Late on Friday, the United States Department of Agriculture (USDA) had issued a statement saying that the global coffee stocks would likely to reach a roughly six-year-peak of 42 million 60-kilograms bags by the end of fiscal year 2020-21, suggesting an en masse disruption in supply chains amid a global-scale pandemic outbreak.
Aside from that, the USDA (United States Department of Agriculture) had also added on its statement that the global coffee production was expected to be higher-than-anticipated this year, which would be compounding the narratives further for the global coffee industry.
USDA forecasts supply glut in global coffee industry as top exporter Brazil output heightens up
On top of that, adding further strains on the booming global coffee industry, at its semi-annual report on coffee market and trade, the USDA had also forecasted that the global coffee production would likely to witness a record 176.1 million bags by end-2020, 9.1 million bags up from a year earlier, as the leading coffee exporter Brazil has been experiencing an all-time high production of 67.9 million bags amid a havoc-scale disruption in the global supply chains.
Meanwhile, referring to a likely decline in coffee prices this year, the USDA report had also added that the EU would likely to increase purchase by 2 million bags in fiscal year 2020-21 to 49.5 million bags, while echoing the leads of the bloc, the United States would also capitalize on a lower coffee futures’ prices and would increase purchases by 2 million bags to 27 million bags.
In tandem, Saturday’s USDA report had also been quoted saying that the world coffee exports had been reduced by 3.4 million bags to 112 million bags in light on the pandemic outbreak on fiscal year 2019-20, adding almost all of the leading coffee exporters such as Brazil, Colombia, India and Mexico, were expected to witness an uptick in production, nonetheless, the US Department of Agriculture had forecasted a nosedive in production in Vietnam and Indonesia.