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View all search resultsCoffee producers seek help as virus saps demand
Rahmah of Ketiara Cooperatives in Central Aceh said on Wednesday that some 400 tons of coffee were being held under a warehouse receipt, 150 tons of which had yet to be sold.
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ndonesia’s coffee producers and farmers are calling for support, including financing and product absorption, to weather the pandemic’s dire effects on upstream coffee demand.
Rahmah of Ketiara Cooperatives in Central Aceh said on Wednesday that some 400 tons of coffee were being held under a warehouse receipt, 150 tons of which had yet to be sold.
A warehouse receipt is a financing system that allows smallholders to deposit their harvest in a warehouse as collateral for a loan, in exchange for a receipt.
“Farmers are already struggling. They want to sell but the offered price is low,” Rahmah said during a webinar hosted by the Cooperatives and Small and Medium Enterprises (SME) Ministry. “Exporters are also experiencing difficulty. They want to export, but there are no buyers.”
Hendarman, a member of the Bengkulu chapter of the Indonesian Farmers Cooperatives (KPI), echoed the sentiment, highlighting the urgent need for financial support.
“The most crucial part is the upstream [portion of the industry]. There should be a financing institution that serves as an off-taker so that there is a guarantee of the absorption of the coffee product being produced,” he said.
Indonesia, the world’s fourth-largest coffee producer, saw its household spending contract by 5.51 percent year-on-year (yoy) in this year’s second quarter as the economy shrank by 5.32 percent yoy, Statistics Indonesia (BPS) data shows. Lower household spending has impacted coffee consumption.
