The International Coffee Organization (ICO) forecast on Wednesday that world coffee output in 2006-07 would stand at 121 million 60-kg bags, up from 107.15 million in 2005-06.

"Additional information received from several countries leads me to maintain the world production estimates for crop year 2006-07 of approximately 121 million bags," ICO Executive Director Nestor Osorio said in the organisation's February report.

"Total production in crop year 200506 is confirmed as 107.15 million bags, particularly as many countries have already harvested the bulk of their crops," Osorio added.

Exports for January 2006 totalled 6.17 million bags against 7.05 million in December 2005, a reduction of 12.53 per cent.

Exports in January 2006 were down by 16.49 per cent over January 2005 levels of 7.39 million bags. "Despite efforts made by exporting countries the risk of a shortfall of high-quality coffee remains," Osorio said. "This is due to climatic problems in selected exporting countries and to the impact of an extended period of low prices."

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