The Decline in Coffee Prices

In El Salvador the drop in the international price, which has been aggravated because of the negative differential with which the country's production is paid, comes on top of the problems of performance, processing and logistics costs.

An analysis of the Salvadoran coffee sector, made by Patricia Garcia in an article on ElSalvador.com, shows that "... A further fall in international coffee prices has once again put pressure on the local coffee industry, whose representatives say the pay they receive does not even cover production costs. The price of the aromatic in futures contracts on the New York Stock Exchange recently fell to $112 per hundredweight and this week has remained at $115. The latter price reflects a reduction of $90 compared to $205 at which it traded a year ago. "

Under the title "Sector in decline," it is stated that "... For some coffee producers, the range of problems they face includes not only low prices and reduced harvests, but also the lack of funds for investment, lack of scientific research, problems due to insecurity, infighting in the union, among other things, which continue to depress the sector. "

"... The issue of low international prices is not only a problem for grain producers, but also for representatives of roasters and coffee exporters. According to Ricardo Martinez, representative of Comercial Exportadora SA de CV (Coex), since yields began to decline, roasters have had to significantly reduce their costs. "If production is very low, costs soar. For example, right now we are already started on the new harvest, but if we see that the harvest is going down, we will reduce operating costs and what will happen is that a lot of people will be made unemployed," Martinez said.

Source: elsalvador.com