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.
In the first five months of the 2016/2017 harvest the volume sold abroad fell by 9% compared to the same period in the previous cycle.
The figures from the Salvadoran Coffee Council (CSC) show that between October 2016 and February this year, 133,324 hundredweight of coffee was exported, below the 146,252 exported in the same period in the previous harvest.
Between January and September 2016 the region exported 664,000 metric tons of coffee, 5% more than in the same period in 2015.
Figures from the information system on thecoffee market in Central America complied by the Business Intelligence Unit at CentralAmericaData: [Figure caption = "Click to interact with graphics"]
A reduction has been projected of between 10% and 15% in the 2017/18 harvest due to the effects of drought and frost in different production areas in the country.
The projections are the result of an assessment carried out by the technical department of the National Coffee Association (Anacafe) in different parts of the country.For the 2017/18 harvest a production of 3.35 million hundredweight is expected.
The growing debt now exceeds $180 million and a lack of funds to invest in research and renovation of the park is increasingly reducing the possibility of the industry improving.
For companies in the coffee sector, with each passing year the situation is getting worse.Not only are the effects of weather on plantations hurting their performance, but so is lack of investment in research and funding necessary for an activity that is becoming less competitive compared to other producers and exporting countries.
Projections for the 2016/17 harvest are for 40 million hundredweight of the robusta variety, and that the harvest in 2017/18 cycle will increase by 30%.
After authorization was given in December for extensive planting of this varietyin seven departments in the Pacific and in the autonomous regions of the Northern and Southern Caribbean, except Waslala, the group Mercon Coffee Group is preparing to start cultivation and expects to collect in this first harvest about 40,000 hundredweight.
The expected reduction in the 2016/17 harvest is due, among other factors, to the influence of late blooming caused by a prolonged dry period in the regions of Perez Zeledon, Poas and Naranjo.
From a statement issued by the Coffee Institute of Costa Rica:
According to estimates by the Coffee Institute of Costa Rica, ICAFE, the body governing national coffee production, the coffee harvest which is being collected (2016-2017) in all producing regions, could fall by 12.5% compared to the previous period, according to the latest report.
The 2015/2016 coffee harvest was 135,241 hundredweight, 18% less than the 2014/15 harvest, when 164,541 hundredweight was harvested.
Figures from the General Comptroller of the Republic detailed that at the provincial level, the largest decrease in the harvest was recorded in Chiriqui and Cocle.In the first, the reduction was 25,600 hundredweight, ie 20% less than the previous, harvest, and in Cocle the drop was 36%.
The largest producer of washed Arabica coffee increased its harvest in the last twelve months by 3%, reaching 14 million bags each weighing 60 kilos.
From a statement by the National Federation of Coffee Growers in Colombia:
The General Manager of the FNC celebrated production levels and coffee prices and invited coffee growers to take advantage of them to plan for the future.He also recalled that current price levels are offsetting losses in the first half of the year. In the last twelve months Colombia coffee exports amounted to 12.39 million bags.
The downward trend seen in international grain prices "raises doubts about the economic viability of coffee production."
From the Introduction of a document entitled "Assessment of the economic sustainability of coffee production", prepared by the International Coffee Organization:
Introduction Since March 2015 the ICO composite price has been consistently below the 10-year average of 137.24 US cents/lb, raising concerns about the economic viability of coffee production and putting the livelihoods of coffee producers at risk in many countries. Prolonged periods of low prices strain liquidity at the farm level, resulting in less than optimal input use during the following production cycle, negatively affecting yields and quality.
Because of incidences of rust, coffee production in the 2015-2016 harvest was only 3.9 million hundredweight, equivalent to $700 million in foreign exchange.
The presence of rust in more than half of coffee plantations, lack of funding to renovate plantations and low international grain prices resulted in a reduction in production and in export values, for the second consecutive cycle.
The amount of rust on plots using disease management showed a significant increase over the past 30 days, mainly in Turrialba, Coto Brus, Central Valley and Los Santos.
From a report by the Coffee Institute of Costa Rica - September 2016:
COFFEE RUST ADVANCING:
The amount of Rust in plots using disease management showed a significant increase over the past 30 days, mainly in towns of Turrialba, Coto Brus, Central Valley and Los Santos.
Coffee exports declined in the last two months because the new crop from Brazil has not yet hit the market, but consuming countries remain relatively well stocked.
From the report by the International Coffee Organization:
The ICO composite indicator rose to a 17-month high in July, although the market struggled to hold on to its early gains. Coffee exports have slowed in the last couple of months, as the new Brazilian crop has not yet come to market, but consumer stocks remain relatively well supplied. Furthermore, Conab released its survey of domestic private stocks as at the end of March 2016 as being just 5.4% lower than the previous year, down from 14.4 million to 13.6 million bags.