In 2020/2021, world coffee production could reach a record 176.1 million bags (one bag is equivalent to around 60kg), an increase of 5% over 2019/2020 or 9 million bags. This historic level is the result of an excellent crop forecast in Brazil, the world’s largest producer and exporter. This country is expected to have its highest production ever recorded with 67.9 million bags, 8.6 million bags more than the previous year. Meanwhile, Vietnam, its runner-up, will show a slight fall in volume to 30.2 million bags. World coffee stocks will amount to 42 million bags at the end of crop year 2020/2021, their highest level in six years. This increase could further contribute to fuelling the downward trend in coffee prices despite an increase in consumption which is expected to rise to 166 million bags in 2020/2021 compared to 163.9 million bags a year earlier. The price of the pound of Arabica remained below the symbolic threshold of one dollar for the second week in a row, trading at 97.10 cents on the New York Stock Exchange last Friday. The main consumers of coffee are the European Union (EU), the United States and Brazil.
Source: Agence Ecofin