The Nicaraguan government seeks to deprive the business sector of the power to propose its representatives to the National Commission for the Transformation and Development of Coffee Farming.
President Daniel Ortega presented an initiative to the National Assembly to modify the Law for the Transformation and Development of Coffee Farming, which among the changes includes that the Members of the Superior Council of Private Enterprise (Cosep) do not have the power to propose their representatives to the National Commission for the Transformation and Development of Coffee Farming (Conatradec).
For the 2018-2019 harvest, the country began to export coffee of the Robusta variety, and according to the producers for the next agricultural cycles they plan to increase their cultivable area.
According to figures from the Center for Export Procedures (Cetrex) between October 2018 and May 2019, the country sold abroad about 50,000 quintals of the Robusta variety, being the first time that the species of the grain is reported in official export figures.
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."
Malaysia, India, the Dominican Republic, Israel, Georgia and Syria are the six countries that for the first time imported Nicaraguan coffee during the 2016/17 harvest.
At a value of almost $10 million, Nicaragua exported 65,000 hundredweight of coffee to these six countries during the 2016/17 harvest.Although only small amounts were sold in each of these markets, the grain exporters' association believes that the opening of new destinations for Nicaraguan coffee is positive.
Between October and June 1.5 million bags of 60 kilos were exported which is an increase of 5% compared to the same period in the previous harvest.
Figures from the Center for Exports of Nicaragua said that in June alone 250,453 bags of 60 kilos each were exported, which is 17% more that in the same month in 2015.
The non-renewal of export licenses is the first in a series of negative consequences for Nicaragua for the expulsion of two customs consultants and academics who came to discuss the project of the Grand Canal.
Nicaragua has been left with unrenewed certificates for exports of coffee and textiles to the United States after the government decided to expel three US government officials.
Since the beginning of the 2015/16 harvest up until April, a 9% drop in the value of exports has been registered along with an increase of only 0.7% in volume.
The fall in international prices continues to impact the results of the coffee harvest, added to which are "... problems still faced by small and medium - sized exporters, who since March 2015 have had to make an advance payment of income tax on all of their sales, as required by the Directorate General of Revenue (DGI). "
It has been announced that the terms of reference are being prepared for a tender to build a coffee analysis laboratory.
Although a specific location has not yet been defined, Jose Angel Buitrago, president of the Coffee Exporters Association of Nicaragua (excan), told Laprensa.com.ni that it will most likely be built in Sébaco, Matagalpa.
The tax promoted by the government of Nicaragua on coffee producers has also been rejected by exporters of the grain.
The bill promoted by the government to charge producers between $1 and $5 per quintal of coffee in order to finance the National Development and Transformation of Coffee Plantations will not directly affect the export sector as it is only producers who have to pay the tax, however, they believe that this is not the time to establish such fees.
Losses caused by the rust disease in Honduras amount to 1.8 million bags, 650,000 quintals in Guatemala, 600,000 in Nicaragua, 400,000 in El Salvador, 200,000 in Costa Rica and 60,000 in Panama.
Those are the estimates of the Central American Organization of Coffee Exporters (ORCECA), who was unwilling to speculate on how much income the region would not receive because of declining exports.
Projections by the futures markets indicate that the price of coffee will only rebound in 2015, remaining low until then.
A low growth in demand (no more than 2%) and an increase in production in Brazil (50.8 million kilograms in 2012 to 50 million projected for the 2013 harvest), has led to a fall in price from the $313 earned per quintal in May 2011.
The disease is advancing steadily, with no public or private plans in place to combat the scourge, which is making its greatest appearance since the seventies.
Laprensa.com.ni reports on the destructive influence of the "Roya" blight on coffee plantations in Nicaragua, but the drama is being experienced with similar intensity throughout Central America.
In the first ten months of the current crop foreign exchange revenues totaled $374.7 million, $37.2 million less than in the same period in the last harvest.
The decline in foreign exchange earnings has been caused in part by the decline in export volumes (1.71 million quintals from October to July this year versus 1.83 million quintals in the same period last year) coupled with a slight decline in the average price per quintal.
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