6 November 2007 - Indonesian coffee exports are estimated to have fallen by 23.7% to 267,000 metric tons in the crop year ending Sept. 30 compared to a year ago, a senior industry association official said Tuesday.
This is partly due to a smaller coffee harvest which fell 18.7% to 447,000 tons in the 2006-07 crop year, said Rachim Kartabrata, executive secretary of the Indonesian Coffee Exporters Association.
"The harvest was delayed by nearly two months due to erratic weather, but it ended around the usual time by October so we had a shorter and smaller harvest," he said.
High domestic prices for coffee this year, which eroded its international competitiveness, contributed to the fall in exports. At one point, Indonesian coffee was being sold at the farmgate for $1,944/ton compared to free-on-board prices of around $1,850/ton overseas.
"The drop in coffee production volume sparked speculation by producers and traders who hoarded coffee and asked for prices higher than the international levels," said Kartabrata.
After accounting for 150,000 tons of coffee consumed domestically, Indonesia currently has around 30,000 tons of coffee in carryover stock, he said.
Indonesia is the second largest coffee producer in Asia.