ADM Cocoa, Processing Plant, Pennsylvania

In April 2006, the US agricultural produce processing company Archer Daniels Midland (ADM) made plans to build a cocoa processing and chocolate manufacturing facility in a move designed to meet growing demand for its cocoa ingredients.

The company purchased a 74-acre site at the Humboldt North Industrial Park, Pennsylvania. The permits for construction were granted from the Hazelton City Council and construction was started in the third quarter of 2006. Warehouse operations in the $40m plant started in 2008 and the facility was fully operational in the third quarter of 2009.

Mark Bemis, president of ADM Cocoa, said: “We are pleased to announce Hazleton as our location of choice for this state-of-the-art facility. This plant illustrates ADM’s commitment to meeting its customers’ growing need for high-quality cocoa ingredients and will strengthen ADM’s worldwide position in the cocoa industry.”

The new 500,000ft² plant created around 200 jobs when it started production.

Incentives

ADM received a great deal of assistance from CAN DO, a non-profit economic development company working for the Hazelton area. CAN DO helped ADM locate a suitable site at the industrial park. Robert Moisey, chairman of CAN DO, said: “Our staff has worked long and hard to make this project a reality, and it’s a tribute to everyone in our community when one of the largest agricultural processors in the world chooses Hazleton for the home of its latest state-of-the-art processing plant.”

Hazelton county commissioners have given ADM a tax break for ten years and Hazel Township has agreed not to collect any property taxes for the same period.

The company

ADM has cocoa processing plants in North and South America, Europe, Asia and Africa. The company is one of the world’s largest processors of soyabeans, corn and wheat, as well as a leader in the production of soyabean oil and meal, ethanol, corn sweeteners and flour.

ADM owns over 230 processing plants worldwide and in 2008 recorded net sales of $69.8bn. In addition to the Hazelton plant, ADM inaugurated a facility for cocoa processing in Kumasi, Ghana, on 9 October 2009.

Acquisition

In January 2009, ADM announced a strategic agreement to acquire Schokinag-Schokolade-Industrie Herrmann GmbH & Co KG, a leading German producer of cocoa and chocolate powder. On 29 May 2009, ADM announced the completion of the acquisition of the company. The acquisition was aimed at the expansion of ADM’s industrial chocolate manufacturing capabilities in Europe.

Mark Bemis, said, “This acquisition will be an excellent fit for our business as we continue to enhance our global presence across the entire cocoa and chocolate value chain.

“The expertise of the people, the tradition of quality represented in Schokinag and the scope of the physical assets make our acquisition an important step in positioning ADM to become the preferred supplier of cocoa and chocolate solutions for European customers.”

Having acquired the UK-based chocolate manufacturer Classic Couverture in 2006, the purchase of Schokinag will further strengthen ADM’s presence in the European chocolate manufacturing industry.

Cocoa processing

In the processing plant, cocoa beans are washed and roasted. They are then de-hulled by a ‘nibber’ machine that also removes the germ. The nibs are then ground into a thick creamy paste, known as chocolate liquor. The liquor is separated into cocoa powder and cocoa fat (cocoa butter) using a hydraulic press or the Broma process. This process produces around 50% cocoa butter and 50% cocoa powder. Standard cocoa powder has a fat content of approximately 10% –12%. Cocoa butter is used in chocolate bar manufacture, other confectionery, soaps, and cosmetics.