Log in to your IBTimes Account

close
ID
Password
  • Set your IBTimes.com Edition

Coffee Supply Crises on Horizon for 2007



By Jeff Coelho
28 April 2006 @ 10:10 am ET

LESSONS LEARNED

Given the expected growth in world consumption, coffee producers will need to keep output apace with demand, said CoffeeNetwork's Thompson. "The challenge is to ensure production rises simply absorb demand -- rather than exceeding it," she said.

Indeed, coffee farmers are still reeling from a crisis earlier this decade when abundant coffee production had depressed NYBOT's benchmark futures price well below $1 a lb for several consecutive years, forcing thousands of small-scale farmers to stop growing.

From July 2000 through December 2004, the NYBOT's nearby coffee futures contract had ranged between 42 cents and $1 a lb, according to exchange data. The last thing coffee producers want is a price of 42 cents per lb -- well below the cost of production.

"There are ways and means to hedge future production into the market. But that is costly, and I would say most coffee farmers are still heavily in debt," said Veit.

Copyright 2009 Thomson Reuters. All rights reserved.

    Click!
  • Rate this article:

Comments

Post Your Comment

*Name


advertisement
More Politics & Policy
Anti-G8 demonstrators clashed briefly with Italian police on Saturday in the first big protest ahead of next week's summit of the world's richest nations...
Search crews have located a large piece of debris from a Yemeni jet that crashed into the Indian Ocean off the Comoros islands last week and are working ...
U.N. chief Ban Ki-moon rebuked Myanmar's generals on Saturday for denying him a visit to see detained opposition leader Aung San Suu Kyi and said she sho...

Advertisement
Press Release Distribution - IBwire

Effective and Affordable Press Release Distribution Service

advertisement
 
IBTimes.com Web
Partners
International Business Times© 2009 The Ibtimes Company. All Rights Reserved. Terms of service | Privacy Policy | Advertising | About Us | Contact Us | Archives