Last week the International Coffee Organization (ICO), responsible for setting the global price of coffee, published their monthly report for February. The news? Coffee prices, which rose in January month before starting to decline, have continued to decrease. Coffee producers will be relieved that the fall is only “slight” this month. At the same time, the price paid for exports increased over 2015/6.
SEE ALSO: An Unstable Market: The Economics of Global Coffee Prices
Why Have Coffee Prices Continued to Decline?
The start of January was marked by concern over supply, due to bad harvests in Brazil and droughts in Vietnam and Indonesia. This led to higher prices – although prices had been falling for a while before that – especially in Robusta and low-quality Arabicas.
Now, however, as worries of a shortage start to disappear, the price has continued to decline. Robusta has seen the biggest decrease in price.
SEE ALSO: Hawaiian Coffee: How Do You Educate Customers on Prices?
Global Export Prices Increase
The ICO also released the data for 2015/6 exports, however, and it shows an increase in prices since 2014/5. In fact, it’s the highest prices have been since 2012/3. At the same time the volume of exports have fallen.
Perfect Daily Grind
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The post How Much For a Coffee? Prices Decrease, But Price of Exports Grows appeared first on Perfect Daily Grind.
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