Posted on February 09, 2011
Coffee prices have exploded since June as worldwide consumption has increased. Over recent years global coffee reserves have been dwindled to a low levels. Prices have continued to rise despite the increase in production from brazil and the expected 13% increase in their next crop.
Production is expected to be slightly lower in Vietnam, while significantly lower production is anticipated in Indonesia and several other exporting countries as a result of unfavourable weather conditions. Colombia will find it difficult to recover its former production level since many coffee trees hav been affected by coffee leaf rust and access to appropriate treatment is limited by the high cost of inputs. This will not help increasing prices and there seems to be no end in sight at the moment.
For those interested:
ICO Monthly Coffee Market Report - December 2010
and
ICO Monthly Coffee Price Table
and
We have held off increasing our prices for as long as possible but there is no reduction in sight and we have no alternative to increase prices as of the 1st Feb