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Investors show little interest in cocoa business despite good prospects of exports. (Industry Profile).

Exports of cacao beans have increased from year to year especially in the wake of the financial crisis. Last year exports of cacao beans totaled 438,775 tons, up from 266,270 tons valued at US$ 419.8 million in 1998 or an increase of 64.8%. Indonesia has no export restriction as it is not member of the ICCO. The impact, however, is a surge in exports resulting in a shortage in supply in the country and soaring price of the raw material for cacao processing industry.

Many cacao processing companies reported loss because of the difficulty in securing raw material. Some even were forced to stop operation.

Meanwhile imports of cacao also increased sharply in 2001. Imports more than double to 38,717 tons from 17,605 tons in 2000. Import of cacao beans alone totaled 28,961 tons and imports of powdered cacao reached 7,187 tons. Increase in exports of cacao beans have necessitated an increase in imports to feed local cacao processing factories.

Imports of powdered cacao and cacao paste rose as domestic supply declined. And fell short of requirement.

The price of cacao in international market has tended to decline but exports from Indonesia have continued to the increase. The price has continued to decline over the past several years although there was an increase in 2001.

The price fluctuation was indicated by the exports value recorded by the country. In 1999, cacao exports from Indonesia were valued at US$ 988.5 per tons, down to US$ 791.6. The price peaked at US$ 1.516 per tons in 1998. In 2001, the price scaled up to US$ 988.7 per tons from 2000.

The price fall in 2000 was seasonal as that year there was grand harvest with peak productivity resulting is surplus in supply. In 2001 buying action by fund managers pushed the price up.

Indonesian soil is suitable and the climate is good for cacao plantations. However, the favorable factors are not enough to attract investors. Since 1997, there has been non new investors seeking to invest in cacao plantations and processing industry. So far only smallholders are prompted by good price exports to expand plantations.

Potential Land 119 million hectares

Cacao plant (theobroma cacao linn) belongs to the steculiaceace family. The plant originated from South American forests. It was first grown as plantation crop by Indian Aztec. In Indonesia it was first grown in Sulawesi in 1560 brought in by Spanish. The first type grown in Indonesia was criolo. There are various types of cacao plant. Among the main types are criolo, forastero an trinitario.

Criolo itself consists of Central America criolo and South American trilo. This type produces cacao beans of high quality delicious known as fine flavour cacao, edel cocoa. The production of criolo cacao, however is relatively small as it is very sensitive to plant disease and pests. Forastero has a second quality cacao beans known as bulk cocoa or ordinary cocoa. Its production is higher as it is more resistant to disease. Trinitario is a a result of transplantation between criolo and forastero Trinitario grows faster--harvest after two years--and with harvest all year long.

Cacao commodity include beans and processed products such as cocoa paste, which has been freed from fat, cocoa butter/fat & oil cocoa powder which contains or does not contain sugar or other sweeteners, cocoa in bars, etc. The processed cocoa products are feedstock for industry to produce finished products such as cocoa powder for food/beverage and candy industries. Cocoa fat is used in cosmetic industry such as for lipstick, beauty soap, etc.

Indonesia has potential land of 119 million hectares suitable for cacao plantations, but the potential has not been properly utilized or have been used for other crops. The country now has 632,000 hectares of cacao plantations but not all of the lands are suitable for the plant.

Expansion of plantation areas sluggish

Since 1996, there has been no new plan to invest in cacao plantation in the record of BKPM. The existing plantation companies have made new investment only for rejuvenation. Therefore, there is no expansion. If any new plantations have been opened only in small scale by farmers boosted by the surge in the price of that commodity in the past three years. In 2001, smallholders cacao plantations totaled 545,000 hectares or 80% of the total plantations in the country.

Production up slightly

South Sulawesi is the production center for cacao. But it is also produced by other regions such as North Sumatra, East Java and East Kalimantan. The country's cacao production dropped 18% to 307,100 tons in long drought of 1997 as a result of the weather phenomenon El Nino. In addition pest attacks destroyed crop in wide areas. Lately the production improved but the increase was sluggish. In 2001 the production was recorded at 381,000 tons exceeding production of 374,000 tons in 1996.

