Brazilian group
tightens squeeze
on coffee prices
United Press International
The Brazilian Cofiee Institute, un
ruffled by the international uproar
over soaring coffee prices, tightened
the squeeze yesterday with another
boost in export taxes, then agreed to
join a producers’ summit meeting to
explain the move to consumers.
Across the United States, con
sumers mobilized to drive home an
explanation of their own — summed
up by one unidentified New Yorker
who said if prices go any higher, “a
person will need a second job to af
ford a second cup of coffee.”
The nationwide boycott initiated
by New York Consumer Affairs
Commissioner Elinor Gug-
genheimer appeared to be gaining
momentum, but two tea brokers
sounded a disturbing echo to the cry
of “switch to tea.” They said tea
prices, spurred by increased de
mand, are on their way up as well.
Brazil inflamed the already fe
vered coffee market by raising its ex
port tax from $100 to $103 per 132-
pound sack. Since the tax — a major
source of government revenue — is
added to prices by Brazilian export
ers, the move was sure to raise coffee
costs for U.S. consumers beyond the
present range of $2.50 to $3 a pound.
Brazilian officials have expressed
belief that the world demand for cof
fee will remain stable, whatever the
price, and that a consumer boycott
will do little to bring prices down.
However, not all coffee producers
were happy with the situation.
Dow-Jones News Service quoted
a Colombian coffee man as saying, “a
nervous and volatile market like this
isn’t good for anybody.”
Brazilian institute director De-
lauro Baumgratz said his country,
with Colombia, will propose a spe
cial meeting of the 62-nation interna
tional coffee organization in London
on Feb. 14. Dow-Jones said both
U.S. and Brazilian officials initially
were wary of the session, billed as an
explanation of soaring prices.
An unnamed U.S. official was
quoted as saying the meeting would
be of little value “if all producers
do. .. is condemn the boycott. ”
“But if they say, ‘Yes, we deplore
the situation and will do all we can to
hold down prices, then it would be
useful,” he said.
In New York City, a Consumer
Affairs Department survey found
that 52 per cent of shoppers inter
viewed said they either had cut cof
fee consumption or switched to
other beverages, but only 7 per cent
expressed optimism that prices
would not go higher.
In Cleveland, about 50
consumer-action volunteers passed
out leaflets in front of supermarkets
urging customers to keep coffee out
of their market baskets, and in Cin
cinnati, a supermarket chain
launched an ad campaign branding
coffee prices “utterly ridiculous,”
and offered 10-cent-off coupons on
purchase of cocoa, fruit juice or tea.
But in New York, Wall Street tea
broker Herbert Thomas said Lipton
— “the leader in the trade” — will
raise prices 10 to 15 cents a pound in
February.
“The rise will be peanuts com
pared to coffee,” he said.
THE BATTALION Page 1 \
WEDNESDAY, JANUARY 19, 1977
Silver Taps held ;
last night
Silver Taps ceremonies were held
last night in remembrance of a Texas
A&M graduate student and part,
time employe and two Houston stuj
dents who died during the mopth;
long semester recess.
Peter Chaplinsky, a 21-year-old
junior from Houston, was killed in a
car accident on his way back t®
spring semester classes. Twenty,
year-old Larry Dean Hays, also &
junior, died in a car crash as h© left
for the semester break. Lawrence Tt
Baugh, 32, was found dead in the
Navasota Biver last Saturday.
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