Guatemala to leave International Coffee Organization

Audio 02:03

By: Claire Fages Follow

Guatemala is preparing to leave the International Coffee Organization, believing that it is not playing its role in the face of the world price crisis which is hitting the producing countries. A crisis made worse by the Covid-19.

Publicity

Guatemala will leave the International Coffee Organization on October 1, at the start of the next coffee campaign. The Central American country (2.5% of world production) estimates that the ICO, which brings together 43 exporting countries and six importing countries, including all the member countries of the European Union, has not helped to settle the crisis of international coffee prices.

Price of arabica floored by Covid-19

Prices that have fallen sharply since 2014 and which, as they started to rise a little since last year, were struck down by the Covid-19, with the closure of cafes, restaurants and wine tasting chains. coffee, which particularly affected Arabica coffees, whose world price hardly takes off from the dollar per pound. "  Most of the time, prices no longer cover the costs of production,  " said the Guatemalan government. The Guatemalan Coffee Association drives the nail home: according to it, the International Coffee Organization is "  on the wrong track  " because it does not sufficiently protect the interests of producers. "  It needs to be reformed  ."

No export quotas, but an evolution of the international agreement promises the ICO

The International Coffee Organization has expressed regret at this departure from Guatemala. "  We are very sad about this news,  " said the executive director of the ICO. The Brazilian José Sette says "  understand the frustration of the peasants of the region, who are facing a huge challenge at the moment  ". But he must, he says, "  admit that there is no simple solution  ". Contrary to what exists within OPEC for petroleum, there have been no export quotas for several decades for coffee, he said. They were abandoned to make way for the free market. The current international coffee agreement expires in February and it should further integrate governments with the private sector, promised José Sette, to work to improve the living conditions of producers. In the industry, one of the roasting giants, Jacobs Douwe Egberts (who markets the brands of La maison du café in Maxwell) says he is working in this direction with the governments of Brazil, Honduras, Peru, Vietnam. For his part, the trader Olam has created a fund to help his suppliers get through the crisis.

Honduras next country on departure?

It's time to act. Central American countries could see small producers abandon coffee and fuel emigration to the United States, recognizes the International Coffee Organization. Honduras could be the next Central American country to leave this organization, which the Honduran producers' association deems "  blind, deaf and dumb  ".

Newsletter Receive all international news directly in your mailbox

Follow all international news by downloading the RFI application

• Guatemala
• Economy
• Raw materials

On the same subject

Africa on the move

Rwanda: Question Coffee Tries To Create A Coffee Culture In The Country

Raw Materials Chronicle

Coffee rust creates panic in Central America, much less in the markets

Africa economy

Ethiopia: leading African coffee producer deplores international price levels