Coffee farmers may be hit hard again! The price of coffee in Indonesia has plummeted

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Indonesia is the third largest producer of robusta coffee beans in the world, which is preferred by instant coffee manufacturers such as Nestl é. This year, Indonesia's production is expected to reach the highest level in four years, the global coffee supply has greatly increased, and coffee-loving consumers are also expected to drink cheaper coffee.

Indonesian coffee farmers are expected to harvest 11.5 million bags, or 690000 metric tons of coffee beans, in the coming months, an increase of more than 5 per cent over last year.

"the weather is good for the development of coffee fruits," said Hutama Sugandhi, president of the Indonesian Coffee exporters Association.

He said that with moderate rainfall last year, coffee trees got enough water to produce high-quality beans. Coffee beans begin to be harvested in April and peak in June or July.

The provinces of Lampung (Lampung), Minguru (Bengkulu) and South Sumatra (South Sumatra) in southern Sumatra are the main producers of Robasta coffee beans, producing 75 per cent of Robasta beans in Indonesia. Coffee beans in this area are exported from the port of Penjang in Lampong province.

Indonesia's arabica coffee beans are mostly produced in northern Sumatra and Java.

The three major producers of robasta beans in southern Sumatra are known as the "coffee golden triangle" (Golden Coffee Triangle), and coffee farmers in this area have harvested about 20% of the beans. The increase in supply has reduced the price of export-grade Robasta beans by 5 per cent this week from a month ago to $1540 a tonne.

Coffee farmers are in time to sell coffee beans ahead of next month's important Islamic festival, and the number of coffee beans delivered to Banjang Port on Monday (13th) has more than doubled from a week ago to 5000 metric tons.

"despite lower prices, coffee farmers release newly harvested beans because they need money to prepare for Ramadan and Eid al-Fitr next month," said Moelyono Soesilo, a coffee trader.

The increase in the global supply of coffee beans has depressed prices and reduced costs for roasters. Arabica beans traded in New York fell to 88 cents a pound this month, the lowest price since 2005. The futures price of Robasta beans in London also fell to US $1290 per tonne, the lowest in nine years. The price of robasta beans delivered in July fell 1.1% on Friday to $1321 a tonne.

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