Indonesia’s coffee output is likely to plunge to a three-year low in 2014-2015 due to unfavourable weather conditions, a recent Reuters survey has shown.

The output is equivalent to 8.9 million bags of 60kg, down from 10 million bags a year ago.

Higher domestic consumption will soak up about half the produce, curbing sales by the key exporter, it said.

Meanwhile, the US Department of Agriculture and the International Coffee Organisation (ICO) forecast that the output will fall about 20 percent to 7.29 million bags due to excessive rains until July, drought and strong wind during the flowering season in the second half.

According to the ICO, Indonesia is the second largest coffee consumer behind Brazil. In the robusta market, Indonesia competes with top producer Vietnam, which only consumes about 6 percent of its output.

In 2014-15, Indonesia’s coffee consumption may rise to 4.2 million bags from 4 million a year ago, ICO said.-VNA