Mexico Loses 100,000 Bags of Coffee to Cold

Mexico City, March 30 – Unusually cold weather at the height of Mexico‘s current coffee harvest has damaged “a little more” than 100,000 60-kg bags of coffee, the head of the national coffee organization Amecafe said on Tuesday.


Freezing temperatures in December and January, peak picking months in Mexico‘s harvest which runs from October to around March, damaged high-altitude coffee in the states of Hidalgo, San Luis Potosi, Puebla and Veracruz.

Some of the potential harvest was completely lost to severe weather while other beans were so cold-damaged that they were unfit for export, producers said.

Amecafe head Rodolfo Trampe said in a telephone interview that the bad weather meant coffee production would likely fall in the 2009/10 season from the 4.6 million bags produced in the previous cycle. He did not say by how much.

“There could be a drop in production for this coffee cycle. We have to realize that there have been problems that will have an impact,” Trampe said.

Mexico exported 2.8 million 60-kg bags in 2008/09, Trampe said.

The Mexican Agriculture Minister Francisco Mayorga has told Reuters the country could see a drop in 2009/10 coffee production of between 10 percent and 14 percent this season.

Guatemala Lower’s Crop Forecast by 350,000 bags

GUATEMALA CITY, March 24 (Reuters) - Guatemala cut its forecast for coffee production in the 2009/10 cycle to between 3.4 million and 3.6 million 60-kg bags, the head of the national grower's group Anacafe said on Wednesday.
Anacafe in February had lowered its forecast to between 3.7 million and 3.8 million bags from a previous forecast of 4.1 million bags.


Brazil Coffee Farmers Face Difficult Harvest

Trees will bear a traffic-light-like mixture of ripe red, yellow and unripe green cherries but few growers can afford to harvest in multiple sweeps of the fields to avoid quality problems. They say the laborers needed are scarce and costly.

“It’s a very difficult situation for the farmers,” said Joaquim Goulart, an agronomist at Cooxupe, the world’s largest coffee cooperative in Brazil‘s main coffee state Minas Gerais.

Nonstop rain when trees were flowering late last year caused blossoms to open randomly rather than in the usual more synchronized fashion and the resulting coffee fruit is now set to ripen in the same uneven way.

“Probably this year we’ll have a harvest with a high proportion of green beans. We’ll have a lot of black beans and green beans and stinkers which are the worst defects in coffee so the producer needs to avoid this,” Goulart said.

But that will be more easily said than done. Coffee needs to be picked soon after it ripens to prevent it deteriorating so most growers plan to simply strip the branches bare and sift out the unripe fruit afterward.

RED FOR GO

“We won’t be able to do specialty coffee this year,” said Joao Batista Honorio, manager of the Fazenda Barreira coffee farm in the hilly Pocos de Caldas coffee region, whose office walls are cluttered with award certificates for high quality.

He said he was planning to spend 50,000 reais ($27,900) on a separator to sift the ripe red cherries from unripe green ones. The machine will help Honorio when it comes to sell as buyers cut prices for coffee containing some unripe beans.

The crop supply agency Conab estimated the forthcoming harvest at 45.9 million to 48.7 million bags in an estimate in January. If it hit the upper end of this range, that would make it the largest harvest since 2002, Conab said.

Conab’s figures are consistently a few million bags below the average industry estimates however.

The problem of uneven ripening is proving a problem throughout the main southeastern coffee belt, which includes Minas Gerais where more than half the country’s coffee grows, and Sao Paulo state next door.

But there are some exceptions.

“It will certainly be one of the best harvests ever,” said Vanduir Caixeta, commercial manager at Alto Cafezal farm based in the more northerly savanna part of Minas Gerais known as the Cerrado.

“The Cerrado region didn’t have so many problems,” he said, adding he hoped the area would turn out about 5 million 60-kg bags.

While rains upset the development of the crop in Minas, growers in its eastern neighbor, Espirito Santo state, have been despairing about more than two months of drought which only ended when rains returned a few weeks ago.

Local growers and meteorologists have given preliminary estimates for losses in the mainly robusta-growing state at anywhere from 10 to more than 20 percent and will meet with Conab in the coming days to produce a more exact figure.

