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South America leads coffee production despite its biggest drop in 20 years

South America leads coffee production despite its biggest drop in 20 years

South America It will continue to lead world coffee production in the 2022-2023 campaign, despite having registered its biggest drop in almost 20 years, with a decrease of 7.6% per year in 2021-2022, according to the International Coffee Organization (OIC). .

The biannual report of this entity, which includes market prospects, reflects that coffee production in South America will recover in 2022-2023, with an increase of 6.2%, up to 82.4 million bags of 60 kilos.

The increase is due, in part, to the higher production in Brazil, a positive cycle that is repeated every two years, which will push up the world harvest, which will grow by 1.7%up to 171.3 million bags this season.

The global increase in fertilizer costs and adverse weather conditions are expected to reduce the growth rate, according to the ICO.

In 2021-2022, South American coffee production contracted the 7.6%dragged down by the reduction of 7.7% in Brazil due to the most severe seasonal recession since the 2003-2004 coffee year and the damage caused by frost.

Colombia was also affected by unfavorable weather conditions during a large part of that campaign, which led to a decrease in 12.8% in production, which stood at 11.7 million bags.

The favorable climate contributed to an increase in coffee production in Peru by 7.4%up to 4.2 million bags, while that of Ecuador rose the 10.5% in the year 2021-2022.

The evolution in South America explains the drop in the 7.2% in the production of the arabica variety in the world in that period, which was 94.3 million bags, the biggest decrease in 19 years.

Two of the largest producers of this variety, Brazil and Colombia, had a lower production and the consequence was the fall of the 7.5% in South America, which lost three points of market share and was left with a 60% of the total.

In addition, the OIC calculates that the world consumption of coffee will grow the 1.7% in 2022-2023, but less than in the previous campaign, as a result of the lower rate of economic growth and the sharp increase in the cost of living.

The slowdown will be more accentuated in non-producing countries, especially the European ones, which will see consumption growth fall to the 0.1%in front of 6% from 2021-2022.

Source: EFE

Source: Gestion

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