Organization and Structure

All cocoa beans processed by U. S. manufacturers must be imported, by direct purchase or through the services of a broker, as cacao trees require a tropical climate to flourish. Growers are paid for the beans at market price, which is determined primarily by the quality and availability of the crop worldwide. A testament to cocoa's importance as a commodity is the existence of cocoa exchanges, similar to standard stock exchanges, in New York City, London, Hamburg, and Amsterdam. The beans are then processed to make chocolate liquor, which is in turn used to further manufacture such products as cocoa, chocolate syrup, and solid chocolate chips and baking bars. The chocolate liquor is also often sold to other manufacturers that combine it with additional ingredients to produce confections, bakery items, and dairy products.

Manufacturers roast, shell, and grind the beans to produce unsweetened chocolate, the chocolate liquor that is the basic ingredient of all chocolate products. Further processing of chocolate liquor falls into two categories: cocoa manufacture and chocolate manufacture.

In cocoa production the fat is pressed from chocolate liquor, leaving cocoa cake that is crushed to form cocoa powder. The powder may be sweetened and sold as a cocoa beverage or left unsweetened for use in bakery and dairy products and for home cooking use. Cocoa butter, the fat removed from the chocolate liquor, is used mainly in sweetened chocolate, but is also used as a moisturizer in soaps, creams, and medications.

The production of chocolate requires the addition of sugar or other sweeteners and cocoa butter to chocolate liquor. Milk solids are also added in the manufacture of milk chocolate. Bulk quantities of sweetened chocolate (blocks of at least 4.5 kilograms) are considered chocolate coating and are used for candy coverings and baked goods. Chocolate coating is generally more expensive than the confectioners' coatings, which are made from cocoa powder.

Chocolate manufacturers sell these semi-processed cocoa products to other firms that use the items in the production of confectionery, baked goods, and dairy products such as chocolate milk. In addition, some producers also manufacture their own confectionery. Exports of chocolate products consist mainly of confectionery items rather than semi-processed chocolate.