Agronomist warns of cocoa glut<\/p>\n
JAKARTA (JP): An agronomist warned yesterday that further
\nexpansion of Indonesia's cocoa plantations could lead to market
\noversupply.<\/p>\n
\"Indonesia's current plantations are already adequate,\" said
\nProf. Soleh Solahuddin of Halu Uleu University in Kendari,
\nSoutheast Sulawesi, as quoted by Antara.<\/p>\n
He said Indonesia's cocoa plantations currently total 374,000
\nhectares and produced 189,000 tons last year.<\/p>\n
Since most of the production is exported and the world's
\nsupply of two million tons already exceeds demand, expansion may
\ncause marketing problems, he said.<\/p>\n
He added that the International Cocoa Organization's policies
\nof limiting supplies to the international market and reducing the
\nproduction targets of producing countries indicate a market glut.<\/p>\n
Soleh said the complaint that Indonesian cocoa is inferior in
\nquality to that of other countries needs to be studied further.<\/p>\n
\"It might just be a move to push down Indonesia's cocoa
\nprice,\" he added.<\/p>\n
He admitted, however, that the government's efforts to produce
\ngood quality cocoa need to be stepped up, given that the
\nfermentation process has not always been used in cocoa
\nharvesting.<\/p>\n
\"It is better for the government to concentrate its efforts on
\nimproving product quality in order to make Indonesia's cocoa more
\ncompetitive on the global market, instead of encouraging further
\nplantation expansion,\" he said.<\/p>\n
Soleh suggested that the government encourage the cocoa
\nprocessing industry to generate higher value-added returns for
\nthe farmers.<\/p>\n
\"Exporting most of the cocoa in raw form is not beneficial, as
\ncommodity prices tend to fluctuate markedly,\" he said.<\/p>\n
According to the trade ministry, Indonesia exported 200,000
\ntons of cocoa beans and 31,260 tons of chocolate last year.<\/p>\n
In a related development, Reuter reported from Malaysia that
\nplummeting prices, a debilitating disease and poor financial
\nsupport were spelling doom for that country's cocoa.<\/p>\n
After roaring growth in the early 1980s, Malaysia's cocoa
\nproduction is estimated to plunge to an eight-year low this year.<\/p>\n
An increasing number of growers say they are abandoning the
\ncrop for oil-palm, the country's largest agricultural export.<\/p>\n
The Malaysian Cocoa Board forecasts cocoa output will fall to
\nbetween 152,000 and 155,000 tonnes for calendar 1995, from
\n177,000 tonnes in 1994. (01)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/agronomist-warns-of-cocoa-glut-1447893297",
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"sponsor": "Okusi Associates",
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