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Coffee Global Crisis, Do you know about it?




As you may have noticed at this time many people are talking about coffee, but this time for the coffee global crisis because of the really low international prices, which are affecting producers of this great beverage around the world.

But what is it about the numbers worldwide?

So that you know the coffee prices is governed by the New York Stock Exchange and is based on supply and demand but today it has dropped so much that it affects the producers countries who can not afford these prices, not intermediaries or coffee shops. Prices are hovering around $ 1.00 per pound which is super low and producers are left with approximately $ 0.07 per pound, it’s nothing. And this coffee crisis is suffered by more than 25 million families around the world who live off coffee. To get an idea these international coffee prices are the same as they were in 1984, if it had risen equivalently the price should be between $ 2.90 and $ 3.40 per pound in the world market.

Coffe crisis in El Salvador?

In our country also prices are regulated by the stock exchange and according to the Salvadoran Coffee Council the future price for December/2018 is around $ 105.00 per quintal(100 pounds bag), and what it costs to produce a gold quintal  is $ 90.00 and the banks only give us, $ 80.00 and the cooperativesmills or private mills have to pay a transformation fee for converting the freshly cut coffee(cherry) to gold coffee and charge per quintal between $ 35.00 to $ 65.00 that is left to the producer:
$ 105.00 – $ 90.00 = $ 15.00 – $ 40.00 transformation fee = (- $ 25.00).
This is the loss per quintal that the producer has, What do you think?

Also the average productions per manzana(mz is land measure) in our country are, like this:
According to PROCAFE(Coffe Technical Institute): The 2014-2015 harvest, which already has closing figures, shows that there are 200,000 mz sown, with a production of 925,160 qq and a average of 4.6 qq / mz. When comparing the results with the beginning of the 90’s, the area cultivated with coffee is 14.5% smaller and the average yield is 75% lower.
There are some 20,000 registered producers who give work to more than 1,500,000 farmers in the year, the question is, How Much Time ?.
Now this is an international problem that is more difficult to handle. But this only adds to the local problems that exist for this sector.




Local problems in the coffee crisis in El Salvador?

Here are some reasons why all this has happened in our country that are local facts without adding the extremely low international price, and they are:

  • Many producers have to pay the misnamed income to the gangs to be able to work,
  • Coffee theft in the cut seasons,
  • Damage to production due to climate change or water or drought,
  • Damages due to diseases such as rust and anthracnose that lower crops,
  • There is no renovation in the coffee plantations, there is not enough money for this,
  • Many coffee growers have gone bankrupt or can not continue in this and they change their fields and leave the land idle,

And so are the other producing countries. By the way banks do not give extra money for these payments should leave the producers.

 

What can be done to solve this crisis?

Good by the Government:

  • Support in loans with long-term soft interests,
  • Decrease in delinquency and gangs nationwide,
  • Technical support to producers,
  • Help in the renovation of the coffee park,
  • Encourage young producers to venture into this area,
  • Increase the production of specialty coffees,
  • Do not let in international or imported brands or apply taxes to defend national coffee,

These are just some things that the government can help, according to producers with whom I have spoken. They do not want debts forgiven just to give them time and help to get through this global crisis.




But what can people in each country do?

The most important thing is that most Salvadorans and people in producers country join together to increase local coffee consumption and support local brands. In El Salvador, only 15% of local coffee production is consumed. According to the MAG (Ministry of Agriculture and Livestock) in the 2015-16 harvest, the Salvadoran market consumed 370,000 quintals of coffee in that year, of which 100,000 quintals were local and 270,000 of imported coffee, Incredible but true. The truth is that Salvadorans consume cheap coffee and many imported. By doing this you support the coffee industry, the farmers, the country’s economy, the ecology, the environment, and much more. That is why we support our agriculture to our producers and our farmers, only with the help of the whole country can we move forward.
The producers for their contribution believe me they do their thing to go out in special cafes, plant other products, sell roasted and ground coffee, some can do ecotourism, etc. The ones who are in this is because we are really committed to coffee and the country.

