Weather cuts coffee harvest

Published: 27 Apr 2009 20:00:26 PST

VIETNAM, the world's biggest coffee grower after Brazil, will harvest 4 percent less than forecast because poor weather has cut the size of beans, Luong Van Tu, Vietnam Coffee and Cocoa Association chairman, said yesterday.

The country will produce as little as 17 million bags (a bag is 60 kilograms), down from a previous estimate of 17.5-18 million bags and the same amount as last year, Tu said. That compares with trade estimates of 21 million bags, Bloomberg News said.

A lower crop may help stem the plunge in prices of the bitter-tasting robusta variety used in espresso and in instant coffee by Nestle and Kraft.

Prices have slumped 32 percent since the end of June as world production increased and the global credit freeze reduced investor demand for commodities.

Farmers resumed harvesting last week after about two weeks of prolonged rain.