Coffee supplies forecast to recover this year

By staff reporter
Decision News Media SAS

16/06/2006 - World coffee production over the next year will rise by nearly ten per cent, or nearly 11 million bags, over the previous year, fuelling a rising demand for the brew, according to a forecast report.

With the increased supplies, coffee exports are forecast to recover. World coffee exports over the next 12 months are forecast at 92.8 million bags, up 7.2 million bags from the previous season.

Most of the increase is attributed to the increase in coffee crops in Brazil, Vietnam and Peru, according to a report produced by the US Department of Agriculture. Brazil's production of coffee during the July 2006 to June 2007 marketing season is forecast at 44.8 million bags, up nearly 25 per cent over the previous year.

Since Brazil is the largest coffee producer, swings in Brazil's supplies of coffee account for a large portion of the change in the world total supplies of coffee.

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