Commodity OnlineMUMBAI: Colombia, Vietnam and India’s reduced estimated coffee production is forcing the International Coffee Organization cut its estimate for world coffee output in 2008/09.
ICO Executive Director Nestor Osorio has now put the estimate at 127.8 million bags from a previous forecast of 133.4 million. Production in 2007/08 was 116.5 million bags. Each bag is worth 60-kg.
Columbia remains the main concern for this shortfall because of heavy rainfall and a temporary fall in production due to lower acreage. Estimates now stands 10.5 million bags against a previous estimate of 12.3 million bags.
On the other hand, Vietnam’s estimates stands at 16.0 million bags against the previously estimated 19.5 million bags.
Even India’s production is dismal this year, but comparatively better. The gap between supply and demand may put pressure on prices of coffee internationally.
