960416

Brazil coffee

sector mixed

over USDA

forecast

SAO PAULO: A USDA forecast for the 1996/97 Brazil coffee harvest received mixed reviews from the local coffee sector with growers complaining it was too high and traders saying it was in line with their expectations.

Late Friday, the US Agriculture Department raised its estimate of 1996/97 Brazil coffee production to 27.5 million 60-kilogram bags from 25.5 million bags in December.

Growers and exporters said USDA projections were exaggerated. "I am still surprised by the USDA figure which is, as usual, higher than the most optimistic estimates," said growers' representative, Luiz Suplicy Hafers.

Hafers, who is also president of Brazils' Rural Society, put Brazilian coffee production at 23 million bags.

"I think the previous estimate of 25.5 million bags was close to reality," said Valdyr Ariano, vice-president of Brazils' Coffee Exporters Federation (Febec).

Traders and roasters said USDA figures were close to market expectations, noting that some analysts were expecting USDA to raise forecast to 30 million bags.

"The forecast is very much closer to what is going on. Productivity has increased above average this year," said international broker Christian Wolthers.

"I think USDA showed they were right again," said David Nahum Neto, marketing director of Brazil's Coffee Roasters Association, Abic.-Reuter