Tag: Callebaut

  • Cocoa Crisis Averted: Swiss Chocolatier Barry Callebaut Unfazed by Potential El Niño Impact

    Cocoa Crisis Averted: Swiss Chocolatier Barry Callebaut Unfazed by Potential El Niño Impact

    Swiss confectionery manufacturer, Barry Callebaut, anticipates that the cocoa market will remain stable, despite the potential emergence of a strong El Niño weather pattern in the upcoming months. This statement was made by the company’s Chief Financial Officer, Peter Vanneste, earlier this week.

    The United Nations weather agency recently announced an increased likelihood of a powerful El Niño weather pattern emerging soon. This weather phenomenon is known to significantly impact the cocoa industry and could potentially elevate global temperatures. However, Vanneste maintains a positive outlook, stating that the circumstances differ substantially from those experienced during the 2023 and 2024 cocoa market crises.

    Stability Amidst Uncertainty

    “Unlike the situation in 2023/2024, when El Niño coincided with the primary harvest season and triggered a third consecutive year of cocoa deficit, we are currently in a position of significant surplus,” Vanneste explained. “We have large volumes of cocoa stocks ready for the upcoming harvest season.”

    In addition to maintaining a strong surplus, Barry Callebaut, which supplies key chocolate industry giants such as Nestlé and Hershey, has fortified its resilience by diversifying its sources, enhancing its cocoa bean blending capabilities, and implementing several financial measures.

    Monitoring Market Trends

    Vanneste also noted that his firm is keeping a keen eye on cocoa grind data. This is a key indicator of chocolate demand, particularly important as they approach the second quarter of the year.

    Recent data from May shows a 39.7% year-on-year increase in cocoa grinding in the Ivory Coast, the world’s largest cocoa producer. “The expectation is for this trend to continue,” said Vanneste. “However, it’s important to remember that demand recovery will take time. This is something we will be closely monitoring moving forward.”

    Questions & Answers

    What is the potential impact of a strong El Niño on the cocoa industry?
    A strong El Niño weather pattern can have profound effects on the cocoa industry, often disrupting cocoa production and leading to a deficit in supply.

    How has Barry Callebaut prepared for potential market instability?
    Barry Callebaut has fortified its market stance through origin diversification, increased sourcing flexibility, enhancing its cocoa bean blending capabilities, and implementing financial measures.

    What is the significance of monitoring cocoa grind data?
    Cocoa grind data serves as a proxy for chocolate demand. Monitoring this data allows companies to effectively track and forecast market trends.

  • Barry Callebaut expands NSW chocolate plant

    Barry Callebaut expands NSW chocolate plant

    Barry Callebaut has completed the expansion of its Campbellfield factory in Melbourne, after the 11,000 m2 site was acquired in 2020.

    The expansion will cater for local industrial food manufacturers with new production lines to increase the total operating capacity and its range of chocolate offerings. The range will now include liquid chocolate, compound, buttons and chips, in addition to the products already produced at the site such as coatings and fillings.

    “This factory expansion underlines Barry Callebaut’s ongoing commitment to Australia. The facility further strengthens our regional footprint in Asia–Pacific, producing safe and high-quality products. The move is in line with our ambition to locate production close to our customers,” said Jo Thys, President of the Asia Pacific region for Barry Callebaut.

    The factory will be equipped with chocolate refining and conching lines, which will enable the company to serve the Australian food industry from artisans to global manufacturers.

    “I am proud that our Gourmet chocolates have been brought into the country for many years now. Today, I am even prouder that our high quality ‘Made in Australia’ products are available in higher volumes, creating more chocolate happiness for our local consumers,” said Denis Convert, Managing Director Australia at Barry Callebaut.

    “With the expansion of our Campbellfield factory, we are well-positioned to become the leading chocolate manufacturer in Australia.”

  • Barry Callebaut Expands Cocoa Nurseries Program in Indonesia

    Barry Callebaut Expands Cocoa Nurseries Program in Indonesia

    One of Barry Callebaut’s primary goals in Forever Chocolate is to lift more than 500,000 farmers out of poverty. To get there, we can improve farm productivity and increase the yield of high-quality cocoa. Doing this will enable farmers to sell their cocoa at higher prices and gain access to a better quality of life.

    But how can farmers grow more high-quality cocoa on the same amount of land? With better trees. Barry Callebaut aims to deliver 500,000 seedlings from its cocoa nurseries to farmers in Indonesia in 2017 and is in the midst of trialing a range of interventions to produce the best trees.

    Richard Fahey, Barry Callebaut’s Vice President for Cocoa in Asia says: “Indonesia has been struggling to increase cocoa production because of ageing cocoa trees. Most of them were planted in the 1980s, are vulnerable to diseases and are well past their peak production years. Cocoa trees are strong, and will produce pods for a long time. However, the high-productive years of a cocoa tree are finite, and usually after 25 years, the trees are less productive. Indonesia desperately needs new trees in order to get back to a productivity level of around 1 mt of beans per hectare.”

    “Most Indonesian farmers are willing to invest in their farms, and they understand that new trees will be more productive.  But they simply have not had access to good planting materials and therefore prefer to stick with their old trees rather than risk planting new trees that may or may not be effective. High-quality nurseries are therefore are essential to provide the supply of seedlings the farmers need and give them the confidence that the seedlings they purchase will turn into high-yielding, disease resistant trees,” he notes.

