One of the world top food makers Nestlé may raise its prices. The producer can revise its price policy on the back of possible reduction of coffee exports from Indonesia. According to analytical forecasts, the exporter can decrease its shipments of the drink to Europe. Being listed in the third place among the biggest producers of Robusta coffee, the country is facing a hike in domestic demand, and experts say that the figure can add 33% by 2016. The cause of such developments lies in steady population growth and an improvement in living standards in Indonesia. The middle class in southeast Asia's leading economy rises at a stable pace thus increasing consumer spending and coffee drinking at the same time. Demand for the “eye-opener” drink is expected to boost over coming years according to the majority of coffee market experts. The Indonesian Coffee Exporters Association said that the region demand for coffee can go up to 400,000 tons per year by 2016 against 300,000 previously expected in 2014 and 260,000 sold in the local market in 2013. The production capacity is not endless though. Indonesia can produce as high as 700,000 tons this year compared with 650,000-700,000 tons registered during the prior year, Irfan Anwar, the Association’s head said. «How does it deal with Nestlé?», you may ask. The answer is very simple. In its production Nestlé uses Robusta, 80 percent of which is farmed in Indonesia where increased domestic demand pushes export pieces of coffee higher.
