Coffee prices surge at federal exchange as supply tightens

Coffee prices at the federal exchange in Meridian have climbed to 4.80 florins per kilogram, the highest level in two years, as supply tightens across the Republic and global demand remains strong. The surge has lifted the floor price for Tierra Verde's smallholder farmers and triggered urgent meetings within the regional cooperative network about whether to hold inventory or sell into the rally.

The price movement reflects a tightening in global coffee supplies and a shift in Federal Treasury policy toward regional export prioritization. For Tierra Verde's 8,000-odd cooperative member-farms, the climb means a single harvest season could generate substantially higher revenue than planners forecast six months ago. But cooperatives are divided on strategy: some want to capitalize on the peak now, while others argue for holding stock to stabilize prices through the leaner months ahead.

The Federal Office for Cooperative Affairs has called an emergency session for next week to discuss storage capacity and credit terms. Cooperatives that lack warehouse space are already negotiating with regional assembly members to unlock municipal silos that have sat idle since last year's drought. The outcome will shape whether Tierra Verde's farmers see a one-time windfall or the start of a more durable price recovery.