Kopi Kita considers buying 100,000 coffee bags from Brazil due to robusta shortage in Southeast Asia
05/31/2024
Kopi Kita, the largest coffee roaster in Indonesia, will purchase Brazilian conilon coffee for the first time, introducing the Brazilian variety to the Asian market.
Indonesia, the fourth largest coffee producer, primarily grows robusta and exports to countries like Vietnam. However, due to severe drought starting last year, the country is turning to Brazilian production to meet its needs.
Kopi Kita plans to buy 100,000 bags of coffee from Brazil this year, including both arabica and conilon varieties, Moelyono Soesilo, the company’s director, told Valor. The final decision on the volume will depend on weather developments in Brazil.
“I will wait a few more weeks to finalize the negotiations, observing the progress of Brazil’s harvest. I’ve heard from many producers and traders that the drought in Espírito Santo is affecting the quality of the conilon being harvested, and I don’t want to risk securing lower-quality beans,” Mr. Soesilo explained. He is willing to pay more for Brazilian coffee by delaying the purchase decision.
Kopi Kita is also strengthening its ties with Brazilian traders and exporters to negotiate Brazilian coffee with smaller roasters in Southeast Asia, Mr. Soesilo added. The Indonesian industry is expected to increase Brazilian coffee acquisitions this year due to low domestic stocks. Coffee shipments from Brazil to Southeast Asia are anticipated to gain momentum starting in June.
Kopi Kita began sourcing Brazilian coffee in 2023, initially focusing on arabica beans to blend for the Indonesian market, which predominantly uses robusta. However, the drought worsened between January and March this year, leading to projections of a 6 million bag harvest in Indonesia, matching 2023’s output and insufficient to meet local and Asian demand. Indonesia’s harvest peaked at 12 million bags in 2021.
According to Mr. Soesilo, Brazilian conilon’s flavor and aroma characteristics don’t fully align with Indonesian preferences. Nevertheless, due to the robusta shortage in Southeast Asia, the company had no choice but to turn to Brazilian coffee.
Adverse climate conditions in Asia have been driving Indonesia’s demand for Brazilian coffee since last year. In 2023, Indonesia’s coffee imports from Brazil grew by 19% to 415,900 bags, according to the Brazilian Coffee Exporters Council (CECAFÉ). This increase was driven by Brazilian conilon purchases, which were zero in 2022 but reached 103,300 bags in 2023, surpassing Brazilian arabica imports that year.
The trade between the two countries continues to accelerate in 2024. From January to April, Indonesia increased its purchase of Brazilian coffee by 119.1%, from 23,700 bags in the same period last year to 52,000 bags.
*Por Isadora Camargo — Santos
Source: Valor International