Coffee exports Bothered

MEDAN :North Sumatra coffee exporters are having trouble exporting because local prices are more expensive than prices abroad.
"With coffee prices at random which of Rp58.000 per kg, the export price should be U.S. $ 7.5 per kg, but in fact importers could only buy 7.15 U.S. dollars per kg, how will export," said one staff exporters of coffee exports North Sumatera, Dharma, in Medan, Wednesday, February 8, 2012.
Local prices are expensive because of tight supply triggered by falling production.
Meanwhile, prices in the international market is still in the range of 7.1 dollars per kg was the impact of weaker demand due to economic crisis and efforts to suppress the price that the importer is considered to be too high.
Asosasi chairman of Indonesian Coffee Exporters (AICE), Suyanto Hussein, said the export was somewhat weakened by the importer as well as the impact of reduced purchases from the manufacturer declining demand due to economic crisis in the United States and Europe.
"Exports are weakening also purportedly because local prices higher than export prices," he said.
Local prices are expensive itself is triggered by the trend decline in coffee production in Indonesia.
Indonesia's coffee production this year expected to be lower than 2011 or lived 600 thousand tons due to weather factors.
Lower production refers to the continued rain until the end of 2011 and early 2012 that it interferes with the process of fertilization of coffee that was in the flower.
"Production is down automatically lead to reduced exports, especially local and export prices are not appropriate," he said.
Volume and a depressed coffee prices has actually been going on since a few months at the end of 2011.
Although the volume of exports fell, but because of previous trade is good, the total trade of coffee in the last year increased.
Data from the International Coffee Organization (ICO) said Indonesia's coffee exports from 1 November 2010 to October 31, 2011 reached 6.05 million bags or 363 411 tonnes.
Volume was up 2.72 percent of coffee exports in the year before that as many as 5.89 million bags or 353,659 tons.(Ant)