The quality of smallholders cacao is low and the price is low because of poor post harvest handling. Large plantations of the state and private companies have a fairly good quality beans.

South Sulawesi, cacao center

South Sulawesi, Southeast Sulawesi and North Sumatra are the production centers for cacao beans in the country. With a total plantation of 291,086 hectares Sulawesi accounts for 43.6% of the total area of cacao plantation in the country. South Sulawesi alone has 139,040 hectares that makes it the largest producer contributing 20.8% to the country's total plantation. Its production totaled 112,634 tons or 30% of the country's total production in 2000.

Major plantation companies in South Sulawesi include PT Bosowa Utama Corp. of the Bosowa Group. The company has plantations but it also serve as exporter of that commodity. PT Perintis Swasembada and PT Perkebunan Ladongi both of the Pasopati Group have plantations in South Sulawesi and Southeast Sulawesi. In North Sumatra there is PT PP London Sumatera Indonesia which is better known as palm oil plantation company. The foreign company also produce and export cacao beans.

Plantations fail to attract investors

Early in the 1990s cacao plantations began to attract investors. In 1992 through July 1992, there were 10 investment plans for new plantations and 13 plans for expansion. Now, however, there are few investors indicating interest in cacao plantations. In fact since 1996 there has been no investors seeking to invest in that sector. More investors are interested in palm oil sector.

Interest, however, is quite strong in cacao processing industry. BKPM issued licenses to 13 projects including three for expansion in cacao processing industry during the period form 1996 to 1999. In 2000 to July 2002, however, there were only two new plans to invest in the industry.

The two approved by BKPM in 2000 are PT Eskala Sakti and PT Uniflora Prima. The two PMDN companies planned to invest Rp 650.3 billion each also with the same an annual capacity of 32,400 tons of cocoa powder and cocoa butter.

Cacao processing industry short of feedstock

In 2001, a number of cacao processing factories producing chocolate were forced to stop operation after being hit by operating losses for several months. The factories could not operate normally as a result of shortage in supply of raw material. The shortage came following a surge in the price of cacao beans in international market. Cacao beans producers, therefore exported most of their production leaving the domestic industry without supply. According to the Indonesian Association of Cacao producers (Askindo) late 2001 at least two factories were closed because of the soaring price of the raw material.

A number of factories that managed to continue operation have to operate far below their installed capacity. A factory normally has an annual capacity of 150,000 tons but most of the factories could operate only at 53.3% of their capacity.

The unfavorable condition began since the rupiah fall in 1998 and supplies to international market dropped from other countries. At that time traders began to turn to Indonesia. Buyers came to Indonesia from the United States, Singapore, Brazil and China. They established their representative offices in the country to handle their purchases. Some of them even built cacao processing factories.

The condition was good for cacao bean producers but bad for cacao processing factories in the country. Meanwhile banks tightened their liquidity adding to the problem in the country. In 1996-2001 period the country's production of processed cacao grew only by 1.1% annually. See the following table.

Capacity utilization

No less than 30 companies operating in cacao processing industry with a total annual capacity of 170,000 tons. With production totaling only 107,486 tons in 2001, capacity utilization was 63.2% which was quite high.

South Sulawesi is the production center for cacao beans but the production center for processed cacao is West Java which has 12 processing companies. The largest company is PT Ceres Indonesia in Bandung, West Java. See the following table.

Exports surging in value

In 1999, exports surged 23% to 411,760 tons valued at US$ 407 million. In 2000, the price declined when exports totaled 413,492 tons valued at US$ 327.3 million. In 2001, exports rose again 6.1% to 438,775 tons valued at US$ 444.3 million.

The fluctuation in prices was sharp down for US$ 98.5 per tons to US$ 791.6 per tons in 2000. In 2001, the price rose again to US$ 1.012.5 per ton. In 1998, the price averaged US$ 1,516 per tons. In 2000, the price dropped as supply increased as harvest was at its peak. The price decline was also caused by weak demand following low buying action by fund managers.

