Another Plan to Reactivate the Coffee 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.

Friday, February 16, 2018

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. 

See: "Guatemalan Coffee Betting on Emerging Markets"

The president of Anacafé, Ricardo Arenas, told that " ... the proposal will be ready in six weeks, but he revealed that one of the objectives will be to manage credit lines with the bank, for US $100 million (Q735 million) in 2018."

See also: "El Salvador: $80 million to Renovate Coffee Plantations"

In relation to the global amount needed for the expansion of coffee plantations, Arenas explained that "... the total investment to expand coffee plantations and renew 50 percent of the plantations is US $1.4 billion (Q10.2 billion)."

More on this topic

Slow Recovery of Coffee Production

September 2018

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.

$280 million Approved for Coffee Sector

September 2018

In order to deal with the difficulties caused by the low international price of the grain, the Honduran government plans to make resources available to 120,000 coffee producers.

The Honduran presidency reported through a statement that one of the decrees, approved by the National Congress at the proposal of the Executive, creates the Special Guarantee Fund for the Coffee Sector with an initial contribution of 300 million lempiras ($12.7 million) from the Honduran Bank for Production and Housing (Banhprovi), which will provide 2,400 million lempiras ($101.9 million) in reciprocal guarantees, which will serve to propitiate operations of twice that value ($203.8 million).

Negative Expectations for Honduran Coffee

June 2018

The sector union foresees that for the 2017-2018 harvest foreign currency generated from sales abroad will fall by 14% with respect to the previous season.

Explained by a drop in the average price per hundredweight of exports, which fell from $145 in the 2016-2017 season to $123 so far in the current harvest, the Honduran Coffee Institute (Ihcafé) envisages a 14% decrease in income from sales abroad.

Guatemala: Renovation of Coffee Plantations

September 2016

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. "

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