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Sunday, November 27, 2011

Local Coffee Price Weakens As Exports Down

Price of arabica coffee beans on the market weakened again into North Sumatra-Rp53.000 Rp52.000 per kg due to the export prices are still depressed or stay in the range of 7.1 U.S. dollars per kg from the previous 7.5 to 7.6 U.S. dollars per kg.
"Yet again the supply of coffee tightly. Earlier,

the price is still Rp54.000 even Rp60.000 per kg," said Vice Chairman and field Speciality Coffee Industry Coffee Export Association of Indonesia (AEKI) of North Sumatra, Saidul Nature, in Medan, on Sunday.

The weakening of coffee prices in international markets is the impact of the economic crisis in the United States and Europe that makes the demand is weak.
Prices are weakening is expected to continue until the end of the year because of the crisis in the two countries were still going on.
According to him, demand from abroad could rise again if the selling price is lower than 7.1 U.S. dollars per kg.
But the problem, exporters in producing countries, including Indonesia, hard hit because the selling price in the domestic prices are also more expensive due to supply not much.
Despite still being the harvest, production is not much in producing countries, especially in Indonesia.
"Still weak demand and vice versa expensive prices in the last local coffee trade makes it more quiet," said Saidul.
Except to cover the contract, transaction coffee exports was minimal, because exporters and importers of mutual restraint to not get stuck with larger losses. 
Head of the Central Statistics Agency (BPS) of North Sumatra, Suharno, said the value of coffee exports include tea and spices in January-September rose 62.45 percent from a year ago or reached 344.502 million U.S. dollars triggered selling price increases.
The high increase in export value, causing the class of goods was still in fourth position as provider of foreign exchange earnings of the largest in North Sumatra, which until September had reached 8.961 billion U.S. dollars,
In percentages, the export value of coffee, tea and spices that Sumut of 3.84 percent, after the largest contributed by fats and oils of animal / vegetable 39.13 per cent, rubber and rubber goods 30.84 percent and a variety of chemical products 6, 14 percent.(BD)

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