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Global Coffee Production Expected to Reach Record High in 2012-2013

Coffee production worldwide is expected to reach record highs next season, according to market analyst CoffeeNetwork, which estimates that farmers will harvest 146 bags in 2012-2013, an 8.1 percent increase over this season’s production.

Worldwide Coffee Production expected to reach record highThe production should mark a dramatic change from last year, when rain and other environmental factors in two of the world’s largest producers, Brazil and Colombia, caused decreased output amid a surge in worldwide demand. According to a Bloomberg report, coffee as a commodity reached a 14-year high of $3.089 per pound last May.

“The tight supply situation in 2011-12 was one of the factors behind the rise in prices to multi-year highs,” Andrea Thompson, head of research and analysis at CoffeeNetwork told Bloomberg. “The market is now well off those highs and there has been a growing feeling as 2012 progresses that there is currently more downside potential than upside for the market.”

According to the report, supply growth is expected for arabica and robusta beans.
The full story: Bloomberg