Nov. 2 (Bloomberg) -- Cocoa-bean exports from Indonesia, the third-largest grower, declined for a fourth month in October because of an increase in domestic consumption, an industry group said.
Shipments from Central and South Sulawesi provinces dropped 7 percent to 6,878 metric tons last month from September, according to data from the Indonesian Cocoa Association. Sales were 33,898 tons in October last year.
Falling supplies from Indonesia may help to halt a drop in the price of the chocolate ingredient in New York which has fallen 31 percent from a 32-year high of $3,775 on March 4.
“More local grinders increased purchases after the government imposed a duty on exports,” Herman Agan, head of research at the Central Sulawesi branch of the association, said in a mobile-phone text message today. “Output is also a bit lower,” reducing supplies, he said.
Indonesia cut the tax on cocoa bean exports to 5 percent this month from 10 percent in October, Deddy Saleh, director general of foreign trade at the Trade Ministry, said Oct. 21.
Central and South Sulawesi provinces account for about 75 percent of cocoa bean sales and output from Indonesia, the largest grower after Ivory Coast and Ghana.
Indonesia may need to import about 30,000 tons of cocoa beans this year, and the total may reach 100,000 tons in four years as investment in grinding operations increases, Zulhefi Sikumbang, chairman of the association, said Oct. 7.
Cocoa for December delivery fell 3.3 percent to $2,597 a ton in ICE Futures U.S. in New York yesterday.
--Editor: Greg Ahlstrand
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