Blommer Chocolate and Olam form joint venture to crack Latin America

By Oliver Nieburg

- Last updated on GMT

Related tags Joint venture United states Ghana Cocoa bean

Blommer Chocolate and Olam form joint venture to crack Latin America
The Blommer Chocolate Company has established the joint venture firm GrowCocoa with ingredients supplier Olam International to allow the companies to move into Latin America and new cocoa origins in Africa.

GrowCocoa will be headquartered in Washington D.C., US. Olam and Blommer plan to each pump $6m into the company over the next two years in a bid to boost cocoa yields.

Olam and Blommer had been working together for the past eight years on  sustainable cocoa programmes in Indonesia and the Ivory Coast, training 55,000 farmers on fertiliser use and best agricultural practices.

Doubling production

The joint venture will allow both companies to reach an additional 45,000 farmers, which could significantly boost cocoa output.

Chris Brett, head of corporate responsibility & sustainability at Olam told that the average farmer yield is currently 300 kilos per hectare and can be doubled through training.

New origins

He said that Olam wanted to work in new origins to reach more farmers and said the joint venture would lead this process.

Olam’s main cocoa origins are all-based in Africa and include the Ivory Coast, Ghana, Cameroon, Tanzania and Nigeria.

Olam and Blommer both refused to disclose which Latin American countries the joint venture would target.

Boost to sustainability initiatives

Kip Walk, corporate director, cocoa and sustainability, told this publication about how demand was growing for sustainable cocoa in the face of a supply crisis.

“There is a broadening awareness and expectation in the supply chain,”​ he said, pointing to clear statements from major branded companies, raised consumer awareness and increased interest from retailers to source ethical cocoa.

He added that the industry would risk significant cocoa shortages should it fail to invest in a sustainable supply chain, reiterating an earlier statement from Blommer.

One of the goals of the new joint venture will be to encourage investment in sustainable production, he said.

GrowCocoa: Structure and function

Walk said that an independent manager is expected to oversee GrowCocoa, but precise numbers at the D.C. office were as yet undecided.

According to Walk, GrowCooca’s activities will range from outreach schemes to seeking public and private funding for sustainable cocoa initiatives.

Related topics Ingredients Chocolate Cocoa

Related news

Show more