Brazil coffee storage will raise coffee farmer income

•Transferir como PPTX, PDF•

0 gostou•432 visualizações

By www.BuyOrganicCoffee.org Brazil Coffee Storage Will Raise Coffee Farmer Income 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. 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. 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.

Tecnologia Negócios

It appears that Brazil is
going to copy a practice
from United States
agriculture, storing
excess crop production.

By www.BuyOrganicCoffee.org

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

By www.BuyOrganicCoffee.org

Currently there is not
enough storage capacity
in the Brazil, the premier
coffee producer in the
world.

By www.BuyOrganicCoffee.org

The Brazil Ministry of
Agriculture expects to
increase available
monies for coffee storage
by nearly a billion
dollars.
By www.BuyOrganicCoffee.org

The point is that coffee
prices, just like corn
prices, soybean prices,
and wheat prices, tend to
fluctuate.

By www.BuyOrganicCoffee.org

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.
By www.BuyOrganicCoffee.org

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

By www.BuyOrganicCoffee.org

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.

By www.BuyOrganicCoffee.org

This is what Brazil plans
to do.
As with the US
experience, it is likely
that Brazil coffee storage
will raise coffee farmer
income.
By www.BuyOrganicCoffee.org

The storage question is
especially pertinent at
this time.

By www.BuyOrganicCoffee.org

Coffee prices were near
all-time highs last year.

By www.BuyOrganicCoffee.org

Since last year Arabica
coffee futures have fallen
by more than a third.

By www.BuyOrganicCoffee.org

This year is expected to
provide a bumper crop in
Brazil, which will tend to
drive coffee prices even
lower.

By www.BuyOrganicCoffee.org

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.
By www.BuyOrganicCoffee.org

At one hundred thirty-
two pounds a bag that is
an increase of four
hundred thirty-five
million, six hundred
thousand pounds of
coffee.
By www.BuyOrganicCoffee.org

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.
By www.BuyOrganicCoffee.org

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.
By www.BuyOrganicCoffee.org

In fact, a boom and bust
agricultural cycle tends
to drive small farmers
out of business and large
farm businesses in to
bankruptcy.
By www.BuyOrganicCoffee.org

$The ability to store a reasonable fraction of each year’s coffee crop will lead to market stability just as Brazil coffee storage will raise coffee farmer income. By www.BuyOrganicCoffee.org$