JAKARTA/SINGAPORE - El Nino’s dry weather threatens to further dent coffee production in Indonesia, the world’s fourth largest grower, after excessive rains dragged down output to its lowest in more than a decade, driving global prices to all-time highs.
There is a more than 95 per cent chance that El Nino conditions will prevail from December 2023 to February 2024, a US government weather forecaster said last week, exacerbating the risks of heatwaves and floods across several countries. Most Indonesian coffee plantations are rain-fed. The threat of dryness follows higher precipitation over the past several months across Sumatra and Java, which reduced coffee output.
“Coffee supply is very thin. I personally say it is down around 25 per cent compared to last year,” one Lampung-based coffee trader told Reuters, adding that the decreased supply has created panic buying in the past months.Of pride and taste buds: Indonesians flock to local coffee chains due to lower prices, special offeringsCoffee yields in Indonesia range between 0.7 and 1.0 metric tonnes per hectare, while Vietnam, the world’s biggest robusta supplier, produces 2.7 tonnes per hectare.
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