Brazil, the world’s largest producer of arabica beans, is expected to produce some 50.8 million bags in 2013, according to a group of analysts who spoke to Bloomberg, which is a record for what is called the low-crop season. Output of the bean usually falls in alternate years because of the growing cycle.
This will add to the record reached this year when Brazil produced 55.9 million 60-kilogram (132-pound) bags.
Output from Brazilian farmers soared after prices reached highs in 2011, but these have since fallen by around 50% as this added supply entered the market.
Speaking on a conference call with analysts back in November, Starbucks chief financial officer Troy Alstead said that the company expected to save $100m this year from ’favourable commodity costs’.
According to analysts, prices could well fall by around 13% to $1.311 a pound by 30 June, reducing costs yet further.
