Global coffee stocks may drop to 'critical' levels prior to Brazil's next harvest, country's National Coffee Council says
March 26, 2012
– Global coffee stocks may drop to “critical” levels prior to Brazil’s next harvest, according to the country’s National Coffee Council, Bloomberg reported March 26.
Coffee stocks in exporting countries totaled 17.4 million bags at the beginning of the 2011-2012 season—the lowest on record, the International Coffee Organization said in its February report. Importing nations had stocks of 22.3 million bags, according to the report.
Inventories of coffee in Brazil and importing countries are still dropping and could reach critical levels at the conclusion of the inter-harvest period, said Silas Brasilerio, president of the council.
Brazil’s output will reach a record 49 million to 52.3 million bags in the 2012-2013 season, the government estimates.
Brazil’s next coffee crop will only cover local supply and export demand and won’t be adequate enough to create excess supplies for inventories to bring into the 2013-2014 season.
The primary source of this article is Bloomberg, New York, New York, on March 26, 2012.