Barista Guru

Indonesia is enjoying solid growth in demand for its Arabica coffee beans, especially gourmet types, reports the U.S. agricultural attache for the country.

“Particularly, demand for the Mandailing type of Arabica beans is strong due to its uniqueness of taste and aroma,” the agricultural attache said.

Gourmet Arabica beans account for 7% of Arabica bean exports. The increased demand for Arabica beans has changed the makeup of Indonesian coffee bean exports. The percentage of Robusta has dropped from 90% to less than 80%, whereas Arabica has increased to almost 30%.

As the number of food and beverage outlets in Indonesia continues to expand, the consumption of coffee increases. Particularly, donut and coffee shops contribute to the increase in consumption. For example, just this year Krispy Kreme opened a few outlets in Jakarta. To meet the increase in local demand, there will be a slight increase in imports for blending purposes and a decrease in roast ground exports.

In October 01, 2005 Indonesian government has announced the intention to eliminate 10% VAT for many agricultural products, including coffee. However, Indonesian government has yet to issue a decree that would remove the tax.

Indonesian coffee production has suffered from a delay of the rainy season. Though the area planted increased during marketing year 2006-2007, the harvest was late, impacting yield per hectare. High international coffee prices will encourage coffee bean exporters to pull more beans out of stocks.

http://www.agreport.com/open/227038.phtml

Coffee production in Colombia is expected to reach 12.2 million 60 kilogram bags this season, up 250,000 from last year, according to the U.S. agricultural attache for the country.

New areas planted and more productive coffee plantations due to adoption of better production technologies are the major reasons for the increase in production. In addition, the 2006-07 crop is expected to have less problems with cherry borer that affected 2005-06 crop. This will result in a higher quality crop overall compared to last year.

In 2006-07, Colombia is projected to increase exports to 11.2 million bags from 10.9 million bags in 2005-06, a 3% increase. Despite the strength of the peso against the dollar, international prices are expected to continue to stimulate coffee exports.

The United States continues to be the largest import market for Colombian coffee. Increasing Colombian exports of instant coffee and value-added coffee products, such as organic coffee, is the Colombia’s Coffee Producers Association’s (FEDECAFE) primary focus. Imports will decrease by 50,000 bags, since locally produced coffee of lower quality for internal consumption is increasing.

http://www.agreport.com/open/227037.phtml

Brazilian coffee grower Joaquim Jose de Oliveira won’t be bringing his full harvest to market this year. Drought that has weakened next season’s crop is forcing him to husband this season’s.

“I’m only selling enough to keep going,'’ says Oliveira, 50, who wears a straw hat, mud-smeared clothes and white, rubber boots as he prunes one of his trees near the town of Guaxupe. “Otherwise, next year I’ll have almost nothing to sell.'’ (more…)