Short Term Pain, But Long Term Gain For Coffee Sector

Despite it receiving much needed rain in recent weeks, BMI maintains that Colombia's coffee output for the 2009/10 season will remain the second lowest total in a decade. An El Niño weather system brought a prolonged dry period between September 2009 and March 2010 causing a 70% decrease in rainfall. The drought had several negative effects, including dehydrating cocoa beans and allowing for a spread of tree-damaging broca worms. However, we remain optimistic that increases in yields, stimulated by government investment, will allow the sector to maintain its standing as a leading global producer over the medium term.

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