Low-quality Robusta coffee prices have tumbled as exporters struggle to obtain financing. At these prices ($o.06/lb in Indonesia - $0.93/lb in London) millions of farmers are suffering and have begun to remove their product from the market rather than face steep losses. Exporters are halting shipments until prices recover. "We are effectively slitting our throat at these prices," said Hasan Widjaja, chairman of the Indonesian Coffee Exporters Association.
Farmers, burdened by heavy debt they incurred during last spring's highly inflated fertilizer purchases will go bust. Failures in agriculture may lead to an explosion of inflation next year.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment