Balance in the market will maintain price of coffee

Executive director’s of OIC posture

Yesterday, according to the official bulletin of the National Federation of Coffee, Federacafé, the price average of the Colombian grain in port of destination was of US$1.1629 the pound.

For Nestor Osorio Londoño, executive director of the International Organization of the Coffee, OIC, the prices will ascend and they will lower about 10 cents of dollar, because in the international market there is certain balance between the offer and the demand, phenomenon that will last at least, three years, while he/she enters to their real dynamics.

For the directive of the OIC that visited the areas producers of Santander, especially those of certified and special coffees, an interesting moment exists in the market that well managed it can prolong a situation of remunerative prices for the producer.

However, Osorio Londoño noticed that “it is necessary to be careful, we are not in a peacefulness, it is not the moment to begin to plant browner. In the measure that the offer demands it, the areas will be enlarged and he/she won’t return to what was made in the last 100 years that we are devoted to take place and to take place and later we left to see who bought us that treasure.”

For him, to plant in an indiscriminate way is to sow the crisis of the future.

According to the directive, that balance of the market it obeys to that one has a world crop of 120 million sacks of 60 kilos, and a consumption of 118 millions that he/she also comes growing yearly to the rhythm of 1.5%.

Osorio Londoño said that in that harmony Brazil has been a great actor, because after having a macro it harvests in the 2003 of 55 million sacks, one came with two drops, one to 33 millions in 2004 and another to 36 millions in 2005; and he/she is projected that those of 2006 and 2007 will be for the order of the 40 million sacks.

“Brazil exports 25 million sacks and it consumes 16 millions, it harvests that it won’t be enough, for what will have to toss him I flow to the existences that are in the lowest levels in the history (between 7 and 8 million sacks; but they ended up having the equivalent one to the world consumption).

For the directive, Colombia will stay in the 11 million sacks; Vietnam will be with 12 millions but it confronts climate problems and its quality is faulty due to the wrong handling, prosecution and benefit.

Mexico lost production, but its grains are of high quality the same as those that Central America takes place.

Osorio Londoño expressed that the producing countries should stimulate the internal consumption, because it is a formula of generating a new alternative of structural character and don’t unite artificial retention.

“Brazil already has so much a consumption that competes to the export, that the private exporters already entered to compete to the internal market, phenomenon that became a true market alternative”, he/she added.

He/she said that the horizon is not so dark, but he/she fears to exogenous factors that influence in the behavior of the bags. “The natural tragedies, the revaluation and high speculative capitals, they vary the tendency of the market in a to open up and to close of eyes”, he/she added.

Coffees of Santander

When referring to the certified and organic caficultura of Santander, Osorio Londoño said that you is in the highest point in the range as regards knowledge of handling of the earth, property management and quality of the grain.

The directive of the OIC said that the cousin for the special grains is attractive, since you/he/she can be a difference in bag of 10% and 20%.