Global coffee output may rise 8.5%

Early estimates put the production figure in 2008-09 around 126 million bags.

Global coffee production in 2008-09 is expected to be around 126 million bags, up 8.5 per cent as against 116 million bags in 2007-08.

In his monthly coffee market report, Nestor Osorio, executive director, International Coffee Organisation (ICO), has said that on the basis of the information provided by Brazil and other key coffee-producing countries, the production is expected to be between 123 million and 126 million bags in 2008-09.

"The production in Brazil is expected to be 41.3-44.2 million bags, comprising 31.5-33.7 million bags of Arabica and 9.8-10.5 million bags of Robusta," he said. Robusta production in Brazil remains relatively stable against last year's crop.

Although, the crop year 2007-08 is still underway in many exporting countries, ICO figures indicate a total production of around 116 million bags, representing a decrease of 7.4 per cent over the previous year.

Coffee production in India was up 2.10 per cent to 4.85 million bags in 2007 against 4.75 million bags in 2006. Osorio said, the volume of opening stocks in exporting countries for 2007-08 was around 25 million bags as on October 1, 2007, compared with 29 million bags in 2006-07.

As for the global consumption, the preliminary estimates suggest a figure of 123 million bags for 2007 against 120.4 million bags previous year. The consumption in exporting countries is estimated at 31.3 million bags, while in importing countries, it is estimated to be around 89 million bags.

With the exception of Japan and Norway, retail prices of coffee have increased in almost all importing countries. "The increase must be seen in the context of a general increase in food prices in the developed countries," said Osorio.