Drought, violence threaten RI's cocoa output<\/p>\n
SINGAPORE (Reuters): Indonesia's cocoa output may fall this
\nyear to less than 340,000 tons, possibly as low as 300,000,
\nbecause of drought, violence in growing regions, pests and rising
\nfertilizer prices, traders said on Wednesday.<\/p>\n
Indonesia, the world's third largest producer of cocoa after
\nIvory Coast and Ghana, produced 362,000 tons last year.<\/p>\n
Dry spells in the key growing area of Sulawesi were damaging
\nflowers ahead of the mid crop in September\/October, traders said.<\/p>\n
Months of fighting between Muslims and Christians in Poso
\ndistrict, which accounts for 40 percent of cocoa output in
\ncentral Sulawesi, have also disrupted plantation work.<\/p>\n
\"According to my estimates, Indonesia can only produce 300,000
\ntons of beans,\" said one trader in Makassar, capital of South
\nSulawesi.<\/p>\n
The absence of rains in Sulawesi for nearly two months and a
\nshorter main crop could hit this year's production. There is also
\ntalk that the El Nino weather phenomenon, which causes drought,
\nhas returned to the region.<\/p>\n
\"We have expected El Nino to return this year. We may see a
\nsevere drought in August through November,\" said the Makassar-
\nbased trader.<\/p>\n
The main crop, which starts in March\/April in Sulawesi,
\nnormally ends in September, but traders said the harvest was
\nalready at its tail-end due to poor maintenance and pod borers.<\/p>\n
\"I haven't seen rain in the past 50 days. We still have some
\nbeans from the main crop, but daily arrivals have fallen to 200
\ntons from 300 tons last week because the main crop has almost
\nended,\" another trader in Makassar said. \"I am sure production
\nwill be less than 340,000 tons this year because pod borer is
\nrampant. Prices of fertilizer are high, which discourages people
\nfrom taking care of their crop.\"<\/p>\n
Due to the volatile rupiah, prices of urea fertilizer in
\ncrisis-hit Indonesia hovered around 55,500 rupiah ($4.92) per 50
\nkg this month, versus around 53,000 rupiah last month. There is
\ntalk that prices of fertilizer could rise by 30 percent soon.<\/p>\n
Sulawesi traders said differentials widened to $120 a ton on
\nWednesday from $105 for September beans because of losses in New
\nYork on Tuesday, when active September ended down $9 at $898 a
\nton.<\/p>\n
In Malaysia's growing area of Sabah, some growers said they
\nwere cautious about prospects for this year's main crop, which
\nstarted in October.<\/p>\n
\"The weather is okay but we don't understand why there are
\nonly a few flowers on the trees,\" said one trader in Tawau, a key
\ngrowing area in Sabah on Borneo.<\/p>\n
The official Malaysian Cocoa Board expects output to rise to
\nup to 80,000 tons this year from 70,262 in 2000 because of higher
\nyields. Traders expected output to hit only 60,000 tons.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/drought-violence-threaten-ris-cocoa-output-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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