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.

 

https://en.centralamericadata.com/en/article/home/Coffee_Price_Closes_Year_Downwards

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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.

 

https://www.newsroompanama.com/business/panama-coffee-exports-fall-as-prices-decline

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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."

 

https://www.centralamericadata.com/en/article/main/Coffee_Good_Expectations_Due_to_Price_Rebound

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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.

 

https://www.centralamericadata.com/en/article/main/Coffee_Regional_Sales_Not_Rebounding

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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

En la cosecha de café de la mayoría de las fincas ubicadas en la provincia de Chiriquí, la mano de obra procede de la comarca Ngäbe-Buglé. Archivo

La provincia de Chiriquí registra el mayor número de casos de la Covid-19 en el interior del país, con 3,091 personas contagiadas, hasta el pasado viernes. La crisis sanitaria amenaza la cosecha de uno de los principales productos de consumo y exportación de Panamá. De esta región agrícola procede el 75% de la producción anual de café. La cosecha de este año estaría en riesgo, si no se garantizan los controles de bioseguridad en las fincas productoras.

La cosecha de café se inicia en un mes y medio en las zonas bajas de las tierras altas chiricanas, específicamente en el distrito de Renacimiento.

En el periodo de cosecha, las fincas cafetaleras, dependiendo de la cantidad de hectáreas, pasan de tener de 8 a 10 trabajadores a más de 50 jornaleros, los cuales llegan a las fincas a finales de agosto. Es una migración de hombres, mujeres y niños, que en su mayoría procede de la comarca Ngäbe-Buglé.

En los tiempos de cosecha, al distrito de Tierra Altas, que comprende los corregimientos de Volcán, Cerro Punta, Cuesta de Piedra, Nueva California y Paso Ancho, llegan aproximadamente 10,000 recolectores de café cada año; mientras que en Boquete, donde la cosecha empieza a mediados de noviembre y se extiende hasta finales de febrero, se esperan unas 5,000 personas.

Los recolectores que vienen de las zonas comarcales viven en campamentos de madera dentro de las fincas de café. Viven en habitaciones que incumplen con el distanciamiento requerido para evitar el contagio del nuevo virus respiratorio.

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Prevención en el campo

Reforzar la práctica de lavado de manos en la finca agrícola.

Prohibir las visitas en los campamentos.

Establecer horarios para el uso de espacios comunes (comedores, salas de descanso, etc.).

Durante la cosecha es importante que se asegure el suministro suficiente y permanente de agua y jabón en las duchas, cocinas, comedores y áreas para el lavado de ropa.

Se recomienda comedores abiertos, con dos metros de distancia entre cada puesto.

En los lavamanos: asegurar permanente disponibilidad de jabón y que no se comparta la toalla para secado de manos.

Restringir la movilidad de los trabajadores en zonas en donde no realizan su trabajo.

Colocar carteles en puntos clave de la finca con información sobre el lavado correcto de las manos, la conducta del personal para prevenir el contagio y la propagación del coronavirus.

En una habitación con capacidad para dos personas viven entre 8 y 10 miembros de una familia. Los campamentos, en su gran mayoría, carecen de agua potable y cocina, como tampoco tienen un espacio adecuado para el aseo personal.

“La Covid-19 es una enfermedad que no distingue y en las zonas productivas están en riesgo todos los actores de la cadena agroalimentaria”, advierte Gerardo Escudero, director del Instituto Interamericano de Cooperación para la Agricultura (IICA), en Panamá.

“Esto nos obliga a reforzar las medidas preventivas dentro de las fincas, de lo contrario se pondría en riesgo el abastecimiento de alimentos en el país”, menciona Escudero.

Para el representante del IICA, esta crisis es un hecho inédito que acelera y evidencia las carencias del sector. Por ejemplo, la escasez de mano de obra y los riesgos y vulnerabilidad de la actividad ante la constante movilidad de los jornaleros de una región a otra.

En este sentido, recomienda establecer cercos productivos para poder controlar la movilidad de personas en las zonas agrícolas, destinar la mayor cantidad de recursos a la prevención de la enfermedad y elaborar un plan de contingencia para responder de forma oportuna ante algún caso sospechoso o de contagio en las fincas.

Plinio Ruíz, presidente de la Asociación de Cafés Especiales de Panamá (SCAP, por sus siglas en inglés), manifestó que la industria cafetalera local gestiona una serie de medidas y protocolos para evitar la propagación del nuevo virus respiratorio en las fincas y garantizar una cosecha exitosa. Por ejemplo,han solicitado al Ministerio de Salud (Minsa) que ayude a certificar que los trabajadores que vienen de la comarca cumplan con un periodo de cuarentena de 14 días y estén libres de la Covid-19.

“Este año, solo se contratará a hombres y mujeres en un rango de edad entre los 18 y 59 años. Y estamos solicitando que los niños queden bajo la custodia de algún familiar en su lugar de residencia”, detalló Ruíz.

