Managua, Sept 1 - Colombia, Mexico and Central American coffee output, which fell by around 4 million 60-kg bags in the most recent harvest due to bad weather, should rebound in the 2009/10 coffee year, the executive director of the International Coffee Organization (ICO) said on Tuesday.
"If climactic conditions permit, Colombia, Central America and Mexico will recover those 4 million bags that were lost and should have about 20 million bags on the market," said the ICO's Nestor Osorio, at a coffee conference in the Nicaraguan capital Managua.
"Because of this we have seen prices above $1.10 (per pound), which are more profitable for producers and which permit additional investments."
Colombia, the world's No. 3 coffee producer, estimated this weekend it could produce 10.3 million 60-kg bags of coffee this season, down from an earlier estimate of 11-11.5 million bags.
The lower forecast was blamed on heavy rainfall in coffee producing areas in the first half of this year and reduced investment in fertilizers.