‘Coffee use not hit by Euro crisis'

The European economic crisis has not affected coffee consumption so far, said International Coffee Organisation's Executive Director, Mr Roberio Oliveira Silva.

For 2010, the organisation estimates global coffee consumption at 135 million bags of 60 kg each, a 2.4 per cent growth over 2009. The organisation is yet to finalise the consumption figures for 2011. “However, our internal estimates for 2011 have proved that consumption has been resilient,” Mr Oliveira said.

Europe, where demand grew by 2.9 per cent in 2010 at 40 million bags, accounts for a third of global coffee consumption. It accounts for about 70 per cent of India's exports. For the 2011-12 crop year, Indian exporters have seen a sluggish order book as buyers in Europe have opted to buy as and when needed to cover for immediate requirements.

“At the same time, production is exactly what the market needs. So we haven't seen so far any problem with regard to production and consumption,” Mr Silva said. The organisation on Monday revised up its global crop estimate by 3 per cent to 132.4 million bags from 128.6 million bags in December 2011. In a bid to boost consumption, the organisation plans to revive its promotional campaigns in emerging countries, such as Russia and China, and producing countries, like Indonesia, India and Africa.

“Our promotional campaigns were stopped for a while now. We are trying to reactivate them at our forthcoming meeting in March,” Mr Silva said. The organisation sees a need to boost consumption in coffee-producing countries as it helps stabilise prices for the farmers, he said.

Total consumption in producing or exporting countries — including Brazil, Vietnam and India — grew at 4.2 per cent in 2010 at 41.33 million bags. In importing countries, growth in demand stood at 1.7 per cent at 93.7 million bags.

> vishwa@thehindu.co.in

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