May 2013 C&CI • Indonesia • 31
Indonesian consumption is expected to grow from 2.36 million bags in MY 2011/2012 to 2.54 million bags in MY 2012/2013. This growth in consumption is primarily driven by growth in instant (soluble) and mixed coffee products, as well as significant national growth in the coffee shop sector.
Consumption continues upward trend
As the report explained, Indonesian consumption is made up of two major segments, roast and ground (R&G) and soluble. R&G coffee accounts for 70 per cent of total consumption. 30 per cent of total Indonesian consumption is instant coffee. Mixed coffee products, or 3-in-1 coffee, are also a major driver of Indonesian coffee consumption. Mixed coffee products are a 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. The packets are sold at street kiosks and small stores throughout Indonesia and are consumed at every socio-economic level. One packet of mixed 3-in-1coffee sells for roughly US$0.10- 0.15 per packet.
Mixed coffee
products popular PT Mayora, Nestlé Indonesia, and PT Indofood introduced 3-in-1 coffee products into the Indonesian market in the late1980s. Other companies followed in the 1990s by introducing Kapal Api and ABC brands. The company introduced another two brands, Good Day, in 2001, followed by Grande Java Latte and Fresco in 2012. More recently, the mixed coffee market has seen a number of new players that are introducing ‘premium’ products. These tend to include other flavours and food ingredients such as vanilla latte, mocha, chocolate, cappuccino, cafe latte, ginger, ginseng, royal jelly, vitamins and artificial sweeteners.
The growing number of coffee shops in large and secondary cities around the archipelago is another strong driver of consumption. Many coffee shops use local brand names and serve specialty Indonesian coffees, including civet coffee, Toraja, Kintamani, Mandheling, Gayo, and Flores. International chains such as Starbucks and Coffee Bean are also popular. The authors of the GAIN report expect that Indonesia’s large population of young people, rapid urbanisation and expanding middle class will continue to drive consumption growth. C&CI
Increased production is likely to enable Indonesia to export more coffee
Farmer Field Schools help
tackle cocoa pests and diseases Pest and disease control forms a key part of Cargill’s sustainable cocoa programme, which was recently extended to Sulawesi. Currently, more than 50 per cent of the Indonesian cocoa crop is lost to pests, such as cocoa pod borer, and diseases, such as black pod and vascular-streak dieback. For this reason management of pests and diseases is an important part of Cargill’s Farmer Field School training, which focuses on teaching good agricultural practices to improve yield and quality of crop and incomes of farmers. Cocoa pod borer is an insect, also known as the cocoa moth (Conopomorpha cramerella). This insect is difficult to eradicate as its life cycle takes place inside the cocoa pod, which is difficult to reach with pesticides. Treatment focusses on prevention, by keeping land clean by clearing dead leaves and branches. This removes the shelter which the insect needs to pupate. Timely harvesting is also important to prevent the pod borer larva from completing its lifecycle Black pod is a fungal disease caused by the fungus Phytophthora spp, which induces pod rotting and stem canker. Treatment takes the form of crop sanitation, involving the removal of infested pods is an important method of control of the disease. Vascular-streak dieback is a fungal disease that is particularly prevalent in southeast Asia. The fungus thrives in wet conditions, with its growth slowed and ultimately halted in dry conditions. This means it is a particular problem when the dry season in not as dry as usual, which occurs in southeast Asia when the La Niña weather phenomenon results in high rainfall. Treatment takes the form of good pruning practice, in particular the removal of infected branches, which is vital. The training undertaken by Cargill in its Farmer Field Schools concentrates on the treatment of these pests and diseases, and the good agricultural practices that can play an important role in combating them. Farmer Field Schools are part of Cargill’s sustainable cocoa programme in Indonesia, which began in September in 2012. This aims to train 1,000 cocoa farmers in good agricultural practices by 2015, and is part of Cargill Cocoa & Chocolate’s ambition to secure long term sustainability of cocoa production in cocoa producing countries.
Farmer Field Schools are helping Indonesian cocoa farmers to tackle pests and diseases
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