    Indonesia-based Sustainability Manager Ani Setiyoningrum says: “The purpose of cocoa nurseries is to provide a conducive environment in which young cocoa plants can grow a good number of leaves and fully develop its root system to a certain stage that will give cocoa plants a better chance of survival at the cocoa farm. These nurseries will require shade, water and protection from wind, and whenever necessary, protection from stray animals.”

    But there are already cocoa nurseries in Indonesia, but as Fahey notes, plantations in Indonesia typically have 400-600 cocoa trees growing per hectare. “Let’s do the math. If we are to estimate that there is 500,000 hectare of cocoa farms in Indonesia, we are basically looking at replacing at least 200 million trees. This nationwide replanting initiative is massive and would take a lot of effort not just from Barry Callebaut but across various organizations.”

    Setiyoningrum says: “These are community-run nurseries that we help to kick-start by providing them with a start-up investment and best-practice models. These nurseries are also a form of income for these nurseries owners, some of whom are cocoa farmers themselves. Our field experts work closely with these nurseries owners to teach them to produce high quality seedlings with a high survival rate. They are given proper planting material, high-quality seeds, and the right potting mix, and are guided to develop good nursery management skills and standard operating procedures. These nursery owners then work as a professional service provider for other farmers which is becoming an avenue for additional income. The project model we are testing with around 50 nurseries across Sulawesi is suitable for nurseries producing at a large scale. Our intention is that the nurseries we start-up will eventually become totally self-sufficient businesses in their own right.”

    Also in Indonesia, the company is piloting a new way of setting-up these nurseries and distributing these seedlings to the farmers. “The challenge is how we can escalate the seedling propagation program while also try to reduce the production cost of each seedling. We have learned a lot from our colleagues in Brazil and we are borrowing some of their best practices, including using elevated tables and space efficient planting tubes. While setting up these improved nurseries and distribution networks, we continue to support farmers to establish nurseries in their own communities because it helps to increase the overall supply of new trees,” Fahey concludes.

  • Barry Callebaut Opens First Chocolate Factory in Indonesia

    Barry Callebaut Opens First Chocolate Factory in Indonesia

    Swiss chocolate producer Barry Callebaut has expanded its operations in Indonesia with the grand opening of its first chocolate factory in the country.

    Through a long-term outsourcing agreement with GarudaFood Group, one of the largest food and beverage companies in Indonesia, Barry Callebaut built its three-story, 43,000-sq.-ft. factory on the premises of GarudaFood’s biscuit plant in Gresik. Barry Callebaut will also supply GarudaFood with 10,000 tons of chocolate per year.

    Antoine de Saint-Affrique, Barry Callebaut’s ceo, said the new factory, which will employ 50 people, is a “cornerstone” in its strategy to strengthen its position in Asian Pacific markets.

    “It also enables us to grow our already significant presence in Indonesia — an important emerging market with about 260 million people that offers above-average growth opportunities,” he says. “We are truly excited that our strong relationship with GarudaFood and this new factory will provide GarudaFood with the means to differentiate themselves in an increasingly competitive market.”

    GarudaFood CEO Hardianto Atmadja said the partnership will give GarudaFood the opportunity to put emphasis on biscuit production, including its Gery brand.

    “The chocolate production lines at the Barry Callebaut factory allow us to focus our manufacturing facilities in Indonesia on biscuits and strengthen the factory as a key competence center for our biscuits products in Indonesia,” he says. “This move will help us to further develop our successful biscuit brands.”

    Barry Callebaut also operates chocolate grinding facilities in Bandung and Makassar, Indonesia, employing more than 500 people. The company also has chocolate factories in China, India, Japan, Singapore and Malaysia.

  • Barry Callebaut inks first chocolate outsourcing agreement in Southeast Asia

    Barry Callebaut inks first chocolate outsourcing agreement in Southeast Asia

    Barry Callebaut and Indonesian food and beverage company GarudaFood Group have reached agreement on a long-term supply agreement under which Barry Callebaut will supply 10,000 tonnes of compound chocolate per year to GarudaFood’s biscuit facility in Gresik in the Province of East Java.

    Under terms of the agreement, which will begin the middle of next year, Barry Callebaut said it plans to increase the capacity “significantly” over the next three years and will take over some of the manufacturing equipment from GarudaFood and set up its operations in a new building on the premises of the GarudaFood biscuit plant in Gresik.

    The agreement also includes the cooperation between Barry Callebaut and GarudaFood in innovation. The two companies plan to bring together their R.&D. activities to develop new products that will support GarudaFood’s further growth in the Indonesian market.

    “I am truly excited about this partnership,” said Hardianto Atmadja, chief executive officer of GarudaFood. “I believe it will provide and delight our consumers with the best chocolate and products that meet global quality standards.”

    Founded in 1990, GarudaFood belongs to the Tudung Group, an investment holding company in Indonesia. GarudaFood manufactures and markets snacks, biscuits, confectionery products, dairy and beverages and employs about 18,000 people. The company also owns and operates an extensive distribution network throughout Indonesia covering 21 regions, 153 depots, 154 distribution partners and 360,000 outlets. GarudaFood operates 14 plants across Indonesia and India.

    “It is an honor for us that we were able to win GarudaFood as our first long-term outsourcing partner in Southeast Asia,” said Juergen Steinemann, c.e.o. of the Barry Callebaut Group. “This partnership marks our entry with chocolate and compound production in Indonesia, the world’s fourth largest country with a population of 250 million and impressive growth rates. Partnering with the GarudaFood Group not only allows us to team up with a leader in one of the most vibrant economies in Asia Pacific but also to gain a strategic foothold in an emerging market that offers further significant growth potential.”