Mondelez partners Olam Food Ingredients to create world’s largest sustainable Cocoa Farm in Indonesia April 2021
Mondelez International, Inc., a global leader in snacking, and Olam Food Ingredients (OFI), a leading supplier of cocoa beans and cocoa ingredients, have recently announced a new collaboration in Indonesia to create the world’s single largest sustainable commercial cocoa farm. The model builds on Mondelez International’s experience with the company’s signature sustainable sourcing program, Cocoa Life, and OFI’s ambition for sustainable cocoa, Cocoa Compass, to test a scalable approach for the future of commercial cocoa farming.
This massive project will be located at a 2,000 hectare cocoa farm on Seram, an island in the Maluku province in Indonesia. It will utilise advanced climate smart and plant science technology – rarely used to grow cocoa at this scale. The model tests a modernised and professional blueprint for best practice cocoa farming, optimal land usage and farming community planning which will be explored as a potential model for replication across the region.
Demand for cocoa is growing across Asia, which is set to become the 2nd largest consuming region of cocoa ingredients in the world. Indonesia is a key cocoa-producing country in the region, but farmers have struggled with rising temperatures, low yields and crop disease. Combining their respective expertise in cocoa growing research and development, sustainable cocoa farm management, and good agricultural practices, Mondelez International and OFI will tackle these problems by improving the livelihoods of partner cocoa farmers, empowering communities and restoring the environmental productivity of a previously deforested landscape.
The partnership aims to deliver 700 new jobs as well as better living conditions to the locals; 2,000 hectares of productive cocoa trees in a previously deforested brown field land; 47 hectare area of High Conservation Value forest; and a Seedling Nursery that can grow up to 1 million high-yielding cocoa seedlings annually.
Quentin Roach, SVP Supply Chain & Chief Procurement Officer, Mondelez International said, “As one of the world’s leading chocolate makers, we’re on a mission to make cocoa right and to secure a sustainable future for an ingredient essential to our business. With 9 years of measurable impact demonstrating improved farmer’s livelihoods and reduced environmental impact of cocoa farming through our signature sustainable sourcing program, Cocoa Life, we’re excited to leverage our know-how in a collaborative approach to sustainable raw material sourcing with a geographically customised solution. Creating opportunities to innovate, in partnership with our suppliers, and exploring the ability to scale high-yielding, forest-positive, income-generating approaches to commercial cocoa farming on the single largest farm of its kind offers attractive potential and is an important step forward on our journey to lead the future of a sustainable and resilient cocoa supply. This initiative sits alongside Mondel?z International’s existing Cocoa Life program in Indonesia and our cocoa crop science technical center in Pasuruan, established to support sustainable cocoa farming practices and drive positive change for farmers and communities in the region”.
Gerard A. Manley, CEO of OFI’s Cocoa Business said, “This could be truly game-changing for the future of cocoa in Indonesia and beyond. We would like to thank the regional and national governments of Indonesia for their support. Ever since we launched our first sustainability program in the country more than 16 years ago, we have been committed to supporting Indonesian cocoa farmers while also protecting the environment. We reaffirmed this commitment through our acquisition in 2019 of the country’s largest cocoa processor, BT Cocoa, to connect the full supply chain from cocoa beans to cocoa ingredients. We’re now combining our expertise and knowledge with Mondel?z International, a steward of some of the world’s most iconic snack and chocolate brands. Having just announced the achievement of our 2020 sustainability goals, we believe this partnership is a further significant step towards our Cocoa Compass ambition to have a positive impact on the future of cocoa.”
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