Coffee production may decline over the coming years

In its monthly report for June, the International Coffee Organization (ICO) says that before the current price levels, there is less incentive for farmers to invest in crops as well as in the use of inputs such as fertilizer and labour. This could have a negative impact on production volumes and quality over the next few years. The result will be increased volatility and a value of less sustainable production chain. The organization also reports that the market remains stocked coffee, with total exports of grain accumulated in the 2012/13 season (October 2012 to May 2013) to reach 75.7 million bags, an increase of 5.13% over the same period of the previous cycle. The world coffee production is estimated at 144.6 million bags in 2012/13 season (ending September), an increase of 7.8% over 2011/12. In Central America, around 2.7 million bags in 2012/13 were affected by the rust fungus, causing a loss of $ 500 million. Production is tentatively projected to fall 14.9% and reach 20.3 million bags in 2011/12. The global coffee consumption in 2012 is estimated by the ICO at 142 million bags, up 2.4% over 2011.
Source: Revista Cafeicultura