World coffee production for 2018/19 is forecast 11.4 million bags higher than the previous year at a record 171.2 million primarily due to Brazil’s record output, according to the USDA’s “Coffee: World Markets and Trade” report, published June 2018.
With global consumption forecast at a record 163.2 million bags, exports are expected up in response to strong demand. Ending stocks are forecast to rebound following 3 years of decline.
Editor’s note: Next month, the global coffee industry will gather in Medellin for the World Coffee Producers Forum to explore how to strengthen farmers, discussing sustainability, labor, managing price volatility, and improving productivity and yields. Here, Frederick Kawuma, Secretary General of the Inter African Coffee Organization (IACO), sets the stage for these discussions by providing an overview from the producers’ perspective.
By Frederick Kawuma, Secretary General of the Inter African Coffee Organization (IACO)
There has recently been a spate of studies analyzing the income of coffee farmers. The first thing that becomes evident is that the income from coffee farming varies depending on the country, and even the region within the country, where the studies have been done.
The second thing that becomes evident is that the income from coffee farming depends on the price the farmer gets for his coffee, which depends on “the market.”