30 • Indonesia • C&CI May 2013
Good weather makes for a better crop in Indonesia
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ublished in December 2012, the latest report on coffee production in Indonesia by the US Department of Agriculture’s Global Agricultural Information Network (GAIN) predicts that Indonesia’s coffee production will increase to 9.7 million bags green bean equivalent (GBE) in marketing year MY 2012/2013 compared to 8.3 million bags in MY 2011/2012, an increase which it attributes principally to good weather during the harvest period.
“Indonesia’s higher coffee production will result in lower imports, higher exports, and increased ending stocks,” said the report. It noted that persistently dry conditions during the harvest period in most coffee producing provinces had helped coffee farmers to achieve higher yields and grow better quality coffee. Good weather also supported farmers’ post-harvest activity, such as drying. Only Northern Sumatra experienced a harvest period which overlapped with the rainy season. Normally, Indonesia’s rainy season runs from October to March. Rainfall data from the Indonesian Weather Service (BMKG) showed that northern Sumatra received moderate rainfall in September and October 2012. The BMKG forecast that rainfall in northern Sumatra would remain moderate through January. The rainfall situation suggested that coffee farmers in that part of Sumatra should have no significant disturbances in their harvest and post-harvest activities. Northern Sumatra accounts for approximately 15 per cent of total Indonesian coffee production.
Increased production
reflected in exports The report said that, as a result of increased production, Indonesia would probably export more coffee. It said that exports were expected to increase to 8.1 million bags GBE in MY 2012/2013 compared with 7.18 million bags GBE in MY 2011/2012. In contrast, imports will
The significant fall in production in Indonesia in 2011 has been counteracted somewhat by a better year in 2012. Domestic consumption continues to increase, driven partly by Indonesia’s growth in the coffee shop sector and partly by continued demand for 3-in-1 mixes of a type that are particularly popular in the country
Good weather towards the end of 2012 helped Indonesia’s coffee farmers
Mixed coffee products, or 3-in-1 coffee, are also a major driver of Indonesian coffee consumption. Mixed coffee products are unique in that they are a hybrid between R&G and instant coffee.
Powdered R&G and instant coffee powder is mixed with sugar and non-dairy creamer into small packets to make 3-in-1
decrease from 700,000 bags GBE in MY 2011/2012 to 350,000 bags GBE in MY 2012/2013. A significant drop in production in 2011 resulted in low carry-over stocks in the first quarter of 2012. As a result, Indonesian coffee exports fell sharply, by 45 per cent, from nearly 1.8 million bags GBE in the first quarter of 2011 to 0.97 million bags GBE in the first quarter of 2012.
In contrast, higher levels of production in 2012 would be expected to result in larger carry-over stock in the first quarter of 2013, at around 20 per cent of total 2012 production. The report predicts that Indonesia’s coffee export in the first quarter of 2013 would be at a similar level to those in the first quarter of 2011 (that is, 1.8 million bags GBE).
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