Panamanian Coffee

Lower production and higher input costs have caused the price of coffee in Panama to rise by nearly 40%.

Wednesday, May 16, 2012

A pack of 425 grams of ground coffee that cost $08.04 in March 2010, now costs $6.59, according to the Basic Food Basket.

This increase in price is explained by a reduction of around 10