The supply of Sumatran raw beans is tight and the domestic sale of Indonesian coffee has greatly increased Sumatra's popularity.
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For decades, Indonesia has supplied coffee roasters around the world with low-yield, precious beans. Coffee brewed with local beans has a unique flavor and is loved by connoisseurs.
Indonesians used to prefer tea, but things are changing. As younger groups embraced coffee, hundreds of independent coffee shops and bean grills appeared across the country.
Many young Indonesians studying in the United States and Australia are influenced by coffee drinking habits, resulting in Indonesia's coffee consumption almost doubling in the past 10 years.
Indonesia's growing consumption of coffee beans has reduced the availability of coffee for export and forced foreign buyers to increase their supply, Reuters reported.
Sumatra coffee production is low, adding to the tight supply of the region's unique arabica bean. Blends Coffee blends with locally grown Arabica beans add a rich, earthy flavor, so coffee makers scramble to stock up.
Starbucks has been selling Christmas Blend coffee for more than 30 years, and one of the main ingredients is Sumatra coffee beans.
Coffee import industry sources say that reduced production of coffee beans in Sumatra has caused some exporters to delay shipments or even default; some U.S. importers have had to raise prices to obtain supplies.
Stocks of coffee beans in the United States are declining. Many importers say they have no beans to supply to the spot market after fulfilling their roaster contracts.
Importers say that large roasters such as Starbucks and Keurig Green Mountain are the biggest buyers of Sumatra Arabica beans, with smaller players clearly facing the most severe procurement challenges.
A Starbucks spokesman said the company was not hit by the supply crunch this year. Keurig Green Mountain did not respond to an interview.
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