Indonesia Green Coffee Beans Market Price 2025

Coffee Prices Experience Significant Fluctuations Amid Global Supply Issues and Local Demand

Indonesia, January 6, 2025 – The coffee market is witnessing notable fluctuations in prices, driven by global supply challenges and varying local demand. Recent updates reveal the current market prices for robusta and arabica coffee in Indonesia, alongside an analysis of futures market trends and their implications for local farmers and the broader market.

Indonesian Green Coffee Beans Market Prices – January 2025

Robusta Coffee Prices

In the past month, robusta coffee prices in Indonesia have remained stable, currently ranging from Rp83,000 to Rp85,000 per kilogram. This price point marks the highest level ever recorded in the domestic market.

The sustained high prices are largely attributed to a global shortage of robusta coffee, which has spurred increased demand for local products. As consumers and businesses seek reliable sources, the robusta market continues to experience upward pressure on prices.

Arabica Coffee Prices

Conversely, the local market for arabica coffee has shown consistent stability, with prices holding steady at around Rp100,000 per kilogram.

Higher-quality arabica, such as double pick from SM, is trading at approximately Rp105,000 per kilogram, while prices for arabica at the farmer level range from Rp96,000 to Rp97,000 per kilogram.

This stability contrasts sharply with the volatility seen in the robusta market, reflecting differing supply and demand dynamics.

Global Green Coffee Beans Market Prices – January 2025

Robusta Coffee (RMH25)

As of January 3, 2025, the futures price for robusta coffee is recorded at 4,968, reflecting a decrease of 88 points (-1.74%).

The daily chart indicates significant price fluctuations over recent months, showcasing notable peaks and troughs.

The trading volume for robusta coffee futures stands at 38,727, indicating active market participation and highlighting the volatility influenced by both local and global factors. (Source: Barchart)

Arabica Coffee (XFH25)

In contrast, the futures price for arabica coffee is currently at 402.50 as of January 6, 2025, with a slight increase of 0.85 points (+0.21%).

The daily chart for arabica coffee shows a general upward trend over the past several months, albeit with some fluctuations.

The trading volume for arabica futures is lower, at 4,063, suggesting a different level of market activity compared to robusta, indicating a more stable outlook for arabica coffee despite recent price changes. (Source: Barchart)

Market Dynamics

Supply and Demand Factors

The current market dynamics for green coffee beans in Indonesia are heavily influenced by supply and demand factors. The global shortage of robusta coffee has significantly impacted local prices, driving them to record highs. This shortage is attributed to adverse weather conditions in key producing regions and increased competition for limited supplies. Consequently, local producers are experiencing heightened demand for their robusta coffee, reflected in rising prices.

In contrast, the arabica market has remained relatively stable, with demand for arabica beans not fluctuating significantly. This stability allows prices to hold steady, although higher-quality arabica beans continue to command a premium price. This differentiation in quality is crucial, affecting pricing strategies and market positioning for producers.

Impact on Local Farmers

The fluctuations in coffee prices have direct implications for local farmers. For robusta producers, the recent price surge presents an opportunity for increased income, allowing them to benefit from heightened demand. However, the volatility in prices can create uncertainty, complicating future planning for farmers.

On the other hand, arabica farmers face a different set of challenges. While arabica prices remain stable, any slight decrease may impact their profit margins. Farmers producing higher-quality arabica beans can still secure better prices, but they must ensure their products meet the market’s quality standards.

As the coffee market continues to evolve, both local farmers and consumers will need to navigate these fluctuations and their implications for the broader economy.

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