International Coffee Agreement History

A new article on living standards and working conditions has encouraged MEPs to take into account the improvement in the standard of living and working conditions of the working population in the coffee sector. Another new article on promotion was created by a doctoral committee made up of all members of the organization and providing for contributions promised by members and other interested parties. Two new articles formalized the participation of the private coffee sector in the organization`s work by the Private Sector Advisory Committee and the holding of regular global coffee conferences, bringing together high-level government and private sector representatives to discuss issues of common interest. The organization also used the remaining funds from the support fund created under the 1976 and 1983 agreements for a support programme in new markets, notably in China and Russia, which had been identified as a significant potential for increased consumption. The general promotion of ICO was only one of the factors that influenced consumption, but was widely perceived as beneficial in both countries. These activities included a high-level Vanessa Mae concert, the dissemination of educational materials, including a new « Coffee Story » brochure, the development of annual coffee festivals and a programme of briefings to inform journalists of the benefits of coffee. The 1983 ICA was due to expire on 1 October 1989, but, recognizing that it would be impossible to reach a new agreement before the deadline, the Coffee Council (the ICO`s highest body) effectively decided on 4 July 1989 to suspend export quotas. [14] In the absence of a renewed agreement, producing countries have lost most of their influence in the international market. [16] The average price of ICO indicators for the last five years prior to the end of the regime fell from US$1.34 per pound to US$0.77 per pound in the first five years that followed.

[16] The scarcity of coffee supply and the evolution of production conditions after 1970 have led to differences of opinion between producing and consuming countries, which would have jeopardized the continuation of the 1962 Treaty. In 1983, a new agreement endorsed the same principles of the 1962 Treaty and also stressed the promotion and maintenance of employment and income in Member States in order to contribute to fair wages, a higher standard of living and better working conditions. In the 2001 agreement, ICO secured $45.2 million in funding for 20 projects and implemented a program to improve coffee quality to improve the quality of the world`s coffee supply. The Executive Director introduced a monthly report on the coffee market to increase market transparency and a consumer promotion guide was published step by step as part of an action plan to promote consumption. Between the publication of the guide in 2003 and the end of the 2001 agreement, some $30 million was invested in support programs in producing countries, representing a multiplier effect of 80 on the initial investment of $287,000 from the ICO Promotion Fund. The OIC also established the Coffee Club Network, a collaborative web network for promoting coffee consumption, and supported two programs to provide scientific information about coffee to the public: the Positive Coffee Program and Health Care Professions – Coffee Education Program.