Global coffee demand to hit 136m tonnes by 2012

Global coffee demand to hit 136m tonnes by 2012

Monday, 15 August 2011 13:48 Paul Tentena

KAMPALA, UGANDA - The demand for coffee and coffee products worldwide is expected to reach 136 million tons this year from the 134 million it was in 2010, sector analysts have predicted.
This will show an increase of over 2 million tons over 2010, an increase of 2.1%.
According to a source in Uganda Coffee Development Authority (UCDA), the increased demand for coffee in Brazil, India, Indonesia, Mexico and Costa Rica is the main driver for the shooting up coffee demand.
In Uganda, Coffee production capacity is about 3 million bags per year. However, Uganda produced 2.7 million bags of coffee last year, indicating a drop in production. Market analysts predict this year's production will realize an increment of 100,000 bags to 2.8 million bags.
In June this year, a total of 370,924 60kg bags of coffee worth $57.95m from Uganda were shipped to various destinations of the world. It represented a 58% and 152% rise in the volume and value of coffee respectively.
The weighted price at export level stood at US260 cent per Kg, while the farm gate prices ranged at between Ush1800 ($0.72) and Ush2000 ($0.8) per Kgof Robusta Dry Cherries. Arabica Parchment traded at between Ush8000 ($3.2) and Ush9000 ($3.6) while FAQ was at between Ush4500 ($1.8) and Ush4800 ($1.92).
Coffee exports in nine months, between October 2010 and June 2011, stood at 2.12 million bags, earning over $300.9m consisting of Robusta (1.61 million bags) earning about $183.84 million and Arabica 0.51 million bags earning $117.05 million.
The coffee exports between July 2010 and June 2011 were recorded at 2.78 million bags, representing a growth in earnings of about $371m.