International Coffee Agreement 1962

During the 2001 agreement, the OIC secured funding of $45.2 million for 20 projects and established a programme to improve the quality of coffee in order to improve the quality of the world`s coffee supply. The Executive Director presented a monthly report on the coffee market to improve market transparency and a step-by-step guide on promoting coffee consumption was published as part of a Consumer Action Plan. Between the publication of the guide in 2003 and the end of the 2001 agreement, approximately $30 million was invested in support programs in producing countries, a multiplier effect of $80 on the initial investment of $287,000 from the ICO Support Fund. The OIC also launched the Coffee Club Network, a collaborative web network to promote coffee consumption, and supported two programmes to make scientifically based coffee-based information available to the public: the Positive Coffee Programme and the Health Care Professions – Coffee Education Programme. The 1976 International Coffee Agreement was negotiated in 1975 in the context of a market situation radically different from that prevailing during the negotiations of the 1962 and 1968 Agreements, when the supply of coffee exceeding consumer needs tends to lower prices. Until 1975, mainly following a severe freeze in Brazil, the world`s largest producer, doubts about the adequacy of supply for the immediate future were reflected in a sharp rise in prices. These considerations prompted members, during the negotiations on the 1976 Convention, to introduce a series of new provisions aimed at strengthening and improving the functioning of the Organization and maintaining many of the provisions that had proved effective in previous agreements. The precursor to the ICA was the Inter-American Coffee Agreement (IACA), created during World War II. The war had created the conditions for an agreement on Latin American coffee: European markets were closed, the price of coffee fell, and the United States feared that the fall in prices would push Latin American countries – especially Brazil – to Nazism or communist sympathy. [4] [5] The scarcity of coffee supply and the evolution of production conditions after 1970 led to differences of opinion between producer and consumer countries, which may have jeopardized the continuation of the 1962 Treaty.