Lower coffee output in theworld’s fourth largest grower, which mainly produces robusta beans, could leadto more gains in prices, which have climbed over 40% in 2023 and hit a recordhigh in June.
The country’s weather agencyBMKG said the weather phenomenon, which typically brings prolonged hot and dryweather, is already affecting more than two-thirds of the nation, includingJava and parts of Sumatra, two key coffee producing areas.
In 2023/24, Indonesia’scoffee output is forecast at 9.7 million 60-kg bags, down from 11.85 millionbags a year ago and lowest since 2011/12, according to the US Department ofAgriculture data./.