Mondelēz and Olam to put up sustainable cocoa farm in Indonesia

Mondelēz International and Olam Food Ingredients (OFI) have entered into a 50:50 joint venture to create the world’s largest sustainable commercial cocoa farm 2,000-hectares wide in Indonesia.

The farm to be built on the island of Seram in Maluku province will aim to provide a model in improving cocoa farmers' livelihoods and restoring environmental-friendly production.

The joint project will test a modernized and scalable approach to commercial cocoa farming, including optimal land usage and farming community planning, in addressing problems faced by Indonesian farmers, such as low yields, crop disease, and rising temperatures.

Among the approaches would be the incorporation of "Climate Smart" and plant science technology, such as the employment of field sensors, and will be explored as a potential model for replication across the region.

It would also draw on the two companies’ experience in cocoa-growing and sustainable farm management.

The partnership is expected to create 700 jobs for local residents, nearly half going to women, while also making various provisions for their employees, including health and education.

The previously deforested brownfield land will be planted with cocoa, shade trees, forest and fruit trees to promote biodiversity and carbon capture.

The companies also aim to put up a seedling nursery that can grow up to 1 million high-yielding cocoa seedlings annually.

Mondelēz is acting through Kraft Foods North America and Asia.