Cocoa Beans & Plantation Development Project

Agro-Industry

Cocoa Beans & Plantation Development Project

Property Description

WEAKENED COCOA DEMAND The Covid-19 pandemic weakened demand for chocolate and cocoa beans. In Europe, over the period from March to December 2020, cocoa, chocolate and sugar confectionery production featured a decline against the figures of 2019. The biggest drop was in April 2020 when production fell by 13.9% as compared to the same period in the previous year. DEMAND RECOVERY TREND The re-opening of the HoReCa segment following the lifting of the coronavirus restrictions and a recovery in the demand are both set to be key drivers of the cocoa bean market recovery. The EU investment (25 million Euros) into cocoa bean production in Côte d’Ivoire, Ghana and Cameroon, which together assume 70% of global output, should improve supply chain stability, at least for particular involved companies. ( Source: https://www.globaltrademag.com/the-global-cocoa-market-struggles-for-restoring-plummeted-demand) Global Imports of Cocoa Beans per Region (in 1,000 tones). Trade figures for 2020 are not yet available but are expected to reflect the effects of COVID-19 on demand, especially on supplies of specialty cocoa.

Market Opportunity

Cocoa is one of the leading commodities that has an important role in economic development in Pidie Jaya Regency. Market opportunities that are still open and the availability of large areas of land are potentials that should be considered in cocoa development efforts. The high consumption of chocolate both domestically and abroad, such as in the European Union, especially for processed cocoa which has a higher value than cocoa beans, could become a market opportunity for cocoa in Pidie Jaya Regency. Currently, there is a growing trend of consuming cocoa beans directly or processing cocoa beans at home to make pasta or hot chocolate. This is in line with public awareness in developed countries about the benefits of chocolate forhealth. This condition actually creates a market niche for cocoa beans, especially packaged nibs. The interesting thing is, the prices of cocoa bean products that are marketed online are quite tempting. Of course this market is attractive to target and this allows farmers to sell their products directly to consumers with several conditions. Among other things, the cocoa beans come from gardens that already have organic certificates. The treatment process must be controlled and free of contamination. Then packaged in an attractive manner and marketed through various online shopping sites. This is a different market from the one in Indonesia, which is oriented towards the processing industry. In order to penetrate the factory, the farmer must be able to collect up to 15 tons of cocoa beans. Meanwhile, the household market is different. With just 1 kg of seeds, farmers can market directly to consumers at quite attractive prices.

Financial Estimation

Total Estimate:
IDR 14,509,000,000.00 IRR/NPV/BEP:
IDR 14,509,000,000.00