Global coffee market to record 3.1 million bag deficit in 2021/22 – ICO

LONDON (Reuters) – The global coffee market will record a 3.1 million bag deficit in the 2021/22 (October-September) season as top producer Brazil harvests a smaller, ‘off-season’ crop, the International Coffee Organisation (ICO) said in its March monthly report.

The inter-governmental body warned however, that the market balance may shift markedly due to a potential downturn in the world economy, increased production costs and reduced consumption and imports due to the Russia-Ukraine conflict.

The ICO pegged 2021/22 global coffee production at 167.2 million 60 kg bags, down 2.1% year on year, and consumption at 170.3 million bags, up by an annual 3.3%.

It said global exports of green beans in February totalled 9.88 million bags, down from 10.24 million bags a year ago. Exports reached 47.18 million bags in the first five months of the coffee year, a 3% year-on-year decrease.

Brazil continues to face issues with availability of shipping containers, though these have improved in recent weeks, the ICO said.

(Reporting by Maytaal Angel; Editing by Emelia Sithole-Matarise)