Promos stir up world coffee intake

World coffee consumption in 2007 may exceed 120.00 million bags compared with 119.43 million bags in 2007, according to the International Coffee Organisation.

Coffee consumption in exporting countries has been on the rise on the back of promotional activity, ICO said.

Domestic consumption in Brazil, the world's leading producer of coffee, was 16.90 million bags (1 bag=60 kg) for the period May 2006 to Jun 2007 compared with 15.95 million bags in the same period a year ago, ICO said quoting the Brazilian Coffee Industry Association. Consumption was also up in other producing countries, including Costa Rica, Ethiopia, India, Indonesia, and Uganda. ICO has also undertaken coffee promotion activity in importing nations including Finland, Italy, Russia, Netherlands, and the UK

Coffee prices are likely to remain firm going forward, as total production in 2007-08 (Oct-Sep) is likely to be 112.00 million bags, compared with 121.43 million bags.

"The buoyancy of consumption and the continuation of programmes designed to increase consumption in a number of countries provide further encouragement (to prices)," ICO said.