Bloomberg News

Burundi Coffee Organization Raises Prices After Farmer Talks

May 29, 2012

Intercafe Burundi, the East African nation’s coffee-trade association, said it raised prices for the beans by as much as 3.3 percent after talks with a growers’ group that had rejected lower rates.

Buyers will pay 465 Burundian francs ($0.33) for a kilogram (2.2 pounds) of unprocessed beans for the period from yesterday through June 10, compared with 450 in the previous two-week period, the Bujumbura-based group said in a statement handed to reporters today in the capital.

Fully washed beans will fetch 1,770 francs a kilogram, compared with 1,715 francs previously, it said.

The Burundi Coffee Farmers Confederation on May 15 rejected the lower prices and urged farmers to wait for higher ones. Intercafe Burundi said its pricing decision came after talks with growers, which focused on the currency exchange rate and international prices, according to the statement.

Burundi relies on coffee for 80 percent of its export earnings. The country produces mainly arabica coffee and in June forecast a 13 percent fall in production to 21,000 metric tons. Washing coffee involves processing the beans in water.

To contact the reporter on this story: Desire Nimubona in Bujumbura at dnimubona@bloomberg.net

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net


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