Bloomberg News

Robusta Shipments From Indonesia’s Sumatra Fall for Third Month

April 03, 2012

Coffee-bean exports from Indonesia’s southern Sumatra, the main growing region in the world’s third- biggest robusta producer, declined for the third straight month in March due to limited supplies.

Overseas sales from Lampung, Bengkulu and South Sumatra provinces, which grow mostly robusta, declined to 5,070 metric tons last month from 5,358 tons in February, according to data released today by the Lampung trade and industry office.

Falling shipments from the Southeast Asian country may help to extend the 12 percent rally this year in London on the price of the bitter-tasting robusta variety used in instant drinks, because of fewer cargoes from Vietnam, the largest producer. Brazil is the second-biggest grower and Indonesia ranked third.

“There aren’t too many beans available as supplies only came from plantations on the low-lying areas that have an early harvest with small quantities,” said Mochtar Luthfie, head of research and development at the Lampung branch of the Association of Indonesian Coffee Exporters and Industry. This year’s main harvest would run from May to July, with a smaller crop through September, he added.

The three provinces account about 75 percent of supplies from Indonesia. The beans were shipped from Panjang port in Lampung.

May-delivery robusta futures fell 0.3 percent to $2,030 a ton on the NYSE Liffe Exchange in London at 3:28 p.m. Jakarta time.

To contact the reporter on this story: Yoga Rusmana in Jakarta at yrusmana@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net


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