Manado, North Sulawesi, Indonesia – Good news for copra producers in North Sulawesi (Sulut). For the first time, this main commodity has risen above Rp. 9,000 per kilogram. The price of this commodity, Crude Coconut Oil has been the highest one along the history of copra in Sulut. Since the last two years copra price was slowly moved into Rp.5000 per Kg.
“Demand of cooking oil is high, as the demand of export market of copra is very high,” said the Head of Industry and Trade North Sulawesi Province, Sanny J. Parengkuan MAP last Friday. According to Sanny this price will continue to go up, concerning the copra production is not able to meet the demands of cooking oil in this area. “There are around 5 cooking oil manufacturers in North Sulawesi that need copra raw material to be re-exported,” Said Parengkuan in his office.
Sanny was right. One of the biggest coconut oil company in Sulut, PT. Bimoli or known as PT. Salim Ivomas stakes copra price for Rp.9600 per Kilogram (Kg). This producer under Salim Group has dared to stake in highest price, considering the high demand of raw material. “We welcome to do purchasing of Rp. 9600/kg. We dare to offer the high price because of the demand of CCO is very high, but supply of raw material is limited.” said one of staff management of PT. Bimoli last week.
Data given from Trade & Industry Agency of North Sulawesi, copra demands of 5 cooking oil manufacturers are 483,000 in one year. With the following details: PT. Agro Makmur Raya for 120,000 tons per year, PT. Multi Nabati Sulawesi with 180,000 tons per year, Salim Ivomas or PT. Bimoli 120,000 tons, PT. Cargill 60,000 tons, and Royal Coconut 3,000 tons. Unfortunately, urged Sanny, it was only 60 – 70 % of demands are fulfilled and idle capacity are still high. Because of lack of raw materials, as the comparison of consumption needs and the production of copra is not balanced. “We had to import from other areas to meet the demand, “he said.
The manager of Indofood Sulut, Danny Kawulusan admitted that copra demand for Bimoli is so high and can’t be fulfilled as it does not suit the product capacity. “In order to cover the lack of raw material, Bimoli was forced to do import from Palu, Ternate and Gorontalo,” admitted Kawulusan to Manado Post when he visited Manado Post office last year.
Meanwhile, copra that have been purchased from collectors near by the terminal of Karombasan and from Calaca area, has been staked around Rp. 8500 – 8600 per Kg. One of the collectors admitted that they are forced to raise the price as the supply has been decreased. “Even the products that comes from the producers are small,” said one buyer next to Megawati bridge, Singkil.
The Head of Domestic Trade Division, Janny Rembet confirmed that copra price in traditional market, as per monitored, has been fluctuated. “The monitoring on collector trade in the area of Calaca and Karombasan has almost approached to Rp. 8600 per kilogram, while in manufacture has reached beyond Rp. 9000 per kilogram,” he said.
One observer on agro economic field, Dr. Ellen Pakasi explained that the movement of copra price depends on capacity of copra production. To put high expectation on coconut in North Sulawesi is rather difficult, since the age of coconut trees in North Sulawesi are averaged above 60 years. On this range of age, production of coconut is going down. “Productivity of coconut will have around 1 ton per hectare when the range of age is under 60 years,” he said.
Source:
Manado Post, January 14th, 2011
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