São Paulo – World coffee production in the 2011-2012 crop should be 2.4% smaller than in the 2010-2011 crop, according to estimates announced this Monday (12th) by the International Coffee Organization (ICO). According to the organization, the 2011-2012 crop should reach 130 million 60-kilogram bags. During the 2010-2011 crop, production reached 133.3 million bags.
The ICO rated the supply-demand ratio as “fragile” because while the 2011-2012 crop should total 130 million bags, global demand for the product should grow to a total of 134.8 million bags.
The organization expects a decline in Brazilian and Indonesian production. It informs that the commodity’s prices underwent strong fluctuation in the New York Mercantile Exchange in August, due to frost in Brazilian crop areas. On the other hand, the ICO is expecting larger crops in Mexico, Honduras and Vietnam. Still, total production worldwide should be lower.
*Translated by Gabriel Pomerancblum
