RIO COFFEE TRADE PREFERS NO PACT TO QUOTA CUT The failure of talks to introduce new coffee export quotas within the International Coffee Agreement, ICA, was preferable to the alternative of Brazil having a sharply reduced quota, as had been proposed, President of the Rio de Janeiro Coffee Trade Association Carlos Calmon said. He told Reuters proposals to reduce Brazil's quota to 25 pct of the world share from 30 pct at present were unacceptable as the country has large stocks and a good harvest is expected. "Brazil has the capacity to export 20 mln bags this year," Calmon added. Calmon said, assuming a 58 mln bag global ICA quota, Brazil's share under the proposals would have been 14.5 mln bags, of which soluble would have accounted for 2.0 mln, leaving just 12.5 mln bags of green coffee for export. "It's a pity the talks broke down, but for Brazil this was better than such a quota reduction," he added. In 1985 Brazil exported 19.6 mln bags of soluble and green coffee, including about two mln bags to non-members. A severe drought and marketing problems cut exports last year to under 10 mln bags. Calmon estimated stocks as of January 1 at 18 mln bags, of which 5.0 mln have already been sold for export. The harvest this year should be around 30 mln bags, he added. The latest Brazilian Coffee Institute estimate for last year's harvest is 11.2 mln bags, although many traders believe it was higher than this.