Lately delay in supplies form major producers including the Invory Coast caused an increase in price and growing demand such as from Malaysia and Singapore. The two countries need large supply to feed their butter factories.

Some importers agreed to cut discount from US$ 100-US$ 110 to US$ 90 per ton resulting an increase in the price. The rise in price in international market also followed with an increase in the selling price on the domestic market from Rp 7,500 per kg to Rp 9,200.

The price of Indonesian cacao is lower in international market because of a number of factors. Indonesian exporters are forced to agree to discount demanded by buyers abroad. Among the factors include being not up to standard in quality. The fumigation certificate issued by Sucofindo to guarantee that the product is free from insect is not recognized by the U.S. agriculture ministry. The quality standards concern dirt content. Water content, etc. Cacao beans are not properly dried first by Indonesian farmers as they have no drying tools. In addition, the U.S. authorities do not recognize the fumigation certificate issued by Sucofindo. Fumigation is made by Sucofindo of cacao beans in sacks when carrying ship is off the port.

Almost every months there are cases of cacao beans from Indonesia being rejected in the U.S. port The reason is poor quality not up to Codex. In August 2001, there were 39 such cases and 35 of them involved cacao products. The other four involved pineapple and white pepper each in two cases. In October 2001, there were 50 cases including 45 cases of cacao bean rejection.

Most of the exports come from plantations companies both state and private companies. Smallholder plantations make up 60% of the total cacao plantations in the country but they are behind in productivity. The production of smallholder plantations is only about 50% of the production of cacao plantation companies.

U.S. the largest market

Until 1995, Singapore was the largest buyer of cacao beans from Indonesia to be re-exported to other countries mainly to the United States. Now Indonesia exports its cacao beans directly to the United States.

Indonesian cacao is more delicious, therefore, buyers give it a premium price of US$65 per ton. The problem is the U.S. Food and Drug Administration is tight in quality control. It does not allow fungus content more than 4%. The tight control results in frequent automatic detention of cacao beans. Cacao beans not up to standard set by the agency is sent directly to warehouse in Baltimore to be fumigated and the cost will be paid by the exporters.

The Indonesian government has sought to avoid automatic detention by introducing harmonization of international procedural standard between the systems effective in Indonesia and the United States.

Cacao beans accounted for 80.7% or 333,600 of the country's total exports of 413,500 tons of cacao in 2000. The United States bought most or 134,200 tons of the exports of cacao beans.

In Europe, Indonesia has only a 2% share of the market which totals around 1 million tons a year. Exports to that region are not easy as European countries have long established connections with their former colonies in Africa. However, Indonesia has never face automatic detention in Europe.

In 2000, Germany imported 13,792 tons of cacao beans from Indonesia. Germany was the fifth largest market after Brazil to which exports totaled 25,950 tons (US$18.62 million) in the same year. See the following table.

Imports of cacao surging

In 2001, imports of cacao surged to 38.717 tons from 17,605 tons in the previous year and beans dominated the imports. This indicates that stock of cacao beans on the domestic market is not enough to feed cacao processing factories. Dwindling stocks followed increase in exports. See the following table.

Papua New Guinea and the Ivory Coast are the world's largest producers of cacao. Ghana has been the main supplier of cacao beans for Indonesia. Cacao paste and powdered cacao come mainly from Malaysia and Singapore. See the following table.

Quality of Indonesian cacao

The quality standard for Indonesian cacao beans has been revised several time since the first standard was used 1976. Now the standard is SNI. No. 01-2323 determined in 1997. Framers, however, are not all aware of the standard, therefore the fermentation quality remains low.

The Indonesian Cacao Association said poor fermentation quality caused a loss of US$ 132 million to Indonesia every year. The loss is estimate from the difference in the prices of cacao produced by plantation companies and farmers. The price difference is around US$ 1 per kg.

