Lampung coffee prices plunge

Lampung coffee prices plunge

JAKARTA (JP): Prices of Lampung's robusta coffee have plunged
over the last two months, just before the end of the harvesting
season in the province's major production areas.

Prices of medium-quality coffee yesterday reached a low of Rp
2,600 (US$1.13) per kilogram, compared to Rp 3,550 in the
beginning of June.

But yesterday's prices were higher than predicted by the
Ministry of Industry and Trade's Lampung office, which expected
June prices to reach Rp 2,815 and to fall further to Rp 2,250 per
kg.

Total transactions in Lampung's coffee auction markets during
the June-July period reached Rp 188.6 million, with trading
volumes reaching 66.6 tons from nine auction sessions.

The head of the office, Deddy Gurnadi, was quoted by Antara as
saying in Bandar Lampung yesterday that the price fall was mainly
caused by dropping prices on the international market.

The news agency reported that coffee farmers, village
cooperatives and traders were now more eager to sell their coffee
on the auction market, where prices are considered more
transparent.

Farmers from the Pagelaran, Talang Padang and Pulau Panggung
districts of South Lampung flooded the auction markets -- still a
pilot project of the local administration -- to sell and seek
information on coffee prices.

The auction markets were opened in two districts, Pagelaran
and Pulau Panggung, which are among the province's main coffee-
production areas.

Deddy said the markets were established as meeting places for
farmers, village cooperatives, traders, buyers and exporters. The
markets are also expected to help create a transparent pricing
mechanism and encourage farmers to produce higher quality coffee
to boost exports. (pwn)