In order to sell the grain at better prices, Salvadoran coffee growers are interested in exporting to countries such as Argentina, Chile, Uruguay and Paraguay.
According to directors of the Salvadoran Coffee Council, South American countries are potential markets for the grain produced in El Salvador, since the consumption of specialty coffees is increasing.
The Executive is proposing to reform the scope of the law and charge a "registration for coffee production fee" of $0.50 per hundredweight.
Despite the outbreak of coffee rust, the debt of $200 million and the funding crisis facing the coffee sector, the Salvadoran government intends to collect more taxes. Currently the bill raised by the Executive Branch is being analyzed by the agricultural legislative committee.
As of August exports totaled 1,322,330 qq., 39.6% less than in the same period last year when they reached 2,190,691 qq., according to information from the Salvadoran Coffee Council.
As for income, the drop was was 31.6%, falling to $302.9 million for the current period compared to $441.6 in the previous cycle.
The report adds: "The fall in exports was due to the sharp decline in the 2011/2012 harvest, attributed to the bienniality and rains from Tropical Depression E-12 in October 2011."
Earnings from exports were $213.69 million between October 2011 and April 2012, down 24.9% compared to the $284.5 million in the same period of the previous crop.
Foreign sales in the period October 2011-April 2012 totaled $213.69 million, coming from shipments of 903,992 quintals where the average sales price was $236.38 per quintal. Furthermore, there was a 39.5% drop in production volume.
In October, the first month of the 2011-2012 cycle, the Salvadoran Coffee Council reported revenue of $6.8 million.
The average sales price was $226.05 per quintal and the total sold was 30,095 quintals.
"In the same month of the year before only 1436 quintals were exported, valued at $293,392, with an average price of $204.30 per quintal. October exports of the current cycle were about 20 times the volume and more than 22 times the value of those in October in the previous cycle", reports Elmundo.com.sv.
Coffee exports for the 2010-11 cycle produced revenues of $458.2 million, 139.9% higher than that generated in the previous cycle.
According to preliminary data from the Salvadoran Coffee Council (CSC), 2,260,428 quintals (bags of 46 kilos) of coffee were exported, which is 74% higher than the 1, 299,243 in the last cycle.
"These increases are explained, in part, by good international prices for coffee.
Revenues from coffee exports increased by 366% in August 2011 compared to the same period in 2010.
Between October 2010 and August 2011 revenue from foreign sales of coffee increased by 129.6%, with total exports of $435.09 million compared to $189.48 million in the same period of last year’s crop, 2009-2010.
In terms of volume exported, in August 2011 increases were also reported of 255%, with 99, 028 quintals compared to 27,894 quintals in August 2010.
Exports totaled 170,060 quintals, 88% more than the 90,659 quintals in the same period in 2010.
According to the Salvadoran Coffee Council (CSC) in the same month revenues totaled $38.9 million, the average price per quintal exported was $229.
An article in Elsalvador.com's reports: "The cumulative export volume for the year 2010/2011, that is October 2010 to June 2011, reported a total of 1,920,925 quintals, an increase of 60.2% compared to exports during the same period the previous cycle which was 1,199,229 quintals.
In May, 266,744 quintals were exported, 74% higher than the 153,324 in the same period in 2010.
Export revenues reported an increase of 149.4% and totaled $58.9 million compared to $23.6 million in May 2010.
"The average price per quintal exported this month was $220.85, surpassing by more than $65.00 the past average price of $154.09 per quintal." reported an article in Elsalvador.com, "For its part, the cumulative export volume for the year 2010/2011 from October 2010 to May 2011, totaled 1,741,076 quintals, an increase of 57.1% compared to exports during the same period in the previous cycle which was 1,108,570 quintals. "
Considering there is a free trade agreement, the Salvadoran Coffee Council will promote coffee in Taiwan this year.
Ana Elena Escalante, executive director of the Salvadoran Coffee Council (CSC), said that they can use Taiwan as a gateway for the Chinese market.
In this regard, a counselor from the Embassy of Taiwan in El Salvador said, "Taiwan signed a Framework Agreement on Economic Cooperation (ECFA) with mainland China last year which allows Taiwan to become a platform for El Salvador in order to enter that market," published Elmundo.com.sv.
During February Salvadoran coffee farmers exported 19% more product and 52.1% received more money than the same month of 2010.
According to information from the Salvadoran Coffee Council, 300.203 quintals were exported, generating revenues of $ 55 million. The average sales price was $ 183.22 per quintal.
"Germany bought 37.1% of Salvadoran exports in February, followed by the United States with 31.9%, Japan 8.8% and Canada 7.5%.
At an average price of $ 188.71 per quintal, farmers have placed 84% of export crop for the year 2010-2011.
According to the Salvadoran Coffee Council (CSC), 1.65 million quintals have already been sold.
"In the market, the price per quintal has been quoted around $ 250 in recent weeks, however, part of current crop was negotiated when the quintal was about $ 150 in late 2009," informed the article in Laprensagrafica.com.
The export volume during December 2010 ended with a sharp rise of 82.5% over what was exported in the same month last year.
The volume recorded was 181.395 bushels, compared to 99.387 bushels exported in December 2009. Export earnings showed better results by increasing 128% and collecting U.S. $ 31.28 million compared to a total of U.S. $ 13.74 million received in December 2009.
In the first 11 months of the current coffee harvesting season, 1.28 million hunderedweight was exported, 25% less than in the same period of the previous season.
According to data from El Salvador's Coffee Council, coffee exports so far in 2010 are 1.278 million compared to 1.705 million hundredweight in the same period of the 2009 harvest.
"According to the council's statistics, as of 20 September sales of 1.33 hundredweight has been agreed with revenue estimated at around $200 million and an average price of $149," reports Elsalvador.com.