At Kaldi Gourmet Coffee Roasters, we are committed to providing valuable insight into the coffee industry. We want our customers to have the news that impacts our industry, available at their fingertips. Join us as we break down the December 2021 Coffee Market Report by the International Coffee Organization, (ICO).
Coffee Prices
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In December 2021, coffee prices reached a new high as US prices averaged 203.06 cents/pound
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This was an increase of 4% from November 2021 coffee prices which averaged 195.17 cents/pound
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A 75.5% increase was recorded in coffee prices since January 2021 where the indicator was at 115.73 US cents/pound
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A steady upward trend since 2020
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Due to increased coffee prices, intra-day volatility of the ICO Composite indicator price increased in December 2021 by .6 percentage points to 10.1%
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The Brazilian Naturals, The Colombian Milds and Other Milds all showed a growing volatility month over month (December 2021 vs. November 2021)
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The Robusta indicator had the lowest volatility of 7.8% in December 2021
Coffee Production and Consumption
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Total coffee production for coffee year 2020/2021 increased (slightly) .4% to 169.66 million 60-kg (133 lb.) bags of coffee vs. 169.00 million bags the year before.
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Arabica coffee bean production grew 2.3% to 99.28 million bags from 97.08 million bags.
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Robusta coffee bean production decreased 2.2% year over year to 70.38 million bags from 71.92 million bags.
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Total world coffee consumption increased 1.9% to an estimated 167.25 million bags in 2020/2021 vs. 164.08 million for 2019/2020.
Exports
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Total exports of all coffee in November 2021 were down 12.4% to 9.25 million 60-kg bags compared to 10.56 million bags last November 2020.
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South America drove the decrease in coffee exports vs. increases by Asia & Oceana (17.6%) and Central America & Mexico (29.4%).
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Brazil is the driving factor for the decrease in South America suffering a 33.9% decrease due to ongoing logistics and shipping container availability
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Though exports were down overall in November 2021 vs. November 2020, there were key areas seeing double-digit growth, including India, Vietnam, Guatemala, Honduras, and Nicaragua.
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When looking at coffee exports by group, Arabica suffered a large decline in November 2021 of 20.8%, down to 5.72 million bags compared to 7.22 million bags in November of 2020.
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The largest declines year over year were recorded by the Brazilian Naturals followed by Colombian Milds.
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Increases were reported in Other Milds and Robustas with 23.9% and 5.7% increases in November 2021
For a full copy of the December 2021 Coffee Market Report click here.
*Source - International Coffee Organization (ICO)
