It is estimated that in El Salvador the current coffee harvest will close at 600,000 quintals, a volume similar to that reported in 1890, when the country had not invested considerably in coffee production.
The lack of maintenance work such as pruning, fertilization, weed control, pests and diseases, are some of the reasons why the volume of coffee cultivation has fallen to levels reported 130 years ago.
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Because of the lack of investment in recent years in the maintenance of the coffee park, in the first three months of the current harvest in El Salvador a 46% year-on-year drop in the volume of coffee production is reported.
Figures from the Salvadoran Coffee Council (CSC) indicate that from October to December 2019, nearly 358,000 quintals of coffee have been harvested, a volume that is lower than the 668,000 quintals produced in the same period in 2018.
During the first six months of 2019, coffee exports from Central American countries totaled $1.782 million, 8% less than what was reported for the same period in 2018.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
On March 26 and 27, 2020, the "Producer & Roaster Forum" will be held in Copán Honduras, an event in which at least 100 international coffee buyers will participate and business deals for nearly $10 million are projected to be closed.
The organization of the event reported that the plan is to promote the six coffee regions of the country and that since mid-2019 is working with producers to make filters of the coffees that will be presented at the event.
With the implementation of the new technical regulations on the quality of roasted and ground coffee for marketing in the national and international markets, coffee growers in El Salvador expect to sell at better prices.
The technical regulation is in the public hearing phase on the site of the Salvadoran Agency for Technical Regulation (Osartec), a process that will end on 17 February, and will then be presented to the coffee sector.
The increase to $135 of the international price of the quintal is promising for the coffee sector, since in recent years producers have gone through severe crises because of the fall in the price of the grain.
According to figures from Bloomberg Markets, between mid-November and the first week of December the price of a quintal of coffee at the international level registered an important upturn, going from $100 to $135.
The coffee growers oppose the possibility that in El Salvador the minimum wage will be raised, because they assure that the price at which the grain is quoted at an international level, prevents them from paying higher wages.
The National Minimum Wage Council (CNSM) began days ago to review the conditions for deciding whether or not to adjust the minimum wage.
During the first three months of the year, coffee exports from Central American countries totaled $747 million, 17% less than what was reported for the same period in 2018.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In markets such as North America and Western Europe, a consumer segment wants the grain to meet aspects such as ethical and sustainable sourcing, and its production process to be certified.
According to the study "Trends and Opportunities for value-added coffee exports" conducted by the Differentiated Coffees Committee of AGEXPORT, reveals how to change the strategies for marketing good quality coffee with higher value added (roasted), for the next coffee harvest of 2,019 - 2,020 and those to come.
The government of El Salvador announced that it will invest $3 million in the delivery of 40,775 liters of fungicides and 30,000 liters of insecticides to combat and prevent the Coffee Rust and Coffee Borer.
In order to receive the inputs, coffee growers must meet several requirements, the most important of which is to be registered with the Salvadoran Coffee Council (CSC) and to have a valid identity card, informed the Ministry of Agriculture.
If the international prices of bananas, coffee, sugar and palm oil do not improve, and if combined with a global economic recession, Guatemala, Honduras and El Salvador could stop exporting as much as $2.268 million altogether in 2021.
According to the report "Proceso de integración Centroamericana del Triángulo Norte: Escenarios de riesgo en la matriz de exportación" (Central American Integration Process of the Northern Triangle: Risk Scenarios in the Export Matrix), prepared by the Asociación de Investigación de Estudios Sociales (Asíes), garment making is another activity that could be affected in the coming years.
Last year, the main regional crop sold abroad was coffee, with $2.671 million, followed by banana, with $2.594 million, pineapple, with $1.097 million and sugar, with $722 million.
Data from the Trade Intelligence Unit at CentralamericaData:
The main coffee export destinations were the U.S., Germany, Belgium, Italy, Japan and Canada, which together represent 70% of the volume exported by the region, equivalent to approximately $2,050 million. [GRAFICA caption="Click to interact with the graphic"]
By analyzing the behavior of the global market, it is established that Holland, Switzerland and Germany are willing to pay a higher price for a distinctive cup of coffee.
Between the Committee of Distinguished Coffees of the guild of exporters of Guatemala and the European Union, they carried out the study called "Trends and Opportunities of exportation of coffee with added value", in which the price of coffee in 77 cities of the world was compared.
While producers in El Salvador predict that the local crop could be extinct in the next two years because of falling international prices, other countries in the region place grain at more favorable prices.
Each country's realities are different, as there are several differences that are reflected in the amounts exported and in the average prices at which the grain sells abroad.
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