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According to reports, Brazil and the EU announced an agreement ending a dispute over duties on soluble coffee. Brazil will now have the same zero tariff on soluble coffee as other world producers for a period of three years. The volume will be 8,740 tons of coffee the first year, 10,488 tons the second year, and 12,236 tons the third year.
Brazil began again its monthly stock auction after suspending them after the March 14 auction.
|Brazil: Auctions of Government-Owned Coffee Stocks|
|Date of Auction||Quantity Offered||Quantity Sold||Price Range|
|--------60-kilogram bags--------||Brazil reais/bag|
|July 11||20,000||19,715||avg. 94.36|
|August 15||20,000||17,267||avg. 90.89|
|September 12||20,000||18,214||avg. 75.00|
According to a report from the Agricultural Counselor's Office in Mexico dated August 31, 2001 (MX1158), the Agriculture Secretariat (SAGARPA) announced measures to support local producers in response to the decline of world coffee prices. To provide relief to the 3 million Mexicans who work in the coffee sector, SAGARPA said the government would allocate a 533 million peso (US$57.4 million) emergency fund in addition to funds already budgeted for this year's agricultural programs. Compared with last year, there has been a decrease of nearly 40 percent in national coffee production. Mexico exports 85 percent of its total coffee production, providing a significant source of foreign exchange earnings. Coffee is a highly important product for the Mexican economy, earning on the average between US$500 million and US$700 million per year in export sales. This year, SAGARPA is estimating that export earnings will not exceed US$300 million.
U.S. coffee stocks at the end of April totaled 5.9 million bags, down 63,814 bags from the March 31, 2001, level. Details follow in 60-kilogram bags:
|Location||June 30||July 31||Difference|
According to news reports, the government of Colombia has approved a debt-relief package that aims to help coffee-growers suffering from the decline in international prices of coffee. The plan aims to restructure approximately 270 billion pesos of growers' loans to make it easier for the farmers to repay their debts.
Press reports are indicating that Colombia's National Federation of Coffee Growers will launch its own brand of instant coffee for sale in the U.S. market. Officials of the Federation have reported that the product will be for sale in the United States by September or October. The freeze-dried instant coffee will bear the logo and image of Juan Valdez, a fictitious farmer who symbolizes Colombian coffee.