Coffee farmers in Vietnam, the world’s biggest grower of the robusta variety, collected about 40 percent of the 2022-23 crop as of early December amid concerns about bean quality due to prolonged rains, according to Nguyen Nam Hai, head of the nation’s coffee association.
Extensive rains hit major coffee-producing provinces of Dak Lak, Gia Lai and Kon Tum this month while farmers’ bean-drying capacity is still limited, Hai said during a meeting attended by agriculture ministry officials, coffee producers and traders on Saturday. Output is seen dropping 10 percent from an estimated 1.8 million tons in the 2021-22 season as growers in some regions cut investments while product costs increased, the Hanoi-based Vietnam Coffee Cocoa Association said in a report released during the meeting.
Yields and production are lower in farms that also grow profitable crops such as durians and peppers because growers pay less attention to coffee plants, according to the report.
Vietnam grows coffee in 20 provinces on over 710,000 hectares, up 67,370 hectares from 2015, with production area representing more than 90 percent, according to the report, which cited 2021 data from the agriculture ministry. The nation garnered a record high $3.9 billion from exporting 1.68 million tons of coffee of all types in the 2021-22 season, with robusta beans making up 89percent of total shipments, Hai said.
America’s top orange juice maker is set for a record decline in the crop this season, signaling that a global shortage of the breakfast beverage will only get worse.
Florida will likely produce 20 million boxes of oranges in the season that runs Oct. 2022 to Sept. 2023, down 51 percent from the year-ago period—the biggest drop in data going back to 1913, according to the US Department of Agriculture’s monthly World Agricultural Supply and Demand report, or WASDE. That would also be the smallest output since 1937. A box weighs 90 pounds (41 kilograms).
The decline follows damage from hurricanes, frost and bugs.
The shrinking of supply exacerbates global shortages, including in top-citrus grower Brazil, where output has been hobbled by adverse weather. Production in California, now the largest orange grower in the United States and top fresh fruit supplier, was unchanged.
Florida’s crop has been decimated by citrus greening, a devastating crop disease that causes fruit to shrivel and fall prematurely and can cause a bitter taste. Earlier, Hurricane Ian and Tropical Storm Nicole devastated the crop, which the USDA accounted for the first time in its most recent estimate. The department previously noted that frost was a concern.
The shortage raises the cost outlook for beverage makers including Minute Maid owner Coca-Cola Co. and PAI Partners, which owns Tropicana, that could be passed onto American consumers at the breakfast table. Florida lawmakers sent a letter to House Appropriations Committee leaders seeking disaster relief funding for the state’s citrus industry.
“The loss from hurricanes is mostly recoverable, but the greater issue is disease,” said Judy Ganes, who runs J Ganes Consulting LLC and has tracked the citrus industry for more than three decades.
Orange juice futures declined 4 percent Friday, but are up 5.7 percent this week and 54 percent on the year.