The global coffee market will record a 7.3 million bag deficit in the 2022/23 (October-September) season as increased global fertiliser costs and adverse weather last year hurt crops, the International Coffee Association (ICO) said on Tuesday 6 June.
Deficit Of 7.1m Bags In 2021/22 Season
This follows a deficit of 7.1 million bags in the 2021/22 season when coffee consumption bounced back and economic growth improved as the world emerged from the COVID-19 pandemic, the ICO said in a monthly report.
Small Rise Despite Brazil Being In "On-Year" Of Biennial Crop Cycle
The inter-governmental body sees production rising just 1.7% to 171.3 million bags in 2022/23 despite top producer Brazil being in an "on-year" of its biennial crop cycle.
Modest Growth Compared To Post-COVID Surge Last Season
Although consumption is also seen growing 1.7% to 178.5 million bags, this is modest compared to last season's 4.2% post-COVID surge.
Factors That Will Impact On Coffee Consumption For Coffee Year 2022/23
"Decelerating economic growth for 2022 and 2023, coupled with the dramatic rise in the cost of living, will have an impact on coffee consumption for coffee year 2022/23," said the ICO.
Global Exports Of Green Or Un-Roasted Coffee Beans Fell In April
It also noted global exports of green or un-roasted coffee beans fell 2.9% in April versus a year ago to 9.21 million bags, bringing the cumulative total of exports for the first five months of the coffee year to 64.95 million bags, down 6.4%.