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Robusta Demand Up 5 Million Bags Worldwide

Robusta demand has climbed by 5 million bags, according to the Switzerland-based global coffee seller Volcafe.

In an emailed report obtained by Bloomberg, company representatives said that the demand for robusta has been fueled by two trends: the increased demand for coffee in emerging markets (representing an increase of 3 million bags) and the delayed response to record-high arabica prices last year that caused many large coffee roasting companies to use robusta as filler (representing an increase of 2 million bags).

“We are just now seeing the concrete evidence of the consequences of a wide arbitrage last year,”  Volcafe said in the report.

According to other sources in the Bloomberg report, Vietnam, the world’s largest exporter of robusta, exported more coffee than Brazil in each month from February through June of this year.

“What these export statistics show us is that in aggregate, roasters are just using more robusta, in both emerging markets and traditional markets,” the company said in the report. “It is demand-driven, as inventories of Brazilian coffees in Europe and Japan remain high, and robusta inventories remain low.”

The full story: Bloomberg


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