El Salvador: Procafé Keeps Funding Source

The 50 cents per quintal which coffee producers grant Procafé, will not be assigned to the new Trust for Support of Coffee Production.

Wednesday, January 12, 2011

Since 2002, out of every quintal of coffee sold in El Salvador, 50 cents are for the Salvadoran Foundation for Coffee Research (Procafé).

A proposal in December made by the FMLN fraction in Congress, called for the bill to change the fate of those 50 cents per quintal and assign them to the Trust for Support of Coffee Production.

Coffee businessmen interpreted the project as an attempt to nationalize the private contribution, which in 2010 amounted to approximately $ 700 thousand and estimates calculate that by 2011 it will amount to $ 1 million 200 thousand.

More on this topic

Tender for Services Procafé Used to Offer

March 2012

The Salvadoran Coffee Council stated that the" tender has been created because PROCAFE has not been fully complying with transfer and research services."

The Salvadoran Foundation for Coffee Research (Procafé) is the body that usually provides transfer and technological research services as well as statistics generated by the coffee sector, services which have now been put out to tender.

El Salvador Expects Good 2010-11 Coffee Harvest

January 2011

Producers estimate a 60% increase for the 2010-2011 harvest, reaching 2.4 million quintals.

Antonio Alvarado, president of the Salvadoran Foundation for Coffee Research (Procafé), stated that the growth is partly driven by good international prices.

"By the middle of last year, international coffee prices reached levels not seen in 13 years.

El Salvador Must Renew Coffee Plantations

November 2009

In the next 20 years, the country must invest $35 million per year to renew its coffee plantations, which are 33 years old on average.

Mario Acosta Oertel, president of the Salvadoran Coffee Research Foundation (Procafé), explained that the country could produce an additional 1.5 million quintals each year if coffee plantations were in optimal condition.

El Salvador Extends Coffee Tax

June 2009

The tax of $0.50 per quintal of coffee, which is already paid by exporters, will now be extended to every quintal produced in the country.

Furthermore, this reform decree establishes that the money collected by the tax will be designated to researching new technologies to produce coffee.

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