ANNOUNCEMENT 16 Jun 2009

The Brazilian government decreased the total budget allocated to the Coffee Economy Defense Fund credit lines known as "Funcafé."

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Ministry of Agriculture, Fishing, and Livestock. Ministério da Agricultura, Pecuária e Abastecimento. Funcafé Relatorio de Atividade 2009. Available at: http://www.agricultura.gov.br/assuntos/politica-agricola/cafe/arquivos/RelatoriodeAtividadesdoFuncafeExercicio2009.pdf

Ministry of Agriculture, Fishing, and Livestock. Ministério da Agricultura, Pecuária e Abastecimento. Funcafé Relatorio de Atividade 2008. Available at: http://www.agricultura.gov.br/assuntos/politica-agricola/cafe/arquivos/RelatoriodeAtividadesdoFuncafe2008versaofinal.pdf

Inception date: 16 Jun 2009 | Removal date: 27 May 2010

State loan

On 16 June 2009, the Ministry of Agriculture, Fishing, and Livestock adopted Resolution 453 distributing the BRL 1,800 million (USD 984 million) resources for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé"). The new budget represents a decrease when compared to 2009 when the total budget was BRL 2,188 million (circa USD 1,124 million).

The credit lines were distributed as it follows:

  • BRL 200 million for funding;
  • BRL 450 million for harvest;
  • BRL 460 million for storage;
  • BRL 400 million for Coffee Acquisition Financing (FAC); 
  • BRL 100 million to sell off of coffee debt linked to Rural Product Notes;
  • BRL 90 million for the recovery of damaged coffee plantations; and
  • BRL 100 million for rescheduling costing and harvesting.

These amounts apply for the 2009 harvest.

AFFECTED SECTORS

 

AFFECTED PRODUCTS