Un-seasonal rains during February and March this year have hit Tata Coffee's robusta crop, while the arabica variety has remained unaffected according to comments by Mr M H Ashraff, managing director, Tata Coffee. The company sources a major part of its coffee needs from own estates.
Declining to reveal the production estimates for the crop year 2008-09, Mr Ashraff said, "The company's crop outlook is going to be similar or slightly higher than the last season." The company produced 6.4 per cent more coffee at 8,000 tonnes in 2007-08 than in the previous crop year (2006-07). For the company, 2007-08 proved to be a bumper crop. Of the 8,000 tonnes production, arabica accounted for 2,500 tonnes and robusta 5,500 tonnes.
The robusta varieties are extensively used for instant coffee. For instant coffee production, the company sourced around 3,600 tonnes from its own coffee estates. It exports mainly to Russia, the CIS countries and eastern Europe.
According to trade sources the decline in robusta output may partially affect Tata Coffee's instant coffee production. The company may have to import from Vietnam and other low-cost producers to maintain exports.
Earlier this year, the company raised the prices of its instant coffee products by 10-12 per cent. Instant coffee exports contribute around 60 per cent to its revenues.
According to Mr Ashraff, coffee prices are unlikely to move up much from its present levels. On the other hand, coffee exporters feel that in case of a likely bumper crop in Brazil this year, prices may go down in the coming crop season (2008-09).
Source: Business Standard
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment