The downward adjustments to Arabica prices recorded in March were extended to all groups of coffee in April. The average of the ICO composite indicator price for April fell to 126.55 US cents per lb, compared to 136.17 US cents per lb in March. Despite this decrease, price levels are still firm and price volatility has become less intense. Average prices in the first four months of 2008 are higher than those recorded during previous months. However, the US dollar continues to weaken against other major currencies while prices of oil products are still rising, thus further increasing costs in the coffee supply chain of important items such as transportation and fertilizers. Some exporting countries have announced support measures for coffee producers to help them cope with constantly growing fertilizer costs and unfavourable exchange rate movements. New estimates of Brazilian production for crop year 2008/09, which has just commenced, establish the size of the crop at 45.5 million bags, comprising 34.7 million bags of Arabicas and 10.8 million bags of Robustas. On the basis of information received from Brazil and other data, I can revise my preliminary estimate of world production for 2008/09 to around 127 million bags.
Exports during the month of March (8.7 million bags) were higher than those recorded in February (7.7 million bags). However, exports during the first six months of coffee year 2007/08 (October 2007 – March 2008) fell by 4.9% compared to the figure for the same period in coffee year 2006/07. During the first six months of coffee year 2007/08 exports from Brazil and Vietnam were considerably down compared to coffee year 2006/07. Imports by importing Members during calendar year 2007 totalled around 100 million bags, the highest level ever recorded in the history of the coffee trade. This rate of imports is an indication of the rapid growth in world consumption and an important factor for maintaining the firmness of prices.
In addition to the meetings of the International Coffee Council and other ICO bodies in the week of 19 to 23 May, the Organization is holding a Seminar on Geographical Indications for Coffee on 20 May 2008. The experiences of various countries will be presented and matters related to labelling, traceability and certification, as well as current legal questions, will also be discussed during the course of this Seminar.