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"]
Government and representatives of the sector have announced the creation of a work commission that will focus on defining new strategies to boost the coffee activity in the country.
Representatives from the Central Bank of Nicaragua (BCN) and coffee producers held a session in which they agreed to work together on various issues that impact on the activity of the sector, among which, are the effects caused by pests.
Up until March 5, the volume exported from the current 2017/18 harvest amounted to 3.6 million bags, 17% more than was reported on the same date of the 2016-2017 cycle.
According to figures from the Honduran Coffee Institute (Ihcafe), the value of sales of the grain abroad showed a behavior contrary to the volume exported. "...The value of exports is $446.5 million, showing a decrease of 1% compared to $450.5 million."
The Guatemalan union of the sector announced that the reactivation plan they are preparing is based on the renovation of coffee plantations within a period of five years.
The National Coffee Association (Anacafé), is working in conjunction with the ministries of Public Finance, Agriculture, Livestock and Food and the Inter-American Development Bank, on a plan for economic reactivation of the sector, which could be ready in the coming weeks.
In Costa Rica, a decree is being prepared to eliminate the ban that has been in effect since 1988 and to re-authorize planting of the robusta variety in some areas of the country.
The results obtained in tests carried out in 2016 and the conclusion that there is no longer a real technical justification for prohibiting the sowing of this variety have led the Ministry of Agriculture and Livestock to review the conditions and evaluate resumption of planting in some areas of the country.
According to the union of exporters, for 2018 the destinations that represent potential opportunities for special coffees are Taiwan, China, Australia, Malaysia, Czech Republic and Chile.
In the case of the Chilean market, the first multisectorial trade mission led by the Department of Market Development and Commercial Promotion of the Guatemalan Association of Exporters (Agexport) was carried out in 2017, in which more than 50 commercial appointments were attended, showing high interest for the special coffees of Guatemala.
According to the union of coffee growers the threat of an increase in the incidence of rust remains high, in the regions of Coto Brus and Turrialba.
The "Early warning and recommendation system for the combat of Rust" by the Coffee Research Center, details that the threat of increase of rust remains high in the regions of Coto Brus and Turrialba. However, in the localities located in the regions of Pérez Zeledón, Zona Norte, Central Valley, Western Valley and Los Santos, the threat is gradually reduced depending on altitude and microclimates.
The new technical regulation that will apply as of July 2018 in Nicaragua, establishes methods of analysis, sampling, packaging and labeling of green robusta coffee for export and commercialization.
Sincethe coffee law was amended in May 2017to incorporate extensive planting of the Robusta variety in certain areas of the country, cultivation of this type of grain has been growing. Producers and exporters now have a new technical standard that establishes the methods to be followed in the cultivation of this variety.
Through a proposed law the Ministry of Agriculture aims to protect national production by increasing tariffs on grain imports.
According to figures from the Salvadoran Coffee Council, of every 4 hundredweight consumed in the country approximately 3 are imported.The proportion is reflected in data from the 2015-2016 cycle, a period in which about 270 thousand hundredweight was purchased abroad, which contrasts with the 100 thousand hundredweight of local product consumed.
Global coffee output for 2017/18 is preliminary estimated at 158.78 million bags, 0.7% higher than last year.
Total production of Arabica is estimated to decrease by 1.1% to 97.32 million bags compared to 98.42 million bags last year, as lower production of Colombian Milds and Brazilian Naturals are only partially offset by increases in Other Milds.
Up until December 20, sales of the current 2017/18 crop totaled $84 million, 12% less than the amount reported on the same date of the 2016-2017 cycle.
From the IHCAFE Statistical Information Bulletin:
As of December 20, 2017, 2017-2018 harvest.
Exports to date total 708,828 bags of 46 kg, an increase of 5% compared to the 672,301 recorded in the same period in 2016-2017.The value of exports is 83.8 million dollars, showing a decrease of 12% compared tothe 95.5 million registered on this date in 2016-2017.
In the last five years, the average price of coffee exported by countries in the region fell by 33%, going from $226 to $151.
Figures from the information system on thethe Coffee market in Central America, compiled by the Business Intelligence Unit atCentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
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.