Record Brazil Coffee Crop Cuts Costs for Starbucks: Commodities
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Record coffee harvests in Brazil, the biggest grower, are compounding a global glut of arabica used by Starbucks Corp. and Dunkin’ Donuts Inc.
Brazilian farmers will reap 50.8 million bags in 2013, a record for a so-called low-crop season, according to the median of nine analyst estimates compiled by Bloomberg. The harvest reached 55.9 million 60-kilogram (132-pound) bags in 2012, an all-time high for a peak year. Output usually drops in alternate years because of growing cycles. Prices may fall 12 percent to $1.311 a pound by June 30, the average of 14 predictions shows.