RI cocoa output predicted to increase<\/p>\n
PANAMA CITY (Reuters): Indonesia's annual cocoa production
\ncould reach as much as 500,000 tons by the year 2005, cocoa
\nexperts said on Monday.<\/p>\n
"Indonesia's cocoa production should steadily increase over
\nthe coming years," Francois Ruf, who tracks trends around the
\nworld for France's CIRAD crop agency, told Reuters. "By 2005 I
\nbelieve we'll see production at around 500,000 tons."<\/p>\n
Last year's drought gave the cocoa soil in Indonesia's South
\nSulawesi time to breath, which would result in greater harvests
\nin coming years, said Ruf.<\/p>\n
Ruf was attending a cocoa meeting in Panama City focused on
\nfinding ways to stabilize cocoa production.<\/p>\n
Separately, the U.S. Agriculture Department on Monday released
\nthe following report from its staff in Jakarta on the cocoa
\nsupply-and-demand situation in Indonesia.<\/p>\n
The Jan. 29 report said , among other things: the ongoing El
\nNino-induced drought and the current economic crisis are both
\nhaving a significant impact on the Indonesian cocoa industry.<\/p>\n
The key production areas of South Sulawesi and East Java were
\nsignificantly below normal rainfall levels during the second half
\nof 1997.<\/p>\n
Over this same period, the Indonesian currency (rupiah)
\ndepreciated nearly 70 percent against the U.S. dollar, which
\ntranslates into over a four fold increase in the rupiah-based
\nprice of exported cocoa beans.<\/p>\n
For marketing year (MY) 1996, Indonesia's cocoa bean
\nproduction is estimated at 305,000 metric tons (mt). This matches
\nyear-ago levels but below previous projections. The disappointing
\nyields were a result of both the drought and pest infestations.
\nCocoa bean exports were down 3 percent to 217,432 mt.<\/p>\n
The United States remained the biggest market. Exports of
\ncocoa products, however, increased 20 percent to 62,575 mt (bean
\nequivalent).<\/p>\n
This reflects increased investment in the processing industry.<\/p>\n
For the marketing year 97, dramatically higher prices at the
\nfarm level -- a direct result of the rupiah depreciation -- should
\nlead to improved management practices. This, in turn, should help
\noffset the negative impact of the drought. Thus, Indonesia's MY97
\ncocoa bean production is projected to remain at 305,000 mt.
\nExports are also forecast to remain near MY96 levels.<\/p>\n
This reflects the fact that -- despite strong demand for
\nexported cocoa beans -- the current financial crisis and
\nconcomitant credit crunch is making it difficult for exporters to
\npurchase the beans. The financial crisis will also affect cocoa
\nproduct exports, as limited access to credit will slow down
\ninvestment in the processing industry.<\/p>\n
MY97 exports are therefore projected at below the MY96 level.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ri-cocoa-output-predicted-to-increase-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }