In the past two years, the output of Indonesian coffee has declined due to bad weather.
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China's coffee exports declined at the beginning of this year. Farmers have a small supply of coffee because the output is not up to target. This is due to the very bad weather in the coffee center in the past two years.
If there is a drought or El Nino in coffee centers in 2015, and La Nina in coffee plantations in 2016, the rainfall is too high. This is due to the fact that many coffees wither before the harvest season.
Saimi Saleh, general manager of Indokom Citra Persada, said that the company exported about 4000 tons of coffee in the first quarter of this year, much lower than the 8000 tons in the same period the year before.
The coffee obtained by Indokom Citra Persada has always been supplied from Lampung, Jugang, Bengkulu and Jambi. The company's export markets are the United States and Europe.
According to him, despite the decline in production, international coffee prices are relatively stagnant. International coffee prices do not soar directly because of a lack of domestic supply. 'The global economy also affects prices,'he said. Coffee stocks in producing countries such as Brazil have also become a factor in global coffee price trends. "the price of coffee is not just because of supply and demand." That's what he said.
The price of coffee in sales contracts tends to fall in July, according to Bloom berg. If the price of coffee was $1.42 a bushel at the beginning of this year, it would have fallen to 1.28 trillion guilders per bushel near the end of May.
Hudama Sughandi, president of the Indonesian Coffee exporters Association (Gaeki), added that foreign interest in China's coffee market is high because its characteristics are favored by the market.
However, the output is insufficient, the supply is high, and the demand is decreasing gradually every year. Therefore, he asked the government to pay serious attention to the development of the coffee upstream industry.
According to the Ministry of Agriculture, China produced 630000 9412 tons of coffee in 2015. It dropped to 630000 9305 tons last year and is expected to reach only 630000 7539 tons this year. The decline in coffee production was due to poor coffee productivity due to wet and dry weather last year.
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