Change of Government Hinders Exports

In El Salvador coffee exports have to wait for the incoming government to finalize the appointment of the new executive director of the Salvadoran Coffee Council.

Friday, May 30, 2014

Adding to existing problems in the coffee export sector, which has seen foreign sales decrease by 56% in the fourth month of the year compared to the same period in 2013, the Salvadoran Coffee Council (CSC) is warning of the possibility that exports of the grain will be further hindered by the process of appointing new management, a job of the incoming government.

It recommended that "the people that make up the coffee chain should take steps to avoid delays in processing the registration of producers and entities in the chain, solvency and proof of the Emergency Fund for Coffee (FEC). "... 'This follows the process of appointment of the Executive Director by the new authorities from June 1 of the current year', according to a circular. "

"When consulted, Marcelino Samayoa, Executive Director of the Salvadoran Association of Coffee Processors and Exporters (ABECAFE) lamented that the transition of government could affect trade. To avoid this, Samayoa believes that it would be best for public officials, in this case the CSC, to delegate to others so as not to affect proceedings where there is a risk that buyers will not want to receive the product because of failures in keeping to delivery dates. 'People are temporary and institutions are permanent. And if I'm the one who signs things and I go away, then I delegate to you so that you can sign on my behalf,' exemplified Samayoa."



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Because of the drought and the decrease in international prices, the trade guilds of the sector in El Salvador are projecting a decrease in production for the next harvests.

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Coffee Exports to Fall by $200 million in 2012

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Grain producers in El Salvador warn that the harvest will be 1.1 million quintals less this year due to a range of negative factors.

Coffee entrepreneurs in El Salvador fear that in 2012, losses from a possible reduction of the crop will reach $200 million. Negative factors such as the effect of the weather, aging of the plantations and the bi-annuality of coffee are contributing to the situation.

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