[Kabar-indonesia] 'Coffee consumption in India, Indonesia, Mexico may grow 25%'

[Joyo at aol.com]

'Coffee consumption in India, Indonesia, Mexico may grow 25%'

LONDON (Bloomberg - July 13, 2006): Coffee consumption may grow more than 25 
percent in the next three years in India, Indonesia and Mexico as the nations 
promote the beverage to their populations, the International Coffee 
Organization said.

The countries, which are among the world's six largest coffee exporters, may 
replicate the success of a similar advertising campaign in Brazil, said Nestor 
Osorio, executive director of the London-based ICO.

The 10-year-old Brazilian campaign has doubled consumption in the world's 
biggest exporter to 16 million bags, Osorio said.

"We are now working with the governments and institutions in India, Indonesia 
and Mexico to do something similar," Osorio, 58, said in an interview. The 
three countries are "traditionalcoffee-producing nations without a strong 
coffee-drinking culture."

The ICO, which is funded by its member countries, wants to promote coffee 
drinking in those countries to balance supply and demand. By curbing the amount 
of bean s exported, it plans to lessen the extent of price swings. The 
campaigns in India, Indonesia and Mexico start in September.

India, the world's second-fastest growing economy with a population of over 1 
billion, consumed 1.3 million bags of coffee last year, while its farmers 
produced 4.4 million bags, according to U.S. Department of Agriculture figures. 
One bag weighs 60kilograms (132 pounds). The U.S., the largest coffee consumer, 
used 20.8 million bags in 2004, according to ICO data.

Indonesia's 245 million-strong population drank 2 million bags, while the 
country produced 6.75 million bags. Mexico, with 107 million people, consumed 1.5 
million bags and produced 4 million bags.

Global consumption may rise to 145 million bags from 120 million bags within 
10 years even without efforts to boost demand, Osorio said. Supply and demand 
are no w balanced and "that could change any moment," he said.

Coffee futures on London's Euronext.liffe exchange closed yesterday at $1,317 
a metric tons. They have gained 11 percent this year.

If prices rise further, growers may be tempted to increase production, Osorio 
said. "I tell them this is not the time to increase production, this is the 
time to invest in plantations," he said.

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Joyo Indonesia News Service
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