With a larger crop expected, the worlds largest coffee-producing country, Brazil, plans to double financing for coffee storage this year.
Sources told Bloomberg that the investment — valued at approximately $857 million US dollars — will allow producers to maximize profits by storing coffee and selling it when the market most demands it.
“The aim is to enable the producer to store coffee and to sell it at the best opportunity,” Edilson Martins de Alcantara, director of the coffee department at the country’s Ministry of Agriculture, said at a recent meeting of the International Coffee Organization.
Brazilian government officials told Bloomberg that coffee output is expected to reach record highs in the 2012-2013 season, if normal rain conditions continue.
“It has been raining normally and the tendency is for a large harvest to be confirmed,” de Alcantara told Bloomberg. “There are no indications that there will be a problem.”
The full story: Bloomberg