The Ministry of Agriculture of Brazil on Thursday May 2 announced a review of the methodology used to establish the government’s lowest guaranteed coffee prices.

The survey, which will be jointly conducted by Conab's Crop Supply Agency, as well as private sector experts and farmer cooperatives, was made after Brazilian farmers stated that the current values ​​of the state guarantee do not reflect production costs.

"The current minimum prices do not meet the needs of farmers, they do not reflect our reality," said Congressman Evair de Melo, one of the leaders of the Brazilian farmers meeting in Congress and former head of the Incaper coffee research body at Espirito Santo.

Each year, the Brazilian government sets minimum prices for several products, taking into account production costs and a minimum rate of return for farmers. If market prices for a particular product fall below the minimum guarantee level, the government is allowed to intervene in the market by purchasing products at that minimum level to ensure that farmers at least cover their costs and make little profit.

Currently, the minimum price for good quality coffee is 362.53 reais (91.37 US dollars) for a bag of arabica weighing 60 kg and 210.13 reais (52.96 US dollars) for a bag of robusta.

“We hope that Conab and the national secretary for agricultural policy will be able to consult with the private sector, may seek advice from experts who are familiar with the costs of coffee production so that we have a minimum fair price for farmers,” said de Melo.