Cacao alternative: Forestwise gears up for promising illipe butter season as El Niño boosts outlook

Forestwise Illipe Nuts
Forestwise Illipe Nuts (Forestwise)

Forestwise is gearing up for its most promising illipe butter harvest in years as improving weather conditions and wider sourcing areas signal a long‑awaited rebound for the rainforest‑derived ingredient.

The Dutch–Indonesian producer has expanded significantly over the past couple of years, driven largely by rising demand from the food industry.

“Since a few years ago, we really have been focusing a lot more on the food industry, or we have been getting a lot more customers from the food industry. There was a big rise in prices for cacao butter the last few years… more and more buyers were looking for alternatives,” said Dirk-Jan Oudshoorn, co-founder and CEO of Forestwise.

While Forestwise originally built its business in the cosmetics sector, rising cacao butter prices and growing concerns about transparency in conventional cocoa supply chains prompted many chocolate makers to seek alternatives, pushing illipe butter rapidly into the spotlight.

Illipe butter has a higher melting point than cacao butter, which helps chocolate stay solid for longer, especially in warmer climates.

It offers technical advantages in tempering, giving chocolate makers a smoother process and producing a more stable final texture.

“Chocolate makers who use it in small amounts, around 3 per cent, are very happy with the texture and with how it tempers in chocolate. It also offers clear technical benefits.”

Beyond its technical advantages, Forestwise’s illipe butter represents a strong conservation story as it supports rainforest protection and helps generate income for communities

Bumper harvest

After two consecutive seasons disrupted by heavy rainfall that damaged flowers and caused premature nut drop, Forestwise is anticipating a return to stability as weather patterns move in favour of stronger yields.

“There was a lot of rain in the last two years and now it’s looking good. Experts are expecting an El Niño event, and that’s normally very positive for illipe nuts. This new harvest is the biggest opportunity for us, and it’s expected in about three months. We are expanding our planning to expanding the factory as well to be ready for it,” said Oudshoorn.

Meanwhile, Forestwise has widen its sourcing footprint from about 30 villages two years ago to more than 100 today, with over 600 villages already mapped for future supply development.

This expanded network will act as a buffer against localised climate impacts, allowing it to draw from a broader geography that now includes parts of Malaysia and North Kalimantan.

Furthermore, the company stocks up for several years so that it can bridge the gap between harvests, said Oudshoorn.

Expanding the portfolio

Beyond illipe, Forestwise is expanding into other commodities, including natural rubber.

Oudshoorn explained that many of the illipe‑farming communities also have rubber trees yet the income from them is low.

“We want to support them, to increase the income from the rubber itself. We’re hoping to be able to double their income from rubber by improving the supply chain.”

The company has completed feasibility studies and is currently seeking an industry partner to launch a traceable, smallholder‑centred rubber supply chain that aligns with the EU Deforestation Regulation (EUDR).

Since 2024, the company has partnered with Terratai, a collaboration the team describes as consistently constructive.

Terratai provides wide‑ranging expertise across marketing, social media, conservation and finance, and even supplied an interim CFO for more than a year.