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.
While declining international prices and smuggling are threatening factors for agricultural production in Guatemala, planned investments in infrastructure would help reduce the costs of the sector.
Estimates by the Bank of Guatemala (Banguat) detail that the agricultural Gross Domestic Product increased 2.6% in 2018, and by 2019 a 2.8% increase is expected.
Even though in 2018 cocoa was better quoted internationally, the volume sold abroad fell 8% compared to 2017, going down from 4,238 to 3,886 tons.
In contrast to the negative variation in the volume traded, figures from the Export Processing Center (Cetrex) detail that between 2017 and 2018 the value of exports registered a 18.9% growth, increasing from $5.3 million to $6.3 million. This increase is explained by the behavior of the grain price.
Because of the foreign sales of companies in Guatemala and Honduras, during the first six months of 2018 regional exports totaled $100 million, 19% more than in the same period in 2017.
Figures from the Business Intelligence Unit at CentralamericaData: [GRAFICA caption="Click to interact with graphic"]
From March 21st to 23rd in Antigua, Guatemala, more than 150 international buyers will participate in business rounds with agricultural producers in the region.
From the Agexport press release:
The AGRITRADE Platform of AGEXPORT invites Guatemalan companies of vegetables, fruits, differentiated products, ornamental plants, flowers and foliage, logistics, inputs and agro-industry to promote their exportable offer in the 19th.
The fall in international grain prices in recent years has increasingly affected producers in the region, who at current prices do not even reach the production costs.
Since years ago, international sugar prices have reported a clear downward trend, and in the last twelve months the quintal price registered a fall of 23%.
In the first days of January last year, the international price of sugar was above $15 per quintal, and that value has been decreasing in recent months, falling to $12 per quintal at the beginning of this year, according to Investing.com.
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.
In the first nine months of 2018, 21 environmental impact studies were presented in Central America to adapt land for cultivation and processing of agricultural products.
The interactive platform "Construction in Central America", compiled by the Business Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.
In the first half of the year, Central American countries exported pineapple for $583 million, 14% more than in the same period in 2017, mainly because of sales to U.S. companies.
Figures from the information system on the Pineapple Market in Central America complied by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
A food processing plant will start operating in Rivas, which will focus on attending to producers and traders, and on university studies.
The new plant, which has the capacity to process meat products, dairy products, cereals, mushrooms, fruit and vegetables, was built on the grounds of the Antonio de Valdivieso International University (Uniav).
The disease has decreased considerably in recent years, as between 2014 and October 2018 the portion of the coffee plantation affected in El Salvador decreased from 38% to 10%.
According to monthly monitoring by the National Center for Agricultural and Forestry Technology (CENTA), the country's coffee plantation, which has been one of the most affected by the disease in the region, has considerably reduced the presence of rust.
During last year, the country reported the production of 180,086 tons of rice, 20,652 tons of corn and 9,005 tons of beans.
According to the National Agricultural Survey 2017, carried out by the National Institute of Statistics and Census, it is estimated that last year the area planted with beans was 16,503 ha, 14,624 ha harvested area for a production of 9,005 mt.
Because of the weather, Guatemala, Honduras and El Salvador report annual losses in basic grain and vegetable production of $196 million, $140 million and $37 million, respectively.
According to estimates by the Inter-American Development Bank (IDB), the Central American countries that are part of the Northern Triangle, derived from climatic phenomena, mainly drought, annually record total losses in the agricultural sector close to $337 million.
Coffee is still the main agricultural product sold abroad, with annual exports of around $3,035 million, followed by bananas, with $2,574 million and sugar, with $1,241 million.
Figures from the interactive platform "Central American Crops Monitoring" compiled by CentralAmericaData's Business Intelligence Unit:
Producers in El Salvador, Honduras and Guatemala, will have a processing plant, technical assistance and a global distribution network.
The funds from the Italian-Latin American International Organization (IILA) and the Italian Agency for Development Cooperation (AICS) are part of the project entitled "Revitalization of the quality cocoa chain in Central America and the Caribbean."