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The Coffee Market and as an Exported Commodity

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Coffee Price Closes Year Downwards

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.

Tuesday, January 22, 2019

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.

Elmundo.sv reviews that "... The ICO calculates that the 18/19 cycle will leave 167.47 million bags, 2.29 million more than the 165.18 million that would be consumed. This oversupply continues to exert downward pressure on prices, which is likely to continue in the coming months."

You may be interested: "Coffee: Export falls 9% up to 1st Semester 2018"

Omar Flores, president of the Coffee Association of El Salvador (Acafesal), explained that "... the fall in prices will not be corrected in the coming months, but until October, when the 19/20 cycle begins. If there is a change, it will be because of a reduction in production in Brazil. But the current fall, has no relation to supply because 'in the market the cup of coffee does not fall, but the cost is assumed by the producer."

According to CentralAmericaData, in the last six years, the average price of Central American coffee exports has registered a clear decreasing trend, going from $4.23 per kilo in June 2012 to $3.11 in the same month in 2018.

See ICO statistics.



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Panama coffee  exports fall as prices decline


Better prices in local market

Posted 03/06/2019

The value of Panama coffee exports fell 38.3% to  $1.5 million in the first quarter of 2019 largely due to falling prices.

Between January and March of 2019, 222,000  kilograms of coffee were exported, 22.7% less than t in the same period last year, according to figures from the Comptroller General

"Panama is ahead in the global coffee positioning race, but let's recognize that there are already other countries that are strongly developing geisha coffee," said Gerardo Escudero Inter-American Institute for Cooperation on Agriculture (IICA)

The decrease in exports is due to a drop in the prices paid for a quintal of coffee in the international market. Since last November, the price of a quintal of rubiacea in international markets is lower than the value paid in Panama, so local coffee growers have preferred to market their coffee in the country, said Alexis Bonilla , in charge of the Ministry's Coffee Program of Agricultural Development (MIDA).

The price of a quintal of coffee in the New York Stock Exchange, reference price for grains in the region, has oscillated since  November 2018 between $87.60  and $100 . While in Panama the roasters buy a quintal of Arabica coffee at$ 120 and some between $160 and $200.

 Escudero,, said that the fall in the international price of coffee is a situation that is affecting all producers in the region, Panama's coffee offer is low compared to the region, but it has very special grains, such as the geisha, which is quoted at very high prices.

In the latest electronic auction The Best of Panama , the Taiwanese Black Gold Coffee Co. acquired one pound of natural geisha coffee, Elida Geisha Green Natural Tip, produced by the Lamastus family the record price of $ 803.

The production of specialty coffees accounts for 20% of the grain production in the country, however, this production in the hands of small coffee farmers who also receives better prices than the one paid in international markets, explains Escudero.

Today, Panama is known much more for the quality of its coffee, than for the Canal. However, there is an urgent need to improve the cultivation methods of the majority of small producers in the country.

Panama is not alone in the cultivation of the geisha  Africa and  Central American countries are already growing geisha coffee, warns the representative of IICA.

It is essential that small coffee farmers provide greater added value to the grain. The quality of coffee is largely developed in the phase of profit, drying, and roasting. Only then can they be more competitive and obtain greater profitability in international markets, recommends Escudero.



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Coffee: Good Expectations Due to Price Rebound

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.

Thursday, December 12, 2019

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.

You may be interested in "Coffee: Regional Sales up to March 2019"

The rise is partly explained by the prospects of the International Coffee Organization (ICO), which in its October report forecast a 0.9% drop in world production, corresponding to 2019-2020 harvest.

Fredy Pastrana, a coffee producer, told Laprensa.hn that "... they are happy about the price increase, however, climate change is affecting this year's production. The yield of the coffee fruit at the time of pulping is lower, because the beans failed to develop well due to lack of rainfall in the mountains."

For Miguel Pon, executive director of the Association of Coffee Exporters of Honduras (Adecafeh), should "... temporarily suspend the retention of $9 that makes the Ihcafe so that the rural economy can breathe. It is time to make revisions to the system that has been functioning for ten years."



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Coffee: Regional Sales Not Rebounding

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.

Friday, January 17, 2020

Figures from the Trade Intelligence Unit at CentralAmericaData:


Honduras, Main Seller
In the first half of 2019, the main coffee exporter in Central America was Honduras with $708 million, followed by Guatemala with $454 million, Nicaragua with $322 million, Costa Rica with $205 million, El Salvador with $81 million and Panama with $11 million.

Variation in Regional Exports
Between the first semester of 2018 and the same period in 2019, the value exported from the region fell 8%, from $1.948 million to $1.782 million.

The year-on-year contraction recorded in sales in the first semester of 2019 is partly explained by the behavior of exportations to Belgium that fell from $287 million to $184 million.

Price of Exports
Mainly due to international grain prices, the average price of regional coffee exports has shown a clear downward trend over the last seven years, falling from $4.72 per kilo in March 2012 to $2.83 in June 2019.

Destination of Exports
In the first half of the year, 37% of the value exported from Central America was destined for the United States, 14% for Germany, 10% for Belgium, 6% for Italy and 5% for Japan.



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Cosecha de café en Chiriquí, en la mira de la Covid-19

La recolecta de café empieza en un mes y medio, y los campamentos donde residen los jornaleros carecen de las condiciones mínimas para evitar los contagios del nuevo virus respiratorio.
Aet Elisa Tejera C.
26 jul 2020 - 12:00 AM


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