Olam

Olam: forms a 50/50 JV, GrowCocoa, with Blommer Chocolate to boost cocoa production. Both companies will invest US$12m in total by 2015 to increase yields. GrowCocoa, to be based in Washington, aims to involve 100k farmers by 2015, from the 55k growers now, and aims to double yields on the new farms. Prior to the JV, Olam has been working with Blommer since 2004 in Indonesia on cocoa agri pdtn. Blommer estimates cocoa supplies may outpace demand by 1m mt by 2020 as demand for the beans rise, especially in emerging markets. Cocoa output was smaller than consumption in 8 of the last 15 seasons. The co intends to move its investments to places other than Ivory Coast, Ghana and Indonesia, eg. to smaller origins across other parts of Africa and into Latin America. Blommer is the largest cocoa processor and ingredient chocolate supplier in the US, with 650 employees and 4 mnftg facilities.