High retail prices affect coffee consumption in 2011: ICO

Microeconomic turbulance also ascribed to high prices

World coffee consumption grew marginally to 8.27 million tonnes in 2011 calendar year due to high retail prices and economic turbulences, International Coffee Organisation (ICO) has said.

Worldwide consumption of the beverage rose by only 0.6% to 137.9 million bags (8.27 million tonnes) last year from 137.1 million bags of 60 kg each (8.23 million tonnes) in 2010, ICO data said.

The growth rate in coffee consumption is much lower compared to that achieved in 2010, when consumption rose by 3.5% to 137.1 million bags in 2010 as compared to 132.5 million bags in 2009.

"This reduction in the estimated growth rate of consumption for 2011 may be attributable in large part to high retail prices of coffee and macroeconomic turbulence in some major importing countries," ICO said in its report.

The highest increase in retail prices of coffee were recorded in Finland, where retail prices rose by 36.8% between 2010-2011, Latvia by 38.5%, the US by 32.9% and Sweden by 26.4%, it added.

The lowest increases were observed in Germany (2.3%), Portugal (3.5%), Japan (4.5%), Spain (7.6%), France (8.9%) and Bulgaria (9.4%), it said.

"Although retail prices have increased in many countries, overall consumption does not appear to be adversely affected," ICO noted.