While the government's promised trust funds remain inaccessible, producers are negotiating credit lines in China and India in order to finance the renewal of coffee plantations.
Thursday, May 4, 2017
Ricardo Arenas, president of the National Coffee Association (Anacafé), explained to Elperiodico.com.gt that"... in light of the difficulties in obtaining the support of the Government, they are knocking on doors in different places. This is because 'there are countries that have a lot of money which is not providing them with a return' and therefore would be willing to give it to some bank in the system under the right conditions."
The NationalCoffeeAssociation(Anacafé)estimatesthat the amount needed to renovate 60% of the coffee park in $955 million."...For that reason, there is still a fight for the remaining approximately Q375 million of the coffee trust which has yet to be disbursed and another line of credit with the Central American Bank for Economic Integration (CABEI) for $60 million."
"...On the issue of the trust, the Minister of Agriculture Mario Méndez said that they are analyzing how to give the greatest support to coffee growers.But he acknowledged that "there is plenty of will, but no money", therefore it is difficult to fully provide all that is needed for next year, as the coffee growers would like."
The $286 million credit granted by CABEI to renovate coffee plantations in Guatemala has not yet been approved by local authorities, so resources would only be available in the second half of 2020.
The Guatemalan union of the sector announced that the reactivation plan they are preparing is based on the renovation of coffee plantations within a period of five years.
The National Coffee Association (Anacafé), is working in conjunction with the ministries of Public Finance, Agriculture, Livestock and Food and the Inter-American Development Bank, on a plan for economic reactivation of the sector, which could be ready in the coming weeks.
The term of the trust, which expires in 2015 – will have to be extended so that the $37 million that is available can be loaned to producers for the renovation of coffee plantations.
S21.com.gt reports that "Because of the crisis faced by the sector in the country's coffee production in 2001-2002, the government at that time created a trust fund of $100 million, which was to be administered by the central bank, and would serve to provide credit to farmers to boost their crops. Regarding this, the National Coffee Association (Anacafe) believes that reviving the trust and extending its expiration date could save the sector. "
A number of coffee associations have reacted to the sector’s losses by requesting the activation of a $71 million Coffee Trust.
The National Coffee Association (Anacafé) agrees with the Federation of Coffee Cooperatives (Fedecocagua) that this is the optimal time for the government to activate this trust, after the eruption of Pacaya Volcano and Agatha tropical storm damaged plantations.
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