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AS IS KNOWN, the Indonesian coffee industry for the last 10 years has continued to experience quite significant growth, namely by 50% or annually growing by 5%. Even data from the Coordinating Ministry for Economic Affairs stated that last year Indonesia’s coffee production reached 795 thousand tons and 94.5% of it was supplied from smallholder coffee plantation entrepreneurs.
Meanwhile, domestic consumption of coffee commodities in 2021 will reach 370 thousand tons or grow 4.5% year on year (yoy). Meanwhile, from the export side, in 2021 it was recorded as US$842.5 million or grew 4.1% (yoy).
Nevertheless, this positive growth must be faced with quite tough challenges starting from the issue of global recession, political issues, the Russia-Ukraine war, general election politics issues, to climate change issues. These factors will affect the landscape of the coffee industry in 2023. Especially in terms of the issue of climate change which will greatly affect the quality of world coffee, including in Indonesia.
According to Moelyono Soesilo, Global Coffee Expert in a seminar entitled “Coffee Market Outlook 2023: Challenge & Opportunity” with Kapal Api Global, said this year the quality of coffee will experience extraordinary challenges as a result of La Nina. The impact of the existence of La Nina will also affect the quality of coffee to become over fermented, due to high rainfall. Declining coffee quality will affect the amount of annual coffee production.
“Whereas on the other hand coffee consumption will continue to increase, especially at the local level. Furthermore, he also predicts the trend of the local coffee industry that will return to pre-pandemic times. Conditions where the flow of people’s mobility is starting to be high,” he said.
Moelyono added that this is accompanied by the function of the coffee shop as a new destination or place for people to work and other activities. “This is a good signal for the coffee industry even though there is a global recession issue.
Coffee Market Outlook 2023 is a collaborative event between Kapal Api Global and Kopikita. It is hoped that this collaboration will provide an overview to Indonesian coffee players regarding the latest developments in the coffee industry and lead to a better strengthening of the ecosystem. [sources/photo special]
