Factors such as geographical proximity and the sophistication of consumption are characteristics that position it as a market of interest for coffee farmers in the region.
From the executive summary of a study by Procomer of Costa Rica entitled "Roasted coffee market in the US":
- The USA is the main consumer of coffee worldwide, the number one importer of gold coffee and the second of roasted coffee, it is also the number one destination for coffee exports from Costa Rica.Factors such as geographical proximity, the sophistication of consumption and a growing interest on the part of consumers in a more active role of producers in the value chain, are characteristics that position it as a market of interest to increase the share of exports of roasted coffee.
Up until March 5, the volume exported from the current 2017/18 harvest amounted to 3.6 million bags, 17% more than was reported on the same date of the 2016-2017 cycle.
According to figures from the Honduran Coffee Institute (Ihcafe), the value of sales of the grain abroad showed a behavior contrary to the volume exported. "...The value of exports is $446.5 million, showing a decrease of 1% compared to $450.5 million."
The Salvadoran government has announced that CABEI has approved an $80 million loan to finance the coffee plantation renewal plan.
From a statement issued by the Ministry of Agriculture:
The Minister of Agriculture and Livestock, Orestes Ortez, reported that the Central American Bank for Economic Integration (BCIE) approved an $80 million loanrequested by the Salvadoran government, aimed at renovating the country 's coffee plantations and strengthening this productive sector.
After reaching its lowest level in 22 months in December 2017, the monthly average of the ICO composite indicator price increased by 1.4%.
From the monthly report by the International Coffee Organization:
Coffee market recovers slightly from December slump
After reaching its lowest level in 22 months in December 2017, the monthly average of the ICO composite indicator price increased by 1.4% to 115.60 US cents/lb in January 2018.
In Costa Rica, the Coffee Institute is offering up to six tons of seed of the Obatá variety, which has proven to be resistant to rust disease.
From a statement issued by the Costa Rican Coffee Institute:
The Coffee Institute of Costa Rica, ICAFE, will be in a position to offer growers, from this time until mid-March, five to six tons of selected and approved quality Obatá seed, which has been proven to have resistance to Rust, precocity and high productivity and excellent cup quality, for the preparation of seedlings.
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 Ministry of Agriculture foresees having the resources available in April, once the Legislature approves the disbursement by the BCIE.
A new government attempt to renovate coffee plantations gained momentum in December last year, after the Legislative Assembly approved areform to the Law to Create the Coffee Production Support Trust, to facilitate access to financing for coffee growers.
In Costa Rica, a decree is being prepared to eliminate the ban that has been in effect since 1988 and to re-authorize planting of the robusta variety in some areas of the country.
The results obtained in tests carried out in 2016 and the conclusion that there is no longer a real technical justification for prohibiting the sowing of this variety have led the Ministry of Agriculture and Livestock to review the conditions and evaluate resumption of planting in some areas of the country.
Producers, technicians and researchers linked to the coffee business at the international level will be meeting in San Salvador from June 6 to 8, to discuss topics such as genetics and climate change.
"...The second edition of the conclave will take place from June 6 to 8 and this year it is expected that more than 700 attendees will take part from twenty countries, said Carlos Borgonovo, president of the Salvadoran Association of Coffee Roasters and Exporters (Abecafe)."
According to the union of exporters, for 2018 the destinations that represent potential opportunities for special coffees are Taiwan, China, Australia, Malaysia, Czech Republic and Chile.
In the case of the Chilean market, the first multisectorial trade mission led by the Department of Market Development and Commercial Promotion of the Guatemalan Association of Exporters (Agexport) was carried out in 2017, in which more than 50 commercial appointments were attended, showing high interest for the special coffees of Guatemala.
According to the union of coffee growers the threat of an increase in the incidence of rust remains high, in the regions of Coto Brus and Turrialba.
The "Early warning and recommendation system for the combat of Rust" by the Coffee Research Center, details that the threat of increase of rust remains high in the regions of Coto Brus and Turrialba. However, in the localities located in the regions of Pérez Zeledón, Zona Norte, Central Valley, Western Valley and Los Santos, the threat is gradually reduced depending on altitude and microclimates.
As of June 2018, Guatemalan coffee producers must comply with a new environmental standard whose requirements will depend on the type of farm on which the activity takes place.
In accordance with theprovisions of Governmental Agreement 137-2016, coffee producers must submit a study of the potential environmental impact of the activity to the Ministry of Environment and Natural Resources.
For the Nicaraguan coffee sector, the difficulty in obtaining workers has worsened, especially in areas such as Nueva Segovia and Matagalpa.
The coffee trade union affirms that in the 2016-2017 cycle approximately 200 thousand hundredweight were lost, and in what has occurred so far of the 2017-2018 harvest, part of the production has also been lost.Entrepreneurs in the sector argue that, in both cases, it is due to a lack of grain cutters.
Through a proposed law the Ministry of Agriculture aims to protect national production by increasing tariffs on grain imports.
According to figures from the Salvadoran Coffee Council, of every 4 hundredweight consumed in the country approximately 3 are imported.The proportion is reflected in data from the 2015-2016 cycle, a period in which about 270 thousand hundredweight was purchased abroad, which contrasts with the 100 thousand hundredweight of local product consumed.
Global coffee output for 2017/18 is preliminary estimated at 158.78 million bags, 0.7% higher than last year.
Total production of Arabica is estimated to decrease by 1.1% to 97.32 million bags compared to 98.42 million bags last year, as lower production of Colombian Milds and Brazilian Naturals are only partially offset by increases in Other Milds.