The 2017/18 crop could surpass the results of the previous cycle by 14%, thanks to favorable weather conditions and a year of high harvest cycle in the Los Santos area.
From the Coffee Institute of Costa Rica:
December 13, 2017.According to data provided by the Coffee Institute of Costa Rica, ICAFE, harvest of the grain in the period 2017/2018, which is still being harvested, could increase by 14.3% with respect to the previous harvest; from which it is expected that about 2,103,656 (two million one hundred three thousand six hundred and fifty six) bushels will be collected.
In 2016, bananas were the agricultural product that generated the most export revenue in Central America, with sales of $2.4 billion, corresponding to 5.7 million tons.
Data from the interactive system Monitoring of Crops in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graphic"]
In September international prices continued the downward trend that began in late August, and for the third consecutive year the 2016/17 coffee cycle closed with a deficit.
From a report by the International Coffee Organization:
The ICO composite indicator continued its downward trend that started at the end of August, averaging 124.46 US cents/lb.
A study by the Smithsonian Institute predicts that by 2050 the areas suitable for coffee cultivation in Latin America will have been reduced by 73-88%.
From a report by the Smithsonian Institute:
Areas in Latin America suitable for growing coffee face predicted declines of 73-88 percent by 2050. However, diversity in bee species may save the day, even if many species in cool highland regions are lost as the climate warms.
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 ICO composite indicator price rose above 130 US cents/lb for the first time since April as reports emerged from Brazil about lower yields and quality issues related to the 2017/18 crop.
From the monthly report by the International Coffee Organization (ICO):
The ICO composite indicator price rose above 130 US cents/lb for the first time since April as reports emerged from Brazil about lower yields and quality issues related to the 2017/18 crop. Coffee exports have stabilized in the last two months but cumulative exports remain well above the levels reached in the previous year and leave consumer stocks well supplied. The production estimate for 2016/17 has been revised up to 153.9 million bags, which constitutes an all‐time record. The output of Arabica and Robusta is estimated to be 10.2% higher and 10.6% lower compared to coffee year 2015/16, respectively.
In Costa Rica, twelve farms are now using experimental technology to reduce the cost of weed control from approximately $250 per hectare to $50.
Through the use of small tractors or modified motorcycles which have arms attached to them to perform fumigation, atomization, weed control and fertilization tasks at an early stage, Costa Rica is managing to reduce labor costs in coffee plantations.For example, "... it is estimated that the time it takes to atomize one hectare, for example, can be reduced from the current day and a half to barely an hour."
A warning has been given that changes in the climatic conditions during the next two months will encourage an increase of the presence of the fungus in all coffee locations in the country.
From a statement issued by the Coffee Institute:
According to experts from the Costa Rican Coffee Institute, ICAFE, the current variations in the behavior of atmospheric conditions presents a high level of risk and encourages an increase of Rust in all of the coffee locations in the country.
Production in April amounted to 834 thousand bags of 60 kilos, 20% less than production in the same month in the previous harvest, when 1.04 million bags were recorded.
Larepublica.co reports that"...The reason for the fall in production last month, according to the National Coffee Growers Federation (FNC), could be a delay in the blooms responsible for the harvest in the first half of the year.On the other hand, production for the current year was 4.4 million bags an increase of 4.8% compared to production in the same period in 2016."
In March the growth in inventories in most varieties reinforces the fact that the market lacks any clear signals of a reverse in the current downward trend.
From the monthly report by the International Coffee Organization (ICO):
In March, the ICO composite indicator price fell slightly. While Robustas remained broadly stable, Arabica prices were under pressure.
Although incidence of the disease has decreased in several regions as a result of the dry season, the environmental threat in Turrialba and localities of Orosí, San Vito, Sabalito, Puriscal and San Lorenzo de Tarrazú remains high.
From a report by the Coffee Institute of Costa Rica:
The high environmental threat persists because of an increase of the incidence of Rust in the Turrialba region and in localities of Orosí, San Vito, Sabalito, Puriscal and San Lorenzo de Tarrazú, for which preventive control of the disease must be initiated in these localities.
Climate and the biannual cyclic behavior explain the reduction in the 2016/2017 harvest compared to the previous one, going from 2.23 million bags of 46 kilos to 1.89 million.
Although in respect to the 2015/16 harvest, the numbers were down 15%, the final result from coffee production was 6.4% higher than what had been estimated in October 2015.