The international market for coffee is in the doldrums, coffee farmers in Brazil and Vietnam are unable to sell it, and Arabica has also dropped its price this year.
Professional coffee knowledge exchange more coffee bean information please follow the coffee workshop (Wechat official account cafe_style)
Due to the downturn in the international market for coffee, coffee farmers in Vietnam and Brazil are generally unable to sell coffee despite bumper harvests, in order to resist the downward pressure of prices, and the dream of bears may be dashed.
The international market for Robusta coffee has fallen 17% this year, and coffee farmers in Vietnam's main growing region, Dole province, are generally reluctant to sell until after the Lunar New year.
The price of Arabica coffee has also fallen by 8% this year, so Brazilian coffee farmers keep half of this year's harvest, compared with only 30% in previous years.
The market had expected a bumper coffee harvest in Vietnam this year and looked forward to a bumper coffee harvest in Brazil in 2018, thus depressing the market. But now both countries may hesitate to sell because of low prices.
Ruhr, a coffee expert at ETG in Switzerland, said the export group estimated that there would be a surplus of 5.5 million bags of coffee in the 2018-19 production season.
"Coffee farmers in two countries (Vietnam and Brazil) have become smarter," said Seti, executive director of the International Coffee Organization. The current market is unattractive to farmers, so they are in no hurry to act.
Intimex, Vietnam's largest coffee exporter, forecasts a 5-10% increase in production this year; Brazilian traders are also forecasting an increase in production this quarter, with some even betting that production will hit a record high.
ETG had expected a global shortage of 3.1 million bags of coffee in the 2018 production season, but increased production in Brazil and Vietnam would reverse that forecast. However, due to the reluctance of farmers to sell, some of the excess inventory may be temporarily digested, and the other part may be used to make up for the previously reduced inventories of the two countries.
Brazilian exporter Comexim pointed out that by June 2018, Brazilian coffee stocks will be 61% lower than the previous year, to 1.04 million bags; the U.S. Department of Agriculture estimates that Vietnam's inventory fell 69% last quarter from the previous quarter to 1.18 million bags, the lowest level in six years.
Businessmen point out that although the market is highly dependent on Brazil to increase production, it is still a long time away from the harvest. Moreover, although the weather is fine this year, there are diseases and insect pests, so there may not be a "bumper harvest."
Experts from Chinese food companies point out that 66% of the world's coffee comes from countries such as Brazil, Vietnam, Colombia and Indonesia, so as long as the weather turns bad, it will pose a threat to supply.
The chairman of Intimex said that if the price of Robusta coffee is less than $1.54 a kilogram, farmers will continue to hold back. Vietnamese speculators have the ability to hold large stocks and wait for prices to pick up.
Many farmers in Brazil are organized into large cooperatives and own large cultivation farms, so they can afford not to sell at low prices, while the devaluation of the Brazilian real also gives farmers more money.
Source: economic Daily
Author: Ren Zhongyuan
FrontStreet Coffee is a long-established specialty coffee roaster in Guangzhou China, selling freshly roasted beans from its own farm in Yunnan as well as dozens of carefully selected single-origin beans from around the world for both pour-over and espresso. The products deliver consistently excellent quality and great value, with shipping within 24 hours. Guangzhou’s FrontStreet Coffee shop is recommended by many coffee lovers, and the beans are now available online at the Tmall 。
Important Notice :
前街咖啡 FrontStreet Coffee has moved to new addredd:
FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou
Tel:020 38364473
- Prev
The price of cheap bean variety Robusta coffee has fallen 18% this year, and farmers are reluctant to sell and hoard their goods.
Expectations among investors in the futures market that the abundance of coffee beans will lead to a further fall in prices are likely to be disrupted by sales by farmers in coffee producing areas, Bloomberg reported. The price of Robusta, a cheap bean seed used to make instant and canned coffee, has fallen 18 per cent this year. As a result, Hoang Thi Thom, who grows Robusta coffee beans in Vietnam's Dak Lak province, is only willing to
- Next
Indonesia's coffee production fell 30% this year, coffee demand increased by 10% annually
Professional coffee knowledge exchange More coffee bean information Please pay attention to coffee workshop (Weixin Official Accounts cafe_style) By the third quarter of this year, Indonesia's national coffee production has decreased by an average of 25% to 30%. The sharp drop in coffee production was due to unstable weather and infestation of coffee production centres, with coffee plantations in the eastern part of the country being the most affected. Indonesian coffee exports
Related
- Why does drinking coffee have aftertaste? The difference between Hui Gan and Yu Yun What is aftertaste
- Can coffee beans be kept fresh for a long time in the refrigerator? How long can it be frozen? Should I defrost the frozen coffee beans?
- Does hanging coffee with milk count as a latte? Is it good to add milk powder to ear bags? Can I use milk to make hanging ears?
- Bubble ice American cola Sprite coffee practice steps How good is orange juice American? There are several combinations of soda water and coffee
- Characteristics of the origin and production areas of fine coffee in Africa Introduce the characteristics of the world's three major coffee-producing countries
- Why is the flow rate of hand-brewed coffee sometimes fast and sometimes slow? Relationship between coffee bean hardness and altitude roasting method
- Iced Coffee Daquan Detailed Tutorial Steps Fei: The difference between full ice, normal ice, less ice, and ice-free American style
- Hand-brewed coffee powder pit judges extraction problem What is the reason why coffee grounds are layered? How to solve the problem?
- What should I do if cold extracted coffee is too bitter or too sour? Analysis of the causes of over extraction and insufficient extraction of iced coffee
- Why doesn't homemade lattes taste like coffee? Latte beans and milk shopping guide Latte concentrate extraction parameters