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.
In the department of El Paraíso, a high-tech plant was inaugurated that will be dedicated to the production and processing of coffee products and specialty coffees.
The plant is located in Teupasenti and is called BioFortune. A $1 million investment was required and it has controlled fermentation and dehydration equipment.
In markets such as North America and Western Europe, a consumer segment wants the grain to meet aspects such as ethical and sustainable sourcing, and its production process to be certified.
According to the study "Trends and Opportunities for value-added coffee exports" conducted by the Differentiated Coffees Committee of AGEXPORT, reveals how to change the strategies for marketing good quality coffee with higher value added (roasted), for the next coffee harvest of 2,019 - 2,020 and those to come.
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.
In the last year, 56 environmental impact studies were presented for the construction of industrial plants in Central American countries.
The interactive platform "Construction in Central America", compiled by the Business Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions in each country.
In Costa Rica, twelve farms are now using experimental technology to reduce the cost of weed control from approximately $250 per hectare to $50.
Through the use of small tractors or modified motorcycles which have arms attached to them to perform fumigation, atomization, weed control and fertilization tasks at an early stage, Costa Rica is managing to reduce labor costs in coffee plantations.For example, "... it is estimated that the time it takes to atomize one hectare, for example, can be reduced from the current day and a half to barely an hour."
Up to February 1 2017, exports totaled 2 million bags of 46 kilos, an increase of 41% compared to the same period in the 2015/2016 harvest.
From a report by the Honduran Coffee Institute:
Exports to date total 2,025,986.39 bags of 46 kg, an increase of 40.88% compared to the 1,438,099.70 recorded in the same period in 2015-2016.The value of exports is 292.94 million showing an increase of 60% compared to the 177.83 million recorded on this date in 2015-2016.
Central America's main competitor has started to feel the effects of the weather phenomenon, bringing down the number of bags of coffee produced in June 2016 compared to the same month in 2015 by 7%.
From a statement by the National Federation of Coffee Growers in Colombia:
Bogota, July 6, 2016 (Press FNC) - In June, the effects of El Niño also began to be reflected in the volume of coffee produced in Colombia, the largest producer of mild washed arabica coffee.
The fall in international prices has forced employers of specialty coffee to take steps to improve their competitiveness by resorting to full control of product traceability.
The fall in international prices in the coffee market is the main mitigating factor with which the industry is doing battle in Panama and Central America in general in order to remain profitable.
The winner in the category Exotic Natural was the lot Geisha Natural Jaramillo submitted by Hacienda La Esmeralda, which along with the winners in the other categories, will be auctioned online on June 23.
Second place was awarded to a batch of Jose Gallardo Geisha, with a score of 93.1, which was also a winner in the washed exotic coffees category. On the other side, first place in the traditional washed category went to Kalithea Jesus Sierra, with a score of 88.39, and second place went to a batch of Elida Lamastus Family Washed with 87.37 points.
Cerinal Café has begun operating its new coffee processing plant in the town of Barberena, Santa Rosa, from where it estimates it will export 250,000 bags per year.
Using the high quality pergamon and oro coffee varieties processed in the new plant, the company plans to supply the markets of Japan, the USA and Europe.
René Kanne, general manager, told Elperiodico.com.gt that "...
The coffee sector should consider whether the current crisis is temporary or whether fundamental alternatives should be analyzed, such as moving towards industrialization to export ground grain with proprietary brands.
After peaking in May of 2012 at $250 per quintal, arabica coffee prices have steadily dropped, settling last week at just over $100. The futures prices are not very encouraging: for December even lower values are indicated.
The international market is increasingly accepting coffee shipments in one ton containers.
An article in Laprensa.hn reports that "IntercontinentalExchange, home of the most traded coffee contract, announced last week that it would allow grain shipments to its certified deposits in lined cargo containers or 'supersacks'."
"... Cargo containers for loose grain are now being traded in the physical coffee market.
Losses caused by the rust disease in Honduras amount to 1.8 million bags, 650,000 quintals in Guatemala, 600,000 in Nicaragua, 400,000 in El Salvador, 200,000 in Costa Rica and 60,000 in Panama.
Those are the estimates of the Central American Organization of Coffee Exporters (ORCECA), who was unwilling to speculate on how much income the region would not receive because of declining exports.
Rust and anthracnose are affecting the coffee plantations in several of the country’s regions, with an estimated loss of 10% in the current crop.
The disease known as coffee rust has increased in various departments and the plantations in Estelí, Madriz, Nueva Segovia, Jinotega, Matagalpa and Boaco, are affected. Some producers from Las Segovias estimated losses of up to 10% of their harvest.