Coffee prices continue to fall globally
What you need to know:
- The Bank of Tanzania (BoT) has announced a decrease in the world commodity prices for coffee due to increased supply, following higher harvests in major exporting countries.
Dar es Salaam. Coffee prices continued to decrease in the word market, a new report has revealed.
The Bank of Tanzania economic review for January 2019 indicated that coffee had experience at least 11 per cent decrease in the word market on December.
The report has showed that Robusta coffee prices were down by 16.1 per cent to $1.9 per kilo in December 2018, from $2.2 in December 2017 while Arabica Coffee prices fell by 11.7 per cent to $2.9 from $3.3 on the period under review. The report noted that “the decline in prices of coffee was mainly explained by carried over stocks and high production in Brazil and Vietnam”. (The Citizen Reporter)
Brazil remains the largest coffee exporting nation, however Vietnam tripled its exports between 1995 and 1999 and became a major producer of Robusta seeds and another bulky producer is Indonesia.
Consequently, month on month prices of coffee have decreased on account of excess supply in the world market.
A kilo of Robusta coffee price were down by 7.1 per cent in December 2018 to $1.7 from $1.8 in December 2017 while Arabica coffee prices were up by 7.3 per cent to $2.8 from $3.0 on the period under review.
The last auction results held on January 17, 2019 by Tanzania Coffee Board (TCB) in the Moshi Coffee Exchange shows that, the average price for 50 kilo bag of coffee depend on grades ranges between $ 135.0 for grade AA and $75.8 for grade C.
Amount offered in the auction was 23,695 bags and 19,159 bags was sold. Overall average price at Moshi exchange were down by $3.79 for 50 Kilo for Mild Arabica compared to the last auction held on January 10, 2019.
