RI expects a boost in coffee earnings

RI expects a boost in coffee earnings

JAKARTA (JP): Indonesia, one of the world's leading coffee
producers, expects a 64.17 percent increase in its coffee export
revenues to around US$800 million in the new coffee season which
begins in November, an executive says.

"Things are looking good this time around for producers,"
Usman Sudargo, vice chairman of the Association of Indonesian
Coffee Exporters, told The Jakarta Post yesterday.

Usman also said the exporters association and the Ministry of
Agriculture will support the retention plan recently announced by
Brazil and Columbia which will begin on Jan. 1.

Brazil and Columbia announced their retention plan two weeks
ago after the commodity's price continued to fall from $1.80 per
pound to $1.50 two weeks ago.

The announcement had propped up coffee prices to about $1.72
per pound yesterday.

Earlier this year, the Association of Coffee Producing
Countries (ACPC) announced a retention plan requiring an export
cut of 20 percent if prices fell below 60 U.S. cents per pound
and 10 percent if prices hovered at between 60.01 and 65 cents.
No retention was necessary if prices exceeded 65 cents.

Usman declined to specify what he meant by "support". He said
that Indonesia will wait for the next meeting of the ACPC before
taking any "concrete action."

"We still don't know where and when the next meeting will be,"
he said.

Usman also said that Indonesia supports the retention plan
because it wants the excessive stocks of consumer countries
reduced. (hdj)