Brazilian government announces assistance measures for coffee production
According to Brazil's Big State newspaper, in view of the current coffee purchase price of 270 reais per bag, low coffee prices in the international market, a bumper harvest of coffee in Brazil, and brown farmers demanding that the government take action to stop the decline in product prices, President Rousseff announced assistance measures for coffee production on August 7 in response to the needs of coffee producers. The main content is that the government signed a sales contract with Fenong to acquire 3 million bags (60 kg / bag) at a price of R $343 / bag until March 2014. In addition to the purchase quantity and duration promised by the government, the sales contract also contains the following contents: if the market price of coffee in March 2014 is higher than the government purchase price, brown farmers can trade in the market at the market price, and if it is lower than the purchase price, brown farmers can sell it to the government at the government purchase price.
Brazil is the world's largest coffee producer, and coffee production is expected to reach 48 million bags this year.
(responsible Editor:)
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