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Buy Coffee for China

Buy Coffee for China (Dalam Bahasa Indonesia  Beli Kopi Untuk China)
Coffee export means making money, increasing forex and bank activities, getting loan for export, shipping or freight, air plane, hotels, cafes, coffee shop, coffee  grinder.  Countries of coffee exporters are competing tightly. Each of them have been trying to come out on top for the sake of devisa and people welfare. They use several instruments such as tariff and non-tariff policies. Each of them always seeks market potential such as China. Indonesia is on the track to increase Indonesian Coffee’s Market Share in internal and external ASEAN Countries. Indonesia is optimistic to be able to increase its market share because of the Indonesian Coffee Grows good.

Nowadays, China is one of market target of green coffee bean export of Indonesian. Export value of indonesian green coffee bean to China was US$ 2.3 million in year 2009 and increased in year 2010. It’s wise to predict that export value of indonesian coffee to China still increases in year 2011 because of the market potential of China. Increasing China's import on coffee will have impact not only on green bean but also people will seek for best coffee equipment such as coffee roaster, coffee cup, and latte art coffee maker, and cappucino coffee maker. 

Having 1,3 billion citizens, China is a terrific potential market of coffee. Current coffee consumption of China is very low which is just around 0.02 kg per capita per year, or equal to 30.000 ton green coffee bean per year. The consumption can still increase because of changing in consumption habits of Chinese entrepreneurs, youth and urban citizens. Let’s assume that coffee consumption of China in 10 years will be equal to current Mongolia’s coffee consumption i.e 0.3 kg per capita per year. It means, coffee consumption of China increases 15 times of the current level. Consequently, need of China on coffee in 10 years will gradually increase from 30,000 ton per year (2010) to 450,000 ton per year (2020). Hence, China is a tremendous market potential of coffee. This is a huge promising market. However, Indonesia must not underestimate the Challenges and Threats of Indonesian Coffee Exports to China.

The classic wisdom still exists: Ants will always go to place of sugar. Questions: Will China be the next real "sugar land" for green coffee bean of Indonesia? And, how will buyers (importers) in the Continents Americas, Europe, Australia and Asia anticipate such situation? The answer : there must be some win-win solutions for it. What we need to do is : let's look for it.  

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Kind regards,

Dr. Sabam Malau
NSCF Chairman

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