For the 2019-2020 crop, production is estimated at 1.91 million quintals, about 12% more than in the previous cycle, partly due to the renewal of some coffee plantations.
The Coffee Institute of Costa Rica (Icafé) forecasts that coffee production will increase by 196,760 sacks of 46 kilograms of processed beans, from 1,717,659 quintals reported in the 2018-2019 cycle to 1,914,419 projected for the 2019-2020 harvest.
The Central American Bank for Economic Integration approved a loan, which will be used to finance a program to renovate the country's coffee farm.
The financing is destined to the renovation of the coffee park of the country, through the substitution of plants damaged by plagues and diseases or with greater age that allows to revert the losses of productivity by the aging of the plantations and the effects of the rust, estimating the renovation of approximately 19.9% of the coffee park of Guatemala, informed the financial entity.
Producers in El Salvador asked President-elect Nayib Bukele to manage financing for the renovation of the farm, create a research center and protect the sector by regulating imports.
Through a letter sent to the president-elect on March 18, the Asociación Cafetalera de El Salvador (Acafesal) raised the need for $200 million in funding to renovate the coffee park.
The financing contract for the coffee renovation program, which the Salvadoran government plans to sign with CABEI, received its first endorsement in the Legislative Assembly.
In August 2018, it was reported that the funds will be used to respond to the challenges of the coffee sector in El Salvador, supporting the renewal of 20,777,4 blocks of the crop, also contributing to the transfer of sustainable technologies, increasing resilience capabilities and improving the institutional framework related to coffee.
A bill being discussed in the Guatemalan Congress proposes extending the term of the trust for renewal of coffee plantations and supporting producers until 2051.
The legal initiative for the Economic Reactivation of Coffee proposes altering the expiration date of the trust, currently foreseen until 2026, so that the coffee growers can have access to the resources until the year 2051.
The Ministry of Finance has confirmed the transfer of another $3.4 million for the trust fund for Guatemalan coffee growers.
Jorge Oliveros, coordinator of the project area at the National Coffee Association (Anacafé), confirmed that "... they received the transfer for Q25 million ($3.4 million) for the coffee trust, which increased the availability of the balance in favor of producers."
With a loan from the BCIE, the Salvadoran government intends to finance a coffee renewal program, which would cover some 21,000 manzanas of crops.
The Central American Bank for Economic Integration (CABEI ) reported that the funds will be used to respond to the challenges of the coffee sector in El Salvador, supporting the renovation of 20,777.4 manzanas of the crop, contributing to the transfer of sustainable technologies, increasing the capacity of resilience and improving the institutionality related to coffee.
Between May 30 and July 31, 18 million rust-resistant coffee plants will be distributed to local producers, with which 12.000 acres of coffee plantation will be renewed.
The Ministry of Agriculture and Livestock reported that "... The requirements to receive coffee plants are: to be a coffee producer, to have a valid Salvadoran Coffee Council card, willingness to prepare the land, plant the plants and provide them with adequate maintenance. For more information, coffee growers can call 2397-2260 from the CENTA-Café Management or visit the 23 extension offices throughout the country."
$14 million will be allocated to renovating 50 thousand hectares of coffee plantations, with varieties less vulnerable to climate change and more resistant to diseases such as rust.
The head of the Colombian Ministry of Finance reported that "... a consignment of 39 billion pesos ($13.8 million) was approved for the renovation of coffee plantations. 150 pesos ($0.05) will be paid for each renewed tree, either by sowing or offshoots, resources that will be enough for the renewal of 253 million trees; that means 50 thousand hectares that can be renewed."
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.
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.
With a legal reform approved by the Legislative Assembly of El Salvador, an attempt is being made to renew coffee plantations, this time with the objective of planting 13 million coffee trees in 2018.
From a statement issued by the Legislative Assembly of El Salvador:
On Friday night the Plenary approved a reform to the Law on the Creation of the Coffee Production Support Trust, to facilitate acquisition of credit for coffee growers.
The coffee growers' association intends to promote planting of the Robusta variety, which generates better yields at a lower cost of production than Arabica coffee.
As a new measure to increase productivity of the sector, the National Coffee Association is proposing sowing the grain in areas where it has not been used un until now, such as conflict areas or those in the lower parts of the country.
In the 2015/2016 cycle, grain production was 14.7 hundredweight per manzana (6,961 m2), above the 12.7 hundredweight per manzana produced in the previous cycle.
The improvement in productivity was due in part to a 9% increase in the harvested areain the period 2015/2016 compared to the previous cycle.The harvested area in 2015/16 amounted to 163,900 manzanas, above the 149,800 manzanas registered in the 2014/15 cycle.