What Is the International Coffee Organization?

If you’ve ever wondered who helps keep coffee prices from crashing or who funds projects to fight pests in coffee-growing regions, the answer lies with a little-known but globally influential body: the International Coffee Organization. For anyone curious about how international cooperation shapes what’s in your cup, this is the story of the ICO.

The International Coffee Organization (ICO) is a 1963-founded intergovernmental group uniting 41 coffee-exporting and -importing countries. It manages the International Coffee Agreement, supports global coffee market stability, and aids producers—especially in developing nations where coffee often makes up over 80% of export income.

What Is the International Coffee Organization?

The ICO is a permanent intergovernmental organization established in London in 1963. Its membership includes both coffee-exporting and -importing nations. The organization implements the International Coffee Agreement and works through international cooperation to improve conditions across the global coffee industry.

Coffee is one of the most traded commodities in the world. Fifty countries produce coffee, with annual output reaching one million bags. The sector provides jobs for around one hundred million people globally. Many producing countries rely heavily on coffee, with up to 80% of their export earnings coming from it. ICO-exporting member countries produce over 97% of the world’s coffee, while ICO-importing members consume 65% of coffee sold in the $500+ billion global retail market. The ICO brings together both developed and developing nations, all working under shared guidelines to support measures that impact the coffee industry significantly.

How Has the ICO Supported Coffee Producers and Markets?

Historically, the ICO used a quota system to balance supply and demand, helping stabilize prices. Today, it employs broader strategies including stimulating demand in emerging markets, reducing crop losses to pests, and improving marketing and quality—all aimed at stabilizing prices and enhancing long-term competitiveness for coffee farmers, ultimately contributing to poverty reduction.

The ICO contributes to the global coffee industry in several concrete ways:

• It facilitates high-level government meetings for policy coordination and cooperation on coffee-related issues.
• It has launched coffee development projects—funded with $31 million from the Common Fund for Commodities—to improve quality, marketing, and pest control.
• It has run innovative coffee promotion campaigns in major emerging markets like China and Russia.
• It maintains a global coffee research network, giving member countries access to international research findings.
• It publishes market reports, economic models, in-depth studies, and profiles on over 20 countries’ coffee sectors.
• It ensures market transparency by publishing 130,000 data points annually.
• It has set up a strong Private Sector Consultative Board to collaborate on food safety and related matters.
• It promotes sustainable coffee production and environmental standards through expert discussions and research.
• It partners with global bodies such as UNEP, CABI Bioscience, FAO, and ITC/WTO/UNCTAD.
• It developed the icoffee internet platform with Dow Jones, offering a coffee information service via the Coffee Service Network.

How Is the ICO Structured and Governed?

The ICO is headquartered in London in a four-story city-center building with three meeting rooms, including one that seats 84 and offers simultaneous interpretation in its four official languages.

The organization functions through three main bodies:

The International Coffee Council

This is the ICO’s highest authority, comprising all member countries. It decides on renewing or ending the International Coffee Agreement, approves the annual budget, admits new members, and resolves disputes between countries.

The Executive Committee

Composed of eight importing and eight exporting member countries elected annually (with re-election possible), this committee reports to the Council. It handles the ICO’s daily operations and reviews all materials before they reach the Council, streamlining decision-making.

The Executive Director

Appointed by the Executive Committee and endorsed by the Council, the Executive Director oversees all operational responsibilities. Their appointed staff report solely to them.

The Council typically meets twice a year for 3–5 days each, while other groups meet as needed throughout the year, usually for around 15 days in total.

Frequently Asked Questions

What is the main purpose of the International Coffee Organization?

The ICO’s primary goal is to improve global coffee sector conditions through international cooperation. It aims to stabilize markets, support producers—especially in developing countries—and facilitate policy coordination among coffee-importing and -exporting nations.

When was the ICO established?

The International Coffee Organization was founded in 1963 in London.

How many countries are members of the ICO?

The ICO includes 41 member countries: both coffee exporters and importers.

What percentage of global coffee production comes from ICO-exporting countries?

ICO-exporting member countries produce over 97% of the world’s coffee.

What role does the ICO play in coffee prices?

Historically, the ICO used a quota system to manage supply and stabilize prices. Now, it uses strategies like promoting demand in emerging markets, improving quality and marketing, and reducing pest losses to support price stability and farmer livelihoods.

Where is the ICO headquartered?

The ICO’s permanent headquarters is a four-story building in central London, featuring three meeting rooms with interpretation facilities and a main room that accommodates 84 delegates.

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