World coffee consumption should rise to 146 million bags in 2013

The world coffee consumption in 2013 will rise to 146 million 60 kg bags, compared to 142 million last year, said the executive director of the International Coffee Organization (ICO), Robério Oliveira Silva.
Robério Silva said the estimated increase of 2.8% in consumption this year will somehow rebalance the coffee market, which has seen prices subsequently crashing down due to oversupply. " We expect for this year 146 million bags, so we see that the market demand will consume the stocks, which are considered excessive," said Robério Silva during the annual conference of coffee producers in Colombia, of which he participates this Thursday (28/ 11).
The ICO estimates for global production totalled 145.2 million bags for the global 2012/2013 harvest, which runs from October 2012 to September 2013.
Robério Silva explained that farmers in general are in a very bad situation, due to low prices that producers of Arabica claim not even cover production costs. He thanked the support offered to producers by governments of Colombia and Brazil, major producers of Arabica coffee.
Colombia is paying direct subsidies to producers that should be maintained while prices remain low. In Brazil, the government has offered to buy the local production, and refinance debt producers.
Source: Reuters