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Indonesia Rain and Landslides Hit Coffee Production and Robusta Supply

July 15, 2024
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How does heavy rain affect coffee production in Indonesia?

Persistent heavy rain in Indonesia has triggered landslides and floods across several provinces, killing dozens of people and pushing multiple regions into disaster alert status. The disaster struck during harvest season in key growing areas including Sumatra, Sulawesi, and Papua. Torrential rain is slowing harvest work and causing cherries to drop, so coffee production is expected to decline.

Official figures show a landslide in Mimika Regency, Central Papua, killed seven people on July 14, while an earlier landslide in Gorontalo Province left 27 dead and 15 missing. Ambon declared a 14-day alert from July 6. Combined with a weaker rupiah and lower output in Vietnam, indonesian robusta coffee prices are expected to stay high in the short term.

Indonesia has recently experienced persistent severe weather, with landslides and floods triggered by heavy rainfall having caused dozens of casualties, and multiple provinces have entered a disaster alert status. This natural disaster not only threatens the safety of local residents but also affects the country's coffee industry — major growing regions such as Sumatra, Sulawesi, and Papua are right in the middle of the harvest season, and torrential rain will hinder harvest progress and cause cherries to drop, with output expected to decline. Combined with factors such as the depreciation of the Indonesian rupiah and reduced coffee production in Vietnam, international robusta prices are expected to remain high in the short term.

According to reports from local Indonesian media, the country has recently been hit by persistent extreme weather, with heavy rainfall and landslides occurring one after another, causing casualties and impacting multiple industries.

According to information released by Indonesia's National Disaster Management Agency, on July 14 local time, affected by heavy rainfall, a landslide occurred in the Mimika Regency of Central Papua Province, and 7 people have been confirmed dead, including 5 adults and 2 children.

Earlier, on July 6, flash floods and landslides triggered by torrential rain struck a gold mine in Bone Bolango Regency, Gorontalo Province, and the miners' camp was swept away by the flood. According to a report by Indonesian search and rescue officials on July 13, the landslide incident in the province caused a total of 27 deaths, 15 missing, and 283 people successfully rescued.

Recent heavy rainfall in the Jakarta area has also caused multiple communities to be flooded. Due to extreme rainfall, floods and landslides occurred in Ambon, the capital of Maluku Province, and the city declared a 14-day disaster alert status starting from July 6. Flooding occurred in Cirebon Regency, West Java Province, on the 7th, severely affecting and disrupting the lives of thousands of residents. Prolonged continuous heavy rainfall has also caused water levels in many rivers to surge and overflow.

Days of heavy rain in Indonesia trigger landslides, killing multiple people; harvest in major coffee regions blocked and supply tightens

According to information released by Indonesia's Meteorology, Climatology and Geophysics Agency, affected by anomalous atmospheric phenomena, starting from July 9, Sumatra, Kalimantan, Sulawesi, and the Papua region may be hit by torrential rain, and the meteorological agency reminds the public to take precautions against thunderstorms and disasters such as floods.

At the same time, the Chinese Embassy in Indonesia has also issued a notice reminding Chinese citizens and enterprises in Indonesia to pay close attention to local weather and forecasts from meteorological departments, try to avoid traveling in severe weather, stay away from high-risk areas, and prepare in advance for protection against thunderstorms, floods, and landslides.

This disaster also poses a threat to Indonesia's coffee industry. Among the areas where landslides occurred, Papua Province also has coffee cultivation, mainly of the robusta variety. The Sumatra, Sulawesi, and Papua regions that may next suffer heavy rainfall are all major coffee-growing areas in the country.

Under normal patterns, most parts of Indonesia should be at the peak of the dry season in July and August, but this year the dry season, which usually has less rainfall, has seen continuous torrential rain.

Currently, it is the coffee harvest period in Sulawesi and Papua, and Sumatra is about to enter its harvest season. Heavy rainfall will slow down coffee harvesting progress, and torrential rain will also knock down some nearly ripe or already ripe cherries, causing a decline in output. In addition, torrential rain may also bring secondary disasters to areas where landslides have already occurred.

Since the beginning of this year, Indonesia has successively suffered a series of natural disasters such as floods, landslides, and volcanic eruptions, and the outlook for this year's coffee production is not optimistic. At the same time, the Indonesian currency has continued to depreciate, with the rupiah exchange rate falling 5.9% so far this year. Although currency depreciation is beneficial to exports of commodities such as coffee, it also enhances the competitiveness of Indonesia's tourism industry. The growth of tourism has driven an increase in Indonesia's domestic coffee consumption, ultimately leading to a reduction in the amount of coffee available for export.

Days of heavy rain in Indonesia trigger landslides, killing multiple people; harvest in major coffee regions blocked and supply tightens

In addition, the vice chairman of the Vietnam Coffee Association recently said that this year's drought has led to a severe reduction in Vietnam's coffee production, and the upcoming La Niña phenomenon will further worsen conditions in Vietnam's coffee-producing areas. Therefore, Vietnam's coffee export volume will be difficult to significantly improve in the short term, and this situation may last until December this year.

At present, both Vietnam and Indonesia are facing reduced production and lower export volumes, and Brazil's robusta output will also decline. Tight supply has kept international robusta prices at a high level recently.

The above content is compiled by CoffeeHunters, a coffee news website.

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