Cocoa Exports From Main Indonesian Producing Region Decline 21% on Rains

Cocoa-bean exports from Sulawesi, Indonesia’s main growing region, dropped for the first time in four months as heavy rains hurt crops and disrupted transport, according to an industry grouping. 

Shipments from south and central Sulawesi fell 21 percent to 36,168 metric tons in August from 45,552 tons a month earlier, the Indonesian Cocoa Association said. Exports were 47,527 tons in August last year. Sulawesi accounts for about 75 percent of total output and exports from the country. 

Falling supplies from the largest grower after Ivory Coast and Ghana may help to halt this year’s 16 percent slump in prices. The rains, linked to the La Nina phenomenon, have also been blamed by other industry groupings and the government for lower output or missed forecasts for tin, palm oil and coal. 

“Heavy rain is our main problem, it’s not only hurting crops but also disrupting transportation from plantations,” Herman Agan, head of the Central Sulawesi branch of the cocoa association, said by phone from Palu, the provincial capital. Trading activities are also “slower during fasting month,” said Agan, referring to Ramadan, which ends this week. 

Cocoa for December delivery on the ICE Futures U.S. in New York gained 1.4 percent to $2,772 a ton on Sept. 3.

‘May Pick Up’

Cocoa-bean exports in the eight months to August rose 9 percent to 191,619 tons from 176,312 tons a year earlier, the association said. Indonesia harvests most of its crop between April and July. 

“Exports may pick up again this month, helped by large shipments to the U.S. and Brazil of about 10,000 tons,” Agan said. 

The Indonesian Palm Oil Association said last month that output may drop by as much as 10 percent because of a longer- than-normal rainy season. Tin output may plunge about 20 percent, the energy ministry said Aug. 11. Coal output may be 300 million tons this year, missing a target of 320 million tons, according to the Indonesian Coal Mining Association. 

The La Nina event has strengthened and may persist at least into early 2011, Australia’s Bureau of Meteorology said on Sept. 1. Indonesia’s Meteorology, Climatology and Geophysics Agency forecast increased rainfall in Sumatra, Kalimantan and parts of Sulawesi and Java in August and September.Source: Bloomberg