Indonesian farmers are expected to harvest another 50 – 60% the coffee Within the next five years, said Pranoto Soenarto, vice president of the Indonesian Coffee Exporters and Exporters Association.
“I urge all stakeholders, especially roaster mills, to cooperate to help farmers with funding and by increasing productivity,” Pranoto Soenarto said in a party interview. industrial seminar margins in Bandung.
The increase in supply from this Southeast Asian country could put pressure on futures contracts robusta coffee has dropped to its lowest level since 2008, when trading began, according to The Business Times.
Indonesia, the country was once a manufacturer arabica coffee Largest, will also compete with manufacturers from Vietnam and Brazil.
Indonesia is preparing a plan to increase productivity with a number of other stakeholders including the Coffee and Cocoa Research Institute and the Indonesian Ministry of Agriculture.
The plan is intended to help farmers use good quality fertilizers and seeds, find ways to protect crops from pests and provide financial support.
Although coffee price London robusta increased by 2% to close at US $ 1,251 / ton on October 18, but has dropped more than 27% in the past year.
Peatland Coffee's robusta accounts for about 72% of Indonesia's total production, while arabica coffee accounts for about 18% and the rest is liberica and excelsa.
About 2 million Indonesian farmers are involved in growing coffee in the country. Planted area is estimated at 1.2 million hectares. Total production this year is estimated at about 700,000 tons.
The country's vast peat areas in the islands of Sumatra and Borneo provide a good opportunity to increase liberica coffee production, according to Myrna Safitri, deputy director of the Peatland Restoration Agency. Indonesia has about 15 million hectares of tropical peat land.
The Coffee Association hopes the demand abroad will increase, especially in China, where the Western lifestyle of young people creates coffee culture in the world's second largest economy, he said. Pranoto said.
China's coffee consumption has increased more than 9 times in the past decade to 189,300 tons in the 2018-2019 crop, according to data from the US Department of Agriculture.
