The bank approved $56 million for coffee planting in El Salvador between January and November 2011, 29.8% more than the same period in 2010 ($43.24 million), revealed the Superintendency of the Financial System (SSF).

"This implies that farmers received $12.92 million more to finance their activities," estimated the SSF according to an article on ElMundo.com.sv.

Improved grain prices in global markets favored loan approvals, as this phenomenon was deemed to be a payment guarantee.

"According to the Salvadoran Coffee Council (CSC), the average price reached $202.70 per quintal in the year 2010/2011, compared to $147.36 recorded in the previous cycle. Moreover, in the first three months of the 2011/2012 harvest, the average price reached $238.93, versus the $170.62 reported for the same period In the previous cycle", explained the article on ElMundo.com.sv.

Source: elmundo.com.sv

More on this topic

El Salvador: Coffee Being Stockpiled Until Prices Rise

April 2016

The 40% drop in volume and export value in the past four months could be explained by employers stockpiling the product until there is a rise in international grain prices.

Coffee exporters in El Salvador are delaying selling while they wait for a possible rise in international grain prices, which are still at prices unfavored by businesses.

Coffee Exports in El Salvador Down 30.9% 

May 2013

In seven months of harvest, sales revenues of Salvadoran coffee fell by 30.9% compared to the same period of the previous cycle.

In total $149.37 million was received in the seven months of the current harvest. "The volume of exports between October 2012 and April this year was 875,011 quintals, also with a fall of 4.3%, explained the Salvadoran Coffee Council in a report," noted an article in Elmundo.com.sv.

El Salvador: 139.9% Increase in Coffee Exports

October 2011

Coffee exports for the 2010-11 cycle produced revenues of $458.2 million, 139.9% higher than that generated in the previous cycle.

According to preliminary data from the Salvadoran Coffee Council (CSC), 2,260,428 quintals (bags of 46 kilos) of coffee were exported, which is 74% higher than the 1, 299,243 in the last cycle.

Credit for Coffee Producers Growing in El Salvador

June 2011

The rise of grain prices internationally is an incentive for investment in the sector.

In just four months, financing in the country’s coffee sector has grown by over 150% compared to the same period in 2010.

One of the main reasons seems to be the excellent performance of the grain abroad. Due to high prices and the high demand in the market, producers are being seen as more credit worthy.