Coffee Prices To Rise In Less Than 10 Years

BALI, (Indonesia), December 31 (TNA) - Indonesia, which is the world’s third largest exporter of coffee, believes that coffee prices would rise in less than 10 years from now because consumption would exceed supply, said Hutama Sugandhi, chairman of Indonesian Coffee Exporters Association. Mr. Sugandhi told Thai News Agency during a recent interview in the Indonesian resort of Bali that coffee prices in the world market have declined slightly due to higher productions by Brazil and Vietnam, now ranked first and second major producers respectively globally. Demand for coffee in the world still increases steadily while production is still far behind and it is believed that its prices would jump in less than a decade from now, he said. This would benefit growers. Currently, Indonesia produces more than 700,000 tonnes of coffee and exports over 500,000 tonnes annually. The quality of its coffee is now ranked fifth out of the ten best coffees in the world. For Thailand, coffee production in 2014 is projected at 38,300 tonnes, up about 2 per cent from this year. However, the country’s exports of raw coffee beans are expected to decline next year due to rising demand in the country. (TNA)