The International Coffee Organization (ICO) has reported a significant surge in global coffee prices, reaching the highest levels seen in 13 years. The ICO Composite Indicator Price (I-CIP) averaged 226.83 US cents per pound in June 2024, marking an 8.9% increase from May 2024. This notable rise in prices is driven by various factors affecting coffee production and supply across key regions.
The ICO’s latest Coffee Market Report highlights that the I-CIP posted a median value of 225.70 US cents per pound, with fluctuations between 221.71 and 235.69 US cents per pound. This surge in prices is 32.5% higher than the same period in June 2023. The stability of prices around the 220 US cents per pound mark in June 2024 is attributed to adjustments made in the previous month and the anticipation of poor harvests in major coffee-producing countries.
Colombian Milds increased by 7.2% to 250.39 US cents per pound, while Other Milds rose by 7.0% to 248.39 US cents per pound. The Brazilian Naturals group saw a significant increase of 9.3%, reaching 229.25 US cents per pound. Robustas experienced the strongest growth among coffee groups, rising by 10.5% to 204.30 US cents per pound.
The report shows a 12.0% increase in global green bean exports in May 2024, totaling 10.76 million bags, compared to 9.61 million bags in the same month of the previous year. Notably, exports of Brazilian Naturals surged by 56.1% to 3.8 million bags in May 2024 from 2.43 million bags in May 2023. Conversely, exports of Robustas declined by 13.4% to 3.39 million bags in May 2024 from 3.73 million bags in May 2023.
Exports from Asia & Oceania decreased by 39.3% to 2.42 million bags in May 2024, with Vietnam’s exports significantly declining due to low stock levels. Meanwhile, exports from Africa increased by 44.8% to 1.74 million bags in May 2024, driven by substantial growth in Côte d’Ivoire, Ethiopia, and Uganda. South America saw a robust increase of 59.6% in exports, totaling 5.54 million bags in May 2024. Brazil’s exports, in particular, increased by 79.1% to 4.42 million bags, marking the largest monthly exports on record.
The significant increase in coffee prices will have profound implications for coffee producers, traders, and consumers worldwide. Producers may benefit from higher prices, but those with lower yields due to poor harvests could face challenges. Traders will need to navigate the volatile market, and consumers may see higher prices for their favorite coffee products.
The surge in coffee prices and the dynamic shifts in regional exports reflect the complex interplay of supply challenges and market adjustments. As the coffee industry navigates these fluctuations, the ICO’s report underscores the importance of monitoring production trends and market responses to ensure stability and sustainability in the global coffee market.