Brasília, July 23, 2003 (Agência Brasil - ABr) - The Brazilian coffee harvest in 2003/2004 should be less than what was forecast by the National Supply Company in its second preliminary survey, released at the beginning of this month. This preview, made today by the Minister of Agriculture, Livestock, and Supply, Roberto Rodrigues, was the Minister's second pessimistic declaration about coffee prospects in less than a month.
In an announcement on July 2, Rodrigues affirmed that the outlook was already not good and indicated a decline in relation to the previous harvest; the initial prediction was for between 27.85 and 30.08 million sacks, compared with 48.4 million sacks in 2002/2003. This already represented a reduction of 37-42%, at a moment when around 60% of the crop had been gathered. The final results will only be available in mid-December, after all the coffee figures are consolidated.
At the beginning of the month, the Minister underscored natural crop exhaustion after a great production season like 2002/2003; a decline between one harvest and another is expected. He also explained that the reduction was even more pronounced, because producers failed to invest enough in crop treatment and technology. Today, he reinforced this warning, justifying "this behavior on the part of producers as the result of the low prices of the product and the consequent drop in the income of coffee farmers."
Today, in the Chamber of Deputies, during the installation of the Coffee Agrobusiness Bloc and the inauguration of the new leadership of the National Coffee Council, the Minister acknowledged that the sector is experiencing a situation that is "very delicate and in need of creative solutions."
He admitted the possibility of studies aimed at the creation of an enterprise, which could be the Brazilian Coffee Company. An alternative solution over the medium run for the coffee sector would be a kind of Recoop (Recovery Program for Cooperatives). In the Minister's view, this would improve the sector's competitiveness and would reduce costs. "This matter is already under study in the Ministry and should be sent to the economic area of the government for evaluation."
The Minister also denied that the government is planning to anticipate the coffee option contracts that expire in September and November. "The government is not going to interfere with the rules of the game and is prepared to exercise the options. The coffee market is very sensitive and reacts to news. Any move now in the trade area will be harmful and premature." (DAS)
