Higher coffee prices may encourage farmers to boost output for the 2011-12 crop year that starts in most countries in October, helping to make up for a drop in supplies from Brazil, the world’s biggest grower, International Coffee Organization Executive Director Jose Sette said.
Arabica coffee prices traded in New York have doubled in the past year and robusta beans traded in London have climbed 84 percent. Brazil will have a smaller crop for 2011-12 as trees are in the off-year of a biennial cycle for arabica coffee production, Brazil’s Agriculture Ministry said May 10.
“There is an incentive for other countries to increase output due to high prices,” Sette said by phone from London today.
Global coffee production for the 2010-11 season that ends Sept. 30 is estimated at 133 million bags, up 8.1 percent from a year earlier, the ICO said in its April market report. Brazil’s production in crop year 2011-12 will be 43.5 million bags, down from 48.1 million bags a year earlier, Brazil estimates. The ICO hasn’t made an estimate for the global production in the 2011-12 season, Sette said.
Production may gain in the 2012-13 season as Brazil’s crop rebounds, Sette said.
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