Saturday, August 1, 2009

European Cocoa Market Oppotunities


Indonesian cocoa production in the last three years is very minimal absorbed by European market, therefore the Indonesian Cocoa Association (ASKINDO) and the government must push the market opportunities to Europe.

"We will try to increase our exports to European countries because there are a big opportunity while the other exporters country, such as Ivory Coast and Ghana, the cocoa production is decreasing," said General Chairman of the DPP ASKINDO Halim Abdul Razak respond to a decrease in export cocoa to Europe in Jakarta, Thursday ( 30 / 7).

Based on ASKINDO data, the total cocoa exports in 2008 reached 142,400 tons and 40 percent of them marketed to the United States, while the remaining 60 percent more to Asia than Europe market. World consumption of cocoa at this time the average 3.4 million tons per year. According to Halim, lack of production of cocoa that is sent to Europe because South Sulawesi as a largest buffer zone of cocoa production is not giving a contribution export to Europe.

So far, South Sulawesi is contributing almost 80 percent of the national cocoa production. In connection with this, both the government and the cocoa industrialist in this region, must work together to help cocoa farmers increase the production. Meanwhile, the processing of cocoa beans in Indonesia, Halim said, from 16 of cocoa manufacture industry, only five factories that are still be in accordance with the installed capacity.  The five cocoa processing industry is PT General Food Industries with 70,000 tons, PT Bumi Tangerang Mesindotama 25,000 tons, PT Cocoa Ventures Indonesia 12,000 tons, PT Mas Ganda 10,000 tons, and PT Kakao Mas Gemilang with a capacity of 6000 tons.

Halim said, investment opportunities in the processing sector and cocoa plantations in Indonesia is still wide open. "However, obstacles faced in the region, including South Sulawesi, has not supported by the infrastructure, such as the availability of electric power facilities and roads, triggering potential investors are reluctant to invest," he said. Therefore, the government is expected observe and vey soon fixed the constraints to be able to attract the investors.