Colombia's Coffee Federation aims to placate farmers during these trying times.Colombia's Coffee Federation aims to placate pla·cate
tr.v. pla·cat·ed, pla·cat·ing, pla·cates
To allay the anger of, especially by making concessions; appease. See Synonyms at pacify. farmers during these trying times
Colombia's new president, Dr. Cesar Gaviria, and the Growers' Federation have a trickly problem to resolve: When and by how much should they increase domestic prices paid to coffee growers? The question is of interest to both Milds exporters and importers because the domestic price issue may well determine whether Colombia will have sufficient top-notch stocks to ship out in the next few years.
Already some pundits are warning that production could fall to only 10 million bags in the 1990/91 season, largely because of the poor prices paid to growers. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the Growers' Federation, though, output in 1990/91 should be between 13.3 million and 13.5 million bags. Subsequently, predicts the organization, it should rise to around 15 million bags in 1991/92 and to some 15.5 million the following season.
If the Federation, sanguine sanguine /san·guine/ (sang´gwin)
2. ardent or hopeful.
1. Of a healthy, reddish color; ruddy.
2. as ever, proves to be correct, then importers of Colombian Milds have no particular cause for concern. There should be supplies available to cover demand, though as new markets are opened up, there may be scant scant
adj. scant·er, scant·est
1. Barely sufficient: paid scant attention to the lecture.
2. Falling short of a specific measure: a scant cup of sugar. spare margin in case of emergency.
But, warn planters Planters is an American snack food company under Kraft Foods manufacturing, best known for its nuts and the Mr. Peanut icon that symbolizes them.
Started by Italian immigrants Amedeo Obici and Mario Peruzzi in Wilkes-Barre, Pennsylvania, in 1906, it was incorporated in 1908 , if the Federation's buoyant Buoyant
The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength.
These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. projections are to be fulfilled, then growers must be accorded a substantial price hike swiftly. They caution that if domestic prices are not raised sufficiently to keep pace with spiraling costs, then output could decline from the 1989/90 level of 13.2 million bags because many planters will be too discouraged to maintain production let alone boost it.
Growers argue that, in real terms, their earnings have lagged behind rising living and production costs since 1986. According to one study, the gap for some planters could be as much as 30%. The Growers' Federation, which has been reluctant to accept this figure, nevertheless acknowledges that there has been an earnings gap and that planters are therefore due for a rise.
The key question, then, is by how much will internal prices be hiked? The answer will be determined jointly by the government and the Federation which, on such matters, work hand in hand.
The price issue is a prickly prickly
many sharp spines protrude.
prickly black rolypoly
lactuca serriola. problem for the new Colombian president, Dr. Gaviria, who assumed office in August. As an economist and former Finance Minister, he is only too aware that domestic prices must be improved to sustain both output and quality. But he is also uneasily conscious of the fact that annual inflation could reach as much as 30% this year in Colombia. One of his priorities will therefore be to try to cut the inflationary rate, and endorsing a hefty hike in prices paid to planters is no way to go about this.
Any major increase in growers' income will add to inflationary pressures by augmenting the money supply. That apart, there simply is not all that cash on hand to fund a substantial price hike. Because of the collapse of the ICA Ica (ē`kä), city (1993 pop. 108,724), capital of Ica dept., SW Peru, on the Pan-American Highway. It is a commercial center for the cotton, wool, and wine produced in the region. There are several summer resorts nearby. accord, the Growers' Federation has had to eat into its financial reserves to buttress buttress, mass of masonry built against a wall to strengthen it. It is especially necessary when a vault or an arch places a heavy load or thrust on one part of a wall. planters, at least to an extent, against the effects of the world price slump.
No revival of the ICA pact is PACT I - An early system on the IBM 701. Version PACT IA was for the IBM 704.
[Listed in CACM 2(5):16 (May 1959)]. in sight. Hence world prices are unlikely to firm notably any time soon, barring unpredictables such as frosts in Brazil. So, against this background, the authorities cannot afford to be overgenerous to planters.
