The price of coffee beans on the international market has increased rapidly as many major suppliers in the world such as Brazil or Vietnam are expected to cut their output in the next 1 year period ending in late September 2020. , according to Nikkei.
Asia’s demand for coffee is growing rapidly. According to the US Department of Agriculture, Indonesian coffee consumption will increase by 54%; Vietnam’s coffee consumption increased by 14% while China’s coffee consumption increased by 16% during the 5-year period to the end of September 2020.
Meanwhile, the Chinese coffee chain Luckin increased the number of stores at the end of the third quarter of 2019 to 3,680 stores, equivalent to an increase of 209.5% over the same period last year.
The price of arabia coffee futures for short-term delivery increased by nearly 30% from a low in mid-November 2019 to 132 cents / pound, the highest level since the end of September 2017.
According to the US Department of Agriculture, Brazil’s coffee production is estimated at 58 million 60-kg bags in the one-year period through September 2020, down 2% from June 2019 and down 10% year-on-year. before.
Brazil recently lowered its forecast for coffee production due to a prolonged drought in Minas Gerais, Brazil’s largest coffee producing region. “Rainfall this year is 60% lower than the same period of previous years,” said a spokesman at the coffee trading company Ajinomoto AGF.
The forecast for inventory is reduced to 1.38 million bags of coffee, less than half of the level of June 2019 calculated at 2.87 million bags, down nearly 40% from the previous year.
Wataru coffee trading company consultant, Mr. Shiro Ozawa, commented: “Coffee growing activities are expected to decline in scale in many large producing countries of the world such as Vietnam, coffee export of Vietnam. Vietnam in the first 11 months of 2019 decreased by 15% ”.
In Honduras, the world’s sixth largest coffee producer, coffee production for the one-year period ending at the end of September 2020 is forecast to decline by about 7 percent.
Coffee consumption in Asia remains high. The US Department of Agriculture forecasts that global coffee consumption will increase by 14% over the one-year period to the end of September 2020.
