Coffee prices swing as federal tariff talks stall

The price of Tierra Verde coffee at the federal exchange dropped 3.2 percent on Thursday, the third sharp swing in as many weeks, as uncertainty over port tariffs from Oriente Moderno continues to ripple through the region's cooperative network. The Cooperative Council in San Vicente said the volatility is making harvest planning nearly impossible for smallholder farmers who depend on predictable export pricing.

Federal Treasury Minister Marcus Eklund confirmed in Meridian on Wednesday that negotiations between the Federal Assembly's commerce committee and Oriente Moderno's port authority have stalled over a proposed increase in container-loading fees. The tariff would apply to all regional exports passing through Nueva Singapur's deep-water terminal, where roughly 60 percent of Tierra Verde's coffee and yerba mate leave the Republic for international markets.

Farmers in the San Vicente cooperatives say the uncertainty has already begun to affect their decisions about which crops to plant for next season. The price swings are forcing them to hold coffee in storage longer than usual, incurring additional costs that cut into already thin margins.