Skip to main content

Brazil Coffee Crop to Drop 23% Next Year, Pushing Up Prices, Minister Says


"Coffee prices will likely rise next year due to global supply shortages"

By Katia Cortes
Bloomberg

December 22, 2010

Coffee production in Brazil, the world’s biggest grower, may drop to the lowest in four years in 2011, pushing up prices as trees enter the lower-yielding half of a two-year cycle, Agriculture Minister Wagner Rossi said.

Growers will harvest 37 million bags, down 23 percent from 48.1 million bags estimated for this year, Rossi said in an interview in Brasilia today. Coffee prices will likely rise next year as global demand outpaces supplies amid declining stockpiles, he said.

“Prices will likely remain on a steady rise,” Rossi, 67, said at his office. “World demand is firm and global stockpiles are low.”

Coffee, which has surged 72 percent this year, extended a rally to a 13-year high earlier today on concern adverse weather in Brazil and India will pare global supplies. Arabica coffee for March delivery reached $2.4225, the highest since June 1997. It fell 1.6 percent to $2.3005 per pound at 12:51 p.m. on ICE Futures U.S. in New York.

Output in Brazil, which ships about a third of world exports, usually drops every other year because trees can’t sustain high yields for two straight harvests. Fungus that was found in coffee crops in southeastern Brazil because of excess rains won’t hurt production, Rossi said.

“The coffee blight is a problem but not a threat to output,” Rossi said. “The improvement in farmers’ income will help them fight the fungus by investing more in their crops.”

Commercial farm lending may rise in the crop year that began in July as growers invest more in machinery and increase planted area to benefit from rising commodities prices, Rossi said. Lending grew 29 percent in the past harvesting season to about $49.8 billion, the ministry said.

---
To contact the reporter on this story: Katia Cortes in Brasilia at at kcortes@bloomberg.net
To contact the editor responsible for this story: Jessica Brice at jbrice1@bloomberg.net

Comments

  1. Joan AnneThu Jan 06, 12:52:00 AM PST

    This is a bad news for all the people, especially that who is a coffee addict like me :(


    Windows Server 2003 | Axis Deer Hunting in Texas

    ReplyDelete

Post a Comment

Join the conversation

Popular posts from this blog

Ethiopian Coffee & Tea Authority Relaxes Coffee Export Restrictions

  Ethiopian Coffee & Tea Authority Relaxes Coffee Export Restrictions  Addis Fortune November 14, 2020 Coffee traders can now send all grades of coffee beans to the global market, in contrast to the previous law that allowed them only to export the top four grades of coffee, according to a new directive issued by the Ethiopian Coffee & Tea Authority. Farmers and exporters can also directly ship the beans without going through the trading floors of the Ethiopian Commodity Exchange (ECX). The new scheme allows fifth grade and under grade (UG) coffee beans, which up until now have only been supplied to the local market, to be exported. Coffee quality experts at respective regional offices of the Authority will determine the grade of the coffee. The Authority at its head office issues permits to the exporters every year, while regional offices are delegated to grant export permit to farmers who have at least two hectares of farmland. The Authority sets standard prices on a...
Post a Comment
Read more

Climate-hit Ethiopia shifts coffee uphill

Caffeine high? Climate-hit Ethiopia shifts coffee uphill Elias Gebreselassie Thomson Reuters Foundation June 3, 2018 HAMBELA, Ethiopia (Thomson Reuters Foundation) - Few countries take coffee as seriously as Ethiopia - and that’s not only because it prides itself as being the source of the prized Arabica bean. But rising temperatures and worsening drought linked to climate change are now hitting production - and fixing that may require moving many Ethiopian coffee fields uphill, experts say. Aside from its cultural value, coffee is Ethiopia’s single largest source of export revenue, worth more than $860 million in the 2016-2017 production year. But coffee-growing areas in eastern Ethiopia have seen the average temperature climb 1.3 degrees Celsius (2.3 degrees Fahrenheit) over the past three decades, according to the Environment, Climate Change and Coffee Forest Forum (ECCCFF), an Ethiopian non-governmental organization. That has caused stronger drought ...
Post a Comment
Read more

The saga of the Starbucks-Ethiopia affair

Note :   The most recent developments on Starbucks vs. Ethiopia are listed below: January 9, 2012:  Has trademarking doubled Ethiopian farmers' income?   January 5, 2012:   Starbucks to showcase use of a QR code to trace Organic Ethiopia Sidamo® Coffee   ========= "When two elephants fight, it is the grass that suffers. When the same two elephants make love, the grass still suffers." - derivative of an old African saying Life, before and after the agreement, remains unaffected for farmer Gemede Robe, the icon of the Starbucks vs. Ethiopia dispute. He lives in the Borena zone of the Oromia region, one of the many coffee growing zones of the country. (Photo: Courtesy of Oxfam America) By Wondwossen Mezlekia May 31, 2010 The coffee trademark dispute between Starbucks and Ethiopia officially ended exactly three years ago. In June 2007, the giant coffee chain and the government of Ethiopia declared their agreement "to work together to license...
Read more