We know our customers love coffee and we can get a bit carried away at times with all things coffee... In reviewing the USDA's world coffee report there are some highlights we took out and posted below. We spared the boring parts:)
World coffee production for 2016/17 is forecast at 3.7 million bags higher than the previous year to 156.6 million bags.
Higher Arabica production in Brazil will more than offset lower Robusta production in Brazil, Vietnam and Indonesia.
Global consumption is forecast at a record 153.3 million bags, drawing ending inventories to a 5-year low.
- Brazil: Although the combined Arabica and Robusta harvest is forecast to expand 6.7 million bags to 56.1 million, total supply is expected nearly unchanged due to the previous year’s drawdown in stocks.
- Colombia: Arabica production is forecast up 500,000 bags to 14.5 million on continued growth due to the replanting program started several years ago as well as favorable weather.
- Indonesia: Production is forecast to drop 2.1 million bags to 10.0 million due to severe drought throughout most of the growing regions. Almost all of the decline will come from Robusta, which was hard-hit by adverse weather conditions.
- Central America and Mexico: Together, they account for over 15 percent of the world’s Arabica production, and coffee rust continues to hamper output for most of these countries. Although the region’s total coffee production is forecast to add nearly 600,000 bags to total 15.4 million, output is still 20 percent below the record set 5 years ago.
- The European Union accounts for over 40 percent of the world’s coffee bean imports and is forecast down 300,000 bags to 45.5 million. With consumption rising 300,000 bags to 44.4 million, ending stocks are expected slightly lower at 11.9 million bags.
- The United States imports the second-largest amount of coffee beans and is forecast down 300,000 bags to 24.8 million. Top suppliers include Brazil (27 percent), Colombia (20 percent), and Vietnam (16 percent). Consumption is expected to gain nearly 200,000 bags to 25.3 million, drawing ending stocks down slightly to 6.0 million bags.
- World production is revised down from the June estimate by 300,000 bags to 153.0 million.
- World bean exports are lowered 200,000 bags to 112.6 million.
- Brazil is lowered nearly 900,000 bags to 31.9 million on reduced shipments to the United States and EU.
- Vietnam is up nearly 1.0 million bags to 27.0 million as rising prices provided an incentive to draw inventories lower.
- World ending stocks are lowered 600,000 bags to 34.8 million.
- Vietnam stocks are down 1.8 million bags to 3.8 million on stronger-than-anticipated shipments.
- Brazil is up nearly 500,000 bags to 2.7 million on slower exports to top markets.