Saudi Arabia: The Saudi Cabinet on Wednesday approved the Kingdom’s accession to the International Coffee Agreement, the Saudi Press Agency reported.

It is an international commodity agreement between coffee producing and consuming countries. It was first signed in 1962 to maintain exporting countries’ quotas and keep coffee prices high and stable in the market, mainly using export quotas to steer the price.

Another objective of the agreement is to explore ways to improve conditions in an over $300 billion-a-year industry that provides a livelihood for millions of people from farmers to baristas across the world.

According to a report by global business analysts Euromonitor International in January 2022, coffee consumption in Saudi Arabia grew by 4 percent per year between 2016 and 2021 and is forecast to increase by a further 5 percent annually up to 2026, reaching an expected consumption of 28,700 tons each year.

In a bid to boost the Kingdom’s coffee production, the Public Investment Fund launched the Saudi Coffee Co. It aims to ramp up production by more than 700 percent within five years.

The firm currently produces 300 tons of coffee a year, but is aiming to hit 2,500 tons.