Demand For Coffee Higher Than First Thought

The US Department of Agriculture (USDA) has revised its forecast for world coffee consumption in 2015-15. After looking at the data and getting out the crystal ball, the group has raised its original prediction upwards and is now of the impression that we could drink our way through a record 148.3m bags of coffee.

This increase was fuelled by an expectation that the United States and Japan would see their annual consumption rise this year.

It was a rather timely prediction too. Just a few hours earlier the International Coffee Organization (ICO) bumped their estimates up to 149.8m.

“This revision is due to higher-than-expected demand,” said the ICO. However, the ICO’s spokesperson mentioned that the additional coffee would be making its way to Europe, not to the US and Japan.

The speculation about a sudden surge in demand has come at a time when the price of coffee on the New York futures market has dipped.

Last Friday, the cost of coffee was $1.19 per lb, one of the lowest figures recorded in recent years.

As well as looking at the future of the coffee industry in the coming years, USDA also had a few things to say about the current state of affairs within the sector.

Following on from optimistic statements from affiliated members in Brasilia, USDA has raised its estimate for the upcoming harvest in Brazil by 3m bags to 54.3m.

However, this is at odds with the forecast made by Conab, Brazil’s official crop bureau. Conab believes that Brazilian farmers will haul in 45.6m bags this year.

We know that it isn’t a competition, but it will be interesting to see who is closer with their guesstimations.