Pessimistic Expectations for Coffee

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.

Monday, October 15, 2018

Marcelino Samayoa, CEO of the Asociación Salvadoreña de Beneficiadores y Exportadores (Abecafé), explained to that "... The drought registered in 2018 caused a slow increase in the ‘bandolas’, which are the branches of the coffee segments that should be there for 2019/2020.

See "Coffee: Still "Gold" in Central America?"

On the other hand, Sigfredo Benítez, president of the Coffee Forum, detailed that "... Although the rust "can be triggered" its consequences will be reflected in the 2019/2020 harvest. In the present one, it would have a small impact if the plants that are enough full do not have leaves, that tends to affect the maturation, there is loss for quality."

According to reports from CentralAmericaData in the last six years the average export price of Central American coffee has fallen, with the price per kilo declining from $4.51 in March 2012 to $3.10 in the same month in 2018.

Reports state that in 2017 the main coffee exporter in Central America was Honduras, with $1.321 million, followed by Guatemala, with $749 million, Nicaragua, with $513 million, Costa Rica with $308 million, El Salvador, with $121 million and Panama with $24 million.

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More on this topic

Coffee in Honduras: Negative Outlook

January 2019

Honduran coffee growers forecast that for the 2018-2019 harvest, foreign sales income will be reduced by $300 million with respect to the previous cycle.

According to the Association of Coffee Exporters of Honduras (Adecafeh), the bad numbers for the sector continue, because so far this crop has registered a fall of $ 40 million in exports, equivalent to 400 thousand quintals, compared to the previous cycle.

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.

Honduras: Coffee Sales Still Falling

May 2018

Up until April 30, the export value of the current 2017/18 harvest was $680 million, 13% less than was reported on the same date in the 2016-2017 cycle.

According to figures from the Honduran Coffee Institute, the registered decrease is due to the fact that " ... The average export price per hundredweight to date is $122.74, compared to the average price of 2016-2017 of $145.26, down 16%. "

Honduran Coffee in Numbers

March 2018

Up until March 5, the volume exported from the current 2017/18 harvest amounted to 3.6 million bags, 17% more than was reported on the same date of the 2016-2017 cycle.

According to figures from the Honduran Coffee Institute (Ihcafe), the value of sales of the grain abroad showed a behavior contrary to the volume exported. "...The value of exports is $446.5 million, showing a decrease of 1% compared to $450.5 million."

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