Indonesia’s robusta coffee growers and traders are reluctant to enter the market, preferring to wait and see, as produce quality has declined due to unpredictable weather patterns.
With robusta bean quality in decline and its lower grade Sumatran crop being sold at a discount, trade is has begun to suffer for the world’s second-largest robusta producer.
The International Coffee Organization has estimated that Indonesia’s coffee output would stand at 10.75 million 60-kilogram bags in the crop year to September 2011, or down nearly 6 percent from the previous harvest.
An extended rainy season has stretched into the current flowering season, expected to result in poorer quality coffee beans when the country enters the harvest in April or May.
Meanwhile, Vietnam, the world’s largest robusta grower, has already entered a bountiful harvest season, expected to end in January. The progress of the crop in Vietnam and flowering in Indonesia will be closely watched by dealers next week, in addition to price movements in London and New York.
(Source: http://www.thejakartaglobe.com/business/coffee-traders-hang-back-as-robusta-crops-suffer/414247)
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