P.T. Barry Callebaut Comextra’s Cocoa Processing Facility, Makassar, Indonesia
A new cocoa processing facility was officially opened at Makassar city in South Sulawesi province, Indonesia, in September 2013. The facility was jointly developed by PT Barry Callebaut Comextra Indonesia, a joint venture of Barry Callebaut (60%) and P.T. Comextra Majora (40%).
The facility has the capacity to grind approximately 30,000t of cocoa beans in a year. It was constructed with an investment of about CHF 31m ($33m) and provides employment to 95 local people.
Barry Callebaut has reinforced its manufacturing footprint in the fast-growing Asia-Pacific region with the opening of the new cocoa processing facility at Makassar. The company also owns and operates four more factories each for cocoa and chocolate production across Asia.
Location and development history of the new Indonesian cocoa processing facility
The new facility is conveniently situated closer to both farmers and customers of Barry Callebaut. The plant produces cocoa powder, chocolate products and moulded cocoa liquor blocks using locally grown beans, thus reducing the logistics cost.
Barry Callebaut and Comextra Indonesia formed a joint venture in November 2011 to form a new company called P.T. Barry Callebaut Comextra Indonesia. The JV, headquartered at Makassar, proposed to build a new cocoa processing facility at Makassar. The initial capacity was planned to be 28,000t and operations were expected to start in early 2013, but delayed.
According to the JV agreement, Barry Callebaut buys the production from the plant while P.T. Comextra Majora supplies the cocoa beans under a long-term supply agreement.
The plant benefits the local farmers to earn a sustainable income through the purchase of beans produced by them. It will also benefit Barry Callebaut exploit the opportunity in the fast growing Asia Pacific cocoa market.
Barry Callebaut's steps to tap Asia-Pacific cocoa market
The demand for cocoa powder and chocolate products has been on the rise in the Asia-Pacific region. The demand for cocoa powder products in the region is expected to grow by five to nine percent per annum in future. The demand for chocolate products is also expected to increase by four to six percent a year.
In order to tap the growing demand for cocoa in Asia, Barry Callebaut purchased the cocoa ingredients business unit of Petra Foods in July 2013 for $860m. The acquisition provides Barry Callebaut a good production base and support in the Asia-Pacific region to increase the production of quality cocoa and chocolate products to match the demand.
Barry Callebaut's initiatives for boosting Indonesian cocoa production
Barry Callebaut initiated Cocoa Horizons programme in March 2012, which is aimed at boosting the farm productivity, increasing quality and improving family livelihoods in key cocoa producing countries. Under the initiative Barry Callebaut provides farmer training, infrastructure and community education and health programs. The company initiated this programme in Indonesia.
Barry Callebaut in association with P.T. Comextra Majora established the Combat Grakindo Foundation in 2012. The foundation offers training to cocoa farmers in the Central Sulawesi region.
Cocoa production in Indonesia
Indonesia produces 13% of the world's cocoa ranking third among the world's biggest cocoa growing countries. The total cocoa crop produced in the country amounts to approximately 450,000t. The major cocoa and chocolate product makers in the country include Petra Foods and Cargill, which is constructing a cocoa processing facility in Gresik that is expected to be operational by mid-2014.