U.S. cuts RI cacao prices

U.S. cuts RI cacao prices

JAKARTA (JP): Cacao exporters in Southeast Sulawesi are losing
at least Rp 28 billion (US$9.6 million) a year because of the
mandatory cut in price of cacao exported to the United States.

The head of the provincial plantation office, Soewondo, said
in the provincial capital Kendari Saturday, that the price cut or
automatic detention was imposed on Indonesia's cacao by the U.S.
Food and Drug Administration in 1992 because the cacao did not
meet U.S. standards.

He said the detention caused great losses to Indonesian cacao
exporters.

Losses from the price cut have reached Rp 48 billion since the
detention program was introduced.

He said his office in cooperation with other related-bodies,
was trying to improve cacao quality by introducing a fermentation
system in cacao processing.

Cacao plantations in Southeast Sulawesi cover about 70,000
hectares and produce 50,000 tons a year -- 25 percent of
Indonesia's total production. (08)