The shortage of coffee on the world market will remain the 3rd year in a row
Supply shortage on the world coffee market will continue for the third consecutive year, with production of Robusta is likely to be the lowest since 2012, according to the report of the International coffee organization (International Coffee Organization, ICO).
According to estimates of the ICO, coffee deficit in 2016/2017 marketing year, which began in October, will be 3.5 million bags (a bag is 60 kg or 132 pounds). The production of coffee beans is expected to reach 151.6 million bags, and consumption 155,1 million bags.
Production of Arabica is expected to be a record – 93.5 million bags due to the high yields in Brazil, Colombia and Honduras.
The price of Robusta coffee increased by 43% compared to the beginning of 2016 to $2190 per ton.
“Prospects of restoration of production of Robusta coffee in Brazil to 2017 remain low”, believes analyst of Rabobank’s Carlos .
Amid high supply of Arabica and Robusta deficit, experts expect a substantial reduction in the difference in prices for these varieties. Starting in 2016, the spread has declined approximately 13%.