Aceh exports coffee

JAKARTA (JP): The Central Village Cooperative (Puskud) in Aceh will export 16 tons of Arabica coffee to Denmark at the end of this month.

Puskud chairman Hasbi Ali said on Wednesday this would be the first time the cooperative had exported coffee.

"The cooperative's coffee will be bought by the Central Cooperative of Denmark, which is willing to take Aceh's coffee without any quotas," he was quoted by Antara as saying.

He said the price of Arabica coffee in the international market had dropped to between US$2.3 and $2.5 per kilogram from $3.5 per kilogram due to oversupply in the Europe and Asian markets.

The price of Arabica coffee in Central Aceh also declined to Rp 10,000 per kilogram early this week from Rp 15,000 per kilogram a few months ago due to lower international prices and the strengthening of the rupiah against the US dollar.

The price of Aceh's Robusta coffee also dropped to Rp 8,000 per kilogram from Rp 11,500 per kilogram.

Aceh's total coffee exports almost doubled to 4,011 tons last year from 2,625 tons in 1997, with foreign exchange earnings from coffee exports rising to $13 billion from $10.3 billion

Denmark is the fourth largest overseas market for Aceh after Japan, the United States and Thailand. (cst)