Analysis of foreign demand for Indonesian coffee

Abstract

The demand for Indonesian Robusta coffee abroad varies significantly with per capita incomes, relativeprice of Robusta coffee, price of Arabica coffee and to some extent coffee stocks of the importing countries. The present marketing system of Robusta coffee can still be improved by reducing the marketing cost as such efficiency in marketing is expected to further increase the demand for this product domestically and internationally. This paper also suggests possible solutions to improve the existing marketing system and the regional cooperation and multilateral trades between ASEAN, Group of 15 and the South Group. It is pertinent for The Indonesian coffee producers to abide to the International Coffee Agreement.