One of the primary objectives of the International Coffee Organization is providing a forum for intergovernmental consultations. Working towards securing a healthy world coffee economy is important economically and politically in importing countries as well as being desirable from the viewpoint of encouraging economic development both to improve living standards in producing countries and to increase markets for goods produced in consuming countries. As a respected intergovernmental organization which speaks for both producers and consumers, the ICO has a focal role to play in channeling international cooperation between consumers and producers and developing political solutions and coffee policy.

The International Coffee Council, the highest authority of the ICO, and the ICO Executive Board enable producing and consuming governments to meet on a regular basis to debate coffee matters and develop policies and priorities relating to important objectives in the International Coffee Agreement 2001, such as sustainable development and quality.

Sessions of the Council are held twice a year in May and September, usually at the headquarters of the ICO in London. Attended by some 150 - 200 delegates, these sessions enable Members to have high-level personal contacts and discussions with other Governments and major industrial players. The most recent ICO statistics are presented and the latest report on the market situation is discussed. Information on coffee policy is delivered by senior government or industry representatives, and substantive matters such as diversification and quality are considered.

The Executive Board also meets at the time of the Council, and has an additional meeting in January each year. Its 16 Members (8 exporting and 8 importing countries) oversee current operations, including the approval of projects, and make recommendations to the Council on policy matters.

The ICO also facilitates close contacts with the private sector through a 16-strong Private Sector Consultative Board which advises the ICO on matters of concern to the coffee trade and industry, such as positive communication on health effects, regulatory legislation, and sustainability.

Coffee policy development

Examples of solutions and coffee policy agreed by the International Coffee Council include:

• A Coffee Quality-Improvement Programme establishes target standards for exportable coffee and will play an important role in improving the quality of coffee on the world market in the interests of both producers and consumers.
• Consideration of contamination from mould formation resulted in a US$5,593,000 project to reduce mould formation.
• Identifying an action plan of key measures for international cooperation to address the recent crisis of low prices. On the supply side, these included improving quality, promoting diversification and monitoring production, and ensuring that multilateral donor institutions were informed of the coffee balance to avoid inappropriate projects that would lead to further imbalances in the coffee market.
• On the demand side, actions included building on market development activities to promote coffee consumption and, within the framework of WTO negotiations, seeking the elimination of tariff and other barriers to all forms of coffee, together with those affecting all agricultural products originating in developing countries to facilitate viable diversification options.