International Coffee Organization: Global coffee market in 2018/19 will maintain oversupply situation
According to the latest report of the International Coffee Organization (ICO), global coffee production in 2018/19 increased by 3.7% from the previous year to 1.6878 billion bags, of which, the production of Arabica increased by 1.8% to 1066.8 million bags, and the output of Robusta increased by 6.7%. It has reached 66.04 million bags. At the same time, global coffee consumption increased by only 2.1% during the year, which led to the global demand for oversupply in the global coffee market for the second consecutive year, resulting in the current decline in coffee prices.
The International Coffee Organization has published data on China's coffee production and consumption since 2017 and ranks China as the 9th largest Arabica coffee producer in the world. Among the global Arabica coffee growing countries, China's planting area ranks 9th, and Asia ranks 4th. Yunnan has become China's largest coffee plantation, trade distribution center and export destination. Coffee planting scale and output account for more than 98% of national production.
The data show that since September 2018, the overall price index of Xinhua Yunnan (Pu'er) coffee has been suppressed first and then increased. On November 23, 2018, the composite price index was 765.34 points, the lowest since November 2017, and then gradually picked up. On July 26, 2019, the comprehensive price index was reported at 876.01 points, a record high since 2019. As of September 22, 2019, the composite price index was reported at 871.46 points. Under the expectation that the global coffee market will maintain a supply-to-demand ratio, it is expected that the Xinhua. Yunnan (Pu'er) coffee comprehensive price index will continue to fluctuate in the short term.