ICO market report shows record exports in coffee year 2017/18

Total coffee exports reached a record high in coffee year 2017/18 at 121.86 million bags, according to the International Coffee Organization (ICO) October 2018 coffee market report. This shows a growth of two per cent over coffee year 2016/17. World coffee exports amounted to 9.43 million bags in September 2018, compared with 8.75 million in September 2017. In the 12 months ending September 2018, exports of green Arabica totalled 70.95 million bags, compared to 70.51 million bags the previous year. Green Robusta exports amounted to 39.24 million bags in the same period, compared to 38.87 million bags the year prior. Total shipments of all forms of coffee increased in four out of the 10 largest exporters for coffee year 2017/18, including the two largest exporters, Brazil and Vietnam. Coffee prices reversed their four-month downward trend as the monthly average of the ICO composite indicator increased to 111.21 US cents per pound in October 2018, 13.3 per cent higher than in September 2018. The ICO says that while prices have increased, they remain below the average price of 138.56 US cents per pound from January 2008 to September 2018. In contrast to September 2018, the ICO daily composite indicator remained above 100 US cents per pound throughout October 2018, ranging from 101.04 to 116.93 US cents per pound. World coffee consumption is provisionally estimated at 161.93 million bags in coffee year 2017/18, led by an increase of 3.1 per cent to 35.9 million bags in Asia and Oceania’s consumption. While the ICO estimates coffee consumption at 1.8 per cent higher in coffee year 2017/18, coffee production exceeded this by 1.59 million bags. The ICO says this surplus and the higher volume of shipments contributed to the low prices in 2017/18.