If you like this post and want to help to support coffee producers please spread the world and leave a comment here

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FelixC

14 Comments

  1. En el tema “que puede hacerse para solventar la crisis”: falta el punto mas importante; además de los expuestos: Pagar un precio que cubra los costos de producción y deje un margen comercial de ganancia al Caficultor. Esa es la premisa principal

    • Tienes toda la razón y de eso se trata esto de encontrar soluciones para el bienestar de todos y muchos podemos pensar mejor y así encontrar las mejores respuestas

  2. Thanks for spreading the word about the global coffee crisis. I personally did not know about it until I came across your article. My wife and I are coffee drinkers almost every morning. We sometimes argue which brand of coffee to buy since there are a considerable amount of choices out there. We brew our coffee ourselves and avoid buying it from a coffee shop. It just makes financial sense.  You mentioned in your article to increase local consumption and support local brands as a way to do something to help the industry. But for me who currently lives in the US, I’m not quite sure as the writing which ones are local brands to support so maybe you can help me out a little bit here? Thanks! Great stuff!

    • Thank you for your comment and thats exactly what I want to awake people who love this drink to support producer not big corporations because all they want is the money involve. Well there is a lot of producers I have my own and I can send it to US no problem its call Don Salva Gourmet Coffee in honor to my granddad or you can find in amazon please be in contact and if you want more info dont hesitate to contact me again

  3. I found this article interesting and informative. I did not realise that coffee producers were paid so little for their produce which costs so much to buy in coffee shops. This seems to be a common thread throughout the modern world where the primary producers of foods and drinks are not paid a fair competitive price for their produce. No wonder so many people are looking at other options.

    • Thank you David for your comment this is the reality a lot of coffee producers they dont have money but the big corporations does, please spread the word to make people know about it and start helping each other

  4. Wow! I’m not a coffee drinker but I’m a teacher and plenty of my colleagues love coffee. I did not know that there was a coffee problem. This is insane and it has to be dealt with properly. Like you mentioned in your article many countries like El Salvador rely on coffee for income. The way it’s being distributed and how it’s priced is unfair. I really hope that this gets resolved in a way that’s beneficial for all. 

    • thank you Victor it is true and is not El Salvador is Colombia, Costa Rica, Guatemala, Brasil, etc. that have this problem please spread the word to start making the difference

  5. Oh my God! I cannot live without coffee. I need a cup of coffee to start my day. I am hoping this crisis resolve soon. Necessary steps need to be taken as soon as possible to solve this problem before it gets worse. Coffee producing countries should get all the help from all the sources.

    • Thats true Sanjay, you can start making the difference by spreading the word so people start knowing about this and start helping 

  6. I was unaware there was a coffee crisis in El Salvador. It is unfortunate that more coffee from El Salvador is not imported into America. We pay quite a bit for coffee here, up to $15 for a top notch small batch coffee. Even a regular grocery store 16 oz can cost $9. I know in some countries coffee growers have banned together to help each other out, increase production, stabilize prices, and increase sales by working together to sell to local and international markets. They can also help to spread loss out over many farms rather than only one farmer having the loss. These coops can be quite helpful maybe they can help El Salvador?

    • Thank you Erin yes we have coops in El Salvador but this is hard because the price is set in the stock markets so growers cant do nothing about it, what countries can do is increase internal consuming and growers can sell special or gourmet coffee to get better prices. So is kind of hard to fix this but help us spread the world this is the first step to do something about it

  7. Thank you for this information! I love coffee and try to buy responsibly, but I just do not know who to buy from.
    Do you have any recommendations for the best way to purchase ethical coffee that helps to support the local economy in coffee producing areas?

    • Thank you Irma is great that you start knowing the reality and tell everyone about it to help coffee growers from around the world, please keep in touch

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