Indonesia’s Cocoa Industry Faces Challenges with Rising Cocoa Prices in 2024
In 2024, the cocoa industry in Indonesia is experiencing a significant surge in cocoa prices. The previous year saw cocoa bean prices reach $3,280 per ton in 2023, steadily increasing throughout 2024 and hitting a peak of $10,556 per ton by the end of the year. This surge in prices can be attributed to climate change-related crop failures in Ghana and the Ivory Coast, the world’s leading cocoa producers, leading to a drastic increase in cocoa prices on the global market.
Opportunity Amidst Adversity
As cocoa prices continue to rise, the cocoa processing industry is facing a severe blow, with an estimated 61% drop in utilization compared to 2023. However, this challenging situation also presents a significant opportunity for the development of Indonesia’s upstream cocoa sector. The Ministry of Industry has taken proactive steps to initiate the establishment of the Plantation Fund Management Agency (BPDP), aimed at supporting the sustainable development of the cocoa value chain in Indonesia.
Empowering the Cocoa Workforce
Efforts have been made to enhance the competence of human resources in the industry to strengthen the supply chain of sustainable raw materials through the Cocoa Doctor program. In 2024, the Ministry of Industry produced 37 Cocoa Doctors who underwent training at the Mars Cocoa Academy for one month. These Cocoa Doctors have also provided training to over 3,700 farmer partners in the Training of Trainers (ToT) program.
Striving for Cocoa Self-Sufficiency
The Ministry of Industry is currently developing a program to achieve cocoa self-sufficiency and enhance the national cocoa processing industry’s independence. Discussions are ongoing among policymakers to formulate strategic steps in collaboration with industry stakeholders and ministries/agencies, including utilizing social forestry land for cocoa bean production in various regions across Indonesia. Additionally, Indonesia has emerged as the fourth-largest cocoa processed product exporter globally, with key markets including India, the United States, the European Union, China, and Malaysia.
Overall, while the rising cocoa prices pose challenges for the industry, they also present a unique opportunity for Indonesia to further develop its cocoa processing sector and strengthen its position in the global market. By investing in human capital development and fostering sustainable practices, Indonesia can leverage its potential to become a key player in the international cocoa industry.
This is an article that sheds light on the challenges and opportunities facing Indonesia’s cocoa industry in the face of rising cocoa prices. It highlights the proactive measures taken by the Ministry of Industry to empower the workforce, promote sustainability, and drive innovation in the sector. As the country strives for cocoa self-sufficiency and seeks to expand its global market presence, it is crucial to address the current challenges while embracing the potential for growth and development in the industry. By focusing on human capital development, sustainable practices, and strategic partnerships, Indonesia can position itself as a key player in the global cocoa market.
