ICO: Coffee Prices Continued to Drop in 2012

Prices for raw coffee continued their downward trajectory last year, according to data compiled by the International Coffee Organization. The organization said the average price dropped to $1.56 per pound for the year, or nearly 26% lower than 2011's level.

In December, the average price stood at $1.31 per pound, or almost 4% lower on a month-over-month basis. At the beginning of 2012, the former figure was $1.89.

Looking forward, the ICO said the new harvest from coffee-exporting countries "is beginning to arrive in greater quantities on the market." It said the current crop year has seen increased production in key coffee-exporting locales such as Indonesia and Africa, although Central American producers are experiencing adverse weather.