Coffee market report for February 2008 - 24-03-2008

Coffee prices recorded further rises during February, with increase of 13.5% of the monthly average of the ICO composite indicator price. Robustas reached their highest level recorded since august 1995. In addition to the adverse effects of the decline of the US dollar, it should be noted that the impact of higher prices on the incomes of coffee farmers has been offset by the increased price of fertilizers, particularly those derived from oil. Cutting down the use of inputs is beginning to affect productivity, especially in Africa, where soils are of poor quality already. Total production for crop year 2007/08 has declined with 6.19% as compared to the previous period, and respectively the volume of exports. Opposite to the negative trends, world consumption continues it’s steady growth with 2.5% for the period 2006-2007.