{"id":3545,"date":"2014-10-10T09:00:09","date_gmt":"2014-10-10T16:00:09","guid":{"rendered":"http:\/\/indogomagazine.com\/indogo\/?p=3545"},"modified":"2014-10-28T12:52:02","modified_gmt":"2014-10-28T19:52:02","slug":"coffee-export-surge","status":"publish","type":"post","link":"http:\/\/indogomagazine.com\/indogo\/coffee-export-surge\/","title":{"rendered":"Coffee Export Surge"},"content":{"rendered":"

Indonesia coffee exports \u00a0surge as drought hits Brazil.<\/strong><\/p>\n

Despite lower national production, the country\u2019s foreign exchange earnings from coffee exports is expected to increase by at least 10 percent this year, thanks to the surge in the commodity\u2019s price in the global market.<\/p>\n

The Trade Ministry\u2019s director general for export development, Nus Nuzulia Ishak, said in Jakarta on Friday that the long drought that had hit the world\u2019s largest coffee producer and exporter, Brazil, had resulted in a sharp increase in the global price of coffee.<\/p>\n

\"Nus<\/a>

The Trade Ministry\u2019s director general for export development, Nus Nuzulia Ishak (left).<\/p><\/div>\n

Nus Nuzulia said that with the surging prices, she was upbeat the value of Indonesia\u2019s coffee exports would increase by around 10 percent to US$1.3 billion from $1.17 billion last year.<\/p>\n

\u201cWe will benefit from the crop failure experienced by Brazilian coffee growers as their markets are switching to our coffee,\u201d she said at the 29th Trade Expo Indonesia.<\/p>\n

Brazil, which produces about one-third of the world\u2019s coffee and about half the world\u2019s Arabica beans, has been experiencing an extended drought, which has resulted in a decline in its production this year.<\/p>\n

According to Brazil\u2019s National Coffee Council, the country\u2019s coffee output this year may fall by at least 18 percent to 40.1 million bags this year after a 3.1 percent slide last year.<\/p>\n

Value of coffee exports expected to increase by 10% to $1.3 billion this year.\u00a0Price of Arabica beans almost doubles, as Brazilian production affected.\u00a0More than 80% of RI\u2019s coffee production is exported.<\/p>\n

The drought-hit harvest in Brazil this year, along with forecasts of more dry weather in the Latin American country, had caused the price of Arabica beans \u2014 most commonly used in espressos and cappuccinos \u2014 to hit its highest level in two-and-a-half years, The Wall Street Journal recently reported.<\/p>\n

According to Bloomberg, Arabica coffee prices reached US$2,255 per ton, last week, their highest level since Jan. 20, 2012.<\/p>\n

Indonesian Specialty Coffee Association (AKSI) chairman Leman Pahlevi said that Indonesia\u2019s own Arabica coffee was currently being exported at a price of $100 per kilogram, while luwak coffee was priced at between $150 and $200 per kg for the global market.<\/p>\n

\"Coffee<\/a>

Indonesian Coffee Farmer<\/p><\/div>\n

More than 80 percent of the country\u2019s coffee output was exported, he said.<\/p>\n

\u201cDomestic coffee consumption is still relatively low. Only 10 to 15 percent of the total coffee output goes to the domestic market,\u201d he said, adding that Indonesia\u2019s annual coffee consumption was only 600 grams per capita, lower than in Brazil, whose consumption is 3 kg per capita.<\/p>\n

Leman said Indonesian coffee could look forward to a bright future, as both production and demand were expected to be relatively stable.<\/p>\n

He said that while the country\u2019s coffee production between October last year and September this year had fallen to 500,000 tons, down from an annual average output of 700,000 tons, he remained optimistic that output over the coming year would be higher.<\/p>\n

\u201cThe decline was mainly caused by a longer-than-average dry season last year. For the October 2014 to September 2015 period, we expect our output to increase to 600,000 tons,\u201d he said, adding that his association defined the coffee season as running from October through September.<\/p>\n

Meanwhile, Deputy Trade Minister Bayu Krisnamurthi previously said that he was pessimistic about the country meeting this year\u2019s coffee output target of 450,000 tons.<\/p>\n

The country\u2019s total coffee exports hit 192,985 tons in the first seven months of this year, 33.05 percent down from the same period last year, according to the ministry\u2019s data.<\/p>\n

Bayu said on Friday that Indonesia was currently the world\u2019s third- or fourth-largest coffee producer, while Brazil and Vietnam were ranked first and second.<\/p>\n

Source: Khoirul Amin \/ The Jakarta Post<\/p>\n","protected":false},"excerpt":{"rendered":"

Indonesia coffee exports \u00a0surge as drought hits Brazil. Despite lower national production, the country\u2019s foreign exchange earnings from coffee exports is expected to increase by at least 10 percent this year, thanks to the surge in the commodity\u2019s price in the global market. The Trade Ministry\u2019s director general for export development, Nus Nuzulia Ishak, said […]<\/p>\n","protected":false},"author":1,"featured_media":3549,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[51],"tags":[],"class_list":["post-3545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"yoast_head":"\nCoffee Export Surge - IndoGo!<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coffee Export Surge - IndoGo!\" \/>\n<meta property=\"og:description\" content=\"Indonesia coffee exports \u00a0surge as drought hits Brazil. 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