Starbucks of Condado Concepción, located on the road to El Salvador, Guatemala, is a sales point that at a distance of 15 minutes by car, has a potential market of more than 150 thousand consumers, and of this group of people 43% are interested in coffee.
Using the Geomarketing solutions we have developed for our clients, CentralAmericaData's Trade Intelligence team analyzed the environment of some of the main coffee shop locations in Central America. Below is an extract of the study's findings.
The coffee growers' guild signed an agreement with the Guatemalan-German Chamber of Commerce and Industry to promote local production in the European country.
Directors of the National Coffee Association (Anacafé) explained that the agreement will facilitate the coordination of actions for the promotion and export of coffee from Guatemala to Germany, such as the generation of direct links between producers and buyers.
Although the U.S. is the main buyer of Guatemalan coffee, data from the exporters' guild indicate that South Korea is one of the markets that pays the best prices for the grain, while Italy pays one of the lowest prices.
#Although the main buyer of Guatemalan coffee is the United States, there are indications that Asian countries tend to appreciate Guatemalan coffee more, paying a higher price for it, notes the report "Guatemalan Coffee: A Focus on the World Market and Its Productivity.
In December 2018, it was reported that the international price of a pound of coffee fell to $1, which is equivalent to a 12% drop compared to the same month in 2017.
Data from the International Coffee Organization (ICO) detail that in the last two months of last year also reported a decline in the price of the pound of coffee globally, in this case was 8% as it declined from $1.09 to $1.
Because of the low grain prices reported in 2018, it is estimated that there could be a reduction in supply, which would lead to a rebound in prices this year.
On average, the pound price of grain was close to $1.15 during 2018, however, global businessmen forecast that for this year the price could rise to $1.24 per pound.
During the first six months of the year, coffee exports from Central American countries totaled $1,948 million, 9% less than what was reported in the same period in 2017.
Figures from the information system on the coffee market in Central America complied by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
To reduce production costs, the Guatemalan coffee association will implement a climate information system to provide access to more specific forecasts in coffee-growing areas.
According to the National Coffee Association (Anacafé) with the implementation of more weather stations in small coffee areas of the country, the costs of grain production could be reduced between 10% and 15%.
In Guatemala, for the 2018-2019 harvest, the production of green coffee is projected to reach 4.5 million quintals, which would exceed the 4.4 million quintals reported in the previous season.
According to Ricardo Arenas, president of the National Coffee Association (Anacafe), "... The 2018-2019 coffee harvest, which started last month, will stand at 4.5 million quintals of green coffee; of that figure, it is estimated that 3.5 million will be exported."
Coffee growers in Guatemala estimate that production in the agricultural cycle that is about to end will totol 4.3 million hundredweight, above the 4.2 million hundredweight reported in the 2016-2017 harvest.
Forecasts by the National Coffee Association (Anacafé) indicate that for the upcoming 2018-2019 harvest, production could be located at 4.5 million gold hundredweight (46 kilos sacks), which would mean a continuation of the recovery phase.
In the last six years the average export price of Central American coffee has been trending downwards, with the price per kilo falling from $4.51 in March 2012, to $3.10 in the same month in 2018.
Figures from the information system on the Coffee Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
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.
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"]
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 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"]