Brazil’s Cooxupe Cuts Coffee-Crop Outlook 14% Amid Dry Weather

 

Cooxupe, nation’s top coffee exporter and grower cooperative, will harvest 3.8m bags this yr as dryness caused plants to lose leaves and cut yield potential, says Lucio Dias, commercial director.

 

That’s down from previous est. of 4.4m bags, Dias says by telephone from Minas Gerais, nation’s top-producing state

 

NOTE: Arabica futures last yr surged 50% in N.Y after drought in Brazil, world’s biggest grower and shipper

 

“The situation is much different than last yr”

 

While in 2014 damage occurred mostly in southern parts of Minas Gerais, this season dryness is also affecting other major producing areas, including Bahia, Cerrado and Espirito Santo, hurting both arabica and robusta crops, Dias says, after touring major growing areas

 

NOTE: Last yr, Brazil had record shipments, industry data show

 

“Our members have no inventories left because the demand was so strong last year,” and they used stockpiles to make up for the smaller harvest

 

“By Nov. or Dec., the supply situation will be very tight, and the drought will probably affect production next year as well”

 

Cooxupe will procure 1.2m bags of beans from other co-ops to meet supply commitments, Dias says

 

NOTE: A bag weighs 60 kgs, or 132 lbs

 

Bloomberg