Although today's share of coffee in exports is considerable lower than in 1999, it has not dropped to 2001 levels, when coffee exports fell by 6.29%.
An article by Roxana Larios in Sigloxxi.com analyzes the evolution of one of Guatemala's main export products: "By the end of 2001 and beginning of 2002, the price dropped to $0.40 by pound, 'the lowest in 100 years', recalls an analyst from the National Coffee Association, known as Anacafé. Nowadays the price is $1.20 per pound. 'A lot of plantations that could not compete cost-wise with Brazil diversified its crops, orientating to rubber production and other products', and since then abandoned coffee".
During the first seven months of the coffee year, nine Latin American coffee producers have exported a total of 15.5 million 60-kilogram bags.
For the same period last year, exports were 16.8 million 60-kilogram bags.
Sigloxxi.com published: "The most drastic drop suffered by the group of Latin American countries was recorded last April, when exports fell by 18.25% overall compared to the same month of the previous coffee year."
According to data from the International Coffee Organization (OIC), coffee prices dropped 14.5% compared to September.
Nestor Osorio, executive director of the OIC, which publishes the monthly evoluction of the coffee prices each month on its webpage, said it was a "steep drop", and in reference tot he financial crisis, said that "it seems to be influencing the drop in the prices of all basic food products."
The price of coffee in the international market have stabilized at around $110 per 60 kilo sack.
Throughout November 2008 the prices recorded in the "C" contract in the New York Stock Exchange fluctuated around $100.
Esther Eskenasy, market analysis for the National Coffee Association (Anacafe), explained that on Monday 8th, the US Department of Agriculture had lowered global coffee production for the 2008/2009 harvest, and this helped to stabilize the coffee prices.
In the first eight months of the current coffee harvest, Latin America’s 9 producing countries exported 10.8% less than the same period of the previous one.
In this period, Colombia, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, Mexico and Peru sold 15.9 million sacks of 60kg, according to data from Guatemala’s Coffee Association (Anacafé).
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