Indonesia's 2011 coffee exports to fall a third

Coffee exports from Indonesia, the world's second-largest robusta producer after Vietnam, could fall about a third to 300,000 tonnes in 2011 as supply constraints lead to tight stocks at the end of the year, a senior industry official said on Tuesday.
Closing stocks at year end were estimated at 10,000 tonnes, down from a normal level of 60,000 tonnes as domestic consumption was also rising, said Rachim Kartabrata, executive director of the Indonesian Coffee Exporters Association.
"I don't think closing stocks will reach 60,000 tonnes. I think it will only reach 10,000 tonnes. That includes stocks in the hands of farmers, collectors and exporters," Kartabrata told Reuters in a interview. "The weather is abnormal. Exports are targeted at 300,000 tonnes this year from 440,000 tonnes last year because of falling supply and production. Will the weather improve next year."
Supply concerns from Indonesia highlight problems in getting good-quality beans, which sent London robusta prices to a contract high around $2,600 a tonne earlier this year. Harvests in the main growing island of Sumatra usually begin in March or April, but yields are down as farmers have been picking cherries since January after persistent rains caused the flowering season to begin earlier in some districts, dealers said.
June is normally the peak harvest period, but dealers said arrivals from plantations to the main port of Panjang in Lampung province on Sumatra island have been stagnant since early this year.
"Lampung normally exports 200,000 tonnes of beans (annually). If there's a failure in Lampung, then it will be felt nation-wide," said Kartabrata. Domestic consumption in Indonesia, Southeast Asia's largest economy, was estimated at 200,000 tonnes in 2011, up from 180,000 tonnes in 2009, according to the AEKI.
"In the past, a domestic shortage would be compensated by imports from Vietnam. But Vietnam beans are now expensive, so people have to turn to local beans," said Kartabrata, referring to domestic roasters.