Indonesian Coffee Deliveries for Export Slow on Local Roasters

Coffee bean deliveries to Bandar Lampung, where Indonesia’s main export port is located, slowed at the start of the season because local roasters are buying, according to Amsterdam-based trader Nedcoffee BV.

About 40 percent of all the coffee from the 2013-14 crop harvested in Southern Sumatra, the main growing region of the world’s third biggest robusta-bean producer, was delivered to areas other than Bandar Lampung, the Dutch trader said in a monthly report e-mailed yesterday. Usually 20 percent to 30 percent would be delivered elsewhere, according to Nedcoffee, which has a factory in Indonesia.

“Local roasters have a short position and some of the up- country suppliers are delivering coffee directly to these local roasters, not through Bandar Lampung,” Nedcoffee said.

About 12,000 metric tons of beans have been picked in the lowlands and sold to middlemen since harvesting began this month, Nedcoffee said. Field work will start by mid-May in most highland areas. Exporters’ stockpiles in Bandar Lampung at the end of last month were estimated at about 2,000 tons, the trader said.

The weather in Indonesia continues to be favorable for bean development, with sunshine during the day and wetter conditions at night, according to the report.

In Vietnam, the world’s biggest robusta coffee producer, increased rainfall eased concerns about dry weather and brought down local prices, according to the report. Prices were 42,200 dong ($2) a kilogram (2.2 pounds) on April 12, down from 45,000 dong a kilogram a month earlier, data from the Dak Lak Trade & Tourism Center on Bloomberg showed.

Stockpiles in Ho Chi Minh City stood at 230,000 tons last month, the trader estimated. Vietnam may only be able to ship 97,000 tons of beans a month from April to September, according to Nedcoffee.

Robusta coffee for July delivery rose 0.2 percent to $2,061 a ton by 10:53 a.m. on NYSE Liffe in London. Robusta beans are used in instant coffee and espresso and grown mainly in Asia and parts of Africa.

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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