Coffee growers in Brazil angry with government crop estimates

Coffee growers in Brazil have criticised the local government’s estimates for the 2014-15 coffee crop, P&A Coffidential has reported, citing local news sources. Through the National Coffee Council (CNC) and the National Agricultural Confederation (CNA), coffee growers have claimed that the estimate of 48.8 million bags for the 2015 coffee crop, is an overestimate and has been made without actual field visits, P&A reported. According to the report, the future crop will definitely be affected by the severe drought that hit Brazil during several months in 2014, with CNC estimating an output between 40 – 43 million bags. Dry weather accelerated coffee ripening, causing a reduction in the volume of pulped natural coffees, which typically accounts for 12 – 15 per cent of the coffee output in Brazil and fetches better prices for growers due to its higher quality, according to P&A. Brazilian pulped naturals, with lower body and higher acidity, are used as substitutes for washed Colombians and are mostly sought after for espresso in the United States and Europe, according to the report. Coffee trading has been unusually locked in the domestic market for this time of the year, due to high market volatility and low international demand, with growers holding onto their coffees waiting for better prices, said P&A. A substantial part of sales were made in the first semester when coffee prices increased significantly after a long period of low prices. The New York market was trading at US$2.14 cents per pound as of 24 April compared to US $1.85 cents per pound as of 16 September.

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