The Coffee producers in Brazil, the largest grower of the commodity have been calling for government help on fears that the value of their output will slump by nearly one-third this year, threatening to pull the industry behind the citrus sector in the country's agriculture league. The Conselho Nacional do Cafe producers' group called for urgent support from the government, after officials estimated the value of Brazilian coffee production this year at R$17.1bn ($8.50bn), down more than R$8bn on last year's result, according to media reports.
The fall in prices is massive and similar to the one witnessed in 2009 when the global financial crisis sent the markets in a tizzy. This year's fall is being accelerated by a drop in arabica coffee prices, which this week fell to their lowest since May 2010 in New York, on a nearest-but-one contract basis.
Brazil's important National Monetary Council (CMN), which last month extended payback periods for state loans to coffee farmers, to ease pressure to sell beans, is considering lifting the minimum price for beans. The Conab bureau has suggested a floor of R$340 per 60kg bag, up from the current R$261.