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.
In Guatemala, agricultural entrepreneurs insist that opportunities will be lost if the agreement is not signed, while industrialists propose analyzing the conditions in more detail.
The National Coffee Association believes that the Ministry of Economy has abandoned talks with the Korean government, which harms them since the Asian country is a growing market that recognizes the quality of the grain.
Guatemalan coffee growers are warning that if the country does not adhere to the agreement signed between Central America and the Asian country, they will lose market share and will have to compete with their peers in the region under unequal conditions.
Representatives from the National Association of Coffee Growers (Anacafé) insist that the government sign the agreement that the other countries of the region have already signed with South Korea, arguing that they will lose out on the advantage they have achieved in recent years.According to coffee farmers, 23% of coffee exports go to Japan, South Korea, Taiwan and China.
Climatic conditions in the first half of the year have raised the likelihood of an increase in the presence of the pest in some of the grain producing regions.
The technical department of the National Coffee Association (Anacafé) has stated that the average incidence is 11%, but in some areas in the regions 1, 2, 4 and 7, the incidence is above 20%.
The coffee growers' association intends to promote planting of the Robusta variety, which generates better yields at a lower cost of production than Arabica coffee.
As a new measure to increase productivity of the sector, the National Coffee Association is proposing sowing the grain in areas where it has not been used un until now, such as conflict areas or those in the lower parts of the country.
A reduction has been projected of between 10% and 15% in the 2017/18 harvest due to the effects of drought and frost in different production areas in the country.
The projections are the result of an assessment carried out by the technical department of the National Coffee Association (Anacafe) in different parts of the country.For the 2017/18 harvest a production of 3.35 million hundredweight is expected.
Grain production is expected to increase from the 3.8 million in the 2014/15 harvest to 4.1 million in the current season.
The union of coffee producers anticipates better results for the 2015/16 harvest, despite the fall in international prices and the negative impact still being caused by the rust problem. Evelio Alvarado, general manager of the National Coffee Association, told Diario de Centroamerica that "...
A trade mission to Taiwan has been organized for November 13th for Guatemalan coffee exporters so that they can participate in the International Fair for Tea, Coffee and Wine 2015.
Funds from the Trade Office for Central America are being used to finance part of the costs for promotion, translation, logistical support and equipment needed for to the ´cupping´or tasting coffee companies who will take part in the mission.
More access to loans, promoting the designation of origin and improving brand positioning of Guatemalan Coffees is part of the strategy proposed by the union.
Among the measures the National Coffee Association intends to implement is the exchange of rust resistant varieties with companies such as Starbucks, with whom an agreement was signed to improve the quality of the grain.
With 30 days left until the end of the 2013/2014 harvest, sales from El Salvador, Nicaragua, Guatemala and Costa Rica are lower than in the previous crop by 56%, 12%, 15% and 10%, respectively.
South American producers in Colombia and Peru were the only ones who achieved positive results in sales of the current crop, with growth in the harvest in respect to 2012/2013 of 22% and 5.5%, respectively.
Up to June 2014 foreign exchange earnings from grain sales abroad were $438 million, 6.9% less than in the same month in 2013.
Data from the Central Bank of Guatemala indicates that "... between October 2013 and August 2014 sales of the aromatic totaled 2,917,911 bags of 60 kilos (132 pounds), while in the previous harvest they were 3,463,541 bags which is a difference of 545 630 bags".
The trust has become operational which gives loans with a term until 2026 and interest at 2% per year for smallholders and 3% for medium and large producers.
From a statement issued by the National Coffee Association of Guatemala:
With the amendment of the public deed which created the "Trust for financial support for producers in the coffee sector" with assets of $100 million; the National Coffee Association (Anacafé) can say: mission accomplished.