What Is the International Coffee Organization?

If you’ve ever wondered who helps keep global coffee prices from crashing or who funds pest control and quality programs in producing countries, there’s an international body behind the scenes. For over six decades, it’s worked to balance supply and demand and improve the lives of the 100 million people whose livelihoods depend on coffee.

The International Coffee Organization—or ICO—was founded in 1963 in London. It includes both coffee-exporting and -importing nations and is responsible for implementing the International Coffee Agreement. Its core mission? Stabilize the global coffee trade through international cooperation.

Why Was the ICO Created?

Coffee isn’t just a beloved drink—it’s an economic pillar. It’s one of the most traded commodities in the world. Over 50 countries grow coffee, producing up to one million bags annually. The industry provides jobs for around 100 million people globally. In many producing countries, coffee accounts for up to 80% of export earnings. The ICO’s exporting member countries produce over 97% of the world’s coffee, while its importing members consume roughly 65% of coffee sold retail—with that market valued at over $500 billion annually.

The ICO includes both developing and developed nations. Decisions are made according to shared principles to ensure major policies affecting coffee get broad support.

How Has the ICO Influenced the Coffee Trade?

Historically, the ICO used a quota system to manage supply, keeping excess coffee off the market to stabilize prices. Today, it focuses more on long-term strategies like stimulating demand in emerging markets, reducing crop losses from pests, improving marketing, and raising quality—all to support fairer prices and stronger producer livelihoods.

These efforts take many forms:

• Facilitating high-level government talks on coffee policy and trade cooperation
• Funding coffee development projects (totaling $31 million to date, financed by the Common Fund for Commodities) that upgrade quality, marketing, and pest management
• Running innovative coffee promotion campaigns in emerging markets such as China and Russia
• Building a worldwide coffee research network to share findings across member countries
• Providing critical market data: economic models, research, country profiles for 20+ nations, and processing 130,000 data points annually
• Maintaining a Private Sector Consultative Board to collaborate on food safety and other issues
• Promoting sustainable practices and environmental standards through expert research
• Partnering with global bodies like UNEP, FAO, CABI Bioscience, ITC/WTO/UNCTAD
• Developing the icoffee internet platform with Dow Jones to distribute real-time coffee news and insights

How Is the ICO Structured?

The ICO is a formal intergovernmental group headquartered in London. It operates under a Headquarters Agreement with the UK government, granting diplomatic privileges to member delegates to ensure independent decision-making. Its status is defined as that of international civil servants, with executive officers receiving privileges similar to those of diplomats.

The organization serves as a forum where importers and exporters can meet, ensuring smooth implementation of coffee trade agreements. Its work is carried out through three main bodies:

The International Coffee Council

This is the ICO’s top decision-making body, composed of all member countries. It has authority over major issues including:

• Continuing or ending the International Coffee Agreement
• Approving the annual budget
• Admitting new members
• Resolving disputes between countries

The Executive Committee

Made up of eight importing and eight exporting countries elected yearly (with potential for re-election), this committee handles the ICO’s daily operations. It reports to the Council and exercises all powers except those reserved for the Council. Most materials sent to the Council are first reviewed by the Committee to streamline decision-making.

The Executive Director

Appointed by the Executive Committee and endorsed by the Council, the Executive Director manages ICO operations and oversees staff. They are accountable for executing the organization’s duties.

How Often Does the ICO Meet?

The ICO holds around 15 days of formal meetings per year. The Council typically meets twice annually for 3–5 days each session. Working groups and committees are formed to examine specific issues and convene as needed throughout the year.

Where Is the ICO Based?

The ICO’s permanent headquarters is a four-story building in central London. It includes three meeting rooms equipped with simultaneous interpretation in the organization’s four official languages. The largest room accommodates up to 84 delegates.