Coffee consumption in Indonesia increases sharply, production of raw beans in Sumatra decreases, resulting in tight supply

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Over the past few decades, Indonesia has supplied low-yielding precious coffee beans to coffee roasters around the world. Coffee brewed with local beans has a unique flavor and is loved by experts.

Indonesians used to prefer tea, but now the situation has changed. As the younger generation embraces coffee, hundreds of independent coffee shops and baked beans have sprung up across the country.

When many young Indonesians study in the United States, Australia and other countries, they are affected by local coffee drinking habits, which has almost doubled Indonesian coffee consumption in the past decade.

Growing consumption of coffee beans in Indonesia has reduced the number of coffee available for export, forcing foreign buyers to increase their supply, Reuters reported.

The low production of coffee beans in Sumatra makes the supply of unique Arabica coffee beans (arabica bean) produced in the region even more tight. Blends coffee, if added to the local Arabica coffee beans, can add mellow, earthy aroma, so the coffee industry is scrambling to buy.

Starbucks (Starbucks Corp.) Christmas composite (Christmas Blend) coffee, which has been popular for more than 30 years, one of the main ingredients is Sumatra coffee beans.

Coffee import sources said that the decline in coffee bean production in Sumatra caused some exporters to delay shipments or even default, and some US importers had to raise prices in order to obtain supplies.

Coffee bean stocks in the United States are declining. Many importers say they have no coffee beans to supply to the spot market after fulfilling the baker's contract.

Importers say large bakers such as Starbucks and Keurig Green Mountain (KeurigGreen Mountain Inc.) are the biggest buyers of Arabica coffee beans in Sumatra, and small businesses are clearly facing the most serious procurement challenges.

A spokesman for Starbucks said they had not been hit by the tight supply of Sumatra coffee beans this year. Keurig Green Mountain did not respond to an interview.

Coffee import sources said that the decline in coffee bean production in Sumatra caused some exporters to delay shipments or even default, and some US importers had to raise prices in order to obtain supplies.