Coffee prices surge on federal exchange amid tariff dispute

The price of coffee at the federal exchange has climbed 8 percent in the past six weeks, a movement that on the surface favours Tierra Verde's largest export crop. But farmers and cooperative leaders across the region say the gain is illusory. Port tariffs set by Oriente Moderno have risen in lockstep, eroding the margin that reaches the farm gate.

The tariff shift, announced in July by the port authority in Nueva Singapur, applies to all landlocked regions shipping through the free-trade zone. Tierra Verde's coffee and yerba mate exports, which travel by rail to the port, now face loading fees that have increased by nearly 12 percent. For smallholders working on margins of 3 to 5 percent, the difference is material.

The Cooperative Council in San Vicente has requested a federal review of the tariff structure, arguing that the cost disparity violates the spirit of inter-regional equity embedded in the founding charter. The Federal Treasury Minister has promised to examine the dispute, but no timeline has been set.