Local cocoa exporters ask govt impose quota scheme<\/p>\n
JAKARTA(JP): Local cocoa exporters have asked for help from
\nnewly installed Minister of Industry and Trade Rini M.S.
\nSoewandi, calling on her to introduce a quota scheme to limit the
\nmarket share of foreign exporters.<\/p>\n
The Association of Indonesian Cocoa Exporters (Askindo) said a
\nquota for cocoa exports was needed to enable local cocoa
\nexporters to compete with foreign cocoa exporters who have strong
\nfinancial backing.<\/p>\n
\"We hope Ibu Rini can impose quotas on cocoa exports in an
\neffort to protect local cocoa exporters,\" Zulhefi Sikumbang, a
\nsenior executive at Askindo told The Jakarta Post, adding that
\nthe economic crisis had been dealt a blow to local cocoa
\nexporters.<\/p>\n
Zulhefi said that without such a quota policy, local exporters
\nwould be unable to compete and the country's cocoa exports would
\nbe fully controlled by foreign exporting companies.<\/p>\n
However, he did not specify whether the quota level should be
\nimposed on foreign exporters.<\/p>\n
Zulhefi said foreign exporters entered the business with
\nstrong financial backing, at a time when local cocoa exporters
\nwere suffering from the devastating impact of the economic
\ncrisis, which began to hit the country in 1997.<\/p>\n
Around 85 percent of the country's cocoa exports were
\ncurrently controlled by foreign cocoa exporters, leaving only 15
\npercent to local exporters, he said.<\/p>\n
\"Aside from strong financial funding, they (foreign exporters)
\nalso have other advantages including greater access to buyers in
\nthe international market,\" he said.<\/p>\n
Indonesia exports cocoa beans mainly to the United States,
\nSingapore, Malaysia and Brazil.<\/p>\n
Other buyers included Japan, China, Thailand, the
\nPhilippines, India, Sri Lanka, Palestine, UEA, Botswana, Canada,
\nMexico, the Netherlands, France, Germany, Belgium, Switzerland,
\nItaly, Spain and Bulgaria.<\/p>\n
The country's cocoa bean exports this year was expected to
\nremain the same as last year at 275,000 tons.<\/p>\n
The association also expected the new minister to help local
\nexporters to obtain credits to boost their competitiveness,
\nZulhefi said.<\/p>\n
\"At present, the main problem hampering our business
\nactivities is the lack of fresh cash to meet \"cash-and-carry\"
\nrequirements in purchasing cocoa from farmers,\" he said, noting
\nthat the economic crisis has squeezed the value of local
\nexporters' assets to just one third.<\/p>\n
Cocoa traders have been required by farmers to pay in cash for
\ntheir yields to avoid failure of payment as the economic crisis
\nhas bankrupted many companies and forced many others to default
\non their financial obligations.<\/p>\n
Zulhefi said the country's cocoa production was predicted to
\nfall to 300,000 tons this year, or 20 percent lower than last
\nyear's 375,000 tons due to a pest outbreak, which has been
\nattacking cocoa plants in many parts of the country.<\/p>\n
\"Around 80,000 hectares of cocoa plants have been attacked by
\nthe pest, known as pod borer over the past four years,\" he said.<\/p>\n
So far, though, there was no effective technology available to
\ncrack down on the pest.<\/p>\n
Indonesia is the world's third largest cocoa producer with 10
\npercent of the world's supply after the Ivory Coast and Ghana.
\n(03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-cocoa-exporters-ask-govt-impose-quota-scheme-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}