Coffee Exports From Indonesian Region Jump to Near 4-Year High

Coffee shipments from Indonesia’s southern Sumatra, the main grower in the third-largest producer of robusta beans, climbed close to a four-year high in September.

Shipments from the provinces of Lampung, South Sumatra and Bengkulu rose 72 percent to 55,470.50 metric tons from 32,263 tons in August, when the country had a week-long holiday, the Lampung trade and industry office said in a statement today. That compares with 55,709 tons shipped in July, the most since June 2009, and 18,488 tons in September 2012. The data for September include 85.56 tons of instant coffee.

Prices in London declined to a three-year low last week on expectations that global supplies of robusta used by Nestle SA (NESN) will outpace demand. Farmers in Vietnam, the biggest producer, have the largest stockpiles of unsold beans in four years as they prepare for a record crop in the season that started today, according to a Bloomberg survey. Indonesia was closed for a week in August to celebrate the Eid festival that marks the end of the Muslim fasting month of Ramadan.

“Exporters are trying to meet their commitments after trade slowed due to Eid,” said Mochtar Luthfie, head of research and development at the Lampung chapter of the Association of Indonesian Coffee Exporters and Industries. “People are also releasing stocks, trying to make some profit or at least break even.”

Robusta for delivery in November closed at $1,642 a ton on NYSE Liffe yesterday after dropping to $1,596 on Sept. 27, the lowest intraday level for a most-active contract since October 2010. Futures fell 12 percent in the past two months.

Shipments from Indonesia may reach 530,000 tons in 2013, unchanged from a year earlier, according to Irfan Anwar, chairman of the exporters association. Beans would account for about 85 percent of the shipments, he said Sept. 12. The harvest in the country usually runs from April to July, with a smaller crop through September.

The provinces of Lampung, South Sumatra and Bengkulu account for about 75 percent of the country’s supplies.

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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