Bloomberg News

Indonesian Coffee Deliveries Seen Falling 32% Amid Wet Weather

June 18, 2013

Coffee deliveries from farms in Indonesia, the world’s third-biggest producer of the robusta variety, fell 32 percent from last year as wet weather delayed bean drying, according to Amsterdam-based trader Nedcoffee BV.

Bean deliveries to Bandar Lampung, where the country’s main coffee export port is located, amounted to 40,669 metric tons from the start of the season through June 7, the trader said in a monthly report e-mailed today. That compares with 60,220 tons a year earlier. Rainfall in Indonesia delayed shipments, forecaster World Weather Inc. in Overland Park, Kansas, said in an e-mailed report yesterday.

“There is little sunshine at the coffee-growing areas,” Nedcoffee said. “Therefore, a lot of cherries need to dry longer, which causes the farmers to delay picking the red beans for a certain time because they have a lack of drying space. The delay in picking these red cherries might impact the quality.”

Farmers in Indonesia’s main growing region of southern Sumatra harvested 86,100 tons of coffee in the first 15 weeks of the season, estimates Nedcoffee. That compares with 87,000 tons a year earlier, according to data from the trader, which owns a factory there with storage capacity of 300,000 bags. Indonesia is harvesting its 2013-14 crop and the season there usually starts in about April.

Bean Inventories

Coffee stockpiles held by exporters in Bandar Lampung are “very low,” according to the report. While deliveries from farms last month totaled 29,165 tons, shipments in the same period were 29,554 tons, the trader said. Exporters are having “trouble to deliver coffee in time,” Nedcoffee said.

Vietnam, the world’s biggest robusta coffee grower, may be able to ship only 89,000 tons a month from June to September, the trader estimates. The pace of shipments mean stockpiles are being withdrawn, with traders’ inventory dropping 30,663 tons last month to 175,886 tons, Nedcoffee said.

Farmers and middlemen still held 357,000 tons, or 24 percent of Vietnam’s crop, as of June 1, according to Nedcoffee, which has offices there. The 2012-13 season ends Sept. 30.

Robusta coffee for delivery in September fell 0.7 percent to $1,752 a ton by 1:46 p.m. on NYSE Liffe in London.

To contact the reporter on this story: Isis Almeida in London at ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.


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