Coffee Sector: Requests to the New Government

Producers in El Salvador asked President-elect Nayib Bukele to manage financing for the renovation of the farm, create a research center and protect the sector by regulating imports.

Wednesday, March 20, 2019

Through a letter sent to the president-elect on March 18, the Asociación Cafetalera de El Salvador (Acafesal) raised the need for $200 million in funding to renovate the coffee park.

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Omar Flores, president of Acafesal, told that "... The proposal consists of renewing 50,000 apples with a financing of $200 million, which the new government could manage to deliver to producers in loans with a 15-year term, with an interest rate of less than 5%."

The article adds that "... The plan includes the creation of an institute responsible for scientific research, innovation, technical assistance, export promotion and grain marketing. In addition, in the face of crises such as the fall in international prices, the guild requested the creation of a guarantee fund with contributions from the private and public sectors."

Regarding other actions that are already moving forward to finance the renovation of the Salvadoran coffee plantation, last week it was reported that the Finance and Budget Committee agreed to a favorable opinion to sign a new financing contract with the Central American Integration Bank of Economy, for $86 million, resources that will serve for the renewal of 20,777 hectares of the crop.

According to reports from CentralAmericaData, during the first semester of 2018 the main coffee exporter in Central America was Honduras, with $830 million, followed by Guatemala, with $474 million, Nicaragua, with $322 million, Costa Rica with $228 million, El Salvador, with $83 million and Panama with $11 million.

Figures show that in the last six years the average price of regional coffee exports has registered a clear decreasing trend, going from $4.23 per kilo in June 2012 to $3.11 in the same month in 2018.

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