Brazil coffee storage will raise coffee farmer income

BRAZIL COFFEE STORAGE WILL RAISE COFFEE

FARMER INCOME

By www.BuyOrganicCoffee.org

http://www.buyorganiccoffee.org/


It appears that Brazil is going to copy a practice

from United States agriculture, storing

excess crop production.



It is likely that Brazil coffee storage will raise coffee farmer income.



Currently there is not enough storage capacity

in the Brazil, the premier coffee producer

in the world.



The Brazil Ministry of Agriculture expects to

increase available monies for coffee

storage by nearly a billion dollars.



The point is that coffee prices, just like corn

prices, soybean prices, and wheat prices, tend

to fluctuate.



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.



In the United States farmers are paid to hold corn and soybeans off

the market.



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.


http://buyorganiccoffee.org/440/wholesale-coffee/


This is what Brazil plans to do.

As with the US experience, it is likely

that Brazil coffee storage will raise coffee

farmer income.



The storage question is especially pertinent at

this time.



Coffee prices were near all-time highs last year.



Since last year Arabica coffee futures have

fallen by more than a third.



This year is expected to provide a bumper crop

in Brazil, which will tend to drive coffee prices

even lower.



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.



At one hundred thirty-two pounds a bag that is

an increase of four hundred thirty-five million, six hundred thousand pounds of

coffee.



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.



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.



In fact, a boom and bust agricultural cycle tends to drive small farmers out of business and

large farm businesses in to bankruptcy.



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.



Programs like this help farmers.

Just recently we wrote about how

credit unions support organic growers in Mexico

.


http://buyorganiccoffee.org/491/credit-unions-support-organic-coffee-growers-in-mexico/

http://buyorganiccoffee.org/491/credit-unions-support-organic-coffee-growers-in-mexico/


The supply chain, available credit, and

government support can make the difference

between success and failure for farmers of

any crop.



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.


http://buyorganiccoffee.org/121/healthy-organic-coffee/


Brazil coffee storage will raise coffee farmer

income in the organic market as well.



Farmers will be able to wait for not only better prices, but better and

more reliable buyers as well.



The critical issue for organic coffee is that

storage must be sequestered from that for

regular coffee.



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

.



Brazil coffee storage will raise coffee farmer income

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Transcript of Brazil coffee storage will raise coffee farmer income