'Global coffee output in 2011-12 estimated at 130 mn bags'

Global coffee production in the 2011-12 crop year has been estimated at over 130 million bags of 60 kg each by the International Coffee Organisation (ICO).

Total output in 2010-11 (October-September) is estimated at 133 million bags, it said.

"Production prospects for crop year 2011-12 are somewhat mixed, since lower production is anticipated in Brazil, while production in other exporting countries may increase," ICO said.

As per the second official estimate of Brazilian production in the 2011-12 crop year, total output is expected to go down by 10% to 43.5 million bags from 48 million bags in the same period last year, it added.

However, information provided by other exporting countries indicate increased production if climatic conditions are favourable, the ICO said.

"On the basis of this information, the initial estimate of total production in the 2011-12 crop year is around 130 million bags," it noted. In the Asian region, ICO estimates a fall in production in Indonesia and stagnation in Vietnam.

The Karnataka Planters Association, the main body for coffee plantations in India, expects a decline in coffee output in the 2011-12 crop year in the country. The ICO expects that rising prices of coffee will encourage farm investments.

"Current price levels will encourage improvements in the upkeep of coffee farms in many other countries despite increased production costs," it noted.