Coffee Cartel Meets to Discuss Price Strategy

The Assn. of Coffee Producing Countries met in Mexico City with nonaligned Latin American producers to try to gather support for a scheme to withhold up to 15% of world exports from the market to push prices up from current depressed levels. Dominated by Brazil and Colombia, the cartel controls 70% of world supply but needs cooperation from nonmembers Mexico, Guatemala and Vietnam for such a plan to stick, observers say. Mexico, now the third-largest exporter of coffee to the United States, has always resisted such price-control measures, and it held to that position after Friday’s meeting. ACPC member Costa Rica said the group would observe a partial coffee embargo later this year, with or without the support of nonmember countries.