[Benjamin]

‘Global coffee exports decline 9.6% in Feb’
April 11

World coffee exports fell 9.6% in February, led by a drop in Robusta shipments, the International Coffee Organisation said. Exports declined to 6.5 million 60 kg bags, from 7.19 million bags a year earlier, the ICO said on an e-mail on Tuesday. Exports have been in decline since May, the London-based organisation added in its monthly market report. Robusta shipments slipped 11% to 1.92 million bags from 2.16 million in January, the organisation said. Exports of Arabica beans gained 7.3% to 4.58 million bags.

Prices for Robusta, a bitter-tasting variety used in instant coffee by companies such as Nestle SA and Kraft Foods Inc, have gained 23% in the past year, while prices for Arabica beans, a milder variety, have dropped almost 7%. Brazil, the world’s biggest coffee producer and exporter, may produce 40.62 million bags in the 2006-07 crop year, the ICO said.

World production is forecast at approximately 120 million bags , of which roughly two-thirds is Arabica beans, the group said.

World consumption last year is estimated at 117 million bags , of which 30 million bags were consumed domestically in exporting countries, the ICO said.

Retail prices for coffee “have increased in all countries,” except for Japan, Portugal and Sweden, where prices have declined, the Coffee Organisation said.