- The world’s largest Arabica producers plan joint actions to reverse the coffee price crisis, details of which will be presented at the II World Coffee Producers Forum (WCPF).
Brasilia, June 14, 2019 (FNC Press Office) – Representatives of coffee production in Brazil and Colombia met today at the Ministry of Agriculture, Livestock and Supply (Brazil), in Brasilia, to seal an alliance to find solutions to the persistent coffee price crisis.
After 10 months of the last meeting between the leaders last August, coffee prices continue below production costs, aggravating the impoverishment of coffee regions around the planet and making the future supply of coffee to consumers uncertain.
The response of the rest of the value chain at this time, despite multiple attempts at dialogue by the countries and the World Producers Forum (FMPC), has been unsatisfactory.
At today’s meeting, the leaders of Colombia and Brazil consolidated the alliance for the development of actions on various fronts, such as bringing producers closer to final consumers and increasing value at origin, so that the wealth generated throughout the chain is better distributed, guaranteeing the economic sustainability of the producers and the achievement of the Sustainable Development Goals.
They also agreed to insist on the importance of market transparency and that the coffee futures contract reflects its realities without the interference of external factors that affect prices and increase uncertainty.
The two countries consider it essential to promote that Intercontinental Exchange (ICE) and the US Government regulate the participation of non-commercial actors in coffee futures contracts, as well as other measures to increase transparency in price formation and effectiveness of risk coverage tools.
Similarly, the viability and impact of the management of coffee inventories at origin were analyzed.
Reaffirming the commitment to balance between supply and demand, Brazil and Colombia, acting with the WCPF, will actively promote the implementation of a global project to increase consumption in producing countries, as well as joint scientific work to develop alternative uses of coffee .
The details of the actions discussed today will be presented at the II World Coffee Producers Forum, on July 10 and 11, 2019, in Campinas, São Paulo, Brazil.
Colombian Coffee Growers Federation (FNC) – Conselho Nacional do Café (CNC) – Cooperativa dos Cafeicultores da Zona de Varginha (Minasul) – Confederação da Agricultura e Pecuária do Brasil (CNA) – Associação Brasileira de Cafés Especiais (BSCA) – Associação dos Sindicatos dos Produtores Rurais do Sul de Minas (ASSUL) – Sistema OCB-ES – Sociedade Rural Brasileira (SRB) – Frente Parlamentar do Café