Nicolo, before we get your impressions of the trip, we have a general question: How would you rate the current market development?

Over the past year, the price of cocoa reached record levels and continues to sky-rocket in 2025. You can see the effects of this on all levels. While producers’ incomes are rising, the organic sector is increasingly coming under pressure. If conventional sales channels offer very attractive prices, farmers are less motivated to adhere to high standards. The increasingly sophisticated requirements for organic and Fairtrade certifications are also aggravating the situation. In the Dominican Republic, our most important country of origin, the proportion of organic exports threatens to fall below 30 % in 2025. By comparison, last year this was around 40 %, and in 2023 it was more like 60 %.

What changes to everyday production did you see while you were there?

The high price for conventional goods means that many smallholders currently have barely any incentive to follow complex processes. Instead, the focus is on direct payment, with quick cash sales being prioritised. Sometimes, crops are harvested too soon for this, which has an impact on quality. This short-term thinking poses long-term risks in terms of further processing, trade and production.

We are aware of this issue, which is why PRONATEC makes regular visits to the origin – as an active, reliable partner rather than just a purchaser. We place great store in maintaining direct contact with our smallholders. We want to accompany and support them, primarily in compliance with central quality processes and in the implementation of new regulations and guidelines.

By that you must mean the EU Regulation on Deforestation-free Products (EUDR) and the new organic production regulation?

Exactly. The legal requirements are complex and pose significant challenges for many producers to implement without support. Although the government claims to offer workshops, many farmers feel like they have been abandoned by the state. This is where the cooperatives come into play – in our case the smallholder organisation FUNDOPO. For 25 years, it has actively supported its members. However, the regulatory developments of recent years are presenting them with ever greater challenges. PRONATEC has therefore decided to make a stronger commitment to the source in future. Our aim is to help FUNDOPO and other cooperatives in a more specific way and to actively shape the transition to new requirements, both administratively and technically, as well as through increased presence on site.

How is PRONATEC tackling the new regulatory challenges in practice?

We have significantly expanded our support in recent months. We have increased staff numbers in Winterthur. With Norvis Vasquez, we now have a trained EUDR specialist in the team who can focus on adherence to the statutory regulations. Locally, we are investing in training, holding regular discussions with producers, providing technical support and financing tools such as abunda+. This software allows smallholders to record the geodata required by the EU’s deforestation law while also acting as an internal control system for certification processes. As we procure most of our cocoa in line with the Fairtrade standard, the cooperatives benefit from additional premiums, which provide them with more resources for promoting production in compliance with the law.

What can be done about the fall in quality of the supplied beans you mentioned earlier – how can we counteract this?

Quality assurance is a key issue for us. Specifically, we have intensified our sensory checks, which now take place more often and provide more precise results. We also carry out close monitoring. Our subsidiary YACAO SRL provides us with a huge competitive edge here: employees on site are highly aware of this issue and pay particularly close attention to the quality of the delivered fresh cocoa pulp, known as “baba”. At the same time, we work with them to continuously optimise the fermentation and drying processes. Another advantage: with PRONATEC Swiss Cocoa Production, we operate not just as a trader, but as a producer as well. At our own organic processing plant in Beringen, we are able to balance out the variations in quality of individual cocoa bean batches – for example, through blends or adjustments to the roasting profile.

Did you see any positive developments during your travels?

Of course. The current market situation of increased purchase prices for cocoa is motivating many producers to take better care of their fincas. The fields I saw appeared to be very well kept. This, along with the stable weather conditions, has a positive impact on the forecasts for the next harvest. There appears to be an interesting social development too, with more and more young people returning to the country to take over the family business. This is an important sign for the future of cocoa farming in the region.

What is your overall takeaway from your visit?

The challenges at the moment may be huge, but there is also a lot going on. I was particularly pleased to see that the local producers value direct contact with us and are happy with the proactive support we provide. This encourages us to further increase our commitment to our sources and focus on building trusting relationships. Our direct sourcing approach and the close, long-standing partnership with FUNDOPO and YACAO enable us to act and react at an early stage and in a targeted manner. In my opinion, this is a crucial advantage for ensuring high quality even under difficult conditions.

Thank you very much, Nicolo, for giving us such an interesting insight!