Roberto Samora
Vanusia Nogueira, executive director of the International Coffee Organization (ICO), said at an event held in Brazil on Thursday that new plantations started production, which are new plantations that began production, are starting to produce, as record-high prices began production.
However, the outlook depends on the market conditions that are still favorable enough to keep farmers in crops and told reporters at an event organized by Brazilian coffee exporter group Cecafe.
Why it matters
Global coffee supply is tight as several years of production deficits are affected by extreme weather in key production areas, driving prices up.
Key Quotes
Nogueira said it could take about three years to relieve supply pressures.
“These plantations will start production in about three years, so in three years we should have some additional supply.”
What's next
Nogueira said the end of the global coffee market continuous deficit could occur in 2026, depending on major producers such as Brazil, Colombia and Vietnam.
“I think (the end of the deficit) will depend heavily on this climate issue,” Nogueira said.
(Reported by Roberto Samora; Writing by Andre Romani; Edited by Stephen Coates)