The reputation results in automatic detention of at least 40% of exports of 300,000 tons of beans every year in the United States. Automatic detention caused a price fall of US$ 10 per tons or an annual loss of US$ 1.2 million. Indonesia is not the only country facing automatic detention in the United States.

If the fermentation quality is improve. The market could be expanded to other regions such as Europe, which now refuses to import smallholder cacao for that poor reputation.

Distribution Channel

Producers could sell their production through cooperation among them to improve efficiency in transport and create a fair price. They could also sell their production to collector who sell the commodity later to processing factories or exporters.

Cacao is sold either in the form of beans, processed products like powdered cacao, butter, etc. for domestic consumption. Now exports are handled mainly by private companies. Previously the government or state companies played the main role.

Importers or trading companies generally buy cacao beans from exporters in producing countries and sell the commodity to domestic factories or trading houses. Trading houses generally have special backgrounds in cacao trading as this commodity is easily damaged.

In international trade there are brokers that function as an intermediary between buyers and sellers The brokers earn fee or commission for their service. Storage companies also play a role in the trading of cacao products. Storage companies kepp in store commodities on behalf of the buyers and they could function as quality controlling agent.

Importing countries cacao is processed into solid product, butter and powder which will be processed further into chocolate bars, candy, ice cream from solid cacao, butter or powder. The finished products are then sold to wholesalers which sell them again to retailers.

Benchmark price

Supply and demand determine the price of commodities including cacao. The markets in London and New York have been the benchmark price for cacao. The market include physical market and future market.

In physical market, buyers and sellers bargain for price and discuss quality required by the buyers, delivery and payment terms. The price is determined by the future market. Negotiations on future market are only on contracts for cacao standards, prices and delivery time. Future market has three basic function for producers, consumers and traders namely determining prices and providing price information to the public, reducing price risk through hedging and as means of speculation.

The prices of cacao beans is predicted to improve from it was in 2001 because of expected decline in supply while demand continues to rise. The price on the domestic market was quoted at Rp 14,000 per kg in April 2002, down to Rp 12,000 in July following the trend in international market as a result of growing supplies from South Africa and other producers.

World's cacao production and industry

The world's production of cacao has tended to rise, up by 1.7% annually on the average. The production totaled 2.8 million tons in 1998/1999. The processing industry was stable in 1998/1999.

The Ivory Coat (Cote d' Ivoire) is the world largest producer turning out 1.1 million tons of cacao in 1998/1999, followed by Ghana with production totaling 370,000 tons and Indonesia 350,000 tons.

The world's cacao stocks in 198/1999 totaled 954,000 tons, down 144,000 tons from the year before.

In Indonesia the main harvest is September through December. Mid crop is in March through July. Crop in Indonesia comes at the same time with harvests in Ghana, Nigeria and Kamerun. Main crops time in Brazil and the Ivory Coast are in October and March respectively.

Indonesian consumption down

The country's consumption of cacao beans dropped 12.7% to 87,200 tons in 1997. The decline was attributable to falling production and the monetary crisis in the second half of that year. In 1998, the consumption rose to 97,500 tons.

In the following years the consumption dropped again as a result of a surge in exports boosted by the price rise and rupiah fall. Local processing factories were in problem to secure feedstock. Some of them were forced to stop operation or cut production.

As a result imports of processed products of cacao like powdered cacao and cacao paste surged as local producers no longer could meet domestic consumption. Imports of powdered cacao totaled 37,632 tons valued at US$ 27.2 million and imports of cacao paste reached 10,424 tons valued at US$ 9.2 million.

Prospects and Conclusion

The world consumption of cacao has increased sluggishly, growing only by 2% annually. Exports, however, are promising both for cacao beans and processed products of cacao as the world production has increased only by 1.7% annually. In addition, consumption has tended to rise. Therefore, a decline in 1997 and 1998 in the supply of cacao from Latin American countries including Brazil resulted in a surge in price. Cacao processing companies in the United States were forced to seek supplies from other sources including Indonesia.

