Ivory Coast conflict to prompt Indonesian cocoa exports
Violent conflict in the world's number one cocoa producer Ivory Coast could lead to increased production in Indonesia and Ghana, Dow Jones newswires reported.
The Ivory Coast produced 1.3 million metric tons (MT) of cocoa this season but that figure will likely fall next year, with a million people displaced and farmers facing additional financing problems, the story reported.
Barclays Capital analyst Sudakshina Unnikrishnan, told the newswires the Ivory Coast would need to increase its supply prospects to meet growing demand, while opportunities were now promising for other producers.
"Given structural weakness in the Ivory Coast's cocoa production outlook, a path is paved for countries such as Indonesia and Ghana, to fill the void," she was quoted as saying.
It is expected Indonesia's output will be flat this year at 600,000MT this year due to the effects of heavy rains, the story reported.
Earlier this month Antaranews.net reported the government of Sulawesi had launched cocoa revitalization programme Gernas Pro Kakao to boost the country's position from the third-largest producer in the world to number one.
"Since the announcement of Gernas Pro Kakao program, I remain optimistic that West Sulawesi is able to turn Indonesia into the largest cocoa producing country," Governor Anwar Adnan told the website.
The plan's strategy involved the replacement of 70,000 hectares of cocoa, the rehabilitation of 140,000 hectares of crops and intensified farming over 300,000 hectares, the story reported.
"The Gernas Pro Kakao program has a target to improve the production and quality of the commodity to exceed Ivory Coast in 2014," Adnan was quoted as saying.
The cocoa market has changed significantly in recent decades. Brazil was once the world's largest cocoa producer but is now ranked sixth with 161,000MT annually, website Globo Rural reported.