Cocoa rebounds from 3yr low

THE cocoa industry has seen a strong rebound in volume after three difficult years of lean production, according to New Guinea Islands Produce Company Limited Agmark chairman Donald Manoa.
Manoa said in the 2016 NGIP Agmark annual report that the company played a large part in the recovery with its efforts to support farmers by supplying seedlings, maintaining a broad and expanding network of buying points, and ensuring cash availability for cocoa purchase everywhere in PNG throughout the year.
“We remain strongly committed to the cocoa industry of PNG and are committing more effort to this recovery,” he said.
He said 2017 would see new buying points in Bougainville and Madang, plus the commitment to Didiman farming supplies and seedlings.
He said the year had a “mixed bag” of factors.
“On the upside, we saw the improved cocoa volumes driven partly by El Nino seasonal impact on production, as well as underlying growth in the crop availability and maturity throughout the country,” he said.
“However, the unforeseen Brexit result caused a midyear plunge in the Great Britain pound – given that over 90 per cent of our cocoa is sold in GBP, plus a weakening cocoa price in the second half of the year diminished the return we may have otherwise received on our stronger volumes.
“The continued weakening of the local economy, with government investment being cut and local demand slowing also impacted on our profit result.”
The total group revenue rose from K234.3 million in 2015 to K242.7million.