Coffee growers can now access Funcafé financing

Coffee growers can now access Funcafé (Coffee Economy Defense Fund) financing lines at 12 financial institutions. Contract extracts are published in the Official Gazette of the Union (DOU). They are: Banco Ribeirão Preto, Development Bank of Minas Gerais-BDMG, Banco Inter, Bradesco, and the Credit Cooperatives:  Central Cresol, Credinter, Agrocredi, Credicarpa, Credialp, Credicarmo, Credivar, and Central Credit of Espírito Santo  

According to the Department of Commercialization and Supply of the Ministry of Agriculture, Livestock and Supply, the signing of contracts with other institutions occurs quickly to make Funcafé resources quickly available in the month of July.

The available credit lines are intended for financing the cultivation of crops, storage, marketing and acquisition of the product, working capital for industries and production cooperatives, and also for the recovery of coffee plantations damaged by hailstorms, frost, windstorms or other climatic phenomena.

Another 25 financial agents are in the final hiring phase. In total, there is R$6,058 billion in the Fund for the 2022/2023 harvest.

The available resources are distributed along the following lines:

I – funding credit: up to R$1,57 billion

II – commercialization credit: up to R$2,17 billion

III – Financing for Coffee Acquisition (FAC): up to R$ 1,38 billion 

IV – credit for working capital for instant coffee and coffee roasting industries and for production cooperatives: up to R$775 million

V – credit for the recovery of damaged coffee plantations: R$ 160 million

Funcafé's interest rate for this harvest is limited to 11%. The Fund's remuneration was established at 8%, maintaining the financial agent's remuneration at up to 3%, with free negotiation between the parties. Despite the increase compared to the previous harvest, the rate was below the Selic (13,25%).