Bloomberg News

Brazil’s Terra Forte Raises Next Coffee Crop Forecast 2.6%

February 26, 2012

(Updates production figures in sixth paragraph.)

Feb. 24 (Bloomberg) -- The next coffee crop in Brazil, the world’s largest producer of the commodity, will be 2.6 percent bigger than estimated in November, according to Terra Forte Exportacao e Importacao de Cafe Ltda.

Production will be 53.9 million bags in the 2012-13 season, up from a previous forecast of 52.53 million bags in November, Terra Forte said in a report e-mailed yesterday. The company was Brazil’s second-biggest exporter last year, according to Rio de Janeiro-based broker Flavour Coffee. The season usually starts in July. A bag weighs 132 pounds.

“Since the first report, late November, the weather has normalized and became very good for crop development,” Terra Forte said in the report. “Conillons, for instance, can be considered as the best crop ever.”

Brazil produces both arabica beans, favored by Starbucks Corp. to make specialty drinks, and robusta coffee, used in instant drinks and espresso. Robustas are usually known as conillons in the South American country.

Production will climb from 46.6 million bags in the current season as arabica trees enter the higher-yielding half of a two- year cycle. Output will stay below the 55.4 million bags produced in the previous high-yielding period in 2010-11, data from the São João da Boa Vista, Brazil-based Terra Forte show.

Arabica, Robusta

Arabica production will total 37.4 million bags in 2012-13, up from a November estimated of 37.2 million bags, the exporter said, adding that harvesting was likely to be delayed in most regions. Output of the variety was 32.3 million bags in 2011-12 and 41.95 million bags in the previous high-yielding season in 2010-11, according to the report.

Robusta growers will harvest 16.5 million bags, up from a previous forecast of 15.33 million bags, Terra Forte said. Production of the variety was 14.3 million bags in 2011-12 and 13.4 million bags in 2010-11, data from the exporter show.

Arabica bean prices have dropped 11 percent this year on speculation supplies would be ample due to a large crop in Brazil.

--Editors: Claudia Carpenter, Nicholas Larkin

To contact the reporter on this story: Isis Almeida in London at

To contact the editor responsible for this story: Claudia Carpenter at

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