brazil coffee storage will raise coffee farmer income
Post on 13-May-2015
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BRAZIL COFFEE STORAGE WILL RAISE COFFEE
FARMER INCOME
By www.BuyOrganicCoffee.org
By www.BuyOrganicCoffee.org
It appears that Brazil is going to copy a practice
from United States agriculture, storing
excess crop production.
By www.BuyOrganicCoffee.org
It is likely that Brazil coffee storage will raise coffee farmer income.
By www.BuyOrganicCoffee.org
Currently there is not enough storage capacity
in the Brazil, the premier coffee producer
in the world.
By www.BuyOrganicCoffee.org
The Brazil Ministry of Agriculture expects to
increase available monies for coffee
storage by nearly a billion dollars.
By www.BuyOrganicCoffee.org
The point is that coffee prices, just like corn
prices, soybean prices, and wheat prices, tend
to fluctuate.
By www.BuyOrganicCoffee.org
When a coffee farmer has no storage capacity
he is forced to sell at harvest time.
This is typically when he will get the lowest price
for his crop.
By www.BuyOrganicCoffee.org
In the United States farmers are paid to hold corn and soybeans off
the market.
By www.BuyOrganicCoffee.org
This helps stabilize crop prices for
wholesale coffee and allows farmers to sell their crops at a later
time and, usually for a better price.
By www.BuyOrganicCoffee.org
This is what Brazil plans to do.
As with the US experience, it is likely
that Brazil coffee storage will raise coffee
farmer income.
By www.BuyOrganicCoffee.org
The storage question is especially pertinent at
this time.
By www.BuyOrganicCoffee.org
Coffee prices were near all-time highs last year.
By www.BuyOrganicCoffee.org
Since last year Arabica coffee futures have
fallen by more than a third.
By www.BuyOrganicCoffee.org
This year is expected to provide a bumper crop
in Brazil, which will tend to drive coffee prices
even lower.
By www.BuyOrganicCoffee.org
Brazilian Agricultural Ministry estimates are that the country will
produce just over fifty-two million bags of
coffee in 2012, up from forty-nine million bags
in 2011.
By www.BuyOrganicCoffee.org
At one hundred thirty-two pounds a bag that is
an increase of four hundred thirty-five million, six hundred thousand pounds of
coffee.
By www.BuyOrganicCoffee.org
Brazil coffee storage will raise coffee farmer
income because coffee growers will be able to
hold a significant part of their crop off the
market, keeping prices from falling excessively.
By www.BuyOrganicCoffee.org
Price stability, as well as a good income for
coffee growers, is the long term goal in Brazil.
Boom and bust years do not lead to prosperous
coffee growers.
By www.BuyOrganicCoffee.org
In fact, a boom and bust agricultural cycle tends to drive small farmers out of business and
large farm businesses in to bankruptcy.
By www.BuyOrganicCoffee.org
The ability to store a reasonable fraction of
each year’s coffee crop will lead to market
stability just as Brazil coffee storage will raise coffee farmer income.
By www.BuyOrganicCoffee.org
Programs like this help farmers.
Just recently we wrote about how
credit unions support organic growers in Mexico
.
By www.BuyOrganicCoffee.org
The supply chain, available credit, and
government support can make the difference
between success and failure for farmers of
any crop.
By www.BuyOrganicCoffee.org
From the viewpoint of the healthy organic coffee
producer, storage is also a good idea.
Although organic coffee commands a higher price, the market can be spotty.
By www.BuyOrganicCoffee.org
Brazil coffee storage will raise coffee farmer
income in the organic market as well.
By www.BuyOrganicCoffee.org
Farmers will be able to wait for not only better prices, but better and
more reliable buyers as well.
By www.BuyOrganicCoffee.org
The critical issue for organic coffee is that
storage must be sequestered from that for
regular coffee.
By www.BuyOrganicCoffee.org
The supply chain for organic coffee from bush
to cup is such that regular coffee and organic coffee
are never processed together, stored together,
or roasted together.
For more useful information about organic
coffee please visit:
www.BuyOrganicCoffee.org
.
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