Referential image / Courtesy
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The Association of Coffee Exporters of Nicaragua (Excan), culminated the coffee harvest corresponding to the 2020-2021 cycle, in which a 15% reduction in the expected production volume was recorded.
According to Manuel Miranda, president of Excan, the reduction in production is mainly due to the effects of hurricanes Eta and Iota and the high prices of inputs and fertilizers.
“The climate had a significant impact, plus the fact of the lack of fertilization and maintenance of the productive areas, we estimate that the current harvest will be around 2.5 million quintals of green gold coffee, compared to the previous harvest, which was 2.9 millions of quitales ”, explained Miranda.
The leader of this organization added that since the reform to the Tax Agreement was applied, production costs have risen due to the increase in inputs and fertilizers.
“Usually if the producer makes 23 applications during the year, with the impact of the reform this has been reducing, affecting productivity during the cycle and also the impact of the low prices seen in the international market the previous year, without a doubt it has made that the producer has less maintenance for his farm “, added Miranda.
The sector expects that the reduction in production volume will not be proportional to the value generated by these 2.5 million quintals of coffee and they trust in the recovery that the international price of the bean has been showing.
“We have seen better international prices as of February this year, 10% higher than last year. With a 15% drop in productivity with a 10% increase in price, we would have a net income of 5% in foreign exchange generation, we would obtain about 420 million dollars ”, said Miranda.
The president of Excan also said that the lack of access to credit for coffee growers is another factor that will be impacting the maintenance of the plantations in the 2021-2022 coffee harvest, for which they are already preparing and trust that the climate favor.
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