Olam International to invest $76 million on cocoa plant in Indonesia
Published on May 16, 2014 9:13 PM
SINGAPORE - Olam International said it will be investing US$61 million (S$76.2 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, it said.
With an initial capacity of 60,000 metric tonnes, 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.
Beans will also be supplied from Olam's farm-gate networks in Africa.
Olam said the investment is in line with its strategy of integrating its global cocoa bean supply chain capabilities with processing capacities in selected origins to address the growing outsourcing trend by confectioners and the rising global consumption demand for sustainable high quality cocoa products, particularly in Asia. Indonesia is one of the major origins for cocoa beans as well as a growing market for cocoa products.
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