Brazil is the world's largest producer of coffee, and only in May of this year, hit a new monthly record in terms of volume. There were 3.5 million bags, according to data from Cecafé - Coffee Exporters Council of Brazil. One of the biggest obstacles coffee farmers have faced is the high production costs, which are above the selling price in most of the producing origins, which aggravates the economic situation of the coffee regions, making the future supply of coffee uncertain to consumers.
The month of May was marked by strong variation in Arabica coffee prices. After a considerable decline in the beginning, with prices marking the lowest prices since November 2013 (as a result of IGP-DI inflation in April 2019), the end of the period had a strong recovery in domestic prices, reflecting the significant variety. This instability is one of the factors that haunts the coffee grower.
With a strong emphasis on the global scenario, the Brazilian coffee grower is facing one of the worst coffee price declines in the last decades and is looking for sustainable solutions to avoid the crisis.
Recently, representatives of the coffee production of the largest Arabica producing countries in the world - Brazil and Colombia - have joined forces to find solutions to this persistent crisis and one of the actions proposed by the group is to bring together producers and end consumers, adding value at the origin. According to them, it will be possible to better distribute the wealth generated along the productive chain, bringing more sustainability to producers. All the intentions of the group will be detailed between July 10 and 11, during the II World Forum of Coffee Producers, in Campinas (SP).
As one of the supporters of this Brazil-Colombia alliance, the World Forum will bring the outcome of the study "Economic and Policy Analysis to Improve the Income of Coffee Producers," prepared by Columbia University professor and economist Jeffrey Sachs.
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