The condition not only opened an opportunity for large plantation companies to increase exports but encourages new investors to do business in the sector. The country has 119 million hectares of land suitable for cacao plantation, but so far the country has only 1 million hectares of cacao plantation with smallholders dominating 73%. Smallholders cacao generally has lower quality.

Consumption of cacao beans in the country ceased to grow in the past several years because of difficulty to secure the raw material as cacao bean producers chose to export their production to earn foreign exchange. Shortage in supply on the domestic market sent the price skyrocketing. Meanwhile the bank interest rates remain high causing frustration among the cacao processing companies in resuming business. Now, however, there is hope of revival after improvement made in the efforts toward economic recovery economy and political stability. The favorable trend is shown in a surge in import of cacao beans and processed products of cacao. In 2001, imports of cacao beans and processed products of cacao totaled 38,717 tons valued at US$ 52.3 million as against only 7,394 tons valued at US$ 10.7 million in 1998.

Land suitable for cacao

Location Average acreage

 ('000 Ha)

Irian Jaya 19,882
East Kalimantan 13,967
West Kalimantan 7,425
Maluku 7,380
Central Kalimantan 7,370
South Sumatra 6,570
North Sumatra 5,433
Riau 5,304
Aceh 5,120
South Sulawesi 4,508
Central Sulawesi 4,156
West Java 3,986
Central Java 3,115
Others 24,809
Total 119,025

Source: CBS
Cacao plantation, 1996-2001

 ('000 Ha)

 Year Small- State Private Total Growth
 holders planta- company (%)

 1996 489 63 103 655 --
 1997 381 62 86 529 -19,2
 1998 437 58 78 573 8,3
 1999 535 60 73 668 16,6
 2000 535 60 73 668 0,0
2001 *) 545 63 73 681 2,0

*) tentative figures

Source: Directorate General of Plantation/Data Consult
Indonesia's production of cacao beans

 Year Small- State Private Total Growth
 holders Plan- company (%)

 1996 304.0 36.4 33.6 374.0
 1997 239.2 34.8 33.0 307.1 -17.9
 1998 300.7 36.1 33.5 370.4 20.6
 1999 305.0 37.0 26.0 368.0 -0.6
 2000 310.0 38.0 26.0 374.0 1.6
2001 *) 317.5 39.5 26.0 381.0 2.0

Source: Directorate General of Plantation/Data Consult
Cacao plantations in Indonesia, 2000

Location Area Production
 (acreage) (tons)

Sumatra 156,387 82,241
- North Sumatra 64,807 39,451
- Lampung 25,808 9,071
- Bengkulu 23,772 2,342
- Aceh 20,491 9,407

Java 67,344 29,547
- East Java 34,665 10,789
- West Java 20,936 6,100

Nusa Tenggara 32,667 8,414
- East Nusa Tenggara 23,933 3,136

Kalimantan 59,265 28,823
- East Kalimantan 44,716 17,207

Sulawesi 291,086 198,387
- South Sulawesi 139,039 112,634
- Southeast Sulawesi 97,775 62,319
- Central Sulawesi 45,129 22,650

Maluku & Irian Jaya 56,161 20,338
Total 668,000 374,000

Source: Directorate General of Plantation/Data Consult
New investment projects approved by BKPM
in cacao processing industry, 2000-July 2002

 Name of Location Status Prod. Invest- Plan
 company capacity ment of
 (tons/annum) (Rp'mil- opera-
 lion) tion

PT Eskala Serang, PMDN Cocoa powder 650.275 Feb'03
 Sakti Banten 32,400
 Cocoa butler
PT Uniflora Serang, PMDN Cocoa powder 650.275 Apr'03
 Prima Banten 32,400
 Cocoa butler

Source: Investment Coordinating Board/Data Consult
Indonesia's production of processed cacao, 1996-2001

 Year Production Growth
 (tons) (%)

 1996 105,972 --
 1997 127,166 20.0
 1998 101,260 -20.4
 1999 104,285 3.0
 2000 105,378 1.0
 2001 *) 107,486 2.0
Average growth 16.2

Note: including cocoa snack and biscuits; *) tentative figures

Source: Department of Industry and Trade/Data Consult
Producers of processed products of cacao and capacity, 2001

