Illy lowers global coffee output forecast

World coffee output will likely sit around 138 million to 140 million 60-kg bags in 2010/11, illycaffe Chairman and Chief Executive Andrea Illy told Reuters on Wednesday. Illy lowered his forecast, from his previous estimate of more than 140 million bags, due to lower production in the world’s third-biggest producer in Colombia.

« We were expecting at the time, Colombia to have 11 to 12 million bags, but this is not the case, » Illy told Reuters, while visiting New York. Illy is based in Trieste, Italy, where the privately-held company is headquartered. He pegged Colombia production around 10.5 million bags in the calendar year 2010.

Illy, projected 2010/11 production in top grower Brazil at a record 52 million bags, possibly 55 million. Illycaffe buys half of its coffee from Brazil.

He said 2010/11 will likely see a global surplus of about 6 million bags, compared to a deficit of 3-4 million bags in 2009/10.  « Stocks are very low, because of many years of balance between production and consumption, » Illy said.

Source : Reuters India