IBC EXPECTED TO MAINTAIN COFFEE EXPORT FORMULA The Brazilian Coffee Institute, IBC, is expected to maintain its previous pricing system when it reopens export registrations, probably later this week, exporters said. They said IBC President Jorio Dauster is likely to leave the basic formula for the minimum registration price unchanged but raise the contribution quota to partially offset the effects of cruzado devaluation since April registrations were closed in mid-February. To fully compensate for devaluation the quota would have to be around 28 dlrs per bag against 7.0 when registrations closed. However, even a 21 dlr per bag rise in the contribution quota would make Brazil coffees uncompetitive on world markets, and an increase to around 15 dlrs a bag is more likely, the exporters said. They added that Dauster is keen to raise the contribution quota as the Institute needs money to repay Central Governmnet funds released to finance IBC purchases at the guaranteed producer price. Although a vote in the Monetary Council to provide more funds for such purchases was deferred on technical grounds last week, funds are still being released for subsequent approval. The sources said it is still unclear when registrations will be reopened, although most expect it to be by the end of this week. "Brazil owes it to its customers to make its intentions know. A country like Brazil cannot afford to be permanently closed down," one exporter said. However, before announcing its export policy the IBC is likely to wait to see if tomorrow's meeting of the International Coffee Organisation, ICO, executive board in London decides to call a full council meeting to discuss reintroduction of export quotas, sources said. There is also talk of the announcement this week of new measures to adjust the Brazilian economy, and the IBC could be awaiting clarification before making any move, the exporters said. Another factor which could be delaying the opening of registrations is the current strike by bank workers which, while not affecting current shipments, could affect documentation and currency operations for new sales. This would certainly be the case if the IBC was considering obliging exporters to pay the contribution quota within two or three days of registering a sale.