Post by : Badri Ariffin

The Dubai Multi Commodities Centre (DMCC) is poised to advance its standing in the global agri-commodities arena with the announcement of a new Cacao Centre. This initiative focuses on creating a comprehensive ecosystem for cocoa trading, processing, and innovation.

The forthcoming Cacao Centre is set to integrate the entire cocoa supply chain—from sourcing and storage through to processing, branding, distribution, and funding—mirroring the success of DMCC’s existing coffee and tea centres.

Currently, DMCC accommodates 88 enterprises specializing in cocoa trading, chocolate production, and confectionery. The new centre will organize these sectors into a singular platform to boost efficiency and enhance global connectivity.

Strategic Collaborations

The project will be developed in collaboration with:

• Kumbi Cocoa, dedicated to forging fair and direct partnerships with farmers

• Ribezzi Group, a Dubai-based company spearheading the project's development

Together, these organizations will work on constructing facilities in Dubai for the storage, trading, and processing of cocoa beans into semi-finished products, including cocoa liquor, cocoa butter, and cocoa powder.

Innovative Infrastructure and Services

The DMCC Cacao Centre is set to provide:

• Grading and quality assurance

• Storage and blending facilities

• Packaging and branding assistance

• Access to trade finance via DMCC’s FinX platform

This infrastructure is designed to aid cocoa producers, cooperatives, and traders in navigating price volatility and limited funding access.

Expanding Global Market

The global cocoa market is witnessing rapid growth:

• Expected to be worth $16.6 billion by 2025

• Projected to hit $26.2 billion by 2035

Moreover, the premium chocolate sector is also expanding, driven by the increasing demand for high-quality and health-conscious options.

Dubai's Emerging Role

While still establishing itself in cocoa commerce, Dubai shows promise:

• The UAE imported $17.3 million in raw cocoa beans in 2023

• Imported $65.3 million in finished cocoa products

• Exported $16.4 million in raw beans

These figures underscore a surge in trading activities through Dubai.

Bridging the Global Gap

Currently, West African nations account for about 75% of global cocoa production, yet they retain a meager share of the end value. The DMCC Cacao Centre aims to rectify this discrepancy by linking farmers to global markets, financing, and auxiliary services.

With robust logistics and storage capabilities, along with trade financing, Dubai is setting itself up as a pivotal hub for a more transparent, efficient, and equitable global cocoa trading system.

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