Indonesian coconuts attract Chinese food processing company

Hainan Chunguang Foodstuff Co, a food processing company primarily using coconuts and tropical fruits as its main raw materials, has begun construction of an overseas production base in Palembang, Indonesia, aiming to enhance its raw material security and stabilize fluctuations in the international raw material market.

The project, covering an area of about 10 hectares, is expected to begin operations in 2027, with a planned annual production capacity of over 100,000 tons, according to the company.

"Building the base in Indonesia will help ensure fresher coconut raw materials to be integrated into our overall product system and to bring costs closer to the source," Huang Ze, general manager of Hainan Chunguang Foodstuff Co, said.

Huang made the remarks during a ceremony held on Wednesday to celebrate the company's 30th anniversary. The company, established in Wenchang, Hainan province, in 1996, has developed around 200 varieties of coconut-flavored products, which are sold to more than 50 countries and regions worldwide.

The company plans to coordinate high-quality coconut sources from Southeast Asia and bring global raw material resources to Hainan for advanced processing, which will help contribute more to raw material stability, quality improvement and industrial chain upgrades.

"Coconuts in Indonesia are similar to those from Hainan - they both grow by the seaside and require saltwater to bring in salt content," Huang said.

Seawater makes the coconuts fuller, with thicker flesh and higher oil content, according to Huang.

"Coconuts in other countries like Vietnam have more water and lack aroma, making them unsuitable for coconut candy," he said.

The company has strengthened its upstream sourcing and processing systems in recent years, with a capacity of handling about 180 million coconuts annually in its production base in Wenchang.

The second phase of the Chunguang Coconut Kingdom, with a total investment of over 300 million yuan, has been put into operation, focusing on enhancing the production capacity of coconut juice, coconut milk and coconut water beverages.

The project's third phase, which is currently under construction, aims to advance automation and standardization to the initial processing stages, such as shelling, water extraction, peeling and meat extraction of coconuts.

"The third phase will also strengthen process control and full-chain quality traceability - it is not merely adding another production line but creating a closed-loop chain once a coconut enters the production system," Huang said.