Brazil Guarantees Minimum Price to Coffee Growers

Brazilian President Luiz Inácio Lula da Silva participated today in the launching of the 1st Special Edition of the Best Coffees of Brazil. In his speech Lula said that the sector can count on his support to improve sales.

According to the Minister of Agriculture, Roberto Rodrigues, the price of a sack of coffee has risen from US$ 40 to US$ 140 over the past two years. Rodrigues said that the government’s adoption of an option plan helped the coffee sector to recover.


The plan is a type of insurance for coffee growers. If the price sinks, the government will pay a minimum amount for each sack.


Brazil currently produces 40% of all the coffee consumed around the world and is the second largest consumer. 15 million sacks of the product were consumed in the country in 2004. The goal of the sector is to attain 16 million sacks in two years.


President Luiz Inácio Lula da Silva proposed a “patriotic pact” to the country’s entrepreneurs. For him, this means an alliance between the government and the business sector to cope with the tough competition on the international market.


The President urged the entrepreneurs to be audacious. “We are not merely exporters of raw materials; we can be exporters of manufactured products and compete to win,” Lula said.


32 million Bags


Brazil will harvest 32.46 million bags of coffee in the 2005/2006 crop. The volume represents a reduction in 16.1% in relation to the last harvest, which resulted in 38.6 million bags.


The drop should happen due to the characteristics of the crop, especially of the arabica coffee, where every year the production cycle causes variations in the total produced.


For the robusta coffee, forecasts indicate an increase in 21.7%, going from to 7.5 million bags in 2004/2005 to 9.2 million bags in the current crop. The information is from the Ministry of Agriculture, Livestock and Supply communications advisory.


Agência Brasil

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