Bloomberg News

Brazil’s Top Coffee Shipper Sees Output Slumping 15% Next Season

November 30, 2011

Nov. 17 (Bloomberg) -- Coffee output at the Cooxupe cooperative, Brazil’s largest exporter, will be 15 percent smaller in the 2012-13 season than the last high-yielding year because of dry weather, said Lucio Dias, commercial director.

Cooxupe produced 10.2 million bags of 60 kilograms (132 pounds) in 2010-11, the previous season of high yields. Output in 2011-12 slumped to 7.3 million bags as the country’s arabica trees entered the low-yielding half of a two-year cycle. Arabica coffee is used in specialty drinks such as those made by Starbucks Corp. and are grown mainly in Latin America.

“Our preliminary evaluation points to a production about 15 percent smaller than in 2010,” Dias said today by phone from Guaxupe, Brazil. “We had a very dry year, an extremely dry winter. From May to October we didn’t get rains and this has never been good for coffee crops.”

Cooxupe has 12,000 growers and is the world’s largest private coffee cooperative, according to its website. The cooperative was Brazil’s biggest exporter in 2010, shipping 1.8 million bags of coffee, it said.

“As a producer, I already see a significantly weaker harvest for next year,” Dias said.

Cooxupe will publish its first official estimates for the cooperative’s next crop in December.

--Editors: John Deane, Nicholas Larkin

To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.


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