Global coffee exports drop 11% in Oct-Nov on weak prices

Global coffee exports fell by 11% to 16.54 million bags in October-November, the first two months of the current marketing year, as farmers in some countries held back stocks due to sluggish prices, the International Coffee Organisation said.

Worldwide coffee shipments stood at 18.55 million bags in the same period last year. One bag contains 60 kg of coffee.

"Overall coffee exports are down so far this year as farmers in some exporting countries like Indonesia and Vietnam are holding back stocks because of sharp fall in prices," ICO Chairperson Jawaid Akhtar told PTI.

According to the latest ICO data, global export of arabica coffee declined marginally by 3.4% to 11.01 million bags during the October-November period of this year, while robustas dropped sharply by 22.6% to 5.53 million bags in the same period.

The shipments from the top three exporting countries - Brazil, Vietnam and Indonesia - declined in the first two months of the 2013-14 marketing year (October-September).

Exports from Brazil fell marginally to 5.73 million bags during the October-November period of this year from 5.76 million bags in the year-ago.

Whereas shipments from Vietnam fell significantly to 2.10 million bags from 3.37 million bags, exports from Indonesia declined sharply to 1.95 million bags from 2.55 million bags in the review period.

Exports from India, however, rose to 6,76,835 bags in October-November, compared with 5,52,917 bags in the year-ago period.

ICO said: "Coffee prices have fallen consistently over the course of 2013, with decreases recorded in nine out of the last 12 months. Although prices in December rose slightly compared to November 2013, the ICO composite indicator is still at its second-lowest level of the year."

Coffee prices in 2013 recorded the lowest average annual price since 2009. Prices were under downward pressure in anticipation of a record off-year crop of 49.15 million bags in Brazil, world's leading coffee grower, it added.

Noting that the falling price trend has discouraged producers to invest in and expand their output, ICO said with consumption continuing to grow at around 2.4% a year, demand for coffee remains buoyant and should provide potential for further growth in the longer term.

Last year, world coffee production rose 9.8% to 145.24 million bags.