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Cargill Cocoa Processing Facility, Gresik, East Java, Indonesia

Key Data

Cocoa beans

Cargill started the construction of a new cocoa processing facility at Gresik in the East Java region, Indonesia, in May 2013. The new cocoa processing facility is expected to be completed by mid-2014. It will meet the growing demand for cocoa products in the Asian markets.

The new facility will be Cargill's first cocoa facility in Asia. It is expected to create about 200 new jobs in Indonesia. It will also create additional jobs in R&D application centres in Kuala Lumpur and Beijing.

Details of the Cargill cocoa processing facility

The new facility in Gresik, East Java, will have the capacity to process about 70,000t of cocoa beans into different varieties of products for customers in the Asian market.

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The facility will complement Cargill's global network of cocoa sourcing and processing facilities which are located across Western Europe, Vietnam, Cameroon, Ghana, Côte d'Ivoire, Brazil and the US.

The project will enable Cargill to increase long-term sustainable cocoa production globally. It will also expand the company's sourcing operations in the Indonesian region, thus providing bigger market opportunities for small cocoa farmers, as smallholder farmers produce the vast majority of cocoa beans in Indonesia.

The facility will have state-of-the-art technology for processing cocoa beans.

Construction of the cocoa processing plant

The new cocoa processing facility in Indonesia is scheduled to become operational in mid-2014. The expected investment in the construction of the facility is about $100m.

Products from the new Indonesian cocoa plant

The cocoa product portfolio at the new facility will include cocoa liquor, cocoa butter and cocoa powder, which will be sold under the brand name Gerkens Cacao.

The cocoa liquor and butter products will be supplied to the chocolate industry and cocoa powder will be supplied to dairy, confectionery, bakery and ice cream producers.

Cocoa sourcing for Cargill's plants

Cocoa trees require a tropical climate to grow and to produce cocoa beans. The beans are predominantly grown in West African countries such as Côte d'Ivoire, Ghana, Nigeria and Cameroon. Other countries which supply cocoa beans include Indonesia and Brazil. Indonesia exports about 35,000t of high-quality cocoa beans per year.

Cargill's cocoa promise programme in Indonesia

The new plant in Indonesia complements Cargill's goal to encourage sustainable cocoa production throughout the world.

"The expected investment in the construction of the facility is about $100m."

Cargill introduced the Cocoa Promise sustainability programme in order to meet the global demand for sustainable cocoa beans. The programme focuses on three key areas - training cocoa farmers, supporting cocoa farming communities and investing in the long-term sustainable production of cocoa.

Cargill began the cocoa farmer training programme in Indonesia in 2013, to encourage sustainable agricultural practices among smallholder farmers and the farming community. The company plans to provide training to more than 1,300 Indonesian smallholder cocoa farmers by 2015 by engaging farmer field schools.

Marketing commentary

Cargill has been sourcing cocoa in Indonesia since 1995. It is the third largest producer of cocoa beans. The company has initiated steps to strengthen the cocoa sourcing network across the country. When the new cocoa facility at Gresik starts processing, Cargill's existing two cocoa buying stations in Indonesia will double the quantity of cocoa beans purchased from cocoa farmers to meet the demand for local processing.

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cocoa processing facility The new cocoa processing facility in Indonesia broke ground for construction in May 2013.
Cargill Cargill is the sponsor of the new cocoa processing facility in Indonesia.
Indonesian cocoa facility The new Indonesian cocoa processing facility is expected to be completed by mid-2014.
cocoa beans The facility will have the capacity to process about 70,000t of cocoa beans per year.