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The main drivers of arabica coffee prices in Latin America

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  • Aliaga Lordemann, Javier
  • Mora-García, Claudio
  • Mulder, Nanno

Abstract

This paper analyzes the determinants of arabica green coffee prices in Latin American countries using a time series analysis and panel data methods. For this purpose, we construct a panel of different coffee prices: Coffee Organization (ICO) composite prices for Brazilian Naturals, Colombian Milds, and Other Milds; prices paid by the Federación Nacional de Cafeteros de Colombia (FNC) to coffee growers; and farm gate prices by country. The results show that the Brazilian Real to USD real exchange rate, inflation, and rain in January affect prices positively. In contrast, green coffee inventories, the oil price, and the Colombian Peso to USD real exchange rate negatively affect coffee prices.

Suggested Citation

  • Aliaga Lordemann, Javier & Mora-García, Claudio & Mulder, Nanno, 2021. "The main drivers of arabica coffee prices in Latin America," Documentos de Proyectos 46729, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col022:46729
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