Printer Friendly

Brazil: court battle over coffee policy.

Brazil: court battle over coffee policy

Trading in the Brazilian coffee industry ground to a halt on May 5 after a Rio de Janeiro court awarded a coffee exporter the right to ship 450,000 bags of coffee independently of the Brazilian Coffee Institute (IBC).

Umberto Modiano won a restraining order against the IBC allowing him to sell his coffee without paying its export fees and without having to bid for export rights at the auction. The IBC set up the auctions last year to distribute International Coffee Organizations export quotas more fairly.

The auction May 5, was suspended in mid-season after the news of the court decision spread. However, Modiano's triumph was short-lived because the IBC's lawyers managed to overturn the order on Friday evening. The auction was resumed yesterday setting the price for export rights at $21 to $22 a bag.

Had Modiano got his way Brazil's entire coffee policy would have been paralyzed. And since the country is the world's largest coffee producer, supplying about 30 percent of international demand, that would have immediate and far-reaching consequences.

Modiano's action was part of a broader case he had brought against the IBC arguing that its export regulations were forbidden under the seven-month-old constitution.

The IBC said it was unconcerned by the case. Bernardo Roma, the institute spokesman, said "There is nothing very special about this. Modiano has raised a constitutional question just to get publicity. We are not worried."
COPYRIGHT 1989 Lockwood Trade Journal Co., Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1989 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:International Report; coffee exporter wins right to ship bags of coffee independently of Brazilian Coffee Institute
Publication:Tea & Coffee Trade Journal
Date:Jul 1, 1989
Previous Article:Lack of cash and pesticides to affect Tanzania coffee.
Next Article:Kaffee-Lagerei expands facilities.

Related Articles
Brazil seems unlikely to join ICA.
Government seems to have abandoned Brazil trade.
Special report from Brazil.
Coffee farmer speaks out.
Brazil: can the world do without eight million bags of Brazilian coffee?
Assessing the fall out of Febec's Brazil coffee program.
Brazilian exporters speak out.
Happy Brazilian coffee farmers.
Coffee trade reconvenes in Guaruja.
Brazil coffee exports up; soluble down.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters