Cargill Plans for US$ 100 M Cocoa Processing Manufactory

Cargill Cocoa & Chocolate Inc, a cocoa processing manufacturing company from the United States, plans to build a US$ 100 million cocoa processing manufacturing company in South Sulawesi. The new manufacturing company will have production capacity of 65 thousand tons. Construction work will start in mid-2012. Benny Wachjudi, Director General of Agro Industry of the Industry Ministry, said Cargill is currently conducting preparations and finding a location for the factory development. “The manufacturing company is expected to operate mid-2013,” Benny said.
According to him, Cargill’s investment is one of the proofs that implementation of cocoa seed export tax can effectively boost downstream industry growth. The Industry Ministry will implement cocoa seed export tax of 10 percent on shipments from September 2011 onwards.
Benny explained that the government also suggests Cargill to invest in the crude palm oil (CPO) downstream industry.
Piter Jasman, Chairman of the Indonesian Cocoa Industry Association, said cocoa seed export tax policy boosts investment in Indonesia. “With cocoa seed production reaching 600 thousand tons last year, the local processed cocoa industry utilization has only reached 40 thousand tons,” he said.
Piter explained that investment on processed cocoa manufacturing in Indonesia will affect economic growth with creation of work opportunities and narrow the gap of processed cocoa product distribution to user industries. “We target Indonesia to not only become a cocoa seed exporter in the future,” he said.
The association projects national processed cocoa production to reach 320 thousand tons, up 12.2 percent from 2010. The rise of national processed cocoa production will also be supported by expansion of eight manufacturers, with total investment of US$ 45 million.
The eight processed cocoa manufacturers are PT General Food Industries, PT Bumitangerang Mesindotama, PT Cocoa Ventures Indonesia, PT Teja Sekawan Cocoa Industries, and PT Kakao Mas Gemilang. PT Gandum Mas Kencana, PT Freyabadi Indotama, and PT Sekawan Karsa Mulia will also conduct expansion this year