P.M. BRIEFING : African Coffee Recovery Seen
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NAIROBI, Kenya — African coffee producers today predicted that world prices will recover sharply enough to recoup $1 billion in earnings lost since the collapse of an international coffee pact in July, 1989.
A top official of the 25-nation Inter-African Coffee Organization said the group expects prices to reach 90 to 95 cents a pound over the next six months from 69 cents currently--an increase of about 20%.
“The market is currently oversupplied due to the collapse of the quota system, and this has led to a depression in prices, but the situation should improve in the medium to long term,” said the IACO official, who spoke on condition he not be identified.
The annual IACO meeting is reviewing sales arrangements and prices since the collapse of quotas, possible ways to boost Africa’s output to regain lost market share in world trade.
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