Japanese confectioner, Bourbon Corporation has recently signed a memorandum of understanding (MoU) with a local company in Vietnam’s Gia Lai Province to develop cocoa bean production area and ensure steady supply.
The MoU includes a 7-year cocoa bean purchase agreement, in which the company will work with Vietnamese chocolate manufacturer and exporter Ca Cao Trong Duc Co. Ltd to provide over 40,000 cocoa seedlings free of charge to local cocoa farmers over 3 years.
The goal is to expand cocoa cultivation area in Gia Lai Province while improving productivity. Bourbon not only plans to purchase the cocoa beans but also aims to support the crop’s development in the province, using Bourbon’s confectionery products to promote homegrown Vietnamese cocoa in global markets.
The investment in Gia Lai also signifies Bourbon’s essential need to find alternative sources for its raw materials as its traditional South American sources were hit by higher input costs not to mention higher volatility in prices. After careful research, Bourbon identified Gia Lai province, soil condition and climate as suitable for cocoa farming.
Bourbon currently operates 10 factories in Japan and 1 in China. It also has subsidiaries in the US and Vietnam.
