Costs put off Indonesias coffee investors

25 August 1999

Costs put off Indonesia’s coffee investors

HIGHER costs are deterring Indonesian farmers from investing in the production of arabica coffee and output is expected to be flat this year.

The country is Asias largest coffee grower and the worlds biggest producer of robusta coffee.

But the government has been trying to increase output of arabica, which carries a premium price on world markets.

The Indonesian Coffee Association said this years arabica output would remain at 10% of Indonesias total coffee production.

Total coffee production is expected to reach 381,000 tonnes in 1999, against 425,000 tonnes last year.

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