This time it is not bad weather or speculative buying in markets that is affecting the international price of grain, which has shown a significant reduction in recent days.

The debt crisis that exists in Europe, coupled with doubts about the U.S. economic recovery is generating a lot of volatility in the markets, affecting the price of commodities like coffee.

These conditions are affecting Central American producers, since uncertainty prevents their short term planning for harvesting and subsequent sales.

In the case of Guatemala, the National Coffee Association believes that this will affect producers during the coffee year which began a few days ago.

An article in Elperiodico.com.gt states: "during the coffee year 2010/2011, Guatemala exported 4.5 million quintals earning a record foreign exchange of U.S. $1.1 billion, an increase of 59% compared to the $691.4 million the year before, thanks to high grain prices that went as high as $300 per quintal, the highest level in 30 years. "

Source: elperiodico.com.gt

More on this topic

Coffee Prices Keep Falling

November 2012

The price for delivery in December in New York, at the close of November 13th, was $146 per quintal, the lowest level in the last two years.

In the view of the president of the National Coffee Association (Anacafe), Ricardo Villanueva, the dip in price undermines local production.

Falling Coffee Prices Worry Growers

February 2012

Grain prices fell by $20 on the Intercontinental Exchange (ICE) in New York, which will affect producer’s plans and their profit margins.

Last Friday (10th February) the grain traded at $220.60 per quintal, while on Wednesday (15th February), the price per quintal was $200.40.

Guatemala: Record Coffee Sales

September 2011

Foreign exchange earnings from exports of the aromatic 2010-11 crop will total $1,100 million.

The $1,100 million figure, represents a 59% increase compared to the 2009-10 harvest ($ 691.4 million), according to the National Coffee Association (Anacafe).

The record revenues are the result of the excellent prices which coffee reached during the 2010/2011 production, an average of $289 per quintal.

Guatemala: Coffee Growers Get Credit

July 2011

The Trust for financial support for the coffee sector has made $38 million available for financing the sector.

The coffee price crisis of 2002, which affected small producers, was the reason for the creation of the trust, which has since provided funds to farmers for different situations that the industry has faced.