Global coffee demand may outstrip output: ICO

Global demand for coffee is expected to continue to outstrip supply in the coming months due to tight stocks amid a downward revision of the world’s coffee production in 2009-10,according to a global body ICO. Global coffee output was revised downward by 4.68 per cent to 122 million bags for the 2009-10 crop year from […]

Global demand for coffee is expected to continue to outstrip supply in the coming months due to tight stocks amid a downward revision of the world’s coffee production in 2009-10,according to a global body ICO.

Global coffee output was revised downward by 4.68 per cent to 122 million bags for the 2009-10 crop year from 128 million bags in the previous year. Coffee demand across the globe in 2009 was estimated at 132 million bags,it said.

One bag contains 60 kg of coffee and the crop year varies in different countries. For instance,the coffee year in India runs from October to September.

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“Bearing in mind the outlook for production,it is likely that demand will continue to outstrip supply in the coming months,” London-based International Coffee Organisation (ICO) said in its latest market report.

A decline in production in Central American countries,especially Costa Rica,Guatemala and Nicaragua,has accounted for this substantial revision,it said.

Consequently,stocks have started depleting both in exporting and importing countries since they are drawn down to offset the reduction in supply,ICO noted.

Stocks in importing countries were estimated to have fallen to 22.6 million bags towards the end of December,2009.

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Even certified stocks of the London and New York futures markets are continuing to fall,it said.

The worlds biggest consuming countries are the US,Brazil,Germany and Japan.

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