Sourcing Cocoa

The Cocoa Plan in Indonesia

Indonesia is the world’s third largest cocoa origin, and the largest in Asia. It’s annual production ranges from 500-600,000 tonnes. Cocoa was introduced in the 19th century, but it was only in the late 1970’s that it took off, most particularly on the island of Sulawesi. The challenges of cocoa production in Indonesia include particularly combating the cocoa pod borer pest, which attacks up to a third of the crop. Nestlé’s involvement began several years ago with the transfer of accelerated propagation technology to the Indonesian Coffee and Cocoa Research Institute (ICCRI). The country has invested in this technique and is producing 70 million new cocoa plants for smallholder farmers. Nestlé is now deepening this involvement with action in its own supply chain.

Nestlé’s Cocoa Plan in Indonesia will invest over CHF 3.4 million (USD 4 million) over four years to train farmers, provide plant expertise, support supply chain transparency and to create an experimental and demonstration farm in the heart of the cocoa area. The Plan in Indonesia was launched at a workshop in the cocoa port of Makassar in July 2011, and was in collaboration with the provincial Government of West Sulawesi and South Sulawesi in Indonesia, Armajaro, Petra Foods Ltd, and the Indonesian Coffee and Cocoa Research Institute (ICCRI).