Arguments and a lack of common ground between delegates from several countries are understood to have blighted discussions at the International Coffee Organisation (ICO) headquarters in London.
It means the current Agreement will be extended for another year, putting back potentially important reforms that could help the coffee sector to address issues of sustainability, trade and emerging market consumption.
An EU official told BeverageDaily.com in February that the end of May deadline for agreeing a new deal looked "too optimistic".
Nestor Osorio, ICO executive director, had repeatedly insisted that talks were on track to replace the current agreement, which should have run out in September. On Friday, he admitted defeat.
ICO members, which include the EU, US and most major producer countries, spent four days last week discussing issues such as how to make the coffee chain more sustainable, and how to take advantage of emerging markets such as Brazil, Russia and China.
One of the newest elements in the next agreement is set to be a consultative forum, initially suggested by the US, which would help to facilitate finance and advise on risk management in producer countries and their local communities.
Initially, however, the forum would only meet once every few years.
One of the main ways the ICO hopes to improve the situation is by increasing consumption both in producer countries and in new markets. Osorio said global coffee consumption was rising by 1.5 to 2 per cent per year.
The plight of coffee producers has again made headlines in recent months, following the rise of fair trade on the public agenda and the launch of a new film, Black Gold, depicting conditions in Ethiopia.
Prices have remained relatively firm over the last year, and Osorio said he expected this to continue. But producers are still being paid less for their beans than in the 1980s, according to the ICO's own figures.
