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Showing posts from June 1, 2007

Brazil to Aid Arabica Coffee Growers as Price Drops

By Carlos Caminada Bloomberg June 1, 2007 Brazil, the world's biggest coffee producer, will give arabica growers a subsidy of as much as 40 reais ($21) a bag after a rally in the local currency eroded export profits. The government will guarantee that growers receive 300 reais per 60-kilogram bag of arabica coffee, the Agriculture Ministry said in a statement. Brazil will hold auctions twice a month between growers and buyers and plans to subsidize as many as 5 million bags through the end of the harvest in October. Brazil's offer to support prices, its first since 2002, comes one day after Colombia, the world's second-biggest arabica producer, said it would aid farmers to counter a currency rally. Colombia's peso and Brazil's real are the world's best- performing currencies against the dollar in the past six months. ``Producer profits are really narrow because of the exchange rate,'' said Joao Antonio Lian, head of Sumatra Cafes Brasil, Brazil's thi...

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