JAKARTA – Drought caused by El Nino is likely to further reduce the coffee production of Indonesia after excessive rains dragged down output to its lowest in more than a decade, driving global prices to all-time highs.
Lower coffee output in the world’s fourth largest grower, which mainly produces robusta beans, could lead to more gains in prices, which have climbed over 40 per cent in 2023 and hit a record high in June, Vietnam News Agency (VNA) reported.
The country’s weather agency BMKG said the weather phenomenon, which typically brings prolonged hot and dry weather, is already affecting more than two-thirds of the nation, including Java and parts of Sumatra, two key coffee-producing areas.
In 2023/24, Indonesia’s coffee output is forecast at 9.7 million 60-kilogramme bags, down from 11.85 million bags a year ago and the lowest since 2011/12, according to the US Department of Agriculture data. – Bernama
