Home Top News PHL coffee imports seen falling 3.7% this year

PHL coffee imports seen falling 3.7% this year

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PHILIPPINE coffee imports are expected to fall 3.7% this year, according to the US Department of Agriculture (USDA).

In a report, the USDA estimates that imports of soluble coffee to the Philippines would amount to 6.3 million 60-kilogram bags, against 6.5 million bags in 2023.

The Philippines imports most of its coffee requirement as domestic production cannot meet demand. Philippine-grown coffee can service about 38% of market requirements.

Most imports are soluble or instant coffee.

The Philippines is the fourth-largest coffee importer after Japan, the US, and the European Union.

The USDA reported that its global coffee export estimate in 2024 was downgraded to 119.5 million bags following lower output from major coffee producers.

“Central America and Mexico are reduced to 12.9 million on reduced exportable supplies. Indonesia is down 700,000 bags to 4.3 million on lower output,” it said.

On the other hand, the USDA raised its export forecast for Vietnam to 29.1 million bags as farmers reported improved yields through better irrigation, mitigating the effects of drought and high temperatures.

The Philippines imports most of its coffee requirement from Vietnam.

It added that domestic consumption is expected to drop 1.8% to 6.95 million bags this year.

The global coffee production forecast this year was downgraded to 169.2 million bags, likewise, due to lower production from Central America, Mexico, and Indonesia.

“Central America and Mexico are reduced… to 16.4 million bags due to higher-than-anticipated incidents of coffee cherry borer insect infestation as well as coffee rust. Indonesia is revised to 8.2 million as drought conditions in Southern Sumatra lowered Robusta yields,” it said.

Philippine coffee production was estimated at 450 thousand 60 kilo bags, against the 475 thousand bags in 2023. — Adrian H. Halili

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