By Roberto Samora
CAMPINAS, Brazil (Reuters) -Global coffee supply could improve in three years as new plantations spurred by record high prices start producing, International Coffee Organization (ICO) Executive Director Vanusia Nogueira said on Thursday at an event in Brazil.
The outlook, however, depends on market conditions remaining favorable enough for farmers to maintain their crops, Nogueira told journalists at an event organized by the Brazilian coffee exporters group Cecafe.
WHY IT’S IMPORTANT
Global coffee supply is tight as several years of production deficits, impacted by extreme weather in key producing regions, push prices up.
KEY QUOTES
Nogueira said it could take about three years for new coffee plantings to ease supply pressures.
“These are plantations that will start producing in about three years, so then, in three years, we should have some additional supply.”
WHAT’S NEXT
Nogueira said the end of successive deficits in the global coffee market could happen in 2026, depending on the weather in the main producing countries, such as Brazil, Colombia and Vietnam.
“I think (the end of the deficits) will depend a lot on this climate issue,” said Nogueira, noting that there is still some risk of frost for Brazil’s crop in July.
(Reporting by Roberto Samora; Writing by Andre Romani; Editing by Stephen Coates)
Comments