Indonesia's cocoa output seen lower as El Nino effects linger

JAKARTA, July 27 (Reuters): Indonesia's cocoa output is set to fall again this year as the effects of last year's El Nino weather pattern linger, the cocoa farmers' association said on Thursday.

Last year's dry season was the most severe since 2019 as the El Nino phenomenon lasted longer than usual, bringing drought that hurt yields, including for cocoa.

"Production is still impacted by last year's El Nino although several plantations areas have started to produce yields," said Arif Zamroni, head of the cocoa farmers' association.

He estimated this year's production at up to 230,000 metric tons, down from last year's output of up to 315,000 tons.

"We are still recovering after El Nino hit us since October last year, it might be more stable in June," Arif said.

The industry ministry said the country's cocoa output fell 8.3 per cent per year over the 2015-2023 period.

To boost production, Indonesia plans to use funds from its palm oil export levy to finance the development of the cocoa and coconut sectors.