Sunday, June 19, 2011

::National Coffee Production Declines>>

Go Finance Reporting in JAKARTA - The Association of Indonesian Coffee Exporters and Industry (AEKI) predicts, national coffee production this year will reach 600 thousand tons. That number has decreased compared to last year. Chairman AEKI Suyanto Husein said, national coffee production last year was approximately 640 thousand tons.

Actually, Suyanto said, earlier this year, production is targeted to reach 700 thousand tons. However, he continued, the target was revised due to weather conditions that have not been good and still a lot of old coffee plants. Thus, according to Suyanto, production in some areas also decreased. Currently, said Suyanto, 90 percent of the total 1.2 million hectares (ha) coffee plantation in Indonesia are managed by small farmers.

"We will establish cooperation with relevant ministries to provide a broader land for farmers. In order for the next 10 years of production could reach 900 thousand-1, 2 million tons. We also want to improve the quantity and quality by expanding the land and the use of organic fertilizers, "Suyanto said in Jakarta last weekend.

Suyanto said, the effort to improve coffee production is expected to be in line with national growth of coffee consumption. Including, he said, to realize the development of downstream industries in the domestic coffee. The plan, he said, had discussed with the Minister of Industry, MS Hidayat.

"We hope, in the domestic coffee consumption continues to rise. Currently, it has grown and become part of the lifestyle. It appears from the development of the coffee shop," said Suyanto.

AEKI noted, at this time, Indonesia is the third largest coffee producer in the world, after Brazil and Vietnam. Meanwhile, Indonesia's coffee exports in 2010 is 443 thousand tons, valued at USD791, 76 million.

"Currently, the high demand for coffee in the world. The price is also starting high. If 10 percent of Indonesia's population who drink up to three cups of coffee per day, we finished production is absorbed locally," said Vice Chairman AEKI specialty fields and Coffee Industry Pranoto Soenarto.

Therefore, he added, the program increased production with land development, should be focused on farmers. So, can enjoy the growth of the world coffee market.

"If you can, industries with large-scale coffee companies do not invest in medium-land again. We propose the addition of farmers' land only. So, in the domestic industry to buy from farmers," said Pranoto. (GoFinance)

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