Arabica Organic Coffee Prices
Arabica organic coffee prices are expected to remain strong for the next two years as worldwide coffee consumption is high.
Coffee consumption is even increasing in areas that are traditional areas of tea consumption.
We noted two weeks ago that Starbucks organic coffee in China is catching on with high same store growth and more stores on the way.
Arabica coffee (coffea Arabica) is the first species of coffee cultivated and has its origins in the mountains of Yemen on the Arabian Penninsula and the highlands of Ethiopia and Southeastern Sudan. Arabica is generally considered to be a superior coffee to coffea canephora (robusta).
Arabica does best in light shade which also is consistent with its use for shade grown organic coffee. With the growing popularity of organic coffee, Arabica sales, and Arabica organic coffee prices are up and likely to remain so.
Healthy organic coffee growth in the shade with Arabica coffee plants promotes sustainable coffee farming, higher than usual payments to small coffee growers, and a product free much many of the impurities found regular coffee.
Because organic coffee growers commonly intersperse their plants among other plants in partial shade
"Global coffee consumption is strong right now and we are seeing double-digit growth in all of the regions where we are present, with over 15% of our sales generated outside of Europe," Guillaume Le Cunff, director of international marketing and strategy at Nespresso, told Dow Jones in an interview.
New York arabica coffee broke through the key price of $3 a pound in May as fears of tight world supplies pushed prices to their highest level in 34 years.
Nespresso has declined to alter its blends of robusta and arabica in its coffee despite high and volatile prices.
"Quality is of utmost importance to Nespresso and we secure the highest quality beans in the world," Le Cunff said.
The Switzerland-based company remains in particular very optimistic for growth projections in the U.S., despite global economic uncertainty.
"We are expecting sizeable growth in the U.S. Although Nespresso is a luxury brand, it's also affordable and self-indulgent and so most people do not want to compromise on that," Le Cunff said.
Nespresso is a unit of the world's largest food company, Nestle SA (NESN.VX).
In 2011 Nespresso bought 817,000 60-kilogram bags of coffee, 60% of which was sourced through its sustainable quality program. By 2013, the company aims to source 80% of coffee beans through the program.
In 2010, Nespresso co-funded a new coffee processing centre in Jardin, Colombia. The company said it will enable farmers to double the coffee output, secure a higher premium and with time allow a 30% progressive increase in net income.
Coffea arabica ( /əˈræbɪkə/) is a species of Coffea originally indigenous to the mountains of Yemen in the Arabian Peninsula, hence its name, and also from the southwestern highlands