2002 coffee output to remain below projections: AEKI<\/p>\n
Adianto P. Simamora
\nThe Jakarta Post
\nJakarta<\/p>\n
The country's coffee output and exports will continue to
\nremain below yearly targeted levels next year as low
\ninternational prices for the commodity have discouraged local
\ncoffee growers, according to an executive of the Association of
\nIndonesian Coffee Exporters (AEKI).<\/p>\n
AEKI vice chairman Nuril Hakim said on Wednesday that the
\nIndonesian 2002 coffee output was projected to reach around
\n420,000 tons, with total exports of between 300,000-320,000 tons.<\/p>\n
\"Next year's output level will remain the same as this
\nyear's,\" he told the Jakarta Post.<\/p>\n
As of October this year, the country's coffee exports stood at
\n299,000 tons, he said.<\/p>\n
According to Nuril, the main problem faced by local coffee
\ngrowers is the persisting pressure on coffee prices which have
\nplunged to historical lows.<\/p>\n
Coffee prices have long been under pressure amid an oversupply
\nproblem in the market due to abundant supplies from key coffee-
\nproducing countries particularly Vietnam and Brazil.<\/p>\n
The low price has discouraged many local growers to take
\nproper care of their crops which resulted in drop of the
\ncountry's coffee output.<\/p>\n
Indonesia used to produce about 500,000 tons of coffee a year.
\nMore than 85 percent of its total production goes to the export
\nmarket.<\/p>\n
The provinces of Lampung, Bengkulu and South Sumatra - the
\ncountry's key producing areas - account for 75 percent of the
\ntotal coffee output.<\/p>\n
Many efforts have been launched by key producing countries to
\nprop up the prices of the commodity.<\/p>\n
According to Nuril, key producing countries including
\nIndonesia, Vietnam and India would soon hold a meeting in January
\nto discuss measures in an effort to prop up the sagging coffee
\nprices.<\/p>\n
\"The (fate of the) coffee price now mainly depends on
\nVietnam. It will improve once Vietnam is willing to cut their
\nsupplies on the international market,\" he said.<\/p>\n
Nuril said that in the upcoming meeting, Indonesia would urge
\nVietnam to reduce its production next year.<\/p>\n
Vietnam, which exports most of its coffee, is the world's
\nlargest robusta exporter and the second largest coffee exporter
\noverall after Brazil.<\/p>\n
Vietnam's annual coffee output totals 900,000 tons, while
\nBrazil produces 1.95 million tons.<\/p>\n
Brazil and Vietnam jointly control 38 percent of the world's
\ntotal coffee production of 6.84 million tons.<\/p>\n
Previous negotiation talks have failed to seek a solution to
\nthe plunging coffee prices.<\/p>\n
In Indonesia, some coffee growers have complained that they've
\nbeen suffering losses as output price is lower than production
\ncosts.<\/p>\n
\"Many local coffee growers can no longer afford the higher
\nproduction cost, so they could not cultivate their trees
\nproperly,\" one coffee traders said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/2002-coffee-output-to-remain-below-projections-aeki-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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