In the first eight months of the year the country generated $381 million from exports of the grain, 14% less than the $445 million reported in the same period in 2017.
According to figures from the Export Procedures Center (Cetrex), a decrease was also reported in relation to the volume exported for the period from January to August of this year, compared to the first eight months of 2017, in this case a drop of 3%.
On top of an international context with low prices, coffee producers in Nicaragua also have to deal with the complications arising from the sociopolitical crisis and a lack of financing options.
As if coffee production's current position in the unfavorable context of low international prices was not enough of a problem for coffee farmers, in Nicaragua they are facing yet other disadvantages, which only complicate the sector's prospects further.
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.
In June, the country exported 34,000 tons of coffee, registering a fall of 25.5% compared to 46,000 tons sold in the same month in 2017.
The price of coffee also recorded a decline, according to figures from the Center for Procedures for Exports (Cetrex), in June this year $150 per hundredweight was paid, representing a decrease of 10% compared to the $167 paid in the sixth month of 2017.
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"]
Plant diseases such as rust in coffee plantations, added to an oversupply of sugar worldwide, explain some of the moderate expectations that entrepreneurs have for some of the most important agricultural products in the region.
Representatives of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif) of Guatemala believe that the deceleration that has been registered in international prices of some raw materials and agro-industrial products suggest a decline in local production.
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"]
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 "...
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.
español
3005