DJ Brazil's Coffee Exporters To Lose Market Share In 2005-Official
(Repeating)
SAO PAULO (Dow Jones)--Brazilian coffee exports will fall 15% to 20% in
2005 because of declining local production, said a top Brazilian coffee
export official Wednesday.
The country's world-leading green coffee exports totaled approximately 23
million 60-kilogram bags in 2004. But with Brazilian coffee production
expected to drop to 30.7 million to 33.1 million bags in 2005-06 (July-June)
from 38.6 million bags this year, Central American and Vietnamese competitors
will inevitably gain market share, said Guilherme Braga, president of
Brazil's Green Coffee Exporters Council, or Cecafe.
"There simply aren't the stocks to maintain our volume of shipments," he
said in a phone interview.
However, Brazil's competition will only have coffee to fill half the
expected 4 million-bag drop in output, he added.
"Vietnam and Colombia simply won't have the coffee to fill the gap," said
Braga.
As a result, Brazilian exporters expect already rising international
prices to jump further in the first half of 2005.
An average New York Board of Trade coffee futures price of $1.20 per
pound is a distinct possibility, said Braga. Nybot front-month prices broke
below $1.00 a pound Tuesday, falling back after hitting a four-year high of
$1.0840 last week.
"The market fell in the last week but it is gathering strength to rise
again," he said.
Higher prices will more than compensate dropping physical exports,
resulting in export revenues equal or slightly higher than the $2 billion
expected for 2004.
-By Alastair Stewart; Dow Jones Newswires; 5511 3145 1488;
[email protected]
(END) Dow Jones Newswires
FSN35501 ABCST COFFEE FOOD TOP
2005-01-05 20:49:08 UTC
^^^^^^
(Repeating)
SAO PAULO (Dow Jones)--Brazilian coffee exports will fall 15% to 20% in
2005 because of declining local production, said a top Brazilian coffee
export official Wednesday.
The country's world-leading green coffee exports totaled approximately 23
million 60-kilogram bags in 2004. But with Brazilian coffee production
expected to drop to 30.7 million to 33.1 million bags in 2005-06 (July-June)
from 38.6 million bags this year, Central American and Vietnamese competitors
will inevitably gain market share, said Guilherme Braga, president of
Brazil's Green Coffee Exporters Council, or Cecafe.
"There simply aren't the stocks to maintain our volume of shipments," he
said in a phone interview.
However, Brazil's competition will only have coffee to fill half the
expected 4 million-bag drop in output, he added.
"Vietnam and Colombia simply won't have the coffee to fill the gap," said
Braga.
As a result, Brazilian exporters expect already rising international
prices to jump further in the first half of 2005.
An average New York Board of Trade coffee futures price of $1.20 per
pound is a distinct possibility, said Braga. Nybot front-month prices broke
below $1.00 a pound Tuesday, falling back after hitting a four-year high of
$1.0840 last week.
"The market fell in the last week but it is gathering strength to rise
again," he said.
Higher prices will more than compensate dropping physical exports,
resulting in export revenues equal or slightly higher than the $2 billion
expected for 2004.
-By Alastair Stewart; Dow Jones Newswires; 5511 3145 1488;
[email protected]
(END) Dow Jones Newswires
FSN35501 ABCST COFFEE FOOD TOP
2005-01-05 20:49:08 UTC
^^^^^^
