The president of the National Association of Coffee in Guatemala, Christian Rasch, said that although revenues from coffee exports have fallen by 45%, demand for the product continues to rise, which is demonstrated by the price premium being paid for it.

In an article in elsalvador.com, Rasch said that the drop in foreign exchange earnings is caused by the decline in the price of commodities and the contract "displacement" phenomenon, which means that "instead of selling in February, they decide to sell in April."

Source: elsalvador.com

More on this topic

More Downward Pressure on Price of Coffee

December 2012

Very good harvests in Vietnam and Brazil, and a drop in European demand are the factors affecting prices, which continue to decline.

Added to a persistent decline in the international prices, is the extensive affect on Central American harvests of the "Roya" blight, that is affecting an estimated 80% of plantations. The effects of the pest will be felt not only in the present harvest, but in the next.

The Premium Being Paid on Coffee

June 2012

The rapid downward change in prices has left the processing sector badly off; expecting prices of over $300 per quintal, they went into debt to pay high prices for the raw grain.

An article in Elfinancierocr.com analyzes the cycles of crisis and prosperity in the Costa Rican coffee industry, the high risk that exists in all phases of the business and the complexity of the process of adding value to exporting finished products rather than raw materials.

The Results of Investing in Quality Coffee

May 2012

A quintal of fine Costa Rican coffee is sold with an average premium of $25 over the reference price on the New York Stock Exchange.

For the last twenty years producers have applied a production strategy for high quality grain, which allows them to sell 80% of the domestic production on fine grain markets, said Ronald Peters, Icafe’s executive director.

Coffee Prices Continue to Fall

March 2012

The price of a quintal has fallen below $200 due to a Brazilian "superharvest", with industry leaders recommending caution.

On Tuesday March 6th a quintal of coffee traded at $192.95 on the New York Stock Exchange, down 4.24%, lower again than at the beginning of the week when it was recorded at $201.5.