Indonesia is overtaking Malaysia as Asia’s top cocoa country, processing 16% more cocoa for 2013/14 than the year before, and 20,000 tons above the February estimate by the International Cocoa Organization (ICCO). Malaysia’s grinding volume is forecast to decline 6% year on year to 275,000 tons- a 15,000 ton drop. The increase in cocoa grinding in Indonesia is being driven by processors shifting their grinding operations to countries of origin to save on costs. Grinding at countries of origin is predicted by the ICCO to increase 72,000 tons to 1.835 million tons. Indonesia is ranked the world’s third cocoa producing country with output expected to reach 425,000 tons in 2013/14. To bolster cocoa processing within the country, in 2010 Indonesia imposed a monthly export tax on the shipment of whole beans and exports of processed, finished cocoa are expected to overtake exports of whole beans this season according to the ICCO. Overall, Asia will grind 871,000 tons of cocoa in 2013/14 – an increase of 2% year on year.
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