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.
Prices for all coffee groups fell in July 2018, though the largest month-on month decrease occurred for Brazilian Naturals, which declined by 4% to 110.54 US cents/lb.
From the monthly report by the ICO:
In July 2018, the ICO composite indicator price decreased by 2.9% to an average of 107.20 US cents/lb, which is the lowest monthly average for July since 2007, when the monthly composite indicator reached 106.20 US cents/lb.
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.
Over the last few weeks the exporters trade union has canceled several shipments abroad, due to the risk involved in moving the cargo through blocked roads.
The Association of Coffee Exporters of Nicaragua (Excan), warned that "...At the moment these cancellations can be renegotiated with buyers to avoid serious consequences, but the longer this crisis extends, the effects for exporters and the country could be irreversible."
As it has not yet been possible to send the samples abroad due to the crisis felt across the country, the association of special coffees has decided to postpone the online auction until June 19.
The initial date of the electronic auction of coffee samples in the Cup of Excellence competition was scheduled to be June 5, but since samples could not be sent to international buyers, a decision was taken to postpone it by a few days.
$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.
Of the 35 Nicaraguan coffee producers that obtained more than 86 points this year, five scored 90 or more, entering the category of "Presidential Cafés".
According to the organizers, the results were positive, as in previous editions of the event only two or three managed to enter the presidential coffee category.
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.
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.
Factors such as geographical proximity and the sophistication of consumption are characteristics that position it as a market of interest for coffee farmers in the region.
From the executive summary of a study by Procomer of Costa Rica entitled "Roasted coffee market in the US":
- The USA is the main consumer of coffee worldwide, the number one importer of gold coffee and the second of roasted coffee, it is also the number one destination for coffee exports from Costa Rica.Factors such as geographical proximity, the sophistication of consumption and a growing interest on the part of consumers in a more active role of producers in the value chain, are characteristics that position it as a market of interest to increase the share of exports of roasted coffee.
Producers, technicians and researchers linked to the coffee business at the international level will be meeting in San Salvador from June 6 to 8, to discuss topics such as genetics and climate change.
"...The second edition of the conclave will take place from June 6 to 8 and this year it is expected that more than 700 attendees will take part from twenty countries, said Carlos Borgonovo, president of the Salvadoran Association of Coffee Roasters and Exporters (Abecafe)."
Global coffee output for 2017/18 is preliminary estimated at 158.78 million bags, 0.7% higher than last year.
Total production of Arabica is estimated to decrease by 1.1% to 97.32 million bags compared to 98.42 million bags last year, as lower production of Colombian Milds and Brazilian Naturals are only partially offset by increases in Other Milds.
In October the composite indicator of the International Coffee Organization continued its downward trend, averaging 120.01 cents per pound, the lowest level since May 2016.
From a statement issued by the International Coffee Organization:
Record Exports for Coffee Year 2016/17
Total exports in September 2017 reached 8.34 million bags, compared to 9.8 million in September 2016.