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Today's Headlines Coffee Production

  • Indonesia's Gayo Arabica Coffee Awarded Protected Status by EU

    Indonesia's Gayo Arabica Coffee Awarded Protected Status by EU

    For the first time a product from Indonesia obtained the Protected Geographical Indications (PGI) status from the European Union (EU). The product is "Kopi Arabika Gayo", a coffee made from the high-quality arabica beans and is cultivated in the Gayo highlands of Indonesia's province of Aceh on the northern tip of Sumatra. This special status means the product will benefit from the same protection and market added-value compared to EU protected products.

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  • Coffee Production of Indonesia to Rise or Fall in 2017?

    Coffee Production of Indonesia to Rise or Fall in 2017?

    Production of coffee in Indonesia is estimated to grow around 10 percent to the range of 650,000 - 700,000 tons in 2017, says the Indonesia Coffee Exporters Association (GAEKI). In 2015 Indonesia's coffee production is estimated to have fallen to 600,000 tons due to the impact of El Nino, a weather phenomenon that brought dry weather to Southeast Asia hence plaguing harvests of agricultural commodities. GAEKI Chairman Hutama Sugandhi added that Indonesia's coffee export performance also declined in 2016.

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  • Indonesia's Coffee Output Down on El Nino and La Nina

    Indonesia's Coffee Output Down on El Nino and La Nina

    Dry weather caused by El Nino is expected to lead to a ten percent decline in Indonesia's coffee production in 2016. El Nino, which occurs once every five years on average, involves periodical warm ocean water temperatures off the western coast of South America that can cause climatic changes across the Pacific Ocean, leading to severe droughts in key agricultural-producing countries in Southeast Asia, including Indonesia. The El Nino in 2015-2016 is the worst one in nearly two decades.

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  • Coffee Export Indonesia Targeted at $1.4 billion in 2016

    Coffee Export Indonesia Targeted at $1.4 billion in 2016

    Indonesian Trade Minister Thomas Lembong targets an increase in the value of Indonesia's coffee exports of between 10 - 15 percent (y/y) to around USD $1.36 billion in 2016, up from USD $1.19 billion one year earlier. One key strategy to boost Indonesian coffee export is by broadening the export markets through promotional activities. An example is the Specialty Coffee Association of America (SCAA) Expo 2016, to be held between 14-17 April 2016 in Atlanta, Georgia (USA). At this event a total of17 Indonesian specialty coffees will be on display.

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  • Coffee Producer Classic Worldwide International Group Expands to Indonesia

    Coffee Producer Classic Worldwide International Group Expands to Indonesia

    Malaysia-based coffee producer Classic Worldwide International Group (CWIG) will soon start operations at its coffee factory in Indonesia. The factory, located in Banten (West Java), is expected to be ready for production at the end of the second quarter this year with a designed production capacity of 500,000 boxes of coffee per month. Output will be branded Kopi Pak Belalang. The management of CWIG said the plant will require about 100-150 local workers. Besides supplying the domestic market, output will also be exported to Malaysia.

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  • El Nino Causing Lower Coffee and Crude Palm Oil Production in Indonesia

    El Nino Causing Lower Coffee and Crude Palm Oil Production in Indonesia

    Apart from the Indonesian rupiah which has hit its weakest level since the Asian Financial Crisis 17 years ago, the ongoing El Nino (the weather phenomenon that brings drought to Southeast Asia) may be the strongest since 1997-1998. This means that output of agricultural commodities is to decline (but which should have a positive impact on prices). Coffee production in Indonesia is estimated to fall by seven percent to 581,000 metric tons in 2016 from an estimated 625,000 tons this year.

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  • Coffee Output Indonesia Affected by El Nino, Traders Switch to Vietnamese Robusta

    Coffee Output Indonesia Affected by El Nino, Traders Switch to Vietnamese Robusta

    Traders expect that Indonesia’s coffee production will be negatively affected by the El Nino weather phenomenon. Due to concern about Indonesia’s 2016/2017 season robusta output, European roasters are reportedly set to raise robusta imports from Vietnam, the world’s top robusta grower, or low-quality arabica from Brazil, the world’s top arabica grower.