Otra aspiración de los dueños de las fincas cafeteras es poder acceder a créditos para la construcción de viviendas de interés social agrícolas. De obtener este financiamiento, la idea es construir módulos para habitaciones, cocina y comedor; lavandería, y área de aseo personal. Para las habitaciones, se prevé construir módulos con seis cuartos cada uno. De ese modo, se podrá aislar a los trabajadores si se registra algún contagio, explicó el presidente de la SCAP.

“La Covid-19 cambió la rutina de trabajo en las fincas y los campamentos se deben adecuar a esta nueva realidad”, reconoció el productor.

También gestionan con el Gobierno habilitar albergues temporales para que los trabajadores contagiados del nuevo virus respiratorio reciban el tratamiento médico necesario y que se puedan aislar del resto de los recolectores de café.

Igualmente, se recomendó a los dueños de las fincas confeccionar un carné para identificar a los trabajadores y llevar una trazabilidad en caso de contagio.

En el documento deberá estar el nombre de la finca en la que labora, ubicación, número de campamento donde vive, edad y contacto de la persona responsable en la zona agrícola.

Viajes de negocios

Rachel Peterson, de Hacienda La Esmeralda, asegura que la pandemia “llegó en el tiempo de mayor visita” de compradores extranjeros a las fincas cafeteras en tierras altas chiricanas.

Entre enero y mayo se registra la mayor cantidad de visitas de negocios, encuentros que este año quedaron suspendidos por la pandemia, dijo Peterson.

Todos los años llegan compradores de Taiwán, China, Corea del Sur, Japón, Inglaterra, Estados Unidos, Bulgaria y Australia, entre otros, en busca del café panameño, un grano que se distingue por las propiedades organolépticas inigualables (aroma, sabor, cuerpo y acidez), que solo son posibles de lograr en el suelo, la altura y el microclima de las tierras altas chiricanas.

El mayor número de visitantes de negocios se registraba en mayo, cuando la SCAP realizaba la cata internacional “The Best of Panama”, en la que más de 110 compradores aprovechaban para conocer las fincas, recuerda otro caficultor de la provincia.

Pero este año, la Covid-19 también cambió la forma de hacer negocios. Las exportaciones de café vía aérea bajaron su ritmo por el cierre de vuelos comerciales y, en el caso de la Hacienda La Esmeralda, por primera vez realizaron la subasta anual de café de forma virtual, tras 12 años de hacerla presencial.

En la subasta se vendieron 18 quintales de café geisha por 500 mil dólares, que serán enviados vía aérea a compradores en China, Corea, Japón, Taiwán, Australia, Singapur, Berlín, Arabia Saudita, Inglaterra y Canadá.

Fueron 36 lotes de 50 libras cada uno de café geisha. El lote de café geisha Mario San José “proceso lavado” alcanzó los 181 dólares la libra, el precio más alto de la subasta. Todos los lotes superaron los 125 dólares por libra.

De las tierras altas de la provincia de Chiriquí sale la línea de los café arábigos, un grano que se caracteriza por un mejor sabor. Dentro de este tipo se destacan: el typica, bourbon, caturra, catuai, mundonovo, pacamara y geisha.

Estos granos tienen sabores a frutas y especias. Pasan por un delicado y exquisito proceso de cosecha.

Al cierre del año agrícola 2019-2020, en el país se produjeron 200,000 quintales de café. De esa producción, el 18% corresponde a granos especiales o gourmet que se exportan en un 85% a Europa y Asia. Los cafés tradicionales se envían a Estados Unidos.

 

Moderator comment: Below is an unedited automated translation of the above news article.

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Coffee harvest in Chiriquí, in the sights of Covid-19

The coffee harvest begins in a month and a half, and the camps where the day laborers reside lack the minimum conditions to avoid the spread of the new respiratory virus.
 
Aet Elisa Tejera C.
Jul 26, 2020 - 12:00 AM

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In the coffee harvest of most of the farms located in the Chiriquí province, the labor comes from the Ngäbe-Buglé region. Archive

The province of Chiriquí has the highest number of cases of Covid-19 in the interior of the country, with 3,091 people infected, until last Friday. The health crisis threatens the harvest of one of the main consumer and export products of Panama. 75% of annual coffee production comes from this agricultural region. This year's harvest would be at risk, if biosecurity controls are not guaranteed on the producing farms.

The coffee harvest begins in a month and a half in the low areas of the highlands of Chirica, specifically in the Renaissance district.

In the harvest period, coffee farms, depending on the number of hectares, go from having 8 to 10 workers to more than 50 day laborers, who arrive at the farms in late August. It is a migration of men, women and children, which mostly comes from the Ngäbe-Buglé region.

At harvest time, approximately 10,000 coffee pickers arrive in the Tierra Altas district, which includes the towns of Volcán, Cerro Punta, Cuesta de Piedra, Nueva California and Paso Ancho; while in Boquete, where the harvest begins in mid-November and lasts until the end of February, some 5,000 people are expected.

The gatherers who come from the regional areas live in wooden camps inside the coffee farms. They live in rooms that do not comply with the required distance to avoid the spread of the new respiratory virus. 

