The Jakarta Post, Jakarta
Indonesian coffee exports have declined steadily over the past five years and are expected to reach their lowest point this year, according to the Association of Indonesian Coffee Exporters (AEKI).
Rachim Kartabrata, an executive at AEKI, said in a recent interview that coffee exports this year were estimated to drop to 134,481 tons compared with last year's 258,849 tons, worth US$266.5 million.
He said that the primary factors contributing to the above problem included harvest failure, low productivity and a poor-quality product.
Rachim explained that the El Nio and La Nia weather disturb ances that occurred in 1997 and 1998 had caused the coffee har vest to fail.
The country's coffee production fell to 335,400 tons in 1999 from 344,400 tons in 1998 and 391,800 tons in 1997.
The drop in production turned Indonesia into the world's fifth-largest coffee producer, supplying only around 4.17 percent of world demand. In 1993, Indonesia was the world's largest producer, with a total output of 427,800 tons.
Rachim said that low productivity and poor quality products were making it hard for Indonesian coffee to compete with Viet nam, the world's second-largest producer after Brazil. Both Vietnam and Indonesia produce the same type of coffee: Robusta.
Right now, Indonesia had approximately 850,000 hectares of productive coffee plantations with a productivity rate of less than one ton per hectare, while in Vietnam, the productivity rate was around two to three tons per hectare, he explained.
Indonesia's traditional coffee market overseas includes the U.S., Japan and Europe.
Analysts said earlier that the poor quality of Indonesian coffee beans was linked to the current plunge in the price of the commodity on the international market due to an oversupply prob lem. The poor price has discouraged farmers from taking proper care of their crops. Some had even started to turn to other crops.
Coffee is the world's second-most widely traded commodity after oil, and provides jobs for millions of people in some of the world's poorest countries.
In an effort to increase the coffee price, AEKI and the Viet nam Coffee and Cocoa Association (VICOFA) signed a memorandum of understanding in June 2003 to cut coffee production by up to 50 percent.
The move has shown some positive signs as robusta coffee started to rise to $700 per ton from $550 per ton earlier in the year.
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