The president of the Association of Coffee Producing Countries has warned that the current low price level is having an acute threat on poverty in poorer nations.
Sergio Silva do Amaral said the world price of coffee is currently hovering at around its lowest level for some 30 years with the price, of less than $565 a tonne, leaving many growers to complain that they are not making enough money to cover their production costs.
He said the current over-capacity of coffee in the market has led to an increase in inventories in consumer countries. When that inventory increased there was a decrease in prices.
“The result of the low prices meant that many people were being taken out of the market – and that affected mainly countries in Africa,” the president added.
Amaral blamed the World Bank for financing many new countries like Vietnam to join the coffee market. He said promotion and marketing was needed to increase consumption and then there would be room for more countries to grow coffee.