 Name of company Location Capacity

PT Ceres Indonesia Bandung, West Java 20,560
PT Muslin Mas Medan, North Sumatra 20,000
PT Mitra Sawit Kumala Abadi Medan, North Sumatra 12,500
PT Dolphin Super Ice Cream Tangerang, Banten 8,500
PT Inticocoa Abadi Industri Bekasi, West Java 8,000
PT Cacao Wangi Murni Tangerang, Banten 7,500
PT Sari Kakao Perkasa Deli Serdang, Medan, 6,287
 North Sumatra
PT Effem Indonesia Makasar, South Sulawesi 6,000
PT Davomas Abadi Tangerang, Banten 5,000
PT Indonesia Internasional Ujung Pandang, 5,000
 South Sulawesi
PT Indonesia Internasional Ujung Pandang, 5,000
 South Sulawesi
PT Putra Bali Adyamulia Muara Karang, Jakarta 4,200
PT Mas Ganda Tangerang, Banten 4,080
PT Multi Sarana Rasa Agung Tangerang, Banten 4,080
PT Perkembunan Nusantara VIII Ciemas, Cimerak & Cikosa, 3,337
 West Java
PT Cocoa Ventures Indonesia Medan Deli, Medan, 2,600
 North Sumatra
PT Sinar Pangan Timur Sidorjo, East Java 1,500
Lain-lain 45,856
Total 170,000

Source: Department of Industry and Trade/Data Consult
Exports of cacao beans and cacao products, 1996-2001

 Type cocoa 1996 1997 1998

Cocoa beans 274,119 219,852 278,146
 262,847 294,991 382,502
Cocoa paste 5,995 7,724 9,955
 15,684 19,759 6,446
Cocoa butter 24,678 24,824 29,880
 81,667 88,999 96,137
Cocoa powder 14,064 9,901 12,587
 5,261 5,596 7,074
Others 4,221 3,969 4,237
 8,503 10,412 15,491
Total 323,077 266,270 334,805
 373,962 419,757 507,650

 Type cocoa 1999 2000 2001 *)

Cocoa beans 333,695 333,619 364,032
 296,484 233,052 323,557
Cocoa paste 9,555 5,634 10,424
 8,452 5,599 9,220
Cocoa butter 28,365 32,072 30,944
 72,023 55,438 78,570
Cocoa powder 34,496 36,409 37,632
 24,946 26,393 27,214
Others 5,648 5,758 6,161
 5,112 6,836 5,675
Total 411,760 413,492 438,775
 407,017 327,318 444,236

*) tentative figures; Source: CBS/Data Consult
Indonesia's exports of cacao by countries of destination
and types of product, 2000

 Countries Volume Value
 ('000) (US$'000)

Cocoa beans: 333,619 233,052
USA 134,107 84,058
Singapore 56,855 42,538
Malaysia 61,821 44,256
Brazil 25,949 18,622
German 13,792 12,780
China 16,406 12,049
Thailand 7,057 5,417
Canada 4,224 3,626

Cocoa paste: 5,634 5,599
Philippine 1,760 734
Spain 1,100 393
Singapore 1,081 1,725
South Korea 446 678

Cocoa butter: 32,072 55,438
USA 13,091 23,590
Netherland 5,291 8,165
Australia 2,631 5,156
Japan 2,641 4,232

Powdered cocoa: 36,409 26,393
USA 9,128 8,162
Spain 7,178 3,336
Philippine 3,245 1,849
Brazil 2,349 1,418
Belgium 1,830 1,118
China 1,134 680

Others: 5,758 6,836
Spain 1,277 900
China 682 1,206
Philippine 699 242
Total: 413,492 327,318

Source: CBS/Data Consult
Imports of cacao beans and cacao products, 1997-2001

Type of cocoa 1997 1998 1999 2000 2001 *)

