Planned export cuts pushes price of robusta coffee<\/p>\n
Adianto P Simamora, The Jakarta Post, Jakarta<\/p>\n
Although a plan by Indonesia and Vietnam, the world's biggest
\ncoffee producers, to limit robusta coffee exports has yet to come
\ninto effect, the price of the commodity had increased sharply
\nover the past week, the Association of Indonesian Coffee
\nExporters (AEKI) said.<\/p>\n
Nuril Hakim, secretary general of AEKI, said that the coffee
\nprice had risen by Rp 500 per kilogram or about 13 percent to Rp
\n4,200 per kilogram (about 50 cents dollar) last week, from the
\naverage of Rp 3,700 previously.<\/p>\n
He said that the increase was due to moves by traders to
\npurchase large quantities of coffee on the market to anticipate
\nthe planned export cuts by Indonesia and Vietnam.<\/p>\n
\"This is a good news for local farmers who saw low prices over
\nthe past three years,\" he told The Jakarta Post over the weekend.<\/p>\n
Nuril predicts that if the two largest producing countries
\nremain committed to the planned export cut scheme, the price of
\nthe commodity could easily increase to $1,000 per ton, or about
\nRp 8,000 per kilogram at the grower level here this year.<\/p>\n
The Vietnam Coffee and Cocoa Association (VICOFA) and AEKI
\nsigned a Memorandum of Understanding on robusta coffee in June in
\nHanoi.<\/p>\n
The MoU contained no concrete commitments, but AEKI admitted
\nthat the two countries, which contributed for around 60 percent
\nof the world's robusta production, had in principle agreed to cut
\nsome 50 percent of their exports.<\/p>\n
\"We have not yet reached a final decision but we, in
\nprinciple, have agreed to cut 50 percent of our exports this year
\nto help prop up prices and increase growers' income,\" Nuril said.<\/p>\n
He said that Indonesia would cut its exports by 170,000 tons,
\nwhile Vietnam would cut its exports by 325,000 tons this year.<\/p>\n
\"We will meet sometime this month to further discuss how to
\nimplement the scheme,\" Nuril said.<\/p>\n
Indonesia produces around 420,000 tons of coffee each year, of
\nwhich more than 85 percent is exported.<\/p>\n
Vietnam's coffee production leapt from around 413,600 tons in
\n1997-1998 to 900,000 tons in 2000-2001. For the 2002-2003 crop
\nyear, VICOFA has forecast a total output of 520,000 tons.<\/p>\n
Coffee prices had been falling over the past three years due
\nto oversupply.<\/p>\n
The falling price of the commodity prompted some coffee
\ngrowers in Lampung, the country's largest coffee producing area,
\nto cut down their trees and plant vegetables, making it
\nimpossible for them to enjoy the possibility of higher prices
\nnext year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/planned-export-cuts-pushes-price-of-robusta-coffee-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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