Indonesia, the largest cocoa producer in Asia, has seen its cocoa bean harvests plummet by half from 2015 to 2023. This dramatic decline has sent shockwaves through the chocolate industry, impacting companies like Unigra, an Italian agro-food giant with operations in the Asia-Pacific region. Unigra, which operates a factory in Johor, Malaysia, has faced a threefold increase in the cost of sourcing cocoa raw materials this year.
Unigra's factory in Johor produces a range of ingredients, from chocolate chips to cocoa powder, serving confectioners across Asia. The company's products are exported to key markets, including China, Taiwan, and Thailand. Despite the challenges presented by the surge in cocoa costs, Unigra's operations have been described as "surprising" yet successful over the past year by Denis Cavrini, International Commercial Director for the Asia-Pacific region.
The decline in Indonesia's cocoa production has raised concerns among chocolate manufacturers throughout Asia. The country's dwindling harvests have forced companies like Unigra to seek alternative solutions to maintain their supply chains. This situation has put pressure on the entire industry, as producers grapple with rising costs and potential supply shortages.
Unigra's Johor facility plays a crucial role in its operations, strategically situated to cater to the rising demand for confectionery ingredients across the continent. The factory's location in the state of Johor allows efficient distribution to various Asian markets. However, the escalating cost of cocoa has posed significant hurdles for the company's profitability and operational efficiency.