Changes in the points of consumption, increased sales through electronic channels, and more direct relationships between producers and roasters are some of the transformations reported in the coffee market at the regional and global level.
Changes in consumer habits, which were caused by the outbreak of covid-19 and the imposition of severe quarantines, ended up transforming several markets, including the coffee market.
Due to the global confinement decreed by the covid-19 outbreak, coffee shops, restaurants and tourist establishments reduced the demand for coffee, but increased Internet sales and marketing of the grain in supermarket chains.
Another change that has been reported in the context of the pandemic is the rise in the international price of the quintal of gold coffee, which for the coffee year 2019-2020 stands at $156.48, an amount that is 9% higher than that recorded for the cycle 2018-2019, when it was quoted at $143.90.
The coffee growers' guild signed an agreement with the Guatemalan-German Chamber of Commerce and Industry to promote local production in the European country.
Directors of the National Coffee Association (Anacafé) explained that the agreement will facilitate the coordination of actions for the promotion and export of coffee from Guatemala to Germany, such as the generation of direct links between producers and buyers.
Guatemalan authorities, the only country in the region that is negotiating the FTA with Korea unilaterally, announced that they will speed up efforts to sign the agreement before the end of the year.
The announcement was made by President Jimmy Morales in the company of the Minister of Economy, Acisclo Valladares Urruela, before the members of the board of directors of the National Coffee Association (Anacafé), which is one of the sectors that is demanding the adhesion of the country to the Free Trade Agreement (FTA) between Central America and South Korea.
With the entry into force of part-time work in Guatemala, coffee growers could increase the number of people currently employed by between 5% and 10%.
The norm regulating this type of work is only in force for one month, since on June 27, 2019, Governmental Agreement 89-2019 was published in the official newspaper, establishing the Regulations of Convention 175 of the International Labor Organization (ILO), which regulates the hiring of part-time personnel in the country.
To reduce production costs, the Guatemalan coffee association will implement a climate information system to provide access to more specific forecasts in coffee-growing areas.
According to the National Coffee Association (Anacafé) with the implementation of more weather stations in small coffee areas of the country, the costs of grain production could be reduced between 10% and 15%.
Coffee growers in Guatemala estimate that production in the agricultural cycle that is about to end will totol 4.3 million hundredweight, above the 4.2 million hundredweight reported in the 2016-2017 harvest.
Forecasts by the National Coffee Association (Anacafé) indicate that for the upcoming 2018-2019 harvest, production could be located at 4.5 million gold hundredweight (46 kilos sacks), which would mean a continuation of the recovery phase.
Due to the climatic conditions predicted for the months of July and August, an increase is expected in the presence of the disease in coffee plantations in Costa Rica.
During July there is a typical decrease in rainfall known as "la canícula", a period in which Rust progresses slowly and the emergence of new lesions is less.However, at the same time there is a greater presence of spores in the lesiones favored by the warmer temperature and by weaker and less frequent rains.This situation will promote a largeincrease in the disease in the majority of the Costa Rican coffee plantations when more abundant rains return starting in August, reported the Coffee Institute of Costa Rica (Icafé).
In Guatemala, business associations, mainly in the export sector, are insisting that the government resume negotiations and complete the process of adhesion to the trade agreement with the Asian country.
The private sector groups explained that despite the commercial opportunities that Guatemalan companies have with South Korea, Guatemala is the only country in Central America that has not completed negotiations to sign the FTA, meaning that they are unable to take advantage of the benefits that this agreement offers.
Guatemalan coffee growers are warning that if the country does not adhere to the agreement signed between Central America and the Asian country, they will lose market share and will have to compete with their peers in the region under unequal conditions.
Representatives from the National Association of Coffee Growers (Anacafé) insist that the government sign the agreement that the other countries of the region have already signed with South Korea, arguing that they will lose out on the advantage they have achieved in recent years.According to coffee farmers, 23% of coffee exports go to Japan, South Korea, Taiwan and China.
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.
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.
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."
A reduction has been projected of between 10% and 15% in the 2017/18 harvest due to the effects of drought and frost in different production areas in the country.
The projections are the result of an assessment carried out by the technical department of the National Coffee Association (Anacafe) in different parts of the country.For the 2017/18 harvest a production of 3.35 million hundredweight is expected.
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"...
Starting April 10th coffee farmers can register their products for the pre-selection stage of specialty coffee contest.
The Alliance for Coffee Excellence (ACE) and the National Coffee Association (Anacafe) are calling on coffee growers to take part in the Cup of Excellence 2016, the preselection for which starts on April 10, reported Dca. gob.gt.