Financial Daily from THE HINDU group of publications
Thursday, May 23, 2002
Financial Daily from THE HINDU group of publications Thursday, May 23, 2002 |
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Agri-Biz & Commodities
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Coir ICO moots fresh plan to end crisis Our Bureau
MUMBAI, May 22 TO address the many ills of the coffee sector currently in the throes of a major crisis, a comprehensive approach to improve the world supply and demand balance, and cooperation between producers and consumers to identify political solutions to the crisis facing producing countries was essential, according to International Coffee Organisation (ICO). Serious social and political repercussions have ensued from the current crisis for coffee producing countries throughout Africa, Asia and Latin America, with an estimated 25 million families in these countries dependent on coffee for their livelihood. In Mexico and Central America, an estimated five lakh farm-workers have lost their jobs as a result of falling prices, and many farmers have turned either to illicit crops or abandoned their farms, creating migration pressures, according to Mr Nestor Osorio, newly appointed executive director of ICO. Mr Osorio told representatives of 63 Governments meetings at the ICO headquarters that coffee prices were now at their lowest levels for 30 years, with the ICO composite indicator price standing at 47.24 cents per pound on May 17, 2002 compared with 180.44 cents/lb five years ago (average in May 1997). Apart from continued imbalance in supply and demand, with production in 2001-02 of 109.1 million bags, and consumption of 105.3 million bags. Although the coffee industry has seen an increase in popularity of coffee as a drink, generating retail sales of around $65 billion in 2000-01, producers had seen their share of these sales more than halve to around $5.5 billion today, the ICO official pointed out. The key priority areas outlined by Mr Osorio included coffee quality improvement, diversification, value addition, promotion and industry sustainability. From October 1, 2002 ICO will implement quality improvement programme, which establishes minimum standards for exportable coffee. Efforts to increase consumption in new markets such as Russia and China will also be made.
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