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Indonesia Sees 2009 Coffee Output up about 3 Pct

Source: Reuters
02/07/2009

Jakarta, July 2 - Indonesia's coffee output is forecast to grow by about 3 percent to 689,000 tonnes in 2009, an agriculture ministry official said on Thursday, while exports were expected to be steady.

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Indonesia, the world's second-biggest robusta producer, may export 469,000 tonnes of coffee beans this year, little changed from 2008, said Achmad Mangga Barani, director general of plantations at the ministry.

"We may only see output growth of just 2-3 percent because there is no pick up in harvest areas," Barani said.

He said the output estimate comprised 557,190 tonnes of robusta, with higher-value arabica beans accounting for the rest.

The performance of exports would depend on a recovery in prices, but at this stage it was too soon to predict whether prices would remain low or rebound.

The Indonesian Coffee Association has projected coffee exports could drop as much as 30 percent this year from around 448,311 tonnes last year due to lower demand and prices.

Farmers normally hold back stocks if prices are too low.

Robusta prices tumbled to their lowest in nearly three years in both Indonesia and rival Vietnam last week after London futures slumped to a lifetime low.



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