Speaking at a Brazilian coffee event organised by exporter group Cecafe, ICO Executive Director Vanusia Nogueira outlined her forecast on the global coffee supply, while also stating that weather conditions need to remain favourable enough for farmers to maintain their crops.
The news of potential supply relief follows a challenging few years for the global coffee farming industry, with issues of production deficits and extreme weather events in key producing regions steadily pushing prices up.
With coffee plants typically taking three years to start producing cherries, Nogueria says patience is needed before assessing the new plantations’ production. It has not been reported where these plantations are located.
“These are plantations will start producing in about three years, so then, in three years, we should have some additional supply,” she says.
Nogueria also warned that the continuing risk of frost in Brazil this July could exacerbate the existing supply issues felt by the market.
The weather in major producing countries like Brazil, Colombia, and Vietnam could hold the key to ending the run of supply deficits.
“I think (the end of the deficits) will depend a lot on this climate issue,” says Nogueira.
