Brazil's 2020 coffee crop is seen reaching 56.4 million 60-kg bags, 12.9% more than the 2019 production but not a record high, according to the first projection for the new season released on Wednesday by the country's statistics agency IBGE.
Despite the increase from the previous season, which was already expected due to the on-year in the biennial coffee cycle, the projection puts 2020 production below the record of 59.9 million bags produced in 2018.
Most market analysts were expecting a new record in the 2020 crop, particularly because of additional output from recently planted areas in Brazil, the world's largest producer and exporter.
The IBGE estimated production of arabica coffee, a milder variety used by makers of top brands, to reach 42.2 million bags, 22% more than in 2019, but still below the record of 44.9 million bags in 2018.
The institute estimated an increase of 5% in the arabica area to be harvested in Brazil in 2020.
Regarding production of robusta, the main coffee type used by the instant coffee industry, IBGE expects 14.2 million bags, 7.7% less than in the previous season and also below the 15 million bags produced in 2018.
The statistics agency said robusta producers reduced crop care during the last months, reacting to low prices all along 2019, which affected yields negatively.
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