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It argues that ample supply makes current coffee prices inconsistent with supply-demand fundamentals and that cartel-held prices distort outcomes. It outlines areas of agreement among stakeholders, highlights U.S. public hostility toward cartel behavior, and explains political conditions that could enable Congress to support a consumer boycott or pressure policy 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Martin","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-02","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",11,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What does the letter claim about the relationship between coffee supply and current coffee prices?","Question",{"text":113,"@type":114},"It states there is general agreement that coffee will be in ample supply, and therefore the current coffee price is inconsistent with and higher than what the statistical supply-demand position warrants.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"How does the letter describe the cartel and its impact on prices?",{"text":118,"@type":114},"It says prices are being held up by the cartel under the informal title Bogota Group, and that the cartel’s leadership has been skillful in manipulation of the market.",{"name":120,"@type":111,"acceptedAnswer":121},"What political action does the letter suggest for members of Congress?",{"text":122,"@type":114},"It suggests that members of Congress can gain points politically by launching a campaign for a new coffee boycott, intended to duplicate the previous consumer boycott’s impact on consumption decline.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},325136,1790218058,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},8796095360427,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","HANSON’S LATIN AMERICAN LETTER  \nWASHINGTON  \n3 November 1979  \nDear Sir:  \nNumber 1807  \n\"Should coffee prices remain out of linewith real supply and demand,it will beappropriate for members of Congress topublicize the problem and promote concertedconsumer action.\"  \n...Senator Baucus.  \nThe current price of coffee is double theprice that would be consistent with thehistorical supply and demand relationship.\"...Congressional Reference Service.  \n\"Selling prices(to consumers)have fallensubstantially since 1977 but not as fast asthe drop in the price of green coffee,sogross profits per pound have practicallydoubled their historic levels(for U.S.corporations).\"...Business Week.  \n\"It is a simple show of force,\"(by the cartel)said an analyst,referring to the 11.82 centsper pound rise in a single day achieved by thecartel(Bogota Group).\"  \n...New York Times.  \nWe can start,given our interest in foreign-exchange positions of theCOFFEE:Latin American countries,with the order of magnitude involved.VolkartMAGNITUDESBrothers,a Swiss company,forecasts world coffee supply above consump-OF DECLINEtion,as does the U.S.Department of Agriculture,and sees a reductionIN REVENUEin price that works out to about $2.8 to $3.1 billion per year for theFORECASTcoffee-producing countries.At the meetings of the International CoffeeOrganization,the consuming nations(including the United States)arguedfor a generous trigger price that would nevertheless lower earnings ofthe coffee-producing countries by perhaps $3.5 to $4.0 billion.  \nIt is then a serious problem.  \nAREAS OFNow,let us identify the areas of agreement:  \n# AGREEMENT\n\n(1)There is general agreement that coffee will be in ample supply,andAMPLEtherefore that the current price of coffee is inconsistent with and higherSUPPLYthan the statistical position warrants.  \n(2)There is general agreement that prices are being held up by the cartelROLE OFformed under the informal title of Bogota Group.The State DepartmentCARTELprotest that activities of this cartel are inconsistent with the interna-RECOGNIZEDtional coffee agreement makes it unlikely that the Congress can be success-fully lied to again on ratification of such an agreement,despite thefact that the State Department has prevaricated successfully on everyoccasion that the agreement came before the Congress.  \n(3)There is general recognition that American public opinion is increas-ingly hostile to any cartel action,because of the experience with oil.Thus,like no previous occasion when it was being gouged on coffee,this  \nPUBLIC  \nHOSTILITY  \nis a particularly propitious time for members of Congress to win pointspolitically by launching a campaign for a new coffee boycott calculatedat least to duplicate the 20%decline in consumption that the previous informal consumerboycott achieved.  \nSuch a burden would be disastrous for the cartel since many of its mem-  \nbers and beneficiaries are faced with very strained foreign-exchange outlook.  \nThe confidence expressed by the Colombian Coffee Federation that U.S.consumers could not succeed in a new boycott because \"too many companies have a stakein promoting coffee,and stores like to use it as a loss-leader\"departs completelyfrom the experience which saw a 20%drop quite achievable in a short period.Duringthat experience,companies had the same stake in promoting coffee and the same loss-leader usage.So,to doubt the potential of what Senator Baucus has suggested as asuitable appropriate course is further to risk disaster.  \n(4)There is general agreement that the leadership of the cartel(BogotaSKILLEDGroup)has been skillful in manipulation of the market,but the successMANIPULATIONstems heavily from the unwillingness of the Carter Administration toOF THEtake a position in defense of the consumer,and the slowness of the Con-MARKETgress to perceive the political potential of the issue.  \nBut now the media awakening to the sugar situation may touch off aheavy barrage on coffee.  \nFor instance,the New York Times","cbCaibByaF8f32cQ","https://ap.wps.com/l/cbCaibByaF8f32cQ","pdf",1192722,"English","# AGREEMENT\n## AMPLE SUPPLY\n## ROLE OF CARTEL RECOGNIZED\n## PUBLIC HOSTILITY\n## SKILLED MANIPULATION OF THE MARKET\n## U.S. OBJECTIVES IGNORED","[{\"question\":\"What does the letter claim about the relationship between coffee supply and current coffee prices?\",\"answer\":\"It states there is general agreement that coffee will be in ample supply, and therefore the current coffee price is inconsistent with and higher than what the statistical supply-demand position warrants.\"},{\"question\":\"How does the letter describe the cartel and its impact on prices?\",\"answer\":\"It says prices are being held up by the cartel under the informal title Bogota Group, and that the cartel’s leadership has been skillful in manipulation of the market.\"},{\"question\":\"What political action does the letter suggest for members of Congress?\",\"answer\":\"It suggests that members of Congress can gain points politically by launching a campaign for a new coffee boycott, intended to duplicate the previous consumer boycott’s impact on consumption decline.\"}]","HANSON’S LATIN AMERICAN LETTER - AGREEMENT | PDF",1789969775,13]