Global green coffee exports surge 8.8% in August

Global exports of green, or unroasted, coffee rose by 8.8% in August 2023 compared to the same month last year, pushing the overall export growth for the first 11 months of the 2023/24 season to 10.5%, according to a report from the International Coffee Organization (ICO).

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Global exports of green, or unroasted, coffee surged by 8.8% in August 2023 compared to the same period last year, bringing the total export growth for the first 11 months of the 2023/24 season to 10.5%, according to a report by the International Coffee Organization (ICO). This rise in global coffee exports highlights a robust performance in the coffee industry, with demand for unroasted beans continuing to grow.

The growth was primarily driven by robusta coffee, a variety known for its strong flavor and high caffeine content. In August, robusta shipments increased by 14.3%, supported by higher exports from Brazil, India, and Indonesia. These countries are emerging as key players in robusta coffee production, contributing significantly to the overall rise in exports.

However, Vietnam, the world’s largest robusta producer, saw a 12.1% decline in exports in August. This marked the seventh consecutive month of declining shipments from Vietnam, which has been attributed to tight domestic supply. Farmers in Vietnam are waiting for fresh supplies from the upcoming 2024/25 harvest, expected to begin next month, causing a temporary slowdown in exports. Despite this decline, the overall robusta market remains strong, bolstered by rising demand from other key producers.

The global tightness in robusta supply has had a significant impact on prices. The ICO Composite Indicator Price (I-CIP) averaged $2.5890 per pound in September, the highest price seen in 47 years. This price surge reflects the growing demand and limited availability of robusta beans, signaling potential challenges for the coffee market as it navigates supply constraints.

As the 2024/25 harvest approaches, global coffee exporters and buyers are keeping a close eye on production trends, particularly in Vietnam. The future of the robusta market hinges on the upcoming harvest and how it will influence supply and prices in the coming months.