The 2011 coffee crop in Colombia, the world’s second-largest producer of Arabica beans, may be its lowest in two years, due to excessive rainfalls.
According to a Bloomberg report, Colombia National Federation of Coffee Growers board member Mario Gomez said overall production may fall to less than 8.5 million bags of coffee. Last year’s crop was approximately 8.9 million bags and early forecasts for 2011 suggested the country may have produced as much as 9.5 million bags.
“Output could be hit mainly because of the weather,” Gomez told Bloomberg. “Production isn’t responding. Coffee, like no other product, needs light.”
Sterling Smith, an analyst at Country Hedging in St. Paul, Minn., told Bloomberg reporters that the reduced Columbian crop is causing some trepidation among some of the world’s largest purchasers of Arabica beans, including Starbucks and Dunkin Donuts.
“There’s nervousness about beans in the market that’s starting to affect the price,” he said. “It means we will still be short beans.”
The full story: Bloomberg