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Kintamani’s coffee planters need more cash

May 25, 2012 in Bali News by - Leave a reply

Coffee planters in Kintamani are facing a capital problem that is preventing them from expanding their operation, despite the coffee’s potential as an export commodity. I Ketut Jati, head of the coffee farmers’ group, said in a discussion with Bali Governor Made Mangku Pastika that there was untapped potential in this commodity that the farmers were not able to develop due to funding problems.

Jati said geographically, the land suitable for coffee cultivation in Kintamani amounted to 12,000 hectares. The land is located in Bangli regency, the northern part of Badung regency, and in Buleleng regency. Out of the 12,000 hectares of land, only 7,000 hectares have so far been cultivated.

“Of the 7,000 hectares, 4,000 hectares have produced coffee, while the remaining 3,000 hectares is still in the early phase of cultivation,” Jati said.

The total production of Kintamani coffee reached 20,000 tons of unprocessed coffee beans per year. Limited processing facilities have hampered the farmers on developing the commodity, thus only a few farmers are able to produce ready-to-serve coffee.

Only 2,000 tons out of 20,000 tons of coffee beans could be processed into an intermediate product.

Jati said out of 65 subak (farmer groups), only 22 own processing facilities. However, there are only five advanced processing facilities that are able to produce ready-to-serve coffee.

“Most of the processing facilities are still incomplete. We only have some parts for the facilities and need more complete equipment, but we can’t afford it.”

Therefore, most farmers are only able to market intermediate products, which still have to be processed further to produce ready-to-serve coffee.

Many of the exported products are coffee beans. In November, the amount of exported coffee beans reached 18 tons, worth Rp 1.2 billion.

The coffee beans are exported to South Korea, the US, Australia,
Japan and France.

Besides the problems with facilities, the farmers also lack the capability to market their products, thus most of the marketing is carried out by third parties. “We are facing difficulties in marketing,” Jati said.

“What puts us in a more difficult situation is that most people here already have coffee plantations, so it is impossible to market the product locally since they can serve coffee from their own plantations.”

He hoped the local administration would help market their products by asking hotels to serve Kintamani coffee at various national and international events in Bali.

Governor Pastika said the administration was ready to provide processing facilities to the farmers, but could not yet give a precise time line.

“It would be better for the farmers to have more processing facilities. This would offer them added value,” Pastika said.

“Farmers can earn more benefits if they are able to produce fully finished products, instead of unprocessed ones.”

Source: thejakartapost.com

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