Separate weather problems that spoiled a large proportion of last year’s coffee and the prospect of another difficult harvest this year have only added to despondency in the sector in general whose rising costs make it harder to make money.

“We are down about this. You can’t make high quality coffee and that means you can’t get a better price and make a profit,” said Ralph de Castro Junqueira, whose beans were voted Brazil’s best in the 2008 Cup of Excellence coffee competition.

Central Am. DOWN FROM 10,411,616 BAGS

GUATEMALA CITY, March 22 (Reuters) – Coffee exports from Central America, Mexico, Colombia, Peru and the Dominican Republic fell 5.9 percent year-on-year in February to 2.40 million 60-kg bags, Guatemalan growers’ group Anacafe said on Monday.
In February 2009, exports from the group of nine washed arabica producers were 2.55 million bags, said Anacafe, which collates export figures from the region.
Cumulative exports for the 2009/10 coffee year, which began in October, were 8.84 million bags, down 15.1 percent from the same period in the previous cycle. Keywords: CENTAM COFFEE/

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Coffee heart-healthy? Study suggests it is


By David Olmos

Bloomberg News

A shot of espresso might give people the sensation that their hearts are racing, but in a study, drinking more coffee reduced the likelihood of being hospitalized for irregular heartbeats, researchers found.

A study of 130,054 adults found that people who drank four or more cups of coffee daily had an 18 percent lower risk of being hospitalized for irregular heartbeats and other heart-rhythm conditions, researchers at the health system Kaiser Permanente said yesterday. The risk of hospitalization was 7percent lower for people who drank one to three cups daily.

Cardiac rhythm disorders are problems in the heart’s electrical systems that cause it to beat too fast, too slow or irregularly. Atrial fibrillation – a rapid, irregular heartbeat that is the most common of these conditions – will affect an estimated 2.7 million Americans in 2010, according to the U.S. Centers for Disease Control and Prevention.

“People who are moderate coffee drinkers can be reassured that they are not doing harm because of their coffee drinking,” said Arthur Klatsky, the study’s lead investigator and a cardiologist at Kaiser’s Division of Research.

The study’s findings may be surprising because high doses of caffeine have been associated with a perception of heart “racing” in people, Klatsky said. Previous studies on the topic haven’t found that the racing impression is a measurable increase in heart rate or an irregular heartbeat, he said.

The study looked at adults who were members of the Kaiser Permanente health plan and had filled out questionnaires about their coffee- and tea-drinking habits from 1979 to 1985. The patients’ health status was followed until 2008.

The study shows “a progressive reduction in risk” of heart irregularities the more coffee people drank, Klatsky said. The research doesn’t prove a cause-and-effect relationship between reduced risk and coffee drinking or that coffee protects the heart against such irregularities, he said.

“We shouldn’t jump to the conclusion that there is a protective effect of coffee, although the study suggests there might be,” he said.

 

Tanzanian Coffee Prices Soar on Supply Shortages

Jan 15 – Tanzanian coffee prices spiraled upward as supply dwindled towards the end of the season amid heavy demand from exporters, traders said on Friday.

The state-run Tanzania Coffee Board (TCB) said 8,950 60-kg bags were offered for sale at Thursday’s auction with 7,463 bags sold. At the last auction on Jan. 7, 6,303 60-kg bags were up for sale with 5,156 bags sold.

“The overall average price at the Moshi exchange was up by $10.37 per 50 kgs for arabica coffee and robusta coffee was up by $9.51 compared to the last auction,” TCB said in a report.

East African coffee is normally packed in 60-kg bags but the prices are quoted for quantities of 50 kg.

Benchmark grade AA sold at $250 to $161 per bag, compared with $225.80 to $188.40 at the last auction and fetched an average price of $234.42 per bag, up from $222.26 previously.

Grade A fetched $229 to $150 per bag compared with $226-$160 per bag at the previous sale, and got an average price of $216.22 compared with $213.04 at the last auction.

“$250 per bag is a fantastic price … I think the prices will continue to go up in the coming weeks, said Eliot Bentzen, a coffee exporter.

