In the wake of Brazil harvesting one of its highest productions of coffee at 45.85 million bags for 2008-09, the International Coffee Organization (ICO) has cautioned exporters to plan their export commitments for 2008 and 2009.
ICO Executive Director Nestor Osorio, in his monthly note said, “As Brazil’s crop year 2008-09 is a year of high production in two-year cycle, the production prospects for crop year 2009-10 will be much lower. Keeping this in mind, exporters’ commitments in 2008 and 2009 need to be planned with some caution.” Despite high production, Brazil’s low level of opening stocks in crop year 2008-09, the need to set aside coffee for export during the low-year of the biennial cycle in 2009-10, and the producer support programme known as Pepro are likely to restrict the flow of Brazilian exports. Moreover, Brazilian domestic consumption is likely to account for more than 18 million bags in 2008-09.
