The Central American Bank for Economic Integration approved a loan, which will be used to finance a program to renovate the country's coffee farm.
The financing is destined to the renovation of the coffee park of the country, through the substitution of plants damaged by plagues and diseases or with greater age that allows to revert the losses of productivity by the aging of the plantations and the effects of the rust, estimating the renovation of approximately 19.9% of the coffee park of Guatemala, informed the financial entity.
While producers in El Salvador predict that the local crop could be extinct in the next two years because of falling international prices, other countries in the region place grain at more favorable prices.
Each country's realities are different, as there are several differences that are reflected in the amounts exported and in the average prices at which the grain sells abroad.
In December 2018, it was reported that the international price of a pound of coffee fell to $1, which is equivalent to a 12% drop compared to the same month in 2017.
Data from the International Coffee Organization (ICO) detail that in the last two months of last year also reported a decline in the price of the pound of coffee globally, in this case was 8% as it declined from $1.09 to $1.
Because of the low grain prices reported in 2018, it is estimated that there could be a reduction in supply, which would lead to a rebound in prices this year.
On average, the pound price of grain was close to $1.15 during 2018, however, global businessmen forecast that for this year the price could rise to $1.24 per pound.
During the first six months of the year, coffee exports from Central American countries totaled $1,948 million, 9% less than what was reported in the same period in 2017.
Figures from the information system on the coffee market in Central America complied by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
To reduce production costs, the Guatemalan coffee association will implement a climate information system to provide access to more specific forecasts in coffee-growing areas.
According to the National Coffee Association (Anacafé) with the implementation of more weather stations in small coffee areas of the country, the costs of grain production could be reduced between 10% and 15%.
In Guatemala, for the 2018-2019 harvest, the production of green coffee is projected to reach 4.5 million quintals, which would exceed the 4.4 million quintals reported in the previous season.
According to Ricardo Arenas, president of the National Coffee Association (Anacafe), "... The 2018-2019 coffee harvest, which started last month, will stand at 4.5 million quintals of green coffee; of that figure, it is estimated that 3.5 million will be exported."
Coffee growers in Guatemala estimate that production in the agricultural cycle that is about to end will totol 4.3 million hundredweight, above the 4.2 million hundredweight reported in the 2016-2017 harvest.
Forecasts by the National Coffee Association (Anacafé) indicate that for the upcoming 2018-2019 harvest, production could be located at 4.5 million gold hundredweight (46 kilos sacks), which would mean a continuation of the recovery phase.
Prices for all coffee groups fell in July 2018, though the largest month-on month decrease occurred for Brazilian Naturals, which declined by 4% to 110.54 US cents/lb.
From the monthly report by the ICO:
In July 2018, the ICO composite indicator price decreased by 2.9% to an average of 107.20 US cents/lb, which is the lowest monthly average for July since 2007, when the monthly composite indicator reached 106.20 US cents/lb.
In the last six years the average export price of Central American coffee has been trending downwards, with the price per kilo falling from $4.51 in March 2012, to $3.10 in the same month in 2018.
Figures from the information system on the Coffee Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Due to the climatic conditions predicted for the months of July and August, an increase is expected in the presence of the disease in coffee plantations in Costa Rica.
During July there is a typical decrease in rainfall known as "la canícula", a period in which Rust progresses slowly and the emergence of new lesions is less.However, at the same time there is a greater presence of spores in the lesiones favored by the warmer temperature and by weaker and less frequent rains.This situation will promote a largeincrease in the disease in the majority of the Costa Rican coffee plantations when more abundant rains return starting in August, reported the Coffee Institute of Costa Rica (Icafé).
Last year coffee sales in Central American countries totaled $3.035 million and grew by 27% compared to 2016, in contrast to the fall recorded between 2015 and 2016.
Figures from the information system on the Coffee Marketin Central America, compiled by the Business Intelligence Unit at CentralAmericaData : [GRAFICA caption = "Click to interact with graph"]
In March, international coffee prices registered a 1% reduction, mainly due to the low prices of the Colombian Milds coffee variety.
From the monthly report by the International Coffee Organization:
Since August 2017, the ICO composite indicator price has declined in each month except January 2018. The composite indicator decreased by 1.1% in March 2018 to an average of 112.99 US cents/lb, which is the lowest monthly price since February 2016.
After a slight increase in the first month of 2018, in February international prices fell by 1%, due to the negative behavior of three groups of the Arabica variety.
From the monthly report by the International Coffee Organization:
After a slight rise in January following a three-month decline, the monthly average of the ICO composite indicator fell by 1.2% in February 2018 to 114.19 US cents/lb.
In the first nine months of 2017, countries in the region exported $2.795 million worth of coffee, 29% more than was sold during the same period in 2016.
Figures from the information system on the the Coffee market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]