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Prevention in the field

Reinforce the practice of hand washing on the farm.

Ban visits in the camps.

Establish schedules for the use of common spaces (dining rooms, rest rooms, etc.).

During harvesting it is important to ensure a sufficient and permanent supply of soap and water in showers, kitchens, dining rooms and laundry areas.

Open dining rooms are recommended, with two meters of distance between each stall.

In the sinks: ensure permanent availability of soap and that the towel for drying hands is not shared.

Restrict the mobility of workers in areas where they do not perform their work.

Place posters at key points on the farm with information on proper hand washing, staff behavior to prevent spread and spread of the coronavirus.

In a room with capacity for two people live between 8 and 10 members of a family. The camps, for the most part, lack drinking water and a kitchen, nor do they have adequate space for personal hygiene.

"Covid-19 is a disease that does not distinguish and in the productive zones all the actors in the agrifood chain are at risk", warns Gerardo Escudero, director of the Inter-American Institute for Cooperation on Agriculture (IICA), in Panama.

"This forces us to reinforce preventive measures within the farms, otherwise the food supply in the country would be put at risk," says Escudero.

For the IICA representative, this crisis is an unprecedented event that accelerates and highlights the shortcomings of the sector. For example, the shortage of labor and the risks and vulnerability of the activity due to the constant mobility of day laborers from one region to another.

In this sense, it recommends establishing productive fences to be able to control the mobility of people in agricultural areas, dedicate the largest amount of resources to the prevention of the disease and prepare a contingency plan to respond in a timely manner to any suspected or contagious case on the farms.

Plinio Ruíz, president of the Association of Special Coffees of Panama (SCAP), stated that the local coffee industry manages a series of measures and protocols to prevent the spread of the new respiratory virus on farms and guarantee a harvest successful. For example, they have asked the Ministry of Health (Minsa) to help certify that workers who come from the region comply with a 14-day quarantine period and are free of Covid-19.

“This year, only men and women in an age range of 18 to 59 will be hired. And we are requesting that the children remain in the custody of a relative in their place of residence, ”Ruíz explained.

Another aspiration of the owners of the coffee farms is to be able to access credits for the construction of agricultural social housing. To obtain this financing, the idea is to build modules for rooms, kitchen and dining room; laundry and personal hygiene area. For the rooms, it is planned to build modules with six rooms each. In this way, workers can be isolated if there is any contagion, explained the president of SCAP.

"The Covid-19 changed the work routine on the farms and the camps must adapt to this new reality," acknowledged the producer.

They are also managing with the Government to set up temporary shelters so that workers infected with the new respiratory virus receive the necessary medical treatment and can be isolated from the rest of the coffee pickers.

Likewise, the owners of the farms were recommended to make a card to identify the workers and to keep traceability in case of contagion.

The document must include the name of the farm where you work, location, camp number where you live, age and contact of the person responsible in the agricultural area.

Business trip

Rachel Peterson, from Hacienda La Esmeralda, assures that the pandemic "arrived at the time of greatest visit" by foreign buyers to coffee farms in the highlands of Chirica.

The largest number of business visits were recorded between January and May, meetings that this year were suspended by the pandemic, Peterson said.

Every year buyers come from Taiwan, China, South Korea, Japan, England, the United States, Bulgaria and Australia, among others, in search of Panamanian coffee, a bean that is distinguished by unrivaled organoleptic properties (aroma, flavor, body and acidity), which are only possible to achieve in the soil, the height and the microclimate of the Chirican highlands.

The highest number of business visitors was recorded in May, when SCAP carried out the international tasting "The Best of Panama", in which more than 110 buyers took advantage of the farms, recalls another coffee farmer in the province.

But this year, the Covid-19 also changed the way of doing business. Coffee exports by air slowed down due to the closure of commercial flights and, in the case of Hacienda La Esmeralda, for the first time they conducted the annual coffee auction virtually, after 12 years of doing it in person.

18 quintals of geisha coffee were sold at the auction for $ 500,000, which will be shipped by air to buyers in China, Korea, Japan, Taiwan, Australia, Singapore, Berlin, Saudi Arabia, England and Canada.

There were 36 batches of 50 pounds each of geisha coffee. The batch of geisha coffee Mario San José "washing process" reached $ 181 a pound, the highest auction price. All batches exceeded $ 125 per pound.

From the highlands of the province of Chiriquí comes the line of Arabica coffee, a bean characterized by a better flavor. Within this type the following stand out: the typica, bourbon, caturra, catuai, mundonovo, pacamara and geisha.

These beans have fruit and spice flavors. They go through a delicate and exquisite harvesting process.

At the end of the 2019-2020 agricultural year, 200,000 quintals of coffee were produced in the country. Of this production, 18% corresponds to special or gourmet grains that are exported by 85% to Europe and Asia. Traditional coffees are shipped to the United States.

 

https://www.prensa.com/impresa/economia/cosecha-de-cafe-en-chiriqui-en-la-mira-de-la-covid-19/