RIO DE JANEIRO, BRAZIL – Arabica coffee producers in Minas Gerais may lose 25% in the next harvest due to last week’s frosts, said today the president of Minasul Cooperative José Marcos Rafael Magalhães.
He said losses may be as high as 30% depending on the intensity of cold weather in the next few days.
Based in Varginha (Minas Gerais), Minasul is one of the largest coffee producing and exporting cooperatives in the state. The current crop under harvest has not been harmed, he says. “The effects of last year’s drought have already been ‘monetized’,” he said.
In southern Minas Gerais alone, losses may reach between 6 and 7 million bags, Magalhães added.
Considering estimates by Minasul and those initially released by technicians of the Minas Gerais Agricultural Research Company (EPAMIG), the next Arabica coffee harvest in Brazil could total between 40 million and 50 million 60-kilo bags, with losses ranging between 4 and 11 million bags.
He noted that coffee producers have profited in 16 of the 20 years the futures market tool has been used in the segment. “In 80% of cases, the price lock was beneficial to producers,” Magalhães said, and attempts at “fraudulent default” will be identified.
Also according to Minasul’s president, the federal government has shown willingness to assist the problems in the coffee industry. Last Friday, Agriculture Minister Tereza Cristina and deputies flew over the producing areas with Magalhães and other regional representatives.
“There will be credit support, funding extensions, but only for those who are in good standing. It is very important that there are no breaches of contract. We can’t jeopardize the coffee industry’s credibility abroad,” he said.