The largest increase occurred for Brazilian Naturals, which grew by 8% to 114.96 US cents/lb, which is the highest monthly average since December 2019 when they reached 126.36 US cents/lb. Colombian Milds rose by 5.7% to 170.44 US cents/lb and Other Milds by 4.7% to 157.81 US cents/lb, which is both higher than their average in December 2019. However, prices for Robusta fell by 0.5% to 72.04 US cents/lb. In the first two months of the coffee year 2020/21, total exports were 6.5% higher at 20.2 million bags compared to the same period last year as shipments for all groups declined except Brazilian Naturals, which rose by 23.1% to 8.31 million bags.
Depending on coffee production, countries, like Brazil and Vietnam accounts for the highest production of coffee, in terms of volume, owing to suitable coffee growing conditions. With the production of 3.6 billion metric tons of green coffee, Brazil is the largest producer globally, followed by Vietnam, Colombia, Indonesia, and Ethiopia.
In the twelve months ending December 2020, exports of Arabica totaled 81.17 million bags compared to 82.14 million bags last year; whereas Robusta exports amounted to 47.93 million bags compared to 49.56 million bags.
In the coffee year 2020/21, global production is estimated to rise by 1.9% to 171.9 million bags with Arabica production growing by 5.2% to 101.88 million bags. World coffee consumption is projected to increase by 1.3% to 166.63 million bags in 2020/21 as social distancing measures remain in place, limiting out-of-home consumption, and the global economy slowly recovers
In general, these statics shows that there was an increase in the price of Arabica, although a decrease in the price of Robusta relative to the bags exported shows that there was a decrease in the quantity exported for both Arabica and Robusta compared to that of the year 2019.
REFERENCE
1. Ico.org, 2021. Arabica prices continue to rise in January while Robusta falls. Available at: http://www.ico.org/[Accessed 5 February 2021]
2. https://www.mordorintelligence.com/industry-reports/coffee-market/[Accessed 5 February 2021].