Minimum price do not like the coffee sector

The Government made official yesterday (7/5), a minimum price for the Arabica coffee. The value was r $ 307 per sack of 60 pounds, 17% more than the previous one.
The industry had expected, however, at least $ 340, since the own Conab (national supply company) had already indicated to the Ministry of agriculture cost around R $ 336 per sack in November last year, according to John Lee Daniel, producer and President of Assocafé (Association of coffee producers of Bahia).
"It's not what we wanted. We had hoped for a measure of impact of Government to an interruption of continuous decline, "he says.
According to Ahmad, when the buyer sees excess coffee on the market, will further down the prices. To get out of this situation, the action of the Government should be an elevation higher than the minimum price, adoption of auctions and inventory financing.
In the evaluation of the producer and President of Assocafé, the Government stipulated that price for not "enter the market buying."
The minimum price set is close to the negotiations and the producer will prefer to deal with the buyers ' war to the war of the Government bureaucracy, he says. The sack of best quality product was traded to R $ 315 yesterday.