Because of a drop in the price of the grain, during the first eight months of the 2018-2019 harvest Honduran coffee sales abroad totaled $673 million, 14% less than what was reported in the same period of the 2017-2018 cycle.
According to figures from the Honduran Coffee Institute (Ihcafe) between the first eight months of the 2017-2018 harvest, which runs from October 2017 to May 2018, and the same period of the 2018-2019 season, sales and exported volume decreased from $786 million to $673 million, and from 6.4 million to 6.3 million, respectively.
In Guatemala the union of producers has stated that a reduction in international prices is affecting the sector, which is already facing difficulties in covering production costs.
The National Coffee Association attributes the problem to international consortia, which may be exerting further downward pressure on grain prices.They warn that this situation will have a strong impact on the national economy, because with current prices, producers are not even able to cover their costs.
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 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.
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.
In Costa Rica, the Coffee Institute is offering up to six tons of seed of the Obatá variety, which has proven to be resistant to rust disease.
From a statement issued by the Costa Rican Coffee Institute:
The Coffee Institute of Costa Rica, ICAFE, will be in a position to offer growers, from this time until mid-March, five to six tons of selected and approved quality Obatá seed, which has been proven to have resistance to Rust, precocity and high productivity and excellent cup quality, for the preparation of seedlings.
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.
The union of producers claims that imports of the grain have grown to the point of currently representing 24% of national production.
The Salvadoran Coffee Association (Acafesal) presented a proposal to the Ministry of Agriculture requesting that more regulation be applied to imported coffee. The president of the association, Omar Flores, explained to Elsalvador.com that what they are looking for is that "...El Salvador have import regulation measures that protect coffee growers, the coffee sector, because the amount of imported coffee is very high."
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.
Exports in the first eleven months of the 2016/17 harvest totaled $17.6 million, 53% more than anything sold to the Asian country in the 2015/16 cycle.
One of the main benefits of exporting grain to Japan is that the average price paid for coffee is higher than the amount paid in other markets.According to figures from the Center for Exports, "...
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"]
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."
In the 2015/2016 cycle, grain production was 14.7 hundredweight per manzana (6,961 m2), above the 12.7 hundredweight per manzana produced in the previous cycle.
The improvement in productivity was due in part to a 9% increase in the harvested areain the period 2015/2016 compared to the previous cycle.The harvested area in 2015/16 amounted to 163,900 manzanas, above the 149,800 manzanas registered in the 2014/15 cycle.