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  • Indonesian Coffee Export & Production Growing, Vietnam still Hoarding

    Indonesian Coffee Export & Production Growing, Vietnam still Hoarding

    Indonesian coffee shipments to Europe have risen on the back of the weak rupiah and larger coffee harvest. Robusta bean exports from the island of Sumatra grew 22.1 percent year-on-year in June 2015. Meanwhile, European traders expect these strong shipments to continue into July. The Indonesian rupiah is the worst-performing emerging currency in Asia tracked by Bloomberg, weakening about 7.2 percent against the US dollar so far this year. The positive side of a weak currency is that the country's exports become more attractive.

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  • Coffee Production & Export Indonesia to Improve unless El Nino Appears

    Coffee Production & Export Indonesia to Improve unless El Nino Appears

    Due to the prolonged dry season impacting on harvests, coffee production in Indonesia as well as coffee exports from the world’s third-largest coffee grower continued to decline. Based on the latest data from the International Coffee Organization (ICO), Indonesia’s coffee output plunged 23 percent to 540 million kilograms in the period April 2014 to March 2015 compared to the same period in the previous year, while Indonesia’s coffee exports declined to 336 million kilograms from 612 million kilograms over the same period.

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  • Global Demand for Indonesian Luwak Coffee (Kopi Luwak) Declined

    Global Demand for Indonesian Luwak Coffee (Kopi Luwak) Declined

    The Central Java branch of the Association of Indonesian Coffee Exporters (AEKI) said that demand for luwak coffee (Indonesian: kopi luwak), an Indonesia specialty coffee and known as the world’s most expensive coffee, has been in decline since 2013. Luwak coffee is an extraordinary type of coffee as it is brewed from beans that have passed through the digestive system of the Asian palm civet cat. This labour-intensive production process and its scarcity on the global market cause luwak coffee’s expensive price.

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Latest Columns Coffee Production

  • Commodity Watch Indonesia: Coffee Production Under Pressure

    Commodity Watch Indonesia: Coffee Production Under Pressure

    Indonesia's Agriculture Ministry expects the nation's coffee production to reach 674,636 tons in 2018, up a modest 0.9 percent year-on-year (y/y) from Indonesia's coffee production in 2017 (668,677 tons). If the ministry's estimate is correct, then it would be the second straight year of meager coffee production growth. From 2016 (when Indonesia produced a total of 663,871 tons) to 2017, growth of coffee production reached 0.7 percent (y/y).

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  • Coffee Industry Indonesia Update: Declining Export & Production

    Coffee Industry Indonesia Update: Declining Export & Production

    The United States Department of Agriculture (USDA) expects Indonesia's coffee exports to fall in the 2016/2017 season due to rising domestic coffee consumption in Indonesia and low productivity. In the January-May 2016 period coffee exports from Indonesia fell 33.9 percent year-on-year (y/y) to 117,000 metric tons from 177,000 metric tons in the same period one year earlier. Indonesia's main coffee export destination markets are the USA, European Union (EU), and Japan.

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  • Agriculture in Indonesia: Update on Rice and Coffee Production

    Agriculture in Indonesia: Update on Rice and Coffee Production

    Indonesia’s Agriculture Ministry estimates that Indonesia’s rice harvest will not be severely affected by the El Niño weather phenomenon this year. The Ministry expects to see a rice production of at least 70 million tons of unmilled rice in 2014, just 1.9 percent down from the 71.3 million tons of rice that was produced last year. Meanwhile, Indonesia may see a record coffee harvest in 2015 as recent rainfall in the important coffee-producing regions have supported the development of cherries.

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  • Coffee in Indonesia: Lower Output but Higher Earnings on Brazil Drought

    Coffee in Indonesia: Lower Output but Higher Earnings on Brazil Drought

    Brazil has been in the spotlight as recent developments in this country influence global prices of coffee and sugar. There are currently two factors at play in Brazil, the world’s leading coffee and sugar supplier. First, ongoing drought has sharply pushed up the price of coffee. Secondly, the market is hopeful that reform-minded candidate Aécio Neves wins the Brazilian presidential election in the second voting round. This has given Brazil’s currency (real) a boost against the US dollar, and thus impacted on prices of coffee and sugar.

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