Brazil Coffee Chief Says Too Much Pessimism Over Prices
LONDON (AP) _ Brazil’s chief coffee executive, Jorio Dauster, on said Tuesday he did not take a ″catastrophic view″ of world prices, despite this month’s failure to reintroduce a market-stabilizing quota system.
Coffee prices dropped to a five-year low of just under $1 a pound early this month after the 75-nation International Coffee Organization failed to agree on export quotas.
In an interview, Dauster, said his country would take no initiative to restart quota talks because a cooling off period was needed.
The talks failed because of differences between Brazil, the world’s biggest producer, and the United States over the share-out of a global export quota.
U.S. officials criticized Brazil’s refusal to concede a cut in its historic share of the ICO quota, despite its falling share of the world export market since 1980.
Dauster remained adamant his country would not accept a ″reduction in Brazil’s position″ as the price for quotas.
Brazil was an ″extremely efficient producer″ and could survive without the ICO price support, he said, adding that Brazil would continue to support the international organization.
Dauster, head of the Brazilian Coffee Institute, said consumer stocks were ″no longer a mountain, more a hill,″ and predicted buyers will make covering purchases ahead of the Brazilian frost season. It begins in June and lasts for about three months.
The bulk of producer stocks were in the hands of Brazil and Colombia, he added.