IBC EXPECTED TO MAINTAIN COFFEE EXPORT FORMULA

  The Brazilian Coffee Institute,
  IBC, is expected to maintain its previous pricing system when
  it reopens export registrations, probably later this week,
  exporters said.
      They said IBC President Jorio Dauster is likely to leave
  the basic formula for the minimum registration price unchanged
  but raise the contribution quota to partially offset the
  effects of cruzado devaluation since April registrations were
  closed in mid-February.
      To fully compensate for devaluation the quota would have to
  be around 28 dlrs per bag against 7.0 when registrations closed.
      However, even a 21 dlr per bag rise in the contribution
  quota would make Brazil coffees uncompetitive on world markets,
  and an increase to around 15 dlrs a bag is more likely, the
  exporters said.
      They added that Dauster is keen to raise the contribution
  quota as the Institute needs money to repay Central Governmnet
  funds released to finance IBC purchases at the guaranteed
  producer price.
      Although a vote in the Monetary Council to provide more
  funds for such purchases was deferred on technical grounds last
  week, funds are still being released for subsequent approval.
      The sources said it is still unclear when registrations
  will be reopened, although most expect it to be by the end of
  this week.
      "Brazil owes it to its customers to make its intentions
  know. A country like Brazil cannot afford to be permanently
  closed down," one exporter said.
      However, before announcing its export policy the IBC is
  likely to wait to see if tomorrow's meeting of the
  International Coffee Organisation, ICO, executive board in
  London decides to call a full council meeting to discuss
  reintroduction of export quotas, sources said.
      There is also talk of the announcement this week of new
  measures to adjust the Brazilian economy, and the IBC could be
  awaiting clarification before making any move, the exporters
  said.
      Another factor which could be delaying the opening of
  registrations is the current strike by bank workers which,
  while not affecting current shipments, could affect
  documentation and currency operations for new sales.
      This would certainly be the case if the IBC was considering
  obliging exporters to pay the contribution quota within two or
  three days of registering a sale.
  

