The Saudi Cabinet gave its approval on Wednesday for the Kingdom to join the International Coffee Agreement according to sources.
It is a global commodity agreement between nations that produce and consume coffee. It was initially signed in 1962 with the intention of maintaining export quotas for exporting nations and maintaining high market coffee prices, primarily through the use of export quotas.
Exploring ways to improve circumstances in an industry worth more than $300 billion annually that supports millions of people worldwide, from farmers to baristas, is another goal of the pact.
The international business analysts Euromonitor International, Saudi Arabia's consumption of coffee increased by 4% annually between 2016 and 2021 and is anticipated to rise by another 5% annually through 2026, reaching an anticipated annual consumption of 28,700 tonnes according to sources.
The Public Investment Fund established the Saudi Coffee Co. in an effort to increase the production of coffee in the Kingdom. By five years, it wants to increase production by more than 700 percent.
The company's annual coffee production is currently 300 tonnes, but it wants to increase that to 2,500 tonnes.