Cokorda Bagus
IPMI International Business School
Amelia Naim Indrajaya
Keep this story going! Share below!
Cokelat nDalem applied new business model since 2015, in collaboration with the cocoa farmers in Gunung Kidul, Yogyakarta. They worked together with the farmers to improve the quality of the cocoa bean in Gunung Kidul area by sorting out the handling treatment after harvesting until it is ready to be processed further in the chocolate factory. They guarantee the purchase with twice the price than usual middleman’s offer. Having a high quality cocoa bean resources, Cokelat nDalem then produces a premium quality chocolate products labeled as bean-to-bar. They promote the exotic taste of local chocolate from Gunung Kidul, complemented with authentic Indonesian flavors as well as national heritage of batik pattern in its packaging, and at the same time also improving the welfare of Gunung Kidul cocoa farmers.
Bean-to-bar is a new label of chocolate products in the food and beverage industry. It refers to a trade model where one brand controls every stage of the process from purchasing the cocoa bean until the production of the chocolate bar. The innovative part of bean-to-bar movement is the care about quality, sustainability, and transparency of the products that enables trace-ability of the production to understand that the best processing practices are complied, and to capture the treatment done to the workers. So far, not so many chocolate-making companies in Indonesia follow this movement. Most of them are making chocolate from imported cocoa paste, cocoa butter and cocoa powder with certain recipes and some added ingredients to fit the request.
Cokelat nDalem initiated bean-to-bar movement in Yogyakarta as the answer to social, economic and technical challenge of chocolate industry in Indonesia. They share the knowledge to ferment, sort and clean the cocoa bean to the cocoa farmers in Gunung Kidul. They also train the farmers to do a proper recording on the planting process which will be used to analyze the quality of the bean. As an appreciation and a guarantee for sustainability, they treat the cacao producers economically fair. To have quality and production excellence as top priorities they collaborate with PUM, a non-profit organization in Netherland who provide assistance to Small-Medium Enterprise, to set up a chocolate production process by using the most recent updated technology. Through this collaboration Cokelat nDalem delivers several masterpieces for the chocolate lovers.
As one of the largest chocolate producers in the world, Indonesia has not been able to maximize its potential to increase the added value of domestically produced cocoa beans into international quality processed products. Coupled with the major number of unproductive cocoa plantations in Indonesia, one of them in Gunung Kidul, Yogyakarta, the commodity sustainability is in danger. This is what Cokelat nDalem found out when they visited Karang Sari Village in Gunung Kidul on April 2015 as requested by Forestry and Agriculture Agency of Yogyakarta to share about business chocolate there.
There were quite massive cocoa plantations in the village since 1980, but at that moment many of them were being displaced with other crops, such as rambutan and durian, because cocoa was considered not too economical. The supply chain was quite long, from the farmers to the collectors, then retailers, and finally to the factory The selling price of the cocoa bean from the sources was set very low by the collectors. There was no distinction between unprocessed and fermented cocoa bean, all are paid at the same price, whereas in fact post-harvesting process including fermentation take more than 7 days total work.
Looking at the condition, Cokelat nDalem initiated this innovative business model. They truly believe that delicious chocolate should be attributed to the talented farmers who planted it. Every bite of that tasty chocolate contains the farmer’s dedication towards the best harvested cocoa bean we could get. Then, farmers should get better appreciation.
As short term impact, by implementing this bean-to-bar business model, Cokelat nDalem encourages entrepreneurship to Gunung Kidul cocoa farmers which promotes higher economic growth for the community. Karang Sari Village is now became one of the high quality cocoa bean producer in Indonesia. The product does not only attract local chocolate makers but also national wide and even international market. At the same time, Cokelat nDalem are able to prove that Indonesian chocolate can be processed to be a premium product with proper treatment and full hearted effort. Cokelat nDalem and Gunung Kidul cocoa farmers have successfully created partnership for mutual goal.
In the long term, with incresing economic growth and high demand of high quality cocoa bean, the partnership may become even stronger with some additional cocoa processing infrastructures and facilities that are thought by Cokelat nDalem to buid such as post-harvesting cocoa center. This will be the place where the sustainability of the technicality, know-how and future innovation of cocoa bean processing take place. Cokelat nDalem themselves is dreaming of establishing a Chocolate Museum where they can share about the history of the chocolate and how it developes.
Along with the burgeoning demand of specialty and artisanal products, the society needs for not just good food, but also good food with a traceable origin is blooming as well. Bean-to-bar movement is a useful tool for chocolatiers and cacao producers to collaboratively accomplish this.
Because Cokelat nDalem did a thorough research in terms of technology, sustainable resources and market demand, the good things have happened for their business. They have successfully created new premium products to enrich their product lines. By selling this product, they open new market and at the same time promote a new movement in food and beverage industry which is labeled as bean-to-bar. This premium product eventually impacts the increase of their revenue. Moreover, they have a guarantee on a sustainable supply with a quality management system that can be scalable and applied to other area. As the owners of Cokelat nDalem are so passionate about their business, this approach is considered as the early milestones in their long term planning. The success of this business line will be like an open gate for the future success.
Pak Edie, one of the cocoa farmer in Gunung Kidul who performs as the role model in this collaboration, has been able to provide better living for his family and descendants. He is spreading his success to a wider range of society which impacts the community in Karang Sari Village, Gunung Kidul. He also has been requested to share his success story to other farmers group, not only in Central Java but also in other area in Indonesia.
The cocoa tree in Gunung Kidul can be continuously supporting the growth of the community, not easily displaced by other crops or even simply abandoned. As pak Edie practices organic practices in fighting diseases, the soil and the earth also benefit long terms impact which will be back to the society again at the end.
Last but not least, through integrated promotion concept done by Coklat nDalem, Yogyakarta region, its people, and its cultural heritage like batik pattern are successfully preserved and widely introduced to the world.
Get stories of positive business innovations from around the world delivered right to your inbox.
Creative! This word should be more than suitable to express the inspiring activities happened in Yogyakarta, a city of palace in Central Java, Indonesia. As what Cokelat nDalem is doing is delivering their products as Yogyakarta’s souvenirs, they want to express their love to their country through chocolate. They are producing chocolate that promotes the uniqueness of Indonesian flavor. Indonesia's indigenous Cokelat nDalem deliberately embodies selected chocolate flavors, that have strong connection with Indonesian culture such as cloves, ginger, cinnamon, chilli, and Indonesian coffees. To complement the unique flavours, the packaging is remarkably designed with illustration of the story of Indonesia and complemented with explanation about the meaning of each illustration written into two languages: Indonesian and English on the back side. They use local chocolate planted by local farmers to foster the economic growth of the city.
