Shady Prospects for Coffee

In Guatemala the union of producers has stated that a reduction in international prices is affecting the sector, which is already facing difficulties in covering production costs.

Wednesday, August 22, 2018

The National Coffee Association attributes the problem to international consortia, which may be exerting further downward pressure on grain prices. They warn that this situation will have a strong impact on the national economy, because with current prices, producers are not even able to cover their costs.

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

Ricardo Arenas Menes, president of the National Coffee Association (Anacafé), explained to that "... (the union) has been denouncing to other institutions and leaders of producing countries that producing coffee is not something magical and involves a producing family. An exchange rate makes us less competitive and all other countries, except Guatemala, have devalued their currency as a measure to support coffee production and be competitive."

See "Coffee: Global prices to July 2018"

In the short term, the leader sees an even more complex panorama ."... There will be a serious unemployment rate, which will be worse, because they are no longer maintaining the working days they used to. The coffee industry is in total crisis and other countries subsidize coffee production, but Guatemala is being left behind due to a lack of country policies."

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