An initial estimate of global coffee production in 2016/17 suggests that the world total
will remain relatively stable, up 0.1% to 151.6 million bags.
From the monthly report by the International Coffee Organization:
Coffee production to remain stable despite Arabica/Robusta divergence
An initial estimate of global coffee production in 2016/17 suggests that the world total will remain relatively stable, up 0.1% to 151.6 million bags. Arabica production is potentially set for a record level of 93.5 million bags with bumper crops expected from Brazil, Colombia and Honduras. Prospects for Robusta supply, on the other hand, are less positive, with lower crops expected from most major origins. Prices on the futures markets have reflected these developments recently, with Robusta prices generally showing support and Arabica under pressure, leading to a narrowing in the arbitrage between the two.
Cultivation of this variety has been authorized in seven departments in the Pacific and in the autonomous regions of the Northern and Southern Caribbean, except in the municipality of Waslala.
Finally, and after months of waiting, Nicaragua has been given permission to extensively plant the variety of robusta coffee, which so far had been kept at limited levels, and has generated controversy over the possibility that it might represent competition for the cultivation of Arabica coffee.
The largest producer of washed Arabica coffee increased its harvest in the last twelve months by 3%, reaching 14 million bags each weighing 60 kilos.
From a statement by the National Federation of Coffee Growers in Colombia:
The General Manager of the FNC celebrated production levels and coffee prices and invited coffee growers to take advantage of them to plan for the future.He also recalled that current price levels are offsetting losses in the first half of the year. In the last twelve months Colombia coffee exports amounted to 12.39 million bags.
The proposal to offset part of the drop in arabic production with crops of the robusta variety has not been endorsed by the National Coffee Congress.
Despite the phytosanitary and economic justifications, coffee growers in the National Congressmeeting decided not to repeal the ban on growing robusta in the country which has been in force since 1988.See "Cultivation of robusta coffee in Costa Rica".
With trust funds planned for this year still not liberated, the union is negotiating with entities such as the CABEI and the IDB to obtain new sources of funding.
The National Coffee Association (Anacafe) estimated at $955 million the amount needed to renew 60% of coffee plantations, and although "it may seem very high," Alexander Keller, vice president of Anacafé, says that"... by carrying out this replanting with more resistant varieties we could double the export volume and foreign exchange earnings. "
A proposal to remove the ban on cultivation of robusta in the country will be presented on October 8 at the National Coffee Congress for its ratification.
Despite the fact that the international price of this variety is about 40% lower than higher quality varieties such as Arabica coffee, producers in the country are promoting the elimination of Decree 1988 and the re-growing of robusta.
In plantations in different parts of the country, and especially in Turrialba and Coto Brus, an increase has been detected in the presence of the rust fungus.
The early warning system that was implemented during the epidemic in 2012 has detected an increase in the presence of the fungus in several areas, and although the situation still is not an emergency, health authorities and the producers themselves are urging better controls in order to avoid its spread.
With the aim of replacing imports and reviving areas with low productive development a proposal has been made to lift the ban which has been in force since 1988 and re-grow robusta.
Replacing ever increasing coffee imports with local production, which according to figures from PROCOMER, reached 3500 tons in the first five months of this year, is one of the main motivations of the plan being prepared by producers, exporters and roasters, together with the Ministry of Agriculture and Livestock.
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