Report Highlights:
Mexican coffee production for MY 2004/05 is not expected to increase from the current year, due to large global supplies, low international prices, and insufficient government financial support. However, Mexican producers are increasingly turning away from conventional coffee production to organic production as a way of closing the large gap between productions costs and market prices. The Government of Mexico (GOM) is providing limited support to coffee producers to help them through the current crisis.
SITUATION I. SITUATION AND OUTLOOK
Coffee Situation and Outlook: Mexican coffee production for MY2004/05 is expected to remain at the same levels as MY 2003/04, due to large supplies, historically low coffee prices, and insufficient government support programs.Mexican growers are turning away from conventional coffee production to organic and specialty coffee to reduce their production costs and recoup the higher prices these types of coffees normally command. MY 2004/05 planted and harvested areas are expected to remain the same as MY 2003/04 acreage.Government authorities are supporting domestic coffee producers in facing the current crisis through the implementation of financial and marketing strategies.