Avocado as an Alternative to Coffee Cultivation

In Nicaragua some coffee growers have decided to replace their crops with avocado plantations, because the international price of coffee has reported low prices in recent years.

Friday, September 6, 2019

According to reports from CentralAmericaData, in the last seven years the average price of regional coffee exports has registered a clear decreasing trend, going from $4.86 per kilo in January 2012 to $2.57 at the beginning of 2019.

You may be interested in "Crops in Central America: Main Figures in 2018

This has put a strain on producers in the region. Elnuevodiario.com.ni reviews that "... Aldo Rappaciolli Lacayo, who for many years represented the coffee growers of the department of Carazo, that this guild is in a critical situation and that for that reason 20% of producers have opted to replace their coffee plantations, which were no longer profitable, with avocados and that others have also diversified their properties with citrus."

Rappacciolli added that "... The coffee sector in Carazo is experiencing hardship because the price is on the ground in the international market. The plantations no longer give the same quality of coffee of yesteryear and production costs have increased."

Currently avocado producers market their crops in Costa Rica, but future plans are to export the fruit to the U.S. and Europe, as oil, pasta and guacamole.

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More on this topic

Coffee: 2019-2020 Harvest Starts with Red Numbers

February 2020

Because of the lack of investment in recent years in the maintenance of the coffee park, in the first three months of the current harvest in El Salvador a 46% year-on-year drop in the volume of coffee production is reported.

Figures from the Salvadoran Coffee Council (CSC) indicate that from October to December 2019, nearly 358,000 quintals of coffee have been harvested, a volume that is lower than the 668,000 quintals produced in the same period in 2018.

Coffee: Good Expectations Due to Price Rebound

December 2019

The increase to $135 of the international price of the quintal is promising for the coffee sector, since in recent years producers have gone through severe crises because of the fall in the price of the grain.

According to figures from Bloomberg Markets, between mid-November and the first week of December the price of a quintal of coffee at the international level registered an important upturn, going from $100 to $135.

Coffee: Controversial Law Reform Approved

August 2019

The National Assembly of Nicaragua approved the bill that establishes that when the price per quintal of grain exceeds $100, producers must contribute one dollar to a commission that will watch over the incentives of the sector.

The changes to the Law on the Transformation and Development of Coffee Farming were surrounded by controversy, since the previous law mandated that the National Commission for the Transformation and Development of Coffee Farming (Conatradec) should be composed of nine representatives of the private sector, all proposed by the same producers or businessmen.

International Price of Coffee Rises

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The dry weather in Brazil drove up the price of arabica coffee by 23% in a week, but the upward trend is not expected to last.

On Tuesday coffee prices reached their highest levels in several months caused by dry weather in Brazil, the largest producer and exporter in the world, which could affect the next crop.

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