The International Coffee Organization's new bi-annual report provides a snapshot of coffee production and consumption for the 2021/22 and 2022/23 years. World coffee production decreased by 1.4% to 168.5 million bags in coffee year 2021/22 due to off biennial production and negative meteorological conditions in key origins. However, it is expected to bounce back by 1.7% to 171.3 million bags in 2022/23. Increased global fertiliser costs and adverse weather conditions are expected to partially offset the positive impact of the on biennial production from Brazil, explaining the relatively low rate of growth in coffee year 2022/23. The impact of the biennial production is anticipated to drive the outlook for Arabica, which is projected to increase by 4.6% to 98.6 million bags in coffee year 2022/23, following a 7.2% decrease in the previous coffee year. South America is and will remain the largest producer of coffee in the world, despite suffering from the largest drop output in almost 30 years.
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