RI cocoa output estimated to fall to 200,000 tons

RI cocoa output estimated to fall to 200,000 tons

HAMBURG (Reuter): Indonesia's 1995 cocoa crop should be just below 200,000 tons after 271,127 tons in 1994, Minister of Agriculture Sjarifudin Baharsjah said.

Exports in 1995 should be 200,000-220,000 tons after 231,639 tons previously, he told Reuters during a visit. He did not give campaign months.

The minister said the effect of drought had curtailed volumes which analysts say contributes to global market tightness.

Indonesia is the world's fourth largest cocoa producer.

Asked about the impact of the pod borer pest which is prevalent in a number of regions, he said, "We are watching the disease very closely and we are working together with farmers to control it."

"It has not yet affected the main producing areas and we're taking steps to stop it from spreading."

Talking about coffee, he said that Indonesia's coffee crop in 1995 was seen in a 420,000-430,000 ton range after 446,463 tons in 1994 and 438,868 tons in 1993.

Exports were expected in a 270,000-280,000 ton range.

Exports last year were 289,303 tons and 1993's 349,000 tons, he said. He did not give crop year details.

He said droughts and excessive rains caused harvest shortfalls and the weather patterns presented long-term problems for Indonesia's crop which is mostly robustas.

Referring to palm oil, Sjarifudin said Indonesia's ability to supply global palm oil markets would be maintained and expanded although population growth meant domestic markets absorbed increasing volumes.

It would produce well above four million tons this year and as soon as the four million ton mark was reached, more would be freed for exports, he added.

He said this compared with exactly four million tons output last year but declined to give a date when the level would be reached.

Indonesian government officials in June gave a 4.56 million ton forecast for 1995 after 4.0 million in 1994 and commodities regulator BULOG in that month put expected 1995 exports at two million tons after 1.66 million in 1994.

The minister said world market prices, although not as high as several months ago, were still very good and offered good production prospects.

Neighboring Malaysia produced closer to six million tons but had a low population and was able to export far more. He put Indonesia's population close to 200 million and Malaysia's at 18 million.

The minister was visiting Hamburg to explain plans to restructure state-run plantations (PTPs) to European customers.

PTPs covered 45 percent of palm oil production. Roughly 65 percent of all palm oil went into the domestic market, he said.

A rubber trader at the meeting said rubber statistics showed the Indonesian area had not increased this year as a result of more efforts going into palm oil expansions while Malaysia and Thailand on the other hand had expanded rubber acreage.

Sjarifudin confirmed palm oil expansion was a key strategic goal but smallholder assistance programs aimed to support rubber too.