Cargill Signs MoU on Sustainable Cocoa in Indonesia, Expands Local Production
16 May 2014 --- Cargill’s Cocoa and Chocolate business, international development agency Swisscontact and the Soppeng Regency Government have signed a memorandum of understanding (MoU) to implement the Cargill Cocoa Promise in the Soppeng Regency of South Sulawesi Province, Indonesia.
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.
The signing of the MoU was conducted by the representatives of the companies including H. Aris Muhammadiyah, Vice Regent of Soppeng; Pither Sutardji Cocoa Sourcing Manager, Cargill Cocoa & Chocolate; and Manfred Borer, Program Director Sustainable Cocoa Production Program (SCPP), Swisscontact.
As part of the company’s US$100 million investment in Indonesia, this reinforces the company’s commitment to develop and grow Indonesia’s cocoa industry as well as strengthen the company’s sustainability activities. With the signing of the MoU, Cargill has extended its existing Cocoa Promise into Soppeng which is an important step in developing sustainable cocoa production and supporting farmers in South Sulawesi, Indonesia to create a viable future with improved cocoa yields and more sustainable farm standards. Swisscontact is supporting the field implementation of the program to promote local development of farmers and to stimulate cooperation. As Indonesia is the world’s third largest cocoa producer, the program strengthens Cargill’s intention to scale up its cocoa operations and increase value to the cocoa beans produced in Indonesia to help meet the increasing demand for cocoa across Asia.
The Cargill Cocoa Promise in Soppeng Regency will provide a flexible and low cost technology transfer system for cocoa farmers as well as train farmers in good agricultural practices. It will also help establish farmers’ organisations which will play a crucial role in the administration and certification of cocoa crops.
Commenting on the launch of the Cargill Cocoa Promise in Soppeng, H. Aris Muhammadiyah, Vice Regent of Soppeng, said: “We are excited by the launch of the program and highly appreciate Cargill’s efforts to improve Soppeng’s cocoa beans product quality and our cocoa farmers’ incomes. Cocoa is one of the key commodities that provide significant contributions to Soppeng Regency’s economy, and this sustainable cocoa program will further improve our cocoa farmers’ welfare and strengthen Soppeng Regency’s position as one of the most important high quality cocoa beans production centers in Indonesia.”
Pither Sutardji, Cocoa Sourcing Manager, Cargill Cocoa & Chocolate said: “Cargill’s Cocoa Promise in Soppeng Regency is beneficial for both local farmers and our customers. Improving farmers’ productivity and bean quality means farmers’ profitability will increase and the living standards of farmers and their families will improve. It will also help us achieve our goal to develop a sustainable cocoa supply chain and improve the quality of cocoa for our customers.”
“This Public Private Partnership in Soppeng Regency is an extension of the tried and tested approach in neighboring Bone Regency and the collaboration with Cargill and the local Government is expected to improve the economy of local cocoa farmers,” said Manfred Borer, Swisscontact SCPP Program Director, and further elaborating that “by means of implementing comprehensive training in on- and off-farm management to improve farm productivity and quality of cocoa production, the program serves both private and public interest in a flourishing cocoa economy in Soppeng Regency.”
Cargill’s Cocoa Promise program in Indonesia will:
• Train and support farmers in regards to good agricultural practice, rehabilitation, and post-harvest processing for sustainable cocoa agriculture
• Improve smallholders’ family nutrition
• Set up of farmers’ organizations that play a crucial role in the administration and certification of the cocoa crops, and allow farmers to share expertise and sell their crop at the best possible price.
• Provide a flexible and low cost technology transfer system for cocoa farmers
• Support cocoa smallholders in farm evaluation and rehabilitation
Cargill’s Cocoa Promise complements Cargill’s participation in PISAgro (Partnership for Indonesia’s Sustainable Agriculture), an initiative lead by the Government of Indonesia consisting of prominent private companies in the agriculture sector that aims to improve the economic welfare of farmers increase the production yield and environmental awareness.
Cargill has had a presence in Indonesia for over 35 years. The program is the latest example of Cargill’s support for smallholders in Indonesia where it is already supporting activities in palm, livestock farming and corn production. Cargill’s cocoa activities include cocoa sourcing operations in Sulawesi and its upcoming processing facility in Gresik. Additionally the company’s operations in the country include grain and oilseeds, palm oil, animal nutrition, as well as starches and sweeteners operations.
Cargill also announced that at the Indonesia International Cocoa Conference, that by the end of this 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.
The construction of the plant is now nearing completion and is on target to open later this year when it will process approximately 70,000 metric tonnes of cocoa beans into cocoa powder, cocoa butter and cocoa liquor for customers in Indonesia and other Asian countries.
The Gresik facility will be Cargill’s first cocoa processing plant in Asia, set up to better serve the needs of its customers in Asia. The company’s latest U.S. $100 million investment in Indonesia demonstrates the company’s commitment to develop and grow Indonesia’s cocoa industry, while it also strengthens the company’s cocoa sourcing network and cocoa sustainability activities in Indonesia.
The cocoa beans to be processed at the plant will be supplied primarily from Sulawesi, where cocoa farming is the principal income for hundreds of thousands of families and where Cargill has been sourcing cocoa since 1995. With the plant opening, Cargill will create approximately 200 new jobs in Indonesia, as well as additional positions in its existing R&D application center in Kuala Lumpur.
Jos de Loor, president, Cargill Cocoa & Chocolate, said “The commissioning of our new facility brings us one step closer to the realization of our plans to go live. We are excited that this also signals that we are closer to meeting the demands and needs of our customers in this region and in Indonesia. As a leading global processor of cocoa, Cargill is committed to providing our customers with high quality cocoa, grown in a sustainable way. Cargill has seen a significant growth in demand for cocoa products across Asia. We plan to continue investment in the region to support the growth of the region and source local crops to produce high-quality cocoa products to 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.
