INDONESIA – Cocoa production expected to rise in 2010

MILAN – Indonesia, the world’s third-largest cocoa grower after Ivory Coast and Ghana, may record a 8 percent increase in its crop this year after setting weaker-than-expected production last year, the chairman of the Indonesian Cocoa Association (Askindo) said on Monday.

The Asian country is expected to produce 540,000 tonnes this year against a revised estimate of 500,000 tonnes for 2009, Halim Abdul Razak said.

The latest estimate for 2009 was much smaller than the association’s previous projection of 590,000 to 600,000 tonnes.

Razak also said this year’s bean exports may rise to 390,000 tonnes from 360,000 tonnes estimated for 2009.

He pointed out that the expected rise in output this year would be partly supported by the government’s programme to replant ageing trees and rehabilitate less productive trees.

The three-year programme, that may cost $350 million, includes replanting of 70,000 hectares and rejuvenation over an area of 235,000 hectares.