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)