Bloomberg News

Indonesia’s Sumatra Robusta Shipments Surge on Higher Supplies

May 01, 2012

Coffee-bean exports from Indonesia’s southern Sumatra, the main growing area in the world’s third- largest robusta producer, surged in April from a month earlier due to increased supplies from plantations.

Overseas sales from Lampung, Bengkulu and South Sumatra provinces, which grow mostly robusta, jumped 95 percent to 9,898 metric tons last month from March, according to data released today by the Lampung trade and industry office. Sales were 23,247 tons in April last year.

Rising shipments from the Southeast Asian country may help to halt a 9 percent rally this year in London on the price of the bitter-tasting robusta variety used in instant drinks, amid concern about fewer cargoes from Vietnam, the largest producer. Brazil is the second-biggest grower and Indonesia is third.

“Arrivals from plantations have started to increase and they will continue to rise until the harvest reaches its peak in June or July,” said Mochtar Luthfie, head of research and development at the Lampung branch of the Association of Indonesian Coffee Exporters and Industry.

Beans arrivals were estimated at about 4,500 tons last week, Volcafe Ltd., the unit of commodities trader ED&F Man Holdings Ltd., said April 27.

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

July-delivery robusta futures fell 1.1 percent to $1,978 a ton on the NYSE Liffe Exchange in London at 5:09 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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