Directorate General of National Export Development (PEN) of the Ministry of Trade is targeting exports of processed food and beverage products to rise to 9.5% following coffee exports last year which has reached USD 1.17 billion. “As the third largest coffee producer in the world after Brazil and Vietnam, Indonesia is committed to encourage exports. The value of coffee exports in 2013 reached USD 1.17 billion. We expect that Indonesian exports value of processed food to rise by 9.5% - 10.5%, “said Director General of PEN, Nuss Nuzulia Ishak.
Directorate General of PEN facilities coffee exporters and players to increase its exports. In the Tea & Coffee China Exhibition in Shanghai, China, November 2014, Indonesia’s best coffee aroma, such as Luwak coffee, Toraja coffee, Gayo coffee, Java Bali, and Mandheling are the mainstay of China. As a potential market of coffee products, China’s demand for imported coffee is great. China ranks 18th as importer of Indonesian coffee. “The value of coffee exports to China over the past five years continued to grow by 82.6% due to shift to coffee consumption lifestyle that replaces tea consumption lifestyle in China. We see this as an opportunity to expand market,” said Nus.
Tea & Coffee China exhibition is part the Food and Holistically China (FHC) Exhibition in 2014, an exhibition of food product in China, attended by 1,820 participants from 70 countries and visited by 26,188 visitors. The total value of transactions in the exhibition is USD 1,124,000 for green bean products and roasted coffee beans of Arabica Gayo and Mandheling coffee. Currently, Indonesia’s coffee bean whose value is relatively low. So, Indonesia’s coffee exports should be directed to roasted coffee bean that has higher added value. To target a broader consumer, business can continue to increase instant coffee exports to the higher segment, in addition to targeting more premium market segment by serving specialty coffees, including civet coffee through coffee shops and five-star hotels. Indonesia has civet coffee as the could be an attempt to fend off black campaigns on civet coffee.
Secretary General of Shanghai Coffee Enterprise Association, Chen Zhi Ming, who had the opportunity to visit the Indonesian Pavilion, explained about coffee consumption potential in Shanghai and its surrounding areas. Currently in Shanghai and the surrounding areas, there are 4,000 capres and 200 coffee roasting companies with total needs of 20,000 tons of coffee annually. Based on research data from Minte, number of cafes in China double from 15,898 to 31,283 in 2007-2012. Global brands, such as Starbucks, entered China in 1999 by targeting to open 1,500 outlets across China by the end of 2015. Shanghai is a city which is familiar with coffee drinking culture, and at the same time, has the highest coffee consumption growth. Today, Starbucks has more than 100 outlets. Starbucks CEO, Howard Schultz, said that one day, China will become the second largest market of Starbucks after United States.
PT ICBP through its Director, Weianty Setiawan, on Monday (November 24), stated that one of the subsidiaries of PT Indolakto has signed a conditional sale and purchase agreement with PT DDI for the purchase of 100% of shares issued by DDI. Indolakto will buy the trademark and industrial design of Milkuat product. The transaction plan is expected to be completed by the end of December 2014, after the fulfillment of all conditions required under the conditional sale and purchase agreement. Hopefully, through this acquisition, the company can improve the ability to meet the demand for liquid milk in the western part of Indonesia and strengthen the position of ICBP in the dairy industry in Indonesia. (E)
Business News - November 28, 2014