Post by Trade Coach on Apr 15, 2012 21:36:18 GMT 1
The German Cocoa Trade Association has forecast the cocoa supply deficit to fall somewhere between 30,000 and 70,000 tonnes. This is lower than the International Cocoa Organizations forecast for a global supply deficit of 71,000 tonnes. Cocoa production is extremely sensitive to weather conditions. Though the Ivory Coast growing season started off well the countries growing areas were assaulted by heavy rains followed by strong, hot and dry Harmattan winds. This caused great concern for the development of Cocoa scheduled to be harvested towards the tail end of the country’s main crop.
Nigeria is the world’s fourth largest Cocoa producer. Cocoa output is expected to drop near ten percent to 210,000 tonnes. The Nigerian crop was damaged by excessive rainfall and high humidity. The fact that President Goodluck Jonathan cut fuel subsidies cut output as well. You can’t grow Cocoa profitably without fuel. With energy prices as high as they are, now is not the time to cut fuel subsidies. Cocoa must be transported from farms to grading centers and from grading centers to ports for export. Farmers located in Nigeria’s Osun state have stopped selling Cocoa due to the low prices being offered for their product. Heavy rains in Nigeria’s southwest have caused flowers and Cocoa pods to sprout.
Cameroon expects Cocoa production to decrease 20 percent from last season’s record harvest. Capsid (sap sucking) insects caused major damage in the country’s Center region. Caterpillars ravaged the crop in the South West region. So, the forecast for record breaking West African Cocoa harvests will not come to pass. Mother Nature throws the Cocoa industry a sinking curve ball.
Indonesian Cocoa production is back on track. A Cocoa crop of 500,000 tonnes is expected. Last year La Nina hammered growing areas with abnormal rains that damaged Cocoa trees. The La Nina weather pattern in the equatorial Pacific Ocean is weakening. Hopefully it will dissipate and give the agricultural industry a respite for a few years.
Source: www.insidefutures.com/article/592877/The%20Soft%20Spot(60).html
Nigeria is the world’s fourth largest Cocoa producer. Cocoa output is expected to drop near ten percent to 210,000 tonnes. The Nigerian crop was damaged by excessive rainfall and high humidity. The fact that President Goodluck Jonathan cut fuel subsidies cut output as well. You can’t grow Cocoa profitably without fuel. With energy prices as high as they are, now is not the time to cut fuel subsidies. Cocoa must be transported from farms to grading centers and from grading centers to ports for export. Farmers located in Nigeria’s Osun state have stopped selling Cocoa due to the low prices being offered for their product. Heavy rains in Nigeria’s southwest have caused flowers and Cocoa pods to sprout.
Cameroon expects Cocoa production to decrease 20 percent from last season’s record harvest. Capsid (sap sucking) insects caused major damage in the country’s Center region. Caterpillars ravaged the crop in the South West region. So, the forecast for record breaking West African Cocoa harvests will not come to pass. Mother Nature throws the Cocoa industry a sinking curve ball.
Indonesian Cocoa production is back on track. A Cocoa crop of 500,000 tonnes is expected. Last year La Nina hammered growing areas with abnormal rains that damaged Cocoa trees. The La Nina weather pattern in the equatorial Pacific Ocean is weakening. Hopefully it will dissipate and give the agricultural industry a respite for a few years.
Source: www.insidefutures.com/article/592877/The%20Soft%20Spot(60).html