Exports of Guatemalan cardamom producers improved during the last harvest, as a decline in global supply resulted in a 34% increase in the selling price.
According to figures from the Bank of Guatemala, the average price per quintal of cardamom sold abroad from the country reported a rise between February 2018 and the same month of 2019, going from $489.93 to $654.80, which is explained.
Because of the dry season and the rise in temperature, Costa Rica expects an increase in pests in crops such as melon, watermelon, courgette, chili, tomato, beans and cucumbers, among others.
Authorities of the Ministry of Agriculture and Livestock (MAG) informed that the climatic conditions foreseen for the coming months are associated with the El Niño-Southern Oscillation phenomenon.
In 2017, cardamom exports from Guatemala totaled $367 million, and the 60% increase compared to the previous year was mainly due to an increase in the international price.
The increase in export value was mainly due to an increase registered in the price of cardamom on the international market over the past year, as it increased from $6.42 per kilo in 2016 to $10.27 per kilo in 2017, which represents growth of 60%, which coincides with the increase in the amount sold abroad.
Favored by an improvement in international prices, from January to November 2017 the country sold $317 million worth abroad, 71% more than was exported in the same period in 2016.
In the first 11 months of 2016, the country sold $186 million worth of cardamom abroad, 11% less than was sold in the same period in 2015.
After a difficult year because of the impact of the Thrips pest and declining international prices, at the end of 2014 $240 million were generated in export earnings.
With the annual increase of 10% in production, Guatemala maintains its global market lead in cardamom sales. According to the Guatemalan Exporters Association (Agexport), since 2005 they have increased their sales by up to 241%.
Overproduction along with the thrips pest, which has affected 35% of production, are putting downward pressure on the price of the seed.
On top of the negative effect of the pest on crops, is the lack of implementation of good practices by smallholders and soil problems arising from, among other factors, deforestation.
"Jorge Mario del Cid, Chairman of the Cardamom Committee at the Guatemalan Exporters Association, said in an article in El Periodico that a quintal can fetch a price in the local market of Q5, 000 when the crop is below 20,000 tonnes, but it may fall to get Q1,500 with the current harvest." According to the same source, the problem affects approximately 350,000 domestic producers."
In Guatemala, the world's largest exporter of cardamom, the Thrips pest could affect up to 40% of national production.
The Chairman of the Committee of Cardamom Producers, Jorge Mario del Cid, said this year already some 6.4 million kilos have been rejected, 20% more than what was lost in 2011.
"According to Del Cid, the cost was absorbed by the members of the supply chain, because it is not possible to identify which products are affected in the field, rather when they are in the milling and classification process", reported Elperiodico.com.gt.
Up to and including May 14, a record of $172.3 million for sales of the grain was registered with respect to the $62.1 million sold during the same period in 2008.
According to data from the Bank of Guatemala, almost all cardamom is exported to the countries of Saudi Arabia, UAE, Jordan, Kuwait, India, Pakistan, Syria, Israel and Singapore.
Ovidio Fernandez, president of the Association of Guatemalan Cardamom Dealers (CARDEGUA) told Elperiodico.com.gt: "Most producers are indigenous peasants who have small plots of one or two acres which they work with their family and then they sell the cardamom to an intermediary, who carries out the drying process and subsequently resells it to exporters."