Lockdown hits cocoa businesses

By SHIRLEY MAULUDU
SEVEN cocoa exporters in East Sepik have closed their operations, PNG Cocoa Board regional manager for East Sepik Daryll Wobar says.
Wobar told The National yesterday that the related impacts of coronavirus was causing a big drop in cocoa volumes that were coming into Wewak from other districts in the province and nearby areas.
“Most of the cocoa fermenters are not coming in (to Wewak) to do their sales because of the shutdown period,” he said.
“All of our seven cocoa exporters have closed their doors due to the shutdown period.”
The exporters include Agmark, Waiyu, Globe, Elliven, Outspan, PNG Breit (Garamut), and Weni and Mandol.
“Exporters get in about 30-50 fermentary owners coming in to sell their beans on a daily basis,” Wobar said.
“This is not happening as we speak.
“On average, a fermentary owner comes to an export deport with five bags weighing about 62.5kg to sell for K450.

“Dried cocoa beans sold at export depot is K7,000 per tonne.
“Average price per kilogramme of dry bean currently is K7/kg.
“A fermentary on average makes about K1,350 to K2,450 in a fortnight.
“About 3,000kg or 187 tonnes of dry cocoa beans are now sitting idle in the villages awaiting the state of emergency to end.”
Wobar added that fermentaries were important in terms of bringing back money to the villages.
“The longer the beans are stored, the quality drops,” he said.
“Dry cocoa beans coming in from Aitape and Dagua areas have been turned away at the Hawain check point.
“Even beans coming in from Maprik have been turned away.
“Dry beans are piling up in most villages.
“The cocoa exporters usually have their price contract agreement with their buyers.
“The pandemic is causing loss to their businesses.
“Cash flow among the cocoa growers has dropped.
“Most fermentaries bring back money to villages in order for wet bean to be bought to maintain the cash flow.
“About 2,000 plus cocoa bags are being piled in the villages.”
Meanwhile, Wobar said that last year, 122,760 bags of cocoa weighing about 7,670 metric tonnes were exported from Wewak. That’s about K53 million from cocoa being exported out from the Sepik region,” he said.
“Since January this year, 6,400kg of dried cocoa beans weighing about 400 metric tonnes have been purchased by our exporters and exported. 100 metric tonnes or 1,600 bags of dried cocoa beans will lose their quality if the situation continues.”
He said that roll out of EU Streit programme had also stopped. pending the 14-day lockdown.