The Coffee Exporter's Guide - International Trade Centre

To see the entire list of country codes and more on ICO
Certifi cates of Origin go to www.ico.org, look under
Documents – By meeting – Rules, where you can trace ICC
102-9. Coffee years run from 1 October to 30 September
– individual shipment numbers recommence at 0001 every
year.
The system allows easy identifi cation of individual bags: the
country of origin, the exporter, and the shipment number
for that exporter. For shipment’s in bulk (see chapter 5), the
shipping marks, including the ICO numbers, are marked
directly on the container liner, making them visible when the
container doors are opened. The container number itself is
marked on the ICO Certifi cate of Origin, thereby completing
the link.
MAIN ELEMENTS OF THE INTERNATIONAL
COFFEE AGREEMENT 2007
� It entered into force for 10 years on 2 February 2011,
on expiry of the International Coffee Agreement (ICA)
2001. The Council will however review the Agreement
fi ve years after its entry into force and ‘take decisions as
appropriate’.
� Extension(s) of the Agreement for up to eight years can
be decided upon by the Council.
� The Council remains the supreme decision-making
authority within the organization, but it also operates
through a number of other bodies namely:
– The Finance and Administration Committee;
– The Projects Committee;
– The Promotion and Market development Committee;
– The Statistics Committee;
– The Private Sector Consultative Board, with the power
to make recommendations on matters raised for its
consideration by the Council;
– The World Coffee Conference, which is called upon
to discuss matters of interest to the industry at large
and to be self-fi nancing, unless the Council decides
otherwise. World Coffee Conferences have been held
in London 2001, Salvador, Brazil 2005 and Guatemala
City 2010;
– The Consultative Forum on Coffee Sector Finance, is
a new institution created by the International Coffee
Agreement 2007 and aims to facilitate consultations
on topics related to fi nance and risk management in
the coffee sector with a particular emphasis on the
needs of small and medium scale producers and local
communities in coffee producing area.
� The ICO’s main objectives are to:
– Promote international cooperation on coffee matters;
– Provide a forum for consultations between governments
and with the private sector;
– Promote consumption and coffee quality;
– Encourage the development of a sustainable coffee
sector in economic, social and environmental terms;
CHAPTER 1 – WORLD COFFEE TRADE – AN OVERVIEW 11
– Collect and publish economic, technical and scientifi c
information, statistics and studies;
– Provide a forum for the understanding of structural
conditions in international markets and long term
production and consumption trends that result in fair
prices to both producers and consumers;
– Promote training and the transfer of technology
relevant to coffee to members;
– Encourage members to develop appropriate food
safety procedures in the coffee sector;
– Develop and seek fi nance for projects that benefi t
members and the world coffee economy;
– Facilitate the availability of information on fi nancial
tools and services that can assist coffee producers.
� The ICO’s headquarters are to remain in London, unless
the Council decides otherwise.
� The ICO will continue to maintain the system of indicator
prices.
� Certifi cates of origin will continue to accompany all
exports.
� The preamble acknowledges the exceptional importance
of coffee to the economies of many countries and to
the livelihoods of millions of people, as well as the
contribution that a sustainable coffee sector can make to
the achievement of the Millennium Development Goals.
It also recognizes that collaboration between members
can foster an economically diversifi ed coffee sector and
contribute to its development, as well as recognizing
that increased access to coffee related information and
market-based risk strategies can help avoid imbalances
that give rise to market volatility, which is harmful to both
producers and consumers.
Key events in the history of the International Coffee
Agreement (ICA). (Based primarily on F.O. Licht. International
Coffee Report, vol. 15. No. 21. See also www.ico.org/ico/
history.htm.)
1963: First ICA comes into force at a time of low prices,
regulating supplies through an export quota system.
1972: Export quotas suspended as prices soar.
1980: Export quotas restored and producers agree
in return to abandon attempts to regulate the market
unilaterally.
February 1986: Quotas suspended after a boom
caused by drought losses to Brazil’s crop sends prices
soaring above the ceiling of the ICA’s US$ 1.20–US$ 1.40
target range.
October 1987: Quotas reintroduced.
4 July 1989: Indefi nite suspension of quotas after the
system breaks down under the pressure of competing
demands from exporters for market shares under the
new ICA then being negotiated. Backed by the United
States, Central American states and Mexico press for a
much bigger slice of the market at the expense of Brazil
(which resists this) and of African producers.