A

merican multinational firm Cargill Inc., whose cocoa-processing plant in Indonesia will start operations in the middle of 2014, plans to source the majority of its cocoa beans from local farmers to boost productivity.

Cargill has invested US$100 million to build a cocoa processing facility in Gresik, East Java, the company'€™s first facility in Asia.

Job Leuning, Cargill'€™s Asia-Pacific head for cocoa and chocolate, said that before developing the facility in Indonesia, the company had sourced around 20,000 to 30,000 metric tons of cocoa beans from the country.

With the cocoa-processing facility in place, the company intended to source a majority of the cocoa beans needed for production from the country, he said.

The facility has a capacity of 70,000 metric tons per annum, a production volume Cargill considers mid-sized.

'€œWhen the facility starts operating next year, a majority of the beans used will have already been locally sourced,'€ he said.

Leuning added that to step up the volume of locally sourced beans, the firm had allocated part of its investment funds in the country to enhance its supply networks.

Cargill aims to train 1,300 cocoa farmers on farming methods that would improve the quantity and quality of cocoa beans being grown.

'€œCocoa trees in Indonesia are under high pressure due to diseases, which is why we are active in helping farmers grow better crops,'€ he said.

Cocoa production in Indonesia, the third-largest cocoa producer worldwide, rose 17 percent year-on-year to 833,310 tons in 2012, data from the Agriculture Ministry shows.

However, the ministry said pest attacks and mold or fungus-causing high moisture had downgraded the quality of local cocoa.

Leuning added that not only would the country become the major supplier of beans for the facility, the domestic market would also act as the largest buyer.

'€œThe facility was constructed to supply the Asia-Pacific region and Indonesia will be one of the largest consumers,'€ he said, adding that Cargill had aimed to accrue more than 50 customers who order cocoa liquor, powder and butter from the facility.

He added that the affinity of Indonesians to chocolate-based food and drinks had grown along with their incomes, as seen in the rest of the emerging countries in the region.

'€œThe introduction of new products in Indonesia has increased in speed,'€ he said.

He added that Cargill planned to step up its production in Indonesia once it gained momentum.

The facility is sized approximately 7 hectares, with extra land for expansion.