Processed Cocoa Global Marketing Processed Cocoa – Processed Cocoa Global Marketing Processed Cocoa , Indonesia aims to become the world’s largest exporter of cocoa products. The downstream process supported by abundant supply is the way to achieve the target.

ByTri Kurnia Yunianto

As an equatorial country with a tropical climate, cocoa thrives in Indonesia. The fruit produced is of high quality and can be found throughout the region. This needs to be utilised by farmers and the country to increase the rupiah coffers.

Putu Juli Ardika, Director General of Agro Industry at the Ministry of Industry, said that currently Indonesia is still the third largest cocoa processing country in the world. The derivative products are paste/liquor, cocoa cake, cocoa butter and cocoa powder. Some of these products are further processed domestically at around 20%, and the rest are exported to more than 96 countries on five continents.

“The export of these intermediate products has made Indonesia a global chain supplier with a contribution of around 9.17% of the world’s needs,” Mr Putu said.

According to him, the increase in the export value of processed cocoa was supported by a number of investments from multinational companies. From these investments, the installed capacity of the cocoa processing industry was originally 560 thousand tonnes per year, rising to 739 thousand tonnes per year. Meanwhile, cocoa bean exports in 2013 amounted to 188.4 thousand tonnes worth US$ 446 million, falling to 24,603 tonnes worth US$ 64 million in 2022.

In contrast, the export volume of processed cocoa products increased from 196.3 thousand tonnes worth US$ 654 million in 2013 to 327 thousand tonnes worth US$ 1.1 billion in 2022. “Since 2015, our processed cocoa exports have always been above US$1 billion. In fact, Indonesia has become a global player in processed cocoa, with our cocoa butter export position second in the world after the Netherlands,” he said.

Putu added that five years ago the composition of processed cocoa exports between intermediate products was 85%, and 15% was further processed domestically. The goal is to be processed into final products or finished good in the form of chocolate-based food and beverages. Currently, the composition of processed chocolate production in the country has increased to 20%.

“This means that processed cocoa products in the country have strengthened or there is further downstreaming,” he said.

So far, most chocolate products are still intended to fulfil domestic needs. Domestic per capita chocolate consumption increased from 0.37 kilograms (kg) per capita in 2018 to 0.49 kg per capita in 2022. Exports of chocolate products have also increased from US$ 45 million in 2018 to US$ 77 million in 2022, an average increase of 14.65% per year.

One of the growing chocolate products is artisan bean to bar chocolate, also known as craft chocolate. To date, there are 31 artisan chocolate companies or producers with a capacity of 1,242 tonnes per year.

“Craft chocolate products are very popular with foreign tourists and the upper middle class in the country, because they produce products with unique flavours that are supported by certain stories originating from certain regions,” said Putu.

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    The private sector is not to be outdone in targeting the sweetness of the cocoa business in Indonesia. Mondelez International, a food and beverage (F&B) company since 2020 has been trying to build a cocoa research and development centre in Pasuruan, East Java. In addition to increasing business potential, this research centre also aims to improve the welfare of farmers.

    Maurizio Brusadelli, Executive Vice President of Mondelez International, said that as the world’s largest cocoa user, sustainable cocoa supply is key to long-term growth. The Pasuruan Cocoa Technical Centre (PCTC) is part of Mondelez International’s network of research centres in various regions around the world.

    The research centre in Pasuruan is also a place to meet the demand for cocoa beans for Mondelez International products as cocoa, the main ingredient in chocolate, is in increasing demand. The reason for establishing the research centre in the country is because Indonesia, as the world’s third largest cocoa bean producer, has a fast-growing cocoa sector. Especially in the last 30 years as the number of small cocoa farmers has increased.

    However, Indonesian cocoa farming is still faced with the challenge of low average yields per hectare compared to the global average. “This research centre aims not only to research, but also to develop effective and environmentally friendly cocoa farming practices. So as to produce good quality crops and create a sustainable cocoa sector,” said Maurizio.

    The PCTC combines research and development facilities supported by laboratories and post-harvest areas with agronomy facilities. This includes a five-hectare nursery area and planting module. In the future, scientists will be able to research the most optimal ways of growing cocoa. The practices and technologies generated from the centre can be applied by cocoa farmers who are members of Cocoa Life, Mondelez International’s global cocoa farmer empowerment programme.

    In Indonesia alone, the Cocoa Life programme has been running since 2013 and has currently empowered more than 43,000 cocoa farmers in eight districts spread across four provinces or around 25% of the total cocoa farmers worldwide who are part of the programme.

    “PCTC focuses on cocoa crop science and technical solutions that promote high-yielding, sustainable and resilient farming practices. It is also a manifestation of the company’s commitment to supply 100% of the cocoa needs for chocolate production,” Maurizio concluded.

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