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Colombia coffee growers get aid to boost output

http://www.iht.com/articles/ap/2008/09/03/news/Colombia-Coffee.php
BOGOTA, Colombia: Colombia will double aid to coffee growers in the next four years, aiming to boost its top export and make existing bean yields more efficient, government officials and a national coffee group announced Tuesday.

Growers, researchers and vendors will receive 1.4 trillion pesos, or about US$700 million, in cash, credits and farm supplies between 2008 and 2011, to help double coffee exports and increase total output by 37 percent, officials said.

Two-thirds of the assistance will come from government coffers, and the rest from the National Coffee Growers Federation, Agriculture Minister Andres Arias and Finance Minister Oscar Zuluaga said.

Coffee is Colombia's top agricultural export, generating about 3.5 million jobs.

The four-year plan calls for production to increase more than a third to 17 million 60-kilogram (132-pound) sacks a year, and for specialty-bean exports to double to 2 million, 60-kilogram (132-pound) sacks a year — boosting yields without tending new land.

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Cash and credits will go to growers, scientists researching new types of beans, and marketers who opened the Juan Valdez Cafe coffee show chain, which now includes 117 shops in Colombia, 12 in U.S., eight in Spain and three in Chile.

From 2003-07, Colombia spent about 700 billion pesos, then worth about US$240 million dollars, on a similar plan that managed to nearly double exports from 543,000 to 1 million sacks of specialty beans.

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By mariacvetanoski on Sep 4, 2008, 10:28 in Friendly Talkzone.

mariacvetanoski says on Sep 4, 2008, 11:11:

http://www.juanvaldez.com/
THIS WOULD GOOD FOR BUSINESS

Save the street children of Colombia Now!!

0 funny, 0 helpful.

johnny2008 says on Sep 4, 2008, 11:21:

Errr- They will have to run that by me again. The government and the coffee growers are going to put $700 million into increasing production?

So presume the Colombians can be persuaded to suddenly increase their consumption by a third to swallow up their domestic beans, does the price not reduce? and where does this money come from? The colombian tax payer is asked to sponsor the coffee industry then they have to buy all the increased production too?

As for doubling exports, this will be interesting to see, Will they not collapse the international market price?

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Timba says on Sep 4, 2008, 16:55:

Consumption is primarily in the U.S. International prices are set in the commodity markets. Colomian coffee is mostly mid market quality. Despite record world supplies, prices still went up.

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