Stop Aid to Coffee Producers in Colombia
The Colombian government will not be offering immediate subventions to coffee farmers, due to budget constraints this year. This comes at a time when coffee producers are plagued with low prices and heavy rains, as reported by Reuters.
The National Federation of Coffee Growers of Colombia had appealed to the government for help for coffee farmers due to lower prices both in the domestic and international markets, as well as the strong peso that has brought about a reduction in export income.
Reports from the federation shows domestic prices fell to 13.7 percent during the first quarter of 2018 when compared to 2017 in the same period.
Also, the Colombian peso was strengthened by 6.8 percent during the period December 2017 – March 2018. This led to a reduction in export profits. The heavy rain is also said to have brought down output to a 6 percent low in the first quarter, when compared to the same period last year.
The Finance Minister, Cardenas, called for a meeting with coffee producing countries, which includes Vietnam, Brazil and others to analyze the current situation of demand, as well as look for ways to put back things in order. That is, to regulate the demand and curb a bigger reduction in the price of coffee in the international market.
Colombia is the world’s number one producer of washed arabica coffee bean. It’s government helped coffee growers in the past by giving out subsidies, as well as easing the way out for them to acquire expensive fertilizers.
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