From: John MacDougall <apakabar@clark.net>
DATE=2/20/95
TYPE=CORRESPONDENT REPORT
NUMBER=2-174357
TITLE=INTERNATIONAL COFFEE ORGANIZATION (L)
BYLINE=CHRISTINE FURNELL
DATELINE=LONDON
CONTENT=
VOICED AT:
INTRO: AS ONE OF THE WORLD'S TRADITIONAL CENTERS FOR THE
COMMODITIES TRADE, LONDON HAS BEEN HOME TO THE INTERNATIONAL
COFFEE ORGANIZATION SINCE ITS INCEPTION IN 1962. THE
ORGANIZATION NO LONGER REGULATES GLOBAL COFFEE PRICES, BUT
CONTINUES TO PLAY A ROLE IN PROVIDING ACCURATE AND OBJECTIVE
INFORMATION TO BOTH COFFEE-PRODUCING AND CONSUMING NATIONS WITH
THE AIM OF INCREASING COOPERATION IN INTERNATIONAL COFFEE
MATTERS. V-O-A'S CHRISTINE FURNELL IN LONDON SPOKE WITH THE
I-C-O'S CHIEF SECRETARIAT, PABLO DUBOIS, AND HAS THIS REPORT.
TEXT: COFFEE IS AN EXTREMELY IMPORTANT COMMODITY TO THE
DEVELOPING WORLD, PROVIDING A VITAL SOURCE OF FOREIGN EXCHANGE
EARNINGS. IT IS ALSO A HIGHLY-VALUED CONSUMER PRODUCT.
BETWEEN 85 AND 100-MILLION 60-KILO BAGS OF COFFEE ARE MARKETED
ANNUALLY. BRAZIL AND COLOMBIA PRODUCE A SIGNIFICANT PERCENTAGE
OF THE TOTAL, CLOSELY FOLLOWED BY INDONESIA, MEXICO, AND UGANDA.
THE MAJOR COFFEE PRODUCERS AND COFFEE CONSUMERS ARE MEMBERS OF
THE LONDON-BASED, INTERNATIONAL COFFEE ORGANIZATION.
PABLO DUBOIS IS A DIVISION HEAD AT THE I-C-O IN CHARGE OF
INFORMATION SERVICES. HE SAYS ONE OF THE MAIN GOALS OF THE
ORGANIZATION IS TO HELP STABILIZE THE WORLD COFFEE MARKET BY
IMPROVING EXCHANGE OF INFORMATION BETWEEN COFFEE-PRODUCING AND
CONSUMING NATIONS.
/// DUBOIS ACT ///
WE ARE INTENDING TO DEVELOP THIS BY DEVELOPING NEW
PUBLICATIONS AND NEWSLETTERS SO THE MARKET HAS A
GENERALLY CLEAR PICTURE RATHER THAN A SORT OF RUMOR
PICTURE OR SPECULATIVE PICTURE WHICH WE BELIEVE WILL
HAVE A POSITIVE AND AN INDIRECT STABILIZING EFFECT. WE
ALSO ARE VERY AWARE, AND, INCREASINGLY, SO ARE OUR
MEMBERS AND OTHER ORGANIZATIONS, THAT THERE ARE CERTAIN
AREAS IN THE WORLD OF COFFEE WHICH REALLY REQUIRE
INTERNATIONAL ACTION. PROJECTS TO ATTACK CERTAIN MAJOR
DISEASES, FOR INSTANCE, OR PROJECTS TO STIMULATE HIGHER
QUALITIES OF COFFEE AND THE I-C-O IS PLAYING AN ACTIVE
ROLE IN ENCOURAGING AND DEVELOPING SUCH PROJECTS.
/// END ACT ///
ANOTHER OF THE ORGANIZATION'S OBJECTIVES IS TO EXPLORE NEW
CONSUMER MARKETS AND ENCOURAGE AN INCREASE IN COFFEE CONSUMPTION.
IN GLOBAL TERMS, MR DUBOIS SAYS COFFEE CONSUMPTION IS EDGING
UPWARD. HE SAYS THIS IS LARGELY DUE TO A SIGNIFICANT GROWTH IN
THE CONSUMPTION OF SO-CALLED GOURMET COFFEES -- WHICH ARE OF
EXTREMELY HIGH QUALITY AND FLAVORED WITH ANYTHING FROM CHICORY TO
CHOCOLATE OR MINT. HE ANTICIPATES EVEN FURTHER GROWTH WITH
POTENTIAL NEW MARKETS OPENING IN EAST ASIA AND EASTERN EUROPE.
THE INTERNATIONAL COFFEE ORGANIZATION HAS NOT REGULATED COFFEE
PRICES SINCE 1989 WHEN A DISAGREEMENT ERUPTED BETWEEN CERTAIN
PRODUCING AND CONSUMING NATIONS, RESULTING IN DEREGULATION.
SINCE THAT TIME, COFFEE PRICES HAVE BEEN DETERMINED BY SUPPLY AND
DEMAND.
BUT, MR. DUBOIS SAYS THE FREE MARKET DOES NOT SUIT SOME
COUNTRIES, WHICH DEPEND ALMOST ENTIRELY ON COFFEE AS THEIR MAIN
HARD CURRENCY EARNER.
/// DUBOIS ACT ///
ONE OF THE PROBLEMS WITH COFFEE-- IT IS GROWN IN A LOT
OF COUNTRIES AS A CASH CROP, AS A SOURCE OF EXPORT
EARNINGS, WHERE THERE IS NOT REALLY ANY GREAT
ALTERNATIVE TO PRODUCING COFFEE. NOT ALL COUNTRIES ARE
LIKE THAT, BUT IN MANY COUNTRIES THIS IS THE CASE. SO
IF THIS IS SO, OBVIOUSLY YOU DO NOT REALLY GET THE
BENEFIT OF FREE MARKET CONDITIONS IN THAT COUNTRY.
BECAUSE UNDER FREE MARKET CONDITIONS WHAT YOU WOULD
IDEALLY DO IS IF YOUR PRICES DROP A LOT YOU SWITCH TO
PRODUCING ANOTHER CROP AND IN MANY OF THESE COUNTRIES
BECAUSE OF THE HILLY TERRAIN AND CLIMATE ETC. IT IS NOT
VERY EASY TO DO THAT.
/// END ACT ///
A NEW INTERNATIONAL COFFEE AGREEMENT WAS NEGOTIATED LAST YEAR,
AND CAME INTO FORCE LAST OCTOBER.
SINCE THE COFFEE TRADE WAS DEREGULATED IN 1989, PRICES HAVE
RANGED FROM 60 CENTS TO TWO-DOLLARS PER BAG. THE PRICE CURRENTLY
STANDS AT AROUND ONE AND ONE-HALF DOLLARS. MR. DUBOIS SAYS PRICE
FLUCTUATION WAS AMONG THE REASONS FOR ESTABLISHING THE FIRST
INTERNATIONAL COFFEE AGREEMENT, AND MIGHT BE THE BASIS FOR
CREATING TIGHTER REGULATIONS IN THE FUTURE. (SIGNED)
NEB/CEF/SKH/RAE
20-Feb-95 7:51 AM EST (1251 UTC)
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Source: Voice of America