Harvest plummets due to El Nino, Lampung Robusta Coffee Prices Soar

Lampung farmers are worried that imported coffee will flood the domestic market amid a drop in coffee yields of up to 90 percent.

KOMPAS/VINA OKTAVIA

M Syafei (39), a coffee farmer in Tambak Jaya Village, Way Tenong District, West Lampung, Lampung, is currently picking red coffee beans from the tree on Friday (8/2/2019).

BANDAR LAMPUNG, KOMPAS — Coffee prices in Lampung have soared due to a lack of supply from production centers. Farmers hope that this condition will not be exploited by importers flooding the domestic market with imported coffee.

Currently, the price of robusta coffee rice beans or green beans at the farmer level is IDR 50,000-IDR 52,000 per kilogram. The price of roasted coffee beans is IDR 75,000-IDR 85,000 per kilogram. The price of ground coffee is IDR 120,000-IDR 200,000 per kilogram depending on the quality.

The price increase was gradual from the initial average of 35,000 per kg (green beans). In fact, during the last big harvest season, the price was only IDR 20,000.

Abdul Charis (58), a coffee farmer from the Sekincau District, West Lampung Regency, Lampung, explained that the thinning of the supply of coffee beans from farmers was caused by the impact of the El Nino phenomenon, causing farmers' harvests to plummet up to 90 percent.

From one hectare of land, the coffee yield obtained is less than one quintal. This amount is far lower than the normal production, which can reach up to 1 ton per hectare. "Currently, we can only supply shipments to three coffee shops from the previous dozens of shops. Coffee stock is difficult to obtain," said Abdul Charis when contacted from Bandar Lampung, on Saturday (30/3/2024).

Although coffee prices have doubled, the majority of coffee farmers have not been able to enjoy the benefits due to low crop yields. Coffee farmers can only be happy if coffee prices remain high until this year's harvest season, which is estimated to take place in June 2024.

KOMPAS/VINA OKATAVIA

The atmosphere in one of the coffee shops in Bandar Lampung, on Sunday (19/1/2020). The coffee-drinking lifestyle is causing coffee shop businesses to thrive in Lampung.

Abdul Charis hopes that this situation will not be exploited by coffee exporters to flood the market with imported coffee from Vietnam or Brazil. This is feared to damage the price of local farmer's coffee in the market.

The dwindling supply of coffee beans for farmers is due to the impact of the El Nino phenomenon, resulting in farmers' harvests dropping by up to 90 percent.

Arie Oktara (32), a coffee business actor, said that he had to look for supplies of robusta coffee from other regions, such as South Sumatra, Bengkulu and Central Java. This was done because coffee supplies from farmers in West Lampung, Tanggamus and North Lampung were already difficult to obtain.

On a daily basis, Arie supplies roasted coffee beans to dozens of coffee shops in Bandar Lampung. He admitted to raising the price by Rp 10,000-Rp 15,000 per kilogram as the price of raw materials has also significantly increased.

Also read: Sipping Fragrant Robusta Coffee in Bandar Lampung

Even though it is difficult to obtain, Arie still absorbs the robusta coffee harvest from local farmers in Lampung and other areas in Indonesia. This is because most coffee shops in Lampung sell single origin coffee so they still need raw materials from local farmers.

KOMPAS/VINA OKTAVIA

The atmosphere at Doesoen coffee shop in Bandar Lampung city on Tuesday (15/8/2023). Coffee businesses that offer natural ambiance are currently being pioneered by young people in Bandar Lampung.

He admitted that he is not interested in buying imported coffee even though it is much cheaper than local robusta coffee. This is because the quality of imported coffee beans is different, therefore, it can affect the taste of the resulting coffee. Additionally, imported coffee also does not have a market segment in Lampung.

"Some coffee shops require local robusta coffee to sell to their customers. If it's imported coffee, the market segment may be different," he said.

Elkana Arlen Riswan (38), owner of El's Coffee, said the same thing.He still uses local robusta and arabica coffee even though the supply is running low. To meet the needs of a number of cafe branches he manages, Elkana also seeks coffee supplies from other regions in Indonesia.

Female workers are sorting dried robusta coffee beans in a coffee processing warehouse in the Way Laga area, Bandar Lampung, Lampung on Thursday (8/2/2018).

Currently, the domestic coffee market is flooded with imported coffee from producer countries, such as Vietnam and Brazil. The price of imported coffee is said to be cheaper by up to Rp 30,000 per kg compared to local coffee.

Nevertheless, coffee shop owners in Lampung do not use imported coffee as their raw material. They continue to sell local coffee because the majority of their customers prefer local robusta or arabica coffee.

Also read: Coffee Promotion in Lampung

Local coffee farmers and business people hope that there will be a protection policy for local coffee.