Guan Chong Berhad (GCB) has signed a deal to acquire 25% of Transcao Côte d’Ivoire, enhancing local cocoa processing capabilities. This follows GCB’s launch of its grinding plant, aiming to mitigate supply chain risks. The partnership supports Côte d’Ivoire’s goal to process 50% locally and offers expertise and job creation.
Guan Chong Berhad (GCB), a leading Malaysian cocoa producer, has signed a memorandum of understanding to acquire a 25% stake in Transcao Côte d’Ivoire, a cocoa processing firm. This investment follows the launch of GCB’s first grinding plant in Côte d’Ivoire, which has a capacity of 60,000 tonnes and aims to shorten the supply chain and enhance production control.
Transcao operates a facility with a processing capacity of 50,000 tonnes and plans to open a second plant by the end of 2024, which will increase total capacity to 190,000 tonnes. Majority-owned by the state-backed Conseil du Café-Cacao, this partnership with GCB aims to increase local cocoa processing to at least 50% and will bring technical expertise and local job opportunities.
Côte d’Ivoire produces approximately 40% of the world’s cocoa, with the government promoting domestic processing through tax incentives. This focus aims to retain more cocoa as value-added products rather than exporting raw beans. The partnership is also part of a national strategy to enhance the local cocoa industry.
GCB’s operations span multiple continents, with a production capacity of 330,000 tonnes of cocoa beans annually. Their product range includes cocoa mass, cocoa butter, cocoa powder, and industrial chocolate, totaling 215,000 tonnes. Recently, cocoa prices surged due to low production in major producer countries caused by adverse weather and diseases, affecting global supply.
In response to challenging conditions, Côte d’Ivoire has revised its cocoa production forecast for 2024-2025 upwards by 10%, estimating a harvest of between 2.1 and 2.2 million tonnes following favorable rainfall. This upward trend aims to stabilize supply to meet global demand for cocoa products.
Côte d’Ivoire is a crucial player in the global cocoa industry, accounting for about 40% of the world’s cocoa production. Most cacao cultivated in the country is exported in unprocessed form, leading to a national strategy focused on boosting local processing capabilities to retain value within the country. GCB’s investment is pivotal in advancing this goal, facilitating the establishment of processing facilities and enhancing the competitiveness of Ivorian cocoa on the global stage.
The investment by GCB in Côte d’Ivoire marks a significant step towards increasing local cocoa processing and retaining value within the country. This partnership not only aims to enhance GCB’s operational capabilities but also supports Côte d’Ivoire’s broader goal of becoming a competitive player in the cocoa market by improving processing capacities and creating local job opportunities.
Original Source: www.ntu.edu.sg