Cocoa beans 797 5,204 8,628 12,625 28,961
 1,481 8,764 11,094 12,451 30,711
Cocoa paste 34 447 481 1,459 1,973
 77 59 332 963 1,708
Cocoa butter 50 20 33 27 19
 142 48 70 52 45
Powdered cocoa 1,770 1,038 1,473 2,964 7,187
 1,997 1,257 1,665 3,447 10,111
Others 2,213 685 719 530 577
 1,196 529 846 311 961
Total 4,864 7,394 11,334 17,605 38,717
 4,893 10,657 14,007 17,224 52,243

*) tentative figures;

Source: CBS/Data Consult
Imports of cacao by countries of origin, 2000

 Country Volume Value
 ('000) (US$'000)

Cocoa beans: 12,625 12,451
Papua New Guinea 4,833 4,326
Cote D'Ivoire 3,428 3,330
Ghana 2,950 3,317
Argentina 827 940

Cocoa paste: 1,459 963
Malaysia 1,416 876
Singapore 43 87

Cocoa butter: 27 52
Malaysia 14 21
Singapore 13 21

Powdered cocoa: 2,964 3,447
Singapore 1,525 1,901
Malaysia 939 792
Netherland 400 397
USA 86 141

Others: 530 311
Malaysia 92 33
China 85 36
Singapore 79 155
Total: 17,605 17,224

Source: CBS/Data Consult
Quality requirements of Indonesian cacao

No. Description Unit Conditions

1. Water content in weight % Max. 7,5
2. Bean issuing smoke smell and -- None
 or abnormal and or alien smell
3. Live insect -- None
4. Broken beans and or bean particles % Max. 3
 and or particle of bean pulp in weight
5. Content of alien materials in weight % Max. 0
6. Homogeneity of beans % equal (>95)

Source: Data Consult
Developments of prices of dried cacao beans,

 Year Domestic price International market price
 (Rp/Kg) (New York/US$ cent/lb)

1996 2,281 66.03
1997 3,338 72.72
1998 12,900 73.00
1999 7,042 49.00
2000 7,344 41.00
2001 9,500 65.00
2002 - April 14,000 1,566.00 *)
 July 12,000 1,465.00 *)

*) US$ per ton

Source: Directorate General of Plantation/ICCO/Data Consult
World producers and production, 1997-2000

 Countries 1997 1998 1999 2000 Growth

- Ivory Coast 1,108.0 1,113.0 1,100.0 1,250.0 -0.36
- Ghana 322.5 409.4 370.0 410.0 7.19
- Indonesia 325.0 330.0 350.0 400.0 5.24
- Nigeria 160.0 165.0 180.0 170.0 6.06
- Brazil 185.0 170.0 160.0 125.0 -7.52
- Other 610.9 546.7 646.5 574.0 2.87
Total 2,711.4 2,34.1 2,806.5 2,939.0 1.73

Source: ICCO
World grinding production and stock and stock ratio

 Description 1996/97 1997/98 1998/99 Growth

World grinding 2,750.5 2,791.0 2,800.0 0.89
World stock 1,245.0 1,102.0 954.0 -14.23
Stock ratio 45.27 39.48 34.07 -15.27

Source: ICCO
Harvest time in major producing countries

 Countries Main harvest Mid crop

Ivory Coast/Pantai Gading October - March May - August
Brazil October - March May - August
Ghana September - March May - August
Malaysia October - December April - May
Indonesia September - December March - July

Source: ICCO
Estimate of cacao bean consumption in Indonesia, 1997-2001

 ('000 tons)

Year Production Exports Imports Consumption Growth

1997 307.1 219.9 0.8 87.2 --
1998 370.4 278.1 5.2 97.5 11.8
1999 368.0 333.7 8.6 42.9 -56.0
2000 374.0 333.6 12.6 53.0 23.5
2001 381.0 364.0 29.0 46.0 -13.2

Source: Data Consult
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Comment:Investors show little interest in cocoa business despite good prospects of exports. (Industry Profile).
Publication:Indonesian Commercial Newsletter
Article Type:Statistical Data Included
Geographic Code:9INDO
Date:Aug 13, 2002
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