The International Coffee Organization Unveils Challenges Facing the Global Coffee Sector

The International Coffee Organization Unveils Challenges Facing the Global Coffee Sector

In its latest report, the International Coffee Organization reveals key insights and crucial details about the coffee sector, which is a fundamental part of daily life for billions worldwide. The “Coffee Development Report” (CDR) for 2022-2023 highlights growing global challenges facing the sector, from severe price fluctuations, production and export declines, to the increasing need to adopt circular economy practices as a means to support sustainable resources and develop new economic opportunities.

Price Fluctuations

During the 2022-23 season, the International Coffee Organization’s composite price index (I-CIP) began at 190.18 cents per pound, peaking at 194.92 cents in October 2022. However, prices later fell sharply to 145.54 cents in January 2023, reflecting a significant average fluctuation rate of 8.8%. In comparison, futures contracts in New York exhibited even greater volatility at 11.3%, underscoring the intense volatility that has dominated global coffee markets.

Variation in Major Coffee Types

The prices of major coffee types showed notable differences; robusta coffee, widely used in blends, saw an increase of 5.1% from 106.89 to 112.39 cents per pound. Meanwhile, Colombian coffee experienced a sharp decline of 25.2%, dropping from 289.38 to 216.50 cents per pound. This disparity reflects significant challenges for farmers, particularly arabica producers who face climate impacts and rising production costs.

Decline in Exports

Global coffee exports saw a marked decline of 5.7%, with total exports reaching 122.9 million 60-kg bags. Green coffee beans held the largest share at 90.1%, equivalent to 110.7 million bags. The share of arabica in green coffee exports fell from 63.6% to 60.4%, indicating a market shift towards the more affordable robusta, due to economic pressures and rising living costs, pushing consumers to reduce spending on premium coffee.

Global Production

Global coffee production during 2022-23 reached approximately 165.5 million bags, a slight decline of 0.04% compared to the previous year. Production rates varied by region, with Asia and Oceania seeing a 3% drop, particularly in Vietnam due to adverse climate conditions. Meanwhile, South America achieved a slight increase of 1.2% due to Brazil’s agricultural cycle. At the variety level, arabica production fell sharply by 10.4% to 74.6 million bags, underscoring the vulnerability of this type to climate change and pests. In contrast, robusta production increased by 2.7% to 43.8 million bags, reflecting increased reliance on this hardier, more adaptable variety.

Decline in Consumption

According to the report, global coffee consumption declined by 1.9% to 173.0 million bags, reflecting the impact of rising prices and decreased consumer purchasing power. Non-coffee-producing countries, which represent the largest portion of demand, saw a consumption decline of 4.0%, reaching 117.5 million bags. While Russia experienced a 7.1% increase in consumption, Canada saw a significant 9.5% drop, illustrating the strong economic impact on coffee spending in certain countries.

Circular Economy as an Opportunity for Sector Sustainability

The report highlights the increasing importance of adopting circular economy practices in the coffee sector, which generates about 40.68 million tonnes of biomass annually, including by-products such as coffee husks and production waste. The report points out that natural coffee production methods yield around 14.68 million tonnes of coffee husks, while washed methods produce about 6.92 million tonnes. The report emphasizes the sector’s potential to transform this waste into valuable economic resources that support sustainability, through products like organic fertilizers, biofuels, and cosmetics. For example, coffee husks can be used as organic mulch or in the production of charcoal or natural fertilizers, contributing to sustainable agricultural practices and enhancing the sector’s economic value.

Towards Complete Sustainability

The International Coffee Organization’s 2022-23 report provides a comprehensive view of the coffee sector amidst current challenges, from price fluctuations to climate changes and market pressures. With growing interest in the circular economy, the sector has an opportunity to strengthen its sustainability and create a more efficient and resilient production environment. The report underscores the importance of collaboration among all parties to achieve a sustainable future for coffee, through innovation and integration between production, recycling, and waste management. Coffee remains an integral part of life for millions around the world, and the sector faces a constant challenge that calls for practices that protect the environment, support farmers, and contribute to an economic balance that serves everyone and enhances the sector’s resilience to future challenges.

