World: Robusta coffee will rise in price by 28% by the end of the year

Published 2023년 8월 17일

Tridge summary

By the end of 2023, Robusta coffee is expected to cost $2.3 thousand per ton, which is 5% lower than the current cost but 28% higher compared to the end of last year. Drought conditions due to the El Niño weather event are causing concerns about robusta coffee production in Asia, particularly in Indonesia, and impacting prices. Additionally, Arabica coffee prices are forecasted to be $1.53 a pound at the end of this year, up 1% from the current period but 8% lower than at the end of 2022.

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Original content

By the end of 2023, the cost of Robusta coffee will be $2.3 thousand per ton. This is 5% lower than the cost of these products for the current period, but 28% higher compared to the end of the last year. This forecast is given by Reuters, after interviewing 10 traders and analysts. Drought conditions associated with the El Niño weather event have raised concerns about robusta coffee production in Asia, with crops in Indonesia particularly vulnerable, impacting prices. “Irrigation is widespread in Vietnam (the leading Robusta producer) … However, Indonesian coffee is not irrigated and therefore may be more susceptible to dry weather,” said Rabobank analyst Carlos Mera. Vietnam is expected to produce 29.6 million 60-kilogram bags of coffee in the 2023-2024 season, a Reuters poll showed, slightly down from the previous season. The USDA estimated Vietnam's 2022/23 harvest at 29.75 million bags. Meanwhile, Arabica coffee prices are forecast to be $1.53 a pound at the end of this year, ...

Source: Agronovosti