Indonesia: Coffee Semi-annual
Indonesia is experiencing a strong El-Nino phenomenon. Despite dry weather, total production increased by approximately 20 percent (10.605 bag GBE) over 2014/15. This is led by Robusta production, which managed to avoid the worst of the El Nino dryness in 2015/16. The most significant declines in the 2015/16 production period will be experienced amongst Arabica growers, whose main production/harvest period coincided with unusually dry weather. Post will continue to follow the progress of Arabica production/flowering and will report on potential Arabica declines in 2016/17 in its next report. Post expects MY 2015/16 coffee exports will increase to approximately 8.08 million bags GBE. Increased exports are the result of strong Robusta production, a weakened Rupiah (vis-à-vis the dollar) and declining Robusta prices.