ICO defends supply ordering not to press prices

The executive director of the International Coffee Organization (ICO), Robério Silva said on Thursday, 12, in Belo Horizonte, that the other producer countries, such as Colombia, should follow Brazil's example and adopt measures to support spatial coffee supply in order to reduce pressure on prices. The final document of the meeting held by the countries members of the ICO along this week in the state capital shows concern for current prices, which are the lowest since 2009. "Any initiative to balance supply and demand is always welcome," he stressed.
In the called Statement of Belo Horizonte, ICO members recognize "the necessity of understanding about the structural conditions in international markets and long-term trends in production and consumption that balance supply and demand, resulting in fair prices for both producers and consumers."
The chief operating officer of ICO, economist Mauricio Galindo said the crisis caused by falling coffee prices is serious because it occurs in a setting of high production costs in most producing countries. Mauricio Galindo notes that the high dollar is another factor pressure on prices because it reduces the remuneration of producers with the devaluation of currencies in countries like Brazil and India. The positive aspect of the recovery of the U.S. economy's recovery in demand, he pointed out, adding that the world consumption should continue to grow 2% per year, mostly in developing countries, who consume more Robusta coffee variety.
Source: Revista Cafeicultura