Call Prefix : PR-T

Call Suffix : 1999

Call Cutter : T - AgMa 9

Location : SEARCA Library

Format : TD

Publisher : Department of Agribusiness Management, UPLB,

Publication Date : May 1999

Publication Place : College, Laguna, Philippines :

Summary : There is a potential market as excess demand over production around 3.5 M tons and excess import over export at US$ 6 B in world market in 1997. The world coffee market needs arabica, 66.3 percent; robusta 28.4 percent; soluble, 6.2 percent; and roasted, 0.1 percent. Even having potential market during 1992-1997 the price fluctuated and tended to decline. It shows that during this period a bargaining power of buyer was high. Indonesia coffee land area covered a total of 1,179,843,93 percent of which belonged to smallholders, 4 percent government and 3 percent private estate. It produced 485,889 tons, arabica 41,133 tons (8.5 percent) and robusta 444,756 tons (91.5 percent). Indonesia exported robusta about 87 percent and arabica at 11.6 percent. Roasted, soluble and powder are at 1.4 percent. Japan is the highest country destination of export coffee at 17 percent, followed by Germany at 15.1 percent, the Algier at 12.2 percent, USA at 11.1 percent and others at 29.8 percent. Arabica qualities were exported during 1994/95-1995/96 mostly the first quality at 50.6 percent, while robusta mostly at the fourth quality at 60.7 percent. Domestically the prices were fluctiated, like in 1997 arabica price is at Rp 6,615 per kg increase than the previous price just at Rp 4,186 then robusta in 1997 slightly decreased at Rp 4,391 per kg compared that in 1995 at Rp 4,434. There was an excess supply over demand coffee beans, at the range of 335,642 tons in 1992 to 341,822 tons in 1997, which could be a potential for export.