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Govt expects global cocoa price hike to impact domestic industry soon
Indonesia relies on imports for 55 percent of its cocoa supply.
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Pinning hopes on cacao: As of 2017, there were 39,400 hectares of cacao plantations in North Luwu, South Sulawesi, producing 6,300 tonnes of wet cacao. (-/Syafrizaldi)
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ndonesia expects a surge in the global price of cocoa may soon affect domestic food and beverage producers, with the Industry Ministry urging firms to anticipate the impact on their businesses.
The cocoa futures price skyrocketed by more than 130 percent to around US$9,900 per tonne this March, compared with the beginning of this year, according to Trading Economics.
Meanwhile, Market Insider data show the cocoa spot price exceeded $10,000 per tonne by the end of March.
“Things seem stable domestically for now, with no reports from the industry players. However, it’s inevitable that we [Indonesia] will be impacted soon,” said the Industry Ministry’s Agro-industry Director General Putu Juli Ardika on Thursday, as quoted from Bisnis.
Read also: Low commodity prices drag down state revenue
Indonesia currently imports 55 percent of its cocoa, with the remaining 45 percent sourced domestically, according to the Industry Ministry.
A decade ago, the country was able to meet 85 percent of its chocolate demand domestically, with only 15 percent being imported.