The betting, then, is that growers will receive a rise, but one that falls short of their aspirations aspirations npl → aspiraciones fpl (= ambition); ambición f
aspirations npl (= hopes, ambition) → aspirations fpl . As a result, in many regions production may at best be maintained rather than augmented, and it is an open question whether Colombia will in fact be able to satisfy all overseas demand in two or three years' time on an open market, without ICA quotas.
By then, of course, with choice Milds likely to be increasingly scarce, world prices should pick up, and planters should once again be motivated to expand output. But it would take them several years to do so and, in the interim, importers could be hard put to scrape together scrape together or up
to collect with difficulty: he scraped together enough money to travel choice supplies to cover their needs.
Already, as it is, Colombia's stocks are down to only some 5 million bags, of which only 3 million may be exportable, according to one estimate. The stocks could fall further.
Mario Gomez García (born July 10, 1985 in Riedlingen) is a professional German football player who currently plays for VfB Stuttgart. His father is Spanish and his mother Christel is German. , a member of the National Coffee Growers' Committee, estimates that, in theory, Colombia should be able to export between 14 and 15 million bags annually on a free market, if it can raise its yearly output to between 16 and 17 million bags.
But will it be able to increase production to this level? In an interview with the Bogota newspaper, La Republica, Gomez spoke of the industry's difficulties: "Costs have shot up," he warned, "while (planters') prices have shrunk shrunk
A past tense and a past participle of shrink.
a past tense and past participle of shrink
shrunk, shrunken shrink ever more. Any sector, whose costs have soared while its income has plummeted 30% in four years, ends up in a very poor shape."
For example, added Gomez, many planters are no longer renewing their coffee bushes with the new Colombia variety which is largely resistant to plantation rust disease. In the first half of the year, it had been planned to replant re·plant
To reattach an organ, limb, or other body part surgically to the original site.
An organ, limb, or body part that has been replanted. 15,000 hectares with the new variety. But, in fact, less than half this amount was attained because farmers hit by diminishing returns no longer consider it worthwhile to finance such programs.
For the same reason, Gomez continued, numerous planters are no longer fumigating their crop adequately, and consequently output could drop alarmingly next year. Other growers' representatives have sounded similar warnings.
But the Growers' Federation, unruffled, affirms all is well, and it is pressing on confidently with plans to penetrate new markets in the Far East and Eastern Europe Eastern Europe
The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. . But, ask skeptics, what avail will be new markets if there is insufficient top-grade coffee available to supply them over the long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. ?
Only time will tell whether the Federation's optimism or the skeptics' pessimism pessimism, philosophical opinion or doctrine that evil predominates over good; the opposite of optimism. Systematic forms of pessimism may be found in philosophy and religion. is justified. Meanwhile, gourmet outlets, dependent on Andean Milds, may have little to lose, and possibly much to gain, by preparing for the worst now rather than later.
In any event, on the subject of planning for the future, not a few Colombian planters are already hedging their bets. In the central coffee-growing Pereira zone, for instance, a new crop diversification program is now getting under way to produce natural silk thread. By 1992, 1,000 hectares in the area will be dedicated to the industry which will provide a new income for 500 farmers.
Likewise, in another coffee area, Manizales, plans have been announced for an apple-growing project, initially comprising only 250 hectares but with ample development scope. Other diversification programs are getting off--or rather into--the ground elsewhere in the coffee highlands--and Milds importers could perhaps do worse than bear this in mind.
Colombian coffee planters, like anyone else, have only so much patience. Sooner or later, if they are not paid enough for their Milds, they are going to turn to other, more profitable and less demanding crops. And coffee importers and their representatives, who have forced down planters' prices short-term, may long-term find themselves high and dry, without adequate choice supplies on offer--or at least of coffee. Silk and apples there should be in abundance.