Global Coffee Deficit Predicted

In the period 2014/2015 demand for coffee will exceed supply due to lower levels of grain production in Brazil.

Tuesday, March 25, 2014

The next coffee crop cycle will be the first since 2009/2010 in which a deficiency will be registered in the market as an overall deficit of 612,000 bags of coffee is foreseen. "2014/2015 will see the lowest level of production since 2011/2012 and the largest annual percentage decrease since 2009/2010."

"It is largely due to Brazil's crop being smaller," said Keith Flury, agricultural markets strategist at BNP Paribas. Although the Government of Brazil, the world's largest producer of the aromatic estimated the 2013/14 harvest at 49.15 million bags, most of the industry expects about 53 million bags" Flury said.

"The projection of a deficit comes after the main producing region of Arabica coffee from Brazil suffered drought conditions in January and February, during the critical stage in which the grains grow on trees.

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