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[:ar]Privacy Policy for qahwa world At qahwaworld, accessible from qahwaworld.com, one of our main priorities is the privacy of our visitors. This Privacy Policy document contains types of information that is collected and recorded by qahwaworld and how we use it. If you have additional questions or require more information about our Privacy Policy, do not hesitate to contact us. This Privacy Policy applies only to our online activities and is valid for visitors to our website with regards to the information that they shared and/or collect in qahwaworld. This policy is not applicable to any information collected offline or via channels other than this website. Our Privacy Policy was created with the help of the Free Privacy Policy Generator. Consent By using our website, you hereby consent to our Privacy Policy and agree to its terms. 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Another part of our priority is adding protection for children while using the internet. We encourage parents and guardians to observe, participate in, and/or monitor and guide their online activity. Qahwa World does not knowingly collect any Personal Identifiable Information from children under the age of 13. If you think that your child provided this kind of information on our website, we strongly encourage you to contact us immediately and we will do our best efforts to promptly remove such information from our records.[:ru]Privacy Policy for qahwa world At qahwaworld, accessible from qahwaworld.com, one of our main priorities is the privacy of our visitors. This Privacy Policy document contains types of information that is collected and recorded by qahwaworld and how we use it. If you have additional questions or require more information about our Privacy Policy, do not hesitate to contact us. This Privacy Policy applies only to our online activities and is valid for visitors to our website with regards to the information that they shared and/or collect in qahwaworld. This policy is not applicable to any information collected offline or via channels other than this website. Our Privacy Policy was created with the help of the Free Privacy Policy Generator. Consent By using our website, you hereby consent to our Privacy Policy and agree to its terms. Information we collect The personal information that you are asked to provide, and the reasons why you are asked to provide it, will be made clear to you at the point we ask you to provide your personal information. If you contact us directly, we may receive additional information about you such as your name, email address, phone number, the contents of the message and/or attachments you may send us, and any other information you may choose to provide. When you register for an Account, we may ask for your contact information, including items such as name, company name, address, email address, and telephone number. How we use your information We use the information we collect in various ways, including to: Provide, operate, and maintain our website Improve, personalize, and expand our website Understand and analyze how you use our website Develop new products, services, features, and functionality Communicate with you, either directly or through one of our partners, including for customer service, to provide you with updates and other information relating to the website, and for marketing and promotional purposes Send you emails Find and prevent fraud Log Files qahwaworld follows a standard procedure of using log files. These files log visitors when they visit websites. All hosting companies do this and a part of hosting services' analytics. The information collected by log files include internet protocol (IP) addresses, browser type, Internet Service Provider (ISP), date and time stamp, referring/exit pages, and possibly the number of clicks. These are not linked to any information that is personally identifiable. The purpose of the information is for analyzing trends, administering the site, tracking users' movement on the website, and gathering demographic information. Cookies and Web Beacons Like any other website, qahwaworld uses 'cookies'. These cookies are used to store information including visitors' preferences, and the pages on the website that the visitor accessed or visited. The information is used to optimize the users' experience by customizing our web page content based on visitors' browser type and/or other information. For more general information on cookies, please read the Cookies article on Generate Privacy Policy website. Google DoubleClick DART Cookie Google is one of a third-party vendor on our site. It also uses cookies, known as DART cookies, to serve ads to our site visitors based upon their visit to www.website.com and other sites on the internet. However, visitors may choose to decline the use of DART cookies by visiting the Google ad and content network Privacy Policy at the following URL – https://policies.google.com/technologies/ads Our Advertising Partners Some of advertisers on our site may use cookies and web beacons. Our advertising partners are listed below. Each of our advertising partners has their own Privacy Policy for their policies on user data. For easier access, we hyperlinked to their Privacy Policies below. Google https://policies.google.com/technologies/ads Advertising Partners Privacy Policies You may consult this list to find the Privacy Policy for each of the advertising partners of qahwaworld. Third-party ad servers or ad networks uses technologies like cookies, JavaScript, or Web Beacons that are used in their respective advertisements and links that appear on qahwaworld, which are sent directly to users' browser. They automatically receive your IP address when this occurs. These technologies are used to measure the effectiveness of their advertising campaigns and/or to personalize the advertising content that you see on websites that you visit. Note that qahwaworld has no access to or control over these cookies that are used by third-party advertisers. Third Party Privacy Policies qahwaworld's Privacy Policy does not apply to other advertisers or websites. Thus, we are advising you to consult the respective Privacy Policies of these third-party ad servers for more detailed information. It may include their practices and instructions about how to opt-out of certain options. You can choose to disable cookies through your individual browser options. To know more detailed information about cookie management with specific web browsers, it can be found at the browsers' respective websites. CCPA Privacy Rights (Do Not Sell My Personal Information) Under the CCPA, among other rights, California consumers have the right to: Request that a business that collects a consumer's personal data disclose the categories and specific pieces of personal data that a business has collected about consumers. Request that a business delete any personal data about the consumer that a business has collected. Request that a business that sells a consumer's personal data, not sell the consumer's personal data. If you make a request, we have one month to respond to you. If you would like to exercise any of these rights, please contact us. GDPR Data Protection Rights We would like to make sure you are fully aware of all of your data protection rights. Every user is entitled to the following: The right to access – You have the right to request copies of your personal data. We may charge you a small fee for this service. The right to rectification – You have the right to request that we correct any information you believe is inaccurate. You also have the right to request that we complete the information you believe is incomplete. The right to erasure – You have the right to request that we erase your personal data, under certain conditions. The right to restrict processing – You have the right to request that we restrict the processing of your personal data, under certain conditions. The right to object to processing – You have the right to object to our processing of your personal data, under certain conditions. The right to data portability – You have the right to request that we transfer the data that we have collected to another organization, or directly to you, under certain conditions. If you make a request, we have one month to respond to you. If you would like to exercise any of these rights, please contact us. Children's Information Another part of our priority is adding protection for children while using the internet. We encourage parents and guardians to observe, participate in, and/or monitor and guide their online activity. qahwaworld does not knowingly collect any Personal Identifiable Information from children under the age of 13. If you think that your child provided this kind of information on our website, we strongly encourage you to contact us immediately and we will do our best efforts to promptly remove such information from our records.[:]
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