“Prices usually go down towards the end of the crop season because the quality of the crop also declines, but we’ve seen prices going up now because supply is very tight,” he said.

The coffee board said the current season was likely to end in March with the new crop arriving in September.

“The demand for coffee from exporters is so huge, the coffee season could end even before March because stocks are running out,” Adolph Kumburu, director general of TCB, told Reuters.

Kumburu said due to the biennial nature of the crop, coffee trees produced less this season after a good harvest the previous season.

“We expect coffee prices to keep on rising because there is a lot of competition from exporters who are fighting to meet their shipment commitments,” he said.

Tanzania mainly produces arabica coffee, which follows New York, and grows some robusta coffee, which follows London.

Coffee Supply Woes May Amplify Brazil Intervention

Source: Reuters
15/01/2010

Jan 14 – The prospect of another Brazil coffee harvest dogged by rain and a meager outlook in other coffee-growing countries will add potency to Brazil’s efforts to raise prices by buying beans to restrict supplies.

Brazil’s government plans to buy and store up to 10 million 60-kg bags of coffee in 2009 and 2010 to help growers cope with rising costs. It is almost certain to acquire close to the 3 million bags for which it is offering the highest rates.

But when the government last year revived its long-defunct practice of buying coffee, it did not foresee the bad weather that caused quality problems for both the 2009 and forthcoming 2010 crops, leading to a dearth of export-grade coffees.

Exporters have had a tougher time finding quality coffees in the last few months after rains during the harvestspoiled last year’s pristine produce, making it hard to dry the beans to prevent fermenting.

That has pushed up the price for higher quality coffees from Brazil, and the trend is likely to continue with the prospect of another tricky Brazilian harvest to come in 2010.

Brazil-based traders Carvalhaes were quoting fine and extra fine coffees at up to 265 reais ($150) in mid-July last year but at up to 300 reais this week.

Traders are divided over how much the government purchases can strengthen the market, which may already have priced in much of the program’s effect on rates for futures contracts.

“With all that is happening, I’m surprised that the market hasn’t reached higher levels than it is at,” said Lucio Dias, trader at Cooxupe, the world’s largest coffee cooperative based in Guaxupe, in Brazil’s main coffee state Minas Gerais.

“Fine coffee supply will be very restricted for this year,” he said.

Global demand for coffee is rising steadily but weather-related problems will hobble many of the world’s producers. The Brazilian government’s purchases come at a time of lower output in many origins and low global stocks.

Colombia faces the prospect of its smallest crop in 35 years, and coffee in Mexico has suffered some frost damage. Vietnam’s robusta output also has suffered from weather problems.

Cooxupe is one of the biggest participants in an option scheme through which the government has committed to buying up to 3 million bags of coffee by March. Cooxupe bought about a fifth of the contracts to deliver more than 600,000 bags.

Through the scheme, the government should buy about 700,000 bags from the first option contract which expired in November and it could garner 2 million more, summing the quantities from contracts due on the 15th of January, February and March.

Guatemala, El Salvador Say Coffee Safe from Cold

Source: Reuters
14/01/2010

Jan 13 – Guatemala’s coffee harvest was not hurt by unusually cold weather in recent days, said the national coffee association on Wednesday, while neighboring El Salvador said its crops were also spared serious damage.

Technical experts from Guatemala’s coffee organization Anacafe completed an evaluation of farms around the country and found that while beans were not damaged, the harvest could be delayed.

“The information we have shows the areas where coffee is still maturing are not reporting damages from the low temperatures, only that there will be some delays,” Anacafe said in a statement. But the estimate for the size of the overall 2009/10 crop, with 4.1 million 60-kg bags of production and 3.68 million in exports, will stay the same.

Guatemala is Central America’s largest coffee producer.

Neighboring El Salvador was hit over the weekend by high winds, part of the cold front affecting the United States and Mexico but the national coffee organization said the impact were not serious.

“Preliminary results show the winds minimally impacted the cherries and the foliage in the majority of coffee-growing regions,” a statement from El Salvador’s coffee council said.

Mexico, which produced 4.6 million bags of coffee in the 2008/09 s