The Decline in Coffee Prices

In El Salvador the drop in the international price, which has been aggravated because of the negative differential with which the country's production is paid, comes on top of the problems of performance, processing and logistics costs.

Tuesday, November 24, 2015

An analysis of the Salvadoran coffee sector, made by Patricia Garcia in an article on ElSalvador.com, shows that "... A further fall in international coffee prices has once again put pressure on the local coffee industry, whose representatives say the pay they receive does not even cover production costs. The price of the aromatic in futures contracts on the New York Stock Exchange recently fell to $112 per hundredweight and this week has remained at $115. The latter price reflects a reduction of $90 compared to $205 at which it traded a year ago. "

Under the title "Sector in decline," it is stated that "... For some coffee producers, the range of problems they face includes not only low prices and reduced harvests, but also to lack of funds for investment, lack of scientific research, problems due to insecurity, infighting in the union, among other things, which continue to depress the sector. "

"... The issue of low international prices is not only a problem for grain producers, but also for representatives of roasters and coffee exporters. According to Ricardo Martinez, representative Comercial Exportadora SA de CV (Coex), since yields began to decline, roasters have had to significantly reduce their costs. "If production is very low, costs soar. For example, right now we are already started on the new harvest, but if we see that the harvest is going down, we will reduce operating costs and what will happen is that a lot of people will be made unemployed," Martinez said.



More on this topic

Shady Prospects for Coffee

August 2018

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.

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.

Costa Rica: Coffee Falls Behind Due to Cement

August 2015

Due to real estate growth, the area planted with ​​coffee in the Central Valley fell by 25% in the last thirteen years, going from 113,000 to 84,000 hectares.

The union of grain producers says that the most affected areas, along with the Central Valley are Perez Zeledon, Turrialba valley and the western valley.

Costa Rica: Coffee Industry Requires Renewal

January 2011

The agro-food chain of coffee needs complete renovation, with a vision focused on value added, productivity and competitiveness from the producer all the way to the industrial sector.

The Chamber of Coffee Roasters, representing the national roasting industry, is concerned about further price increases to final consumers due to shortage in local supply of coffee and the high price of the bean.

Concern in Costa Rica's Coffee Sector

November 2010

Low production and the rising international price of the bean concern the Toasters Chamber.

The anticipated decline in domestic bean harvest for 2010-2011 due to damage caused by rains, extends the downward trend in production which the country has followed over the last decade.