The Hindu Business Line : Global coffee exports decline 4%

LONDON: Global coffee exports fell by about four per cent to 94.5 million bags in the year ending September 2008, according to the International Coffee Organisation.

“Exports in September totalled 7.9 million bags, bringing the total for coffee year 2007/08 (October-September) to 94.5 million bags, compared with 97.9 million bags (of 60 kg each) for the same period in 2006-07,'' the organisation's Executive Director Nestor Osorio said in a letter.

However, the global coffee body has not specified reasons for the fall in overall shipments in its latest report. The global opening stocks of coffee for the crop year 2008-09 are estimated at 17 million bags, compared with 25.4 million bags for the pre vious crop year, he said.

The report also projected the global consumption in calendar year 2008 to be 127-128 million bags from around 124.6 million bags in 2007. “This growth in the world consumption is attributable largely to significant dynamism in emerging economies and a n umber of coffee exporting countries,'' he said.

Though Osorio projected stable consumption level in traditional coffee markets despite recent financial slowdown, he remained less optimistic about emerging markets. “Despite the current financial crisis, consumption levels in traditional markets are li kely to be maintained.

The situation remains less certain in emerging markets where the crisis could have an effect on consumption patterns,'' he said. In terms of volume, the US, Brazil and Germany were the top three consumers in 2007.

Osorio also blamed the financial crisis for the fall in coffee prices. “Coffee prices fell sharply during the month of October in the context of the financial crisis,'' he said, adding that in the last two months, the prices have declined by over 17 per cent. – PTI

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