The Export Price Of Kakao Seeds Skyrockets Due To A Reduction In Production In West Africa

Farmers check the quality of cocoa (Theobroma cacao) which has been dried in Purnama Dumai Village, Riau. (DOK. ANTARA)

JAKARTA - The Ministry of Trade (Kemendag) revealed that the increase in reference prices (HR) and the price of export benchmarks (HPE) for cocoa beans for the January 2025 period were caused by a decline in production in the West African region.

The Director General of Foreign Trade, Isy Karim, said that HR for cocoa beans in January 2025 had been set at US $ 10,549.59 per metric ton (MT), a significant increase of 2,813.63 US dollars or around 36.37 percent compared to the previous month.

This increase also pushed the HPE of cocoa beans to US$10,060 per MT, an increase of US$2,743 or 37.48 percent from the previous period.

"The increase in reference prices and the price of cocoa seed export benchmarks was triggered by increased global demand that is not offset by adequate production, especially in major producer areas such as West Africa. High rainfall in the region affects yields, plus concerns that dry weather is projected to occur in the first half of 2025," Isy explained in a statement as quoted by ANTARA.

Despite the price spike, the output duty (BK) of cocoa beans remains at 15 percent as stated in column 4 of Attachment Letter B in PMK Number 38 of 2024. Meanwhile, the price of export benchmarks for skin products in January 2025 has not changed compared to the previous month.

In addition to cocoa beans, several types of wood products also recorded an increase in prices. For example, wood flakes in the form of pieces or shards (wood in chips or particles) as well as sawwood with a cross section area of 1,000 4,000 mm2 of mixed jungle wood type.

Other types of wood that experienced price increases include ebony, teak, and wood from forest plants such as acacia, sengon, balsa, and eucalyptus.

Veneer wood from natural forests and forest plants, wooden sheet for packing boxes, as well as meranti, Merbau, and pine sawwood also recorded an increase in this period.

The price adjustment for the export benchmark was set through the Minister of Trade Decree No. 1684 of 2024 concerning Export Patokan Prices and Reference Prices for Agricultural and Forestry Products Subjected to Exit Duty.

With this policy, the government hopes to anticipate the impact of rising prices and ensure the stability of trade in strategic export commodities.