Thursday, January 29, 2004

Coffee Will Cost More, But Farmers Only Get Beans

By Begoa Quesada

LONDON (Reuters) - World coffee prices are likely to recover as supply realigns with demand after years of surplus, but they will be less prone to hit peaks, a report from the World Bank said.

The reduction of historically high, weather-related risk like frost in Brazil means prices would be less inclined to see spikes when they recover, according to the report.

Coffee farmers who have endured historically low prices for the past few years will find scant comfort in the report, however.

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