Main Asian coffee producers to boost consumption

Main Asian coffee producers to boost consumption

NUSA DUA, Bali (Reuter): Leading coffee producers in Asia and
the Pacific will seek to boost consumption of the beverage as per
capita incomes in the fast-growing region rise, an Indonesian
official said yesterday.

Paian Nainggolan said the 14-member Association of Coffee
Producing Countries (ACPC) will examine ways to boost consumption
during a meeting on Thursday under the aegis of the Economic and
Social Commission for the Asia-Pacific region (ESCAP), an
affiliate of the United Nations.

The meeting on the island of Bali follows a three-day session
of the 61-member International Coffee Organization (ICO), which
groups producers and consumers.

"With the economic miracle sweeping across the Asia-Pacific
region, there's no reason for us not to consider increasing
coffee consumption in the region," Nainggolan, a former chairman
of the ICO's international coffee council, said.

He said producers in the region accounted for some 40 percent
of global robusta coffee output, and this was expected to exceed
50 percent by the year 2000.

The robusta variety is known for its bitter flavor and is
mixed with the more expensive arabica in portions that are
considered a trade secret. Arabica is mostly grown in Latin
America, while Asian and African countries grow robusta.

Indonesia is the world's largest producer of robusta and third
in overall coffee production after Brazil and Colombia.

Nainggolan said China would be one of the targets for
promoting coffee consumption.

"China will be one of the targets for promotion in 1997 for
the ICO," he said.

The London-based ICO estimates that some 100 million Chinese
have the purchasing power to drink coffee on a regular basis.

Nainggolan said ESCAP could help by undertaking a study on the
types of coffee people in the region would like to drink, and
another on ways to promote coffee consumption.

He said coffee consumption in the region was still relatively
low. For example, per capita consumption in Indonesia is 0.5 kg
(one lb) compared with 12 kg (26 pounds) in Norway.

"Indonesia has a very big potential," he said, adding that
annual consumption was around 120,000 tons among its 200 million
people.

Nainggolan also said that Asia-Pacific producers, as part of
their bid to boost consumption, would invite representatives from
consuming countries in the region to their future meetings.
He said growing affluence in the region would see more young
people drinking gourmet coffee.

The ICO said in a report that domestic consumption in coffee
exporting countries was expected to be 23.5 million 60-kg bags in
1996/97 (October/September) from 22.9 million in 1995/96.

ICO executive director Celsius Lodder said late last month
that the Far East and Eastern Europe held the best prospects for
future coffee consumption with high growth rates also expected in
other emerging markets like the Middle East and North Africa.