News Feature | May 21, 2014

Indonesia Is Ground-Zero In The Battle For Cocoa Dominance

By Karla Paris

Battle For Cocoa Dominance

Cargill, Mondelez International, And Olam International Make Advancements In Emerging Asian Markets

On May 15, at the Indonesia International Cocoa Conference, Cargill announced that by the end of the month it will begin cocoa processing tests at its state-of-the-art cocoa processing plant in Gresik, in the East-Java region of Indonesia.  Output estimates at the facility are expected to reach 70,000 tons of cocoa beans converted into cocoa powder, cocoa butter, and cocoa liquor per year.  Customers in Indonesia and other Asian countries will be the primary beneficiaries of production from this facility.

Cargill’s latest $100 million investment in Indonesia demonstrates the company’s commitment to develop and grow Indonesia’s cocoa industry, as well as strengthening its cocoa sourcing network and cocoa sustainability activities in Indonesia.  The company intends to continue investing in the region to support the growth of the region and source local crops to produce high-quality cocoa products that meet the needs of customers across the Asia region.

In another development in Indonesia, Cargill has just launched its second Indonesian Cargill Cocoa Promise program in Soppeng, South Sulawesi.  The Cargill Cocoa Promise is the company’s global commitment to the development of a sustainable cocoa supply chain and to making a difference in three key areas improving the lives of cocoa farmers, supporting cocoa farming communities, and investing in the future of cocoa farming.

Many large-scale companies are addressing cocoa-deficit concerns by launching sustainability initiatives focused on agricultural training, facility upgrades, and supply chain modifications.  Mondelez International is well under way with its agreement with the Ivorian government’s Conseil du Café Cacao (CCC) to help farmers increase sustainable cocoa production and create thriving communities in Côte d’Ivoire.  Non-governmental organization Cooperative for Assistance and Relief Everywhere (CARE) International is leading Cocoa Life projects in Ivorian cocoa communities through 2016.

Advance Quality Assurance Systems keep accurate weight of chocolate products

Olam International says it will be investing $61 million to establish a new cocoa processing facility in Indonesia.  The project will enable it to leverage the strength of its Indonesian cocoa sourcing network and participate in the growth of Asian cocoa consumption. With an initial capacity of 60,000 metric tons, the facility will produce cocoa butter, cocoa cake, and high quality cocoa powders.  The plant will grind Indonesian beans sourced through Olam's traceable cocoa network, which includes the 32,000 farmers who form the core of its sustainable supply chain in the country, as well as from its plantation on Seram Island acquired in 2013.