocoa varieties and producing communities. Also check out the websites of Kokoa Kamili (Tanzania), Xoco Gourmet (Honduras) and Balmed (Sierra Leone).

Cocoa traders and chocolate makers will also use your stories in their own communication, for instance to help market their products to consumers. It is increasingly important for them to sell their chocolates to consumers as an experience. 

A compelling storytelling can be a powerful tool for you to effectively communicate your USPs to European buyers. Here are some strategies to leverage compelling storytelling:

1. Sustainability Journey:
   • Share the journey of your cooperative’s or farm’s transition to sustainable practices, highlighting the overcome challenges and the positive impact on the environment and local communities.
   • Showcase specific initiatives, such as reforestation efforts, water conservation measures, or the adoption of renewable energy sources.
   • Highlight the social impact of your sustainability efforts, such as improved livelihoods for smallholder farmers, gender equality programmes and community development projects.

2. Quality Obsession:

• Tell the story of the meticulous care and attention to detail that goes into every step of the production process, from cherry selection to processing and cupping.
  • Describe the unique microclimate, terroir and soil characteristics that contribute to the distinctive flavour profile of your cocoa.
  • Share anecdotes or interviews with experienced farmers or cocoa experts who have dedicated their lives to perfecting the art of cocoa cultivation and processing.

3. Cultural Heritage and Traditions:

• Delve into the rich history and traditions behind your cocoa’s origins, showcasing the ancestral knowledge and practices that have been passed down through generations.
  • Highlight the unique indigenous varieties or heirloom cultivars that you grow and their significance in preserving biodiversity and cultural heritage.
  • Share stories of the local communities involved in cocoa production, their customs, and the deep-rooted connection between cocoa and their way of life.

4. Personal Narratives:

• Introduce the faces behind your cocoa, sharing the personal stories and motivations of individual farmers, cooperative members, or family members involved in the business.
  • Highlight the challenges they have overcome, their passion for cocoa, and their commitment to producing exceptional quality while preserving their traditions.
  • Feature interviews or quotes from these individuals, allowing their authentic voices to resonate with buyers seeking a deeper connection to the source of their cocoa.

Giving regular updates about your cocoa farm and/or cocoa products on social media also serves to strengthen your position. You could use X, Facebook, LinkedIn, YouTube or Instagram to share your story. Note that you can also connect your social media pages to your own website. Buyers use these online platforms regularly, as do consumers.

8. Consistency is key

European buyers are looking for suppliers who can provide a continuous supply of high-quality cocoa in steady volumes. This means you need to ensure that you can meet the quality (and volume) requirements your buyer is asking for. Remember to only make promises you can fulfil.

Regularly inform your buyers on the status of their orders, as well as your expected volume availability. If you have any problems meeting certain quality requirements or volumes, discuss this with your buyers in advance. Do not wait until the last minute to share bad news. Give yourself and your buyer enough time to work out a suitable solution.

When considering the quality of your cocoa beans, map all your processes linked to your pre-harvest, harvest, post-harvest, processing and storage methods. Also consider specific agro-climatic conditions around the cocoa production area. Producing high-quality cocoa beans requires good trees (genetics), good agricultural practices, harvesting the right beans at the right time, dedicated fermenting and drying, good storage and adequate transportation.

When it comes to post-harvest handling specifically, European chocolate manufacturers and chocolate makers are looking for suppliers that can guarantee good-quality fermentation and drying protocols. Some European chocolate companies are experimenting with these techniques themselves, and may be willing to involve you in this part of product development. Communicating that you are open to change and willing to invest time in additional processing to meet their specific requirements can give you a competitive advantage.

9. Comply with mandatory sustainability and traceability requirements

In recent years, European buyers have increasingly enhanced their sustainability requirements. They expect you to have food quality and safety management systems implemented to demonstrate your ability to control potential food safety risks. This ensures that your cocoa is safe for human consumption. If you are unable to comply with these sustainability requirements, it will be very difficult for you to access the European cocoa market. 

For example, the European Green Deal (EGD) aims to make Europe climate-neutral by 2050, impacting trade and imports by enforcing stricter sustainability standards, particularly for export companies from developing countries. One focus area is the Farm to Fork Strategy. 

Additionally, the EGD includes the Biodiversity Strategy for 2030, with measures like the EUDR. The EUDR also restricts importation of cocoa products from lands acquired forcibly from local and/or indigenous communities, or whose cultivation involves labour and human rights abuses. Importers who fail to comply with EUDR could face fines of up to 4% of their net profit in any EU member state. 

There is also a social and economic sustainability strategy, the Corporate Sustainability Due Diligence Directive (CS3D), which has recently been approved by the European Council. The CS3D is compulsory for all companies in the EU and companies outside Europe that sell products or services in EU countries. It tackles mainly the social and economic concerns of sustainability. Companies must take steps to find and prevent any harmful impacts their business and supply chains may have on people and the environment. 

These requirements aim to make cooperatives or exporters and buyers themselves more responsible in ensuring the provision of traceable cocoa to chocolate consumers. As such, if you manage a farm or belong to an association or cooperative of smallholdings, it is very important to show the degree of control that you have over the production. Implementing a traceability system in your supply chain will give you a competitive advantage in the EU market and build trustworthy relationships with European buyers. Be transparent and protect the origin of your cocoa bean supplies. This means you will have to keep batches separate along the chain and document their identity by developing an identity preservation (IP) system.

Buyers also value certification for social and ecological sustainability. The main certification schemes in the cocoa sector are Rainforest Alliance, Fairtrade and Organic. Be sure to check your potential buyer’s website to find out what their expectations are, and talk to them directly about this – especially if you have questions about how to comply with requirements. Many larger European companies publish their own sustainability claims and policies on their websites. This is a good indicator of what you can expect. For example, Mondelēz has set its own standard for cocoa called Cocoa Life.

10. Leverage industry support

There are several government agencies and non-governmental organisations (NGOs) that offer valuable support and resources to facilitate export growth of your cocoa business. These bodies provide assistance in areas such as market intelligence, trade promotion, capacity-building and access to finance. They aim at supporting exporters from developing countries successfully navigate the European market and adhere to its requirements for sustainable and ethical trade practices. Working and being part of such initiatives and entities can help you gain access to training, investments and other resources.

Being familiar with them, utilising their resources (e.g. information on their websites), attending their webinars or contacting them directly with your questions can enhance your chances of doing business with European buyers. Knowledge gains from their resources can help you ensure compliance with environmental and social standards, which are increasingly important criteria for European buyers.

For instance, CBI (Centre for the Promotion of Imports from developing countries) is known for providing export coaching programmes and market intelligence, and promoting sustainable trade between developing countries and Europe.

Other important agencies and NGOs for the cocoa sector:

1. Swiss Import Promotion Programme (SIPPO), Switzerland: SIPPO focuses on promoting sustainable trade and economic development in developing countries. They offer training, coaching and consultancy services to help businesses comply with European standards, improve production processes and access new markets. 
2. Import Promotion Desk (IPD), Germany: The IPD is a joint initiative of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Federation of German Wholesale, Foreign Trade and Services (BGA). They offer training and coaching programmes to help businesses from developing countries meet European market requirements and access distribution channels. 
3. International Trade Centre (ITC), Switzerland: The ITC is a joint agency of the World Trade Organization and the United Nations, focusing on promoting sustainable economic development and trade in developing countries. They offer a range of services, including market analysis, trade facilitation and capacity-building. 
4. Open Trade Gate Sweden (OTGS), Sweden, officially known as Kommerskollegium: OTGS is a Swedish government agency that supports sustainable trade and economic development in developing countries. They offer training programmes, market intelligence and networking opportunities to help businesses access the European market. 
5. Africrops!, Uganda: Africrops! is an NGO that works to improve the livelihoods of smallholder farmers in Africa, including cocoa producers. They offer training, technical assistance and access to certification programmes to help farmers improve their production practices, meet international standards and access premium markets. 
6. Solidaridad: An international NGO that works towards sustainable supply chains, including cocoa, through certification, training and capacity-building programmes.
7. Fairtrade International: A leading organisation that promotes fair trade practices and provides certification for cocoa and other agricultural products.
8. Rainforest Alliance: A non-profit organisation that certifies sustainable agricultural practices, including cocoa production, and provides training and support to farmers.

To conclude, refer to CBI’s studies on tips for finding European cocoa buyers and tips for organising your cocoa export to Europe. These studies provide detailed information to clearly define your product offer and preferred target market, and give you strategies to find buyers and properly export your coffee to buyers in the European market.

Amonarmah Consults conducted this study in partnership with Molgo Research and Ethos Agriculture on behalf of CBI.

Please review our market information disclaimer.