World coffee demand exceeds supply

2025 is expected to mark the fourth time in the past six years that global coffee consumption exceeds supply. In the past three years alone, the world has consumed 12.5 million bags, or 750,000 metric tonnes, more coffee than it has grown, according to the International Coffee Organization. The deficit is equivalent to about 7% of global annual supply…

“This is looking very good,” said Brondani, the lead manager at the Joha farm, which has 900 hectares (2,224 acres) of irrigated coffee fields - more than 20 times bigger than the average coffee farm in Brazil.

This kind of industrial-scale farm with access to irrigation is becoming increasingly important in meeting global coffee demand in Brazil – the world’s largest grower. Most farms in the western part of Bahia - a new frontier for coffee growing in Brazil - are now irrigated. Brondani expects to produce up to 80 60-kg (132.3 pounds) bags of coffee per hectare at that specific lot of the farm, double the average yield in Brazil.

DB2

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We old phartz remember when people were wigging out about the price of coffee in the 70s. Some coffee-chicory blends came on the market, that offered a lower price.

Steve

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It was lower price because it tasted like the chicory came from processing plants where cattle were walked across the chicory, depositing their yummy flavor patties directly onto the beans.

Personal opinion, obviously.

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Yummm… chikory-patty coffee… a strong organic brew.

You may be more right than you think. I worked with a guy who was harvesting walnut trees from a pasture that had a lot of cattle on it. Any tree that was close to where the cattle could constantly urinate on its roots had a very poor color. Some of the wood wasn’t marketable. I imagine if you can see the stain in walnut wood, you can probably taste it in chicory.

So, what is actually being drunk?

Inventory drawdown.

DB2

That can’t go on long …

Higher prices might bode well for coffee companies, as people will continue to drink coffee although it may be the cheaper stuff.

Some coffee companies:
Starbucks - SBUX
Keurig Dr Pepper - KDP
JDE Peet’s - JDEP
Coffee Holding - JVA
Farmer Brothers - FARM
Luckin Coffee -LKNCY

And then there’s Monster Beverage - MNST

DB2

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