Global

The global coffee deficit is expected to widen in coming years, according to Nestor Osorio, executive director of the International Coffee Organization (ICO).

Osorio, giving an interview at a conference in Dana Point, California, told reporters that consumption will reach 145 million bags in five years time assuming 2% to 3% annual growth. Production, on the other hand, is expected to hold at 125 million bags, the current ten-year average.

The markets have taken notice of the deficit, with coffee futures gaining 20% over the last year. Experts believe the stagnation of production is likely the result of a growth in the cost of inputs such as labor and fertilizer.