BOGOTA (Reuters) – Colombia, the world’s top supplier of washed arabica, is creating a special fund to subsidize coffee farmers when production costs fall below international prices.
The stabilization fund, announced by President Ivan Duque late on Thursday, is the country’s latest bid to help farmers struggling as coffee prices have fallen to their lowest in more than a decade and many are operating at a loss.
Price - Crisis - Numbers - Business - Implications
The global price crisis has pushed large numbers of them out of business, with potentially wide-ranging implications in Colombia, where coffee is the chief alternative crop to coca, a plant used to produce cocaine in regions controlled by rebels.
Colombia is the world’s third largest producer of coffee after Brazil and Vietnam.
Money - Stabilization - Fund - Duque - Office
It was not yet clear how much money would be put into the stabilization fund. But Duque’s office said it would be paid for through a mix of sources, including the general budget, state-backed debt securities, proceeds from royalties and contributions from international organizations and others.
Duque called the law that passed to create the stabilization fund as “one of the most longed for by Colombian coffee growers.”
“This is going to bring...
Wake Up To Breaking News!
The Democratic Party would be dead without the Republican Enabler Party! GOPe, fighting for Democrats since...