Panama Coffee Prices Plummet After ICO Quota System Suspension
What happened
The price of specialty coffee in Panama dropped following the suspension of the International Coffee Organization quota system. Historically, under the ICO quota system, the price remained between $1.20 and $1.50 per pound. The quotas were suspended after member countries failed to reach an agreement in 1989, causing prices to fall to about 50 cents per pound in the following years.
From newsroompanama.com
Why it matters
The suspension of the ICO quota system led to a massive price plummet for coffee producers in Panama. This market shift prompted the creation of the Specialty Coffee Association of Panama, which was formally established in 1996.
From newsroompanama.com
Who's involved
- International Coffee OrganizationThe organization whose quota system historically regulated the coffee market.
- PanamaThe sovereign state where the coffee market experienced the price drop.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- PanamaSpeculative
Panama coffee producers might face reduced revenue due to the sharp decline in commodity prices.
Keep exploring
The entities involved
-
International Coffee Organization
group for enhancing cooperation between nations dealing in coffee
Nothing else this week.
-
Panama
sovereign state in Central America
- El Nino has caused a series of interconnected crises since August 1st, including reduced shipping through the Panama Canal, a state of emergency in Peru, and severe droughts in Honduras and El Salvador.
- Panama is reported to be avoiding regional crises, with Miguel Bolinaga serving as president of AES Panama.
-
Specialty Coffee Association of America
international trade organization
Nothing else this week.
-
Starbucks
American multinational coffee company