Coffee Farming - Opportunities
Economics of coffee farming
- Price of Arabica = $1.89/lb.
- Price of Robusta = $0.79/lb.
Example:
- Farmer has 1.4 ha of land
- Arabica: 13.1 mill Rp * 77% fob = 10.1 mill Rp ($1346)
- Robusta: 7.3 mill Rp * 92% fob = 6.7 mill Rp ($893)
If 25% of Robusta converted to Arabica, would increase total coffee revenues by about 20%
More foreign exchange to stimulate economy
More money/ development in rural areas