In June prices of sugar and dairy products fell sharply, meat remained stable, while cereals and oils showed improvement.
The FAO Food Price Index* averaged 165.1 points in June 2015, down 1.5 points (0.9 percent) from the previous month and almost 44 points (21.0 percent) down from June 2014. Price movements diverged across the various markets, with sugar and milk products incurring pronounced falls, while cereals and oils prices firmed somewhat. Meat prices were stable. Except for a lull in October 2014, the overall food price index has declined every month since April 2014.
Costa Rica and Honduras are the countries with the highest rates as of July 27th, 2014 for red beans, costing $2,133 and $1,695 a metric ton, respectively.
The shortage of beans has raised prices across the region and all countries have been forced to authorize emergency imports in order to supply markets.
After Costa Rica and Honduras, as reported by the Agricultural Council (CAC) "...Guatemala is in third place, with $1,615 a metric ton (MT) and then Nicaragua with $1,609.35. The lowest prices were quoted in late May in El Salvador, with U.S. $1413.04 MT.
Segmenting prices, packaging the product and making the most of when the value is greater than any competitor, are examples of good practices in setting prices during occasions such as the World Cup.
Three World Cup lessons on prices
The World Cup in Brazil provides valuable lessons for price management for companies. Here are three key lessons for those who aspire to make their company the Lionel Messi of prices.
Companies should be encouraged to be politically incorrect in order to take control of their prices, expressing and practicing concepts which are difficult to express.
By Ariel Baños
President and founder of FIJACIONDEPRECIOS.COM
"Out of the closet": what no one dares to confess about prices
Companies should be encouraged to be politically incorrect in order to take control of their prices.
The rise in coffee futures corresponds to expectations of lower production in Brazil and increased demand in the U.S., China and Europe.
From a report by Anacafé at the end of April 9th, 2014:
Coffee prices in "C" contracts closed at higher prices. The prices behaved in a volatile fashion. Liquidations in May contracts and transfers of positions to months further off, caused the initial decline.
The New York Stock Exchange reported the highest price of the aromatic in the last two years, up $13 per quintal compared to the previous day, reaching $193.
The rise in the international price of coffee is acting as a counterweight to the crisis in the sector in Central America. The severe drought that has attacked crops in Brazil is the cause of this increase.
A request by sugar mills to equate the prices of energy produced from bagasse with that generated by coal has been rejected.
Guatemala's sugar mills asked that within their cost methodology from May 1st 2014 to April 30th 2015 for biomass generation to be indexed to the price of Puerto Bolivar coal (Colombia). However, the National Energy Commission (CNEE) rejected the request.
The drought in Brazil, the country which exports almost half of the world's sugar, caused prices of the grain on the international market to rise to $444 a ton.
The drought in Brazil led to an increase in the international price of sugar. The South American country exports almost half of the grain in the world.
The lack of rain also caused an increase in the international price of coffee.
The dry weather in Brazil drove up the price of arabica coffee by 23% in a week, but the upward trend is not expected to last.
On Tuesday coffee prices reached their highest levels in several months caused by dry weather in Brazil, the largest producer and exporter in the world, which could affect the next crop.
"The price of Arabica increased by 23% in a week and 36% since last November, when it reached its lowest price in seven years (100.95 cents per pound)."
Mexico and Guatemala's increased participation in the fruit market drove the price from $9 to $5 per box.
"Export volumes are the same compared to 2011 and 2012, but prices have come down due to the shared window we have with Mexico and Guatemala," said the Honduran producer Amaro Lanza to Latribuna.hn.
"Hopefully the Mexicans will finish their production window so that we can enter ours and manage to raise prices and get at least 30 days advantage," he said.
They have not managed to reach an agreement with local slaughterhouses on the upward adjustment of sales prices of livestock.
They have asked the Nicaraguan government for approval to sell three thousand head of cattle to slaughterhouses in the region where better prices are paid.
This was announced by representatives from the Federation of Livestock Associations of Nicaragua (Faganic).
The coffee sector should consider whether the current crisis is temporary or whether fundamental alternatives should be analyzed, such as moving towards industrialization to export ground grain with proprietary brands.
After peaking in May of 2012 at $250 per quintal, arabica coffee prices have steadily dropped, settling last week at just over $100. The futures prices are not very encouraging: for December even lower values are indicated.
Low prices of the main products sold abroad caused the country's foreign exchange earnings from exports to grow by only 0.2% in September.
Data from the Bank of Guatemala shows that the value of exports was down 17%, but the volume of exports rose by 22.5%. "The value of products in foreign markets represented, from January to September, an income of U.S.
In October, exports of the grain increased by 6% compared to the same month in 2012 with 3 million bags each weighing 60 kilos, however income decreased, standing at $463.6 million.
Data from the Council of Brazilian Coffee Exporters (CeCafé) reveals that between January and October, 25.6 million bags of coffee were sold, 13.7% more than in the same period in 2012. However, income also decreased, by 15.7% giving a total of $4,357,000.
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