LONDON– The global coffee market is undergoing a transformation that will result in higher quality and more expensive coffees, but not a rise in overall trade volume, as consumers increasingly use single doses and abandon large, traditional drip jars.
According to an industry expert, this movement was bolstered by the COVID-19 pandemic, as people stopped drinking office coffee and began experimenting with new processes and qualities.
Henrique Dias Cambraia, a coffee producer, processor, and the president of Brazil’s Specialty Coffee Association, stated, “There is no turning back”.
“Coffee drinkers have increased their knowledge, purchased equipment, and are willing to pay more for higher quality,” said Cambraia in an interview, adding that the market has seen the growth of single-dose offerings, with Keurig [KDP.O] dominating in the United States and Nestle’s [NESS.S] Nespresso leading in Europe.
December Arabica coffee KCc1 prices increased 0.5 percent to US$ 1.9650 cents per pound [lb], after reaching a one-year low of US$ 1.9320 cents per lb. Last week, the contract lost 9.8 percent.
According to government data, green coffee exports from the world’s leading producer, Brazil, averaged 10,570 tonnes per day in October, compared to 9,440 tonnes per day in October of the previous year.
Green coffee stocks at U.S. ports, the world’s largest consumer of the beverage, decreased by 71,608 60-kg bags to 6.37 million bags at the end of September, supporting prices.
Additionally, Intercontinental Exchange [ICE]-certified Arabica stocks fell to 397,999 tonnes, according to the most recent data.
Meanwhile, raw sugar futures on ICE declined for a second consecutive day on Tuesday, as dealers were optimistic about impending supply news from India and concerned about the strength of the U.S. dollar, while Arabica coffee reached a new one-year low.
India’s sugar output is expected to increase by 2 percent to 36.5mln tonnes in the new season, which began on October 1, a leading industry body said on Monday, adding that the country will have an excess supply of 9mln tonnes to export.
In the meantime, an Indian government official stated that the country will announce its sugar export quota within a week.
https://thecooperator.news/global-coffee-exports-down-8-8-percent-down-in-july-2022/
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