Lampung Earns More From Coffee Exports

Bandarlampung, Lampung, Jan 9 (Antara) - Lampung exported 22,326 tons worth US$38.4 million of coffee beans in December 2013, up from 19,071 tons valued at US$36.9 million a year earlier. A chairman of the Lampung branch of the Indonesian Association of Coffee Exporters (AEKI) Muchtar Lutfie attributed the increase to release of stocks to meet sales contract despite falling price in international market. Muchtar said the price of coffee beans in international market remained low at Rp19,500 per kilogram, but exporters released stocks for fear that the price could fall lower. "The increase rate in earning was not proportional with the rise in sales volume because of the price fall in international market in December," he said. In addition exporters had to release stock to meet their export contracts for 2013, he said. He said if the exporters failed to meet their export contract they might lose buyers abroad in 2014. The coffee price fell but the loss in price could be offset with the increase in the dollar value against rupiah, he said. "We hope that the price of coffee would rise to encourage the growers," he said. He predicted Lampung`s coffee production would rise in 2014 to follow the biannual cycle and hoped that there would be no extreme weather when the crop is in bloom. A coffee farmer Sunyoto (60) from Waytenong, West Lampung, said coffee bean price at the level of farmer was stable at around Rp18,500--Rp19,000 per kilogram. The price rose from Rp16,000 per kilogram in November and December, 2013. Lampung is one of the largest coffee producing provinces in the country. Indonesia is the the fourth largest coffee producing country in the world and the second largest producer of robusta coffee after Vietnam.