Plant diseases such as rust in coffee plantations, added to an oversupply of sugar worldwide, explain some of the moderate expectations that entrepreneurs have for some of the most important agricultural products in the region.
Representatives of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif) of Guatemala believe that the deceleration that has been registered in international prices of some raw materials and agro-industrial products suggest a decline in local production.
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).
The lot that this year was best quoted in the international electronic auction reached $30 thousand per hundredweight, and the grain comes from the canton of Dota, Los Santos zone, Costa Rica.
The high quality coffee that received the best quote in the international electronic auction in the Cup of Excellence contest is from the Don Cayito farm, with a price of $30,009 per hundredweight.
Factors such as the international price and a reduction in productivity, explain the 60% drop in production of this grain in Costa Rica 's Central Valley over the last 17 years, ceding the land space to real estate development.
Areas in the Central Valley that had previously been considered the best for coffee growing, have been giving way in recent years to new constructions, both residential and commercial, mainly east of San José.
In Costa Rica, the decree that authorizes the cultivation of coffee of the robusta variety in low altitude areas is now in force.
The decree was published on May 16 in the newspaper La Gaceta, and will be controlled by the Coffee Institute of Costa Rica (Icafé), to "... avoid a mixture of crops in the areas, avoid the joint processing of the two varieties and determine through tests which types of Robusta are best adapted to the country."
The batch that obtained the best score in Costa Rica comes from El Jardín de Dota, and will be one of the participants of the international online auction, to be held on July 10.
From a statement issued by the Costa Rican Coffee Institute:
June 4, 2018.Judged by twenty-five international expert tasters, the coffee belonging to Mr.
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"]
$14 million will be allocated to renovating 50 thousand hectares of coffee plantations, with varieties less vulnerable to climate change and more resistant to diseases such as rust.
The head of the Colombian Ministry of Finance reported that "... a consignment of 39 billion pesos ($13.8 million) was approved for the renovation of coffee plantations. 150 pesos ($0.05) will be paid for each renewed tree, either by sowing or offshoots, resources that will be enough for the renewal of 253 million trees; that means 50 thousand hectares that can be renewed."
The prices of the three groups of the Arabica variety fell in April, but the highest month-on-month reduction was recorded in the price of natural coffees in Brazil.
In April 2018, theICO composite indicator decreased by 0.4%to an average of 112.56 US cents/lb, with the daily price ranging between 110.49 US cents/lb and 114.73 US cents/lb.Prices for all three Arabica groups fell in April 2018, though the largest month-on-month decrease occurred for Brazilian Naturals, which fell by 0.9% to 118.76 US cents/lb.
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.
In Costa Rica, a new bill has been presented to grant resources at a preferential rate to producers, aimed particularly at the smaller ones.
According to the bill, which received a positive ruling in committee and now must go to the Plenary, the fund will be financed by a contribution of 5% from the liquid surplus of the Coffee Institute of Costa Rica (Icafé), resources from the Ministry of Agriculture and Livestock and funds recovered from the Trust Fund for Coffee Producers Affected by Rust and the Coffee Plantation Renewal Plan.
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.
In Costa Rica, climatic conditions have favored the development of rust in areas of early maturation, where 40% of the almost 30 thousand hectares planted are affected.
For the moment, the presence of this outbreak by epitifia is located in the coffee regions known as early maturing zones, that is to say, Pérez Zeledón, Turrialba and Coto Brus.Already, great efforts are being made to prevent this fungus from spreading to other coffee growing areas of the country.
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"]