Rising coffee consumption in producing countries has increased the demand for coffee in the international market, but the production volumes have not kept pace with it. The domestic consumption in the producing countries increased in the past 8-10 years while the production has not increased significantly. Barring Vietnam, Indonesia and Ethiopia, none of other countries including India have not taken any major efforts to increase their production levels.
According to figures available with International Coffee Organisation (ICO), Brazil?s domestic coffee consumption stood at 39.8% of its total coffee production of 48 million bags (60 kg a bag) in 2010. In 2002, its domestic consumption was 28.4% of its total production of 48.48 million bags.
Likewise the consumption of Vietnam, stood at 8.6% of its total output of 18.50 million bags against 4.5% of 11.57 million bags in 2002.
In the same period, Colombia?s local consumption increased to 15.2% of its total production of 9.20 million bags from 11.9% of total output of 11.73 million bags. In Colombia, the production during this period decreased by 2.53 million bags. The domestic consumption in Indonesia increased to 37.6% of its total output of 8.85 million bags in 2010. Ethiopia?s consumption accounted for 45.4% of its total production of 7.45 million bags.
This is the only country where the consumption declined although its consumption ratio touched its peak of 61% of its total production of 4.94 million bags in 2008.
Coffee Board of India, has taken various measures to increase the domestic consumption to bring value for the locally produced commodity. As a result, the consumption here increased 36% of its total production of 4.98 million bags in 2010 compared to 23.7% of 4.77 million bags of production in 2002.
In the past one year, the coffee price has been scorching in the international market due to shortage for quality coffee. The coffee price that stood at 128.10 cents per pound in May 2010 climbed to the peak level of 231.24 cents per pound in April 2011. But the prices started cooling up from May.
However, the prices continue to be relatively high compared to the previous year on the back of widening demand-supply.
