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Indonesia: A supply chain for fresh organic cassava chips

General information
Project location: Bogor, Indonesia
Consortium: Dumas Food Group B.V and PT. Lelong Bali Nusantara
Project Budget: € 1,279,096
External financing: PSI
Project period: From January 2012 to July 2014

Dumas Food Group (DFG) is involved in the production and wholesale distribution of Asian food products and specialties on the European market. Together with its Indonesian partner PT Legong Bali, a producer of Asian food crackers, DFG is establishing a production facility in Surabaya for the manufacturing of a totally new kind of chips. These chips will be made of 100% fresh cassava, being sourced from outgrowers on Java. The production facility will be certified according to the British Retail Consortium (BRC) standard. The product will attract the organic certification label Naturland.

DFG will establish a joint venture with PT Legong Bali, and will be responsible for the sales and marketing of the product in Europe. The project partners will set-up a modern integrated production facility. The company will recruit and train a total number of 75 employees. An outgrowers scheme will be set up with 200 cassava farmers. At the end of the project, the production will have reached 232 tons of cassava chips, with a sales value of EUR 558,000.

Follow-up investments in doubling production capacity and introduction of new products (crackers and chips) amount to € 2 million. Total turnover at second year after completion of the project will be EUR 3.9 million.

 

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