Global consumption of coffee is likely to climb 1 to 2 percent a year through the end of the decade, International Coffee Organization executive director Vanusia Nogueira said, estimating that about 25 million more 60kg bags would be needed over the next eight years.
“We are more conservative now for a short-term projection,” Nogueira said at a conference in Hanoi held by the Vietnam Coffee-Cocoa Association, referring to all the events the world is facing, including high inflation in Europe and Russia’s war in Ukraine.
The organization’s earlier forecasts for consumption growth averaging 3.3 percent a year over the long term were too “optimistic,” she added.
Photo: Bloomberg
The global market would reach a balance in supply and demand in the next two or three years, from a deficit now, Nogueira said in a Bloomberg interview.
The world needs more of arabica and robusta beans, but increases in robusta production and demand would be higher, she said.
Traditional arabica producers are trying to grow more robusta amid global warming, while roasters are seeking to add cheaper robusta to their blends.
“If you have robusta with higher quality, consumers won’t feel a big difference in the blends,” Nogueira said.
Many markets are looking for fine robusta, she said.
Vietnam is doing its homework on expanding to high-quality robusta production “quite well,” Nogueira said, adding that she was surprised to taste three sets of “very good” cups of coffee during a visit a day earlier with a group of international guests to a coffee shop owned by the nation’s second-largest exporter, Vinh Hiep Co.
The group does not see Vietnam’s global dominance of robusta exports being hurt by Brazil’s increased production of conilon, because the extra output would go to supplying the South American country’s soluble industry, the world’s largest, Nogueira said.
Producing nations need to boost domestic consumption for better prices and benefits to their economies, she said.
Vietnam expects domestic coffee consumption to rise 5 to 10 percent in the coming years, from the current 300,000 tonnes, which includes 170,000 tonnes used for instant coffee production, Do Ha Nam, vice head of the country’s coffee association, said at the conference.
Nam, who is also chairman of the nation’s top shipper Intimex Group, projected that shipments from Vietnam would drop this year and next year because of lower production and insignificant carry-over stocks from the previous season.
With an approval rating of just two percent, Peruvian President Dina Boluarte might be the world’s most unpopular leader, according to pollsters. Protests greeted her rise to power 29 months ago, and have marked her entire term — joined by assorted scandals, investigations, controversies and a surge in gang violence. The 63-year-old is the target of a dozen probes, including for her alleged failure to declare gifts of luxury jewels and watches, a scandal inevitably dubbed “Rolexgate.” She is also under the microscope for a two-week undeclared absence for nose surgery — which she insists was medical, not cosmetic — and is
CAUTIOUS RECOVERY: While the manufacturing sector returned to growth amid the US-China trade truce, firms remain wary as uncertainty clouds the outlook, the CIER said The local manufacturing sector returned to expansion last month, as the official purchasing managers’ index (PMI) rose 2.1 points to 51.0, driven by a temporary easing in US-China trade tensions, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The PMI gauges the health of the manufacturing industry, with readings above 50 indicating expansion and those below 50 signaling contraction. “Firms are not as pessimistic as they were in April, but they remain far from optimistic,” CIER president Lien Hsien-ming (連賢明) said at a news conference. The full impact of US tariff decisions is unlikely to become clear until later this month
GROWING CONCERN: Some senior Trump administration officials opposed the UAE expansion over fears that another TSMC project could jeopardize its US investment Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is evaluating building an advanced production facility in the United Arab Emirates (UAE) and has discussed the possibility with officials in US President Donald Trump’s administration, people familiar with the matter said, in a potentially major bet on the Middle East that would only come to fruition with Washington’s approval. The company has had multiple meetings in the past few months with US Special Envoy to the Middle East Steve Witkoff and officials from MGX, an influential investment vehicle overseen by the UAE president’s brother, the people said. The conversations are a continuation of talks that
Nintendo Co hopes to match the runaway success of the Switch when its leveled-up new console hits shelves on Thursday, with strong early sales expected despite the gadget’s high price. Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since launching in 2017 — making it the third-best-selling video game console of all time. However, despite buzz among fans and robust demand for pre-orders, headwinds for Nintendo include uncertainty over US trade tariffs and whether enough people are willing to shell out. The Switch 2 “is priced relatively high”