Coffee: Consumption Growing in Producing Countries

Increased purchasing power has triggered the consumption of coffee in the leading producers in the world, Colombia, Brazil and Vietnam, raising its international price.

Tuesday, August 5, 2014

The three countries which together produce 60% of the grains consumed in the world, are increasing their local consumption of coffee, putting pressure on the export supply and raising grain prices around the world. According to the firm Euromonitor, cited in an article by The Wall Street Journal, "...Projections are that packaged coffee purchases in Brazil will amount to 1.03 million tons per year, surpassing the United States as the largest consumer of coffee in the world for the first time since at least 1999 "

"...As incomes rise, consumers are putting aside cheaper drinks such as tea, and are demanding higher quality grains, often the same varieties used by large roasters in the USA and Europe. "

"...The shift to higher quality beans is restructuring patterns of in the global coffee trade. During the last decade, grain crops in Brazil grew by 61%, but exports went up by 34%, with the rest going to the domestic market. "



More on this topic

Coffee Prices: What to Expect in 2018

January 2018

Global coffee output for 2017/18 is preliminary estimated at 158.78 million bags, 0.7% higher than last year.

Total production of Arabica is estimated to decrease by 1.1% to 97.32 million bags compared to  98.42 million bags last year, as lower production of Colombian Milds and Brazilian Naturals are only  partially offset by increases in Other Milds.

Coffee: Global Report up to January 2015

February 2015

The climate in Brazil was the main factor affecting the behavior of the international price of the grain in January, starting the month high and closing at $143.43 per pound.

From the Coffee Market Report - January 2015 by the International Coffee Organization (ICO):

Dry weather in Brazil at the beginning of January spurred prices higher, with the daily price of the ICO composite indicator rising from 140.57 US cents/lb to a high of 155.40 by the middle of the month. However, forecasts of rain later in the month punctured this brief rally,causing the ICO composite to fall back down to 143.43 cents by the end of January.Nevertheless, overall rainfall levels in Brazil remain below average, with the development of the 2015/16 crop now at a crucial stage. Furthermore, an infestation of coffee berry borer has led to a state of phytosanitary emergency being declared in the states of São Paulo and Espírito Santo.

Market Changes Threaten Arabica Coffee

May 2013

The variety of coffee which is considered the best quality, is starting to have disadvantages compared to the robusta variety, both due to changes in consumer trends, as well as price.

This is the warning given by experts who gathered in Sao Paulo, Brazil. According to the manager of the research firm Olam Europe, Neil Rossner, the Central American countries affected by the rust blight, "failed to meet the challenge presented by Brazil and Vietnam", the world's largest producers of grain. "The Arabica segment is in crisis and the gourmet coffee strategy is threatened," he added.

Arabica Coffee More Attractive for Blends Because of Price

March 2013

With the price gap between the two varieties having reduced, coffee roasters will use more arabica coffee in their blends.

Since 2006/07, the use of robusta coffee rose to 46% of the total, boosted by demand for cheaper varieties of this commodity in a difficult global economic scenario.

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