Estimates are 5.7 percent higher for world coffee production during 2017/18, estimated at 164.81 million bags due to output of Arabica, which increased by 2.2 percent and Robusta, which jumped 11.7 percent, according to the International Coffee Organization (ICO). The huge supply is reflected in August 2018 increased shipments as global exports increased 6.3 percent, or 11.1 million bags, compared to the same month in 2017. World consumption is also estimated to be higher, 1.8 percent, but coffee production is still exceeding this increase in demand. The surplus is contributing to the low coffee prices this season, which fell below a dollar.
Editor's Insight: In the October issue of Automatic Merchandiser magazine we will cover the low price of coffee and why it's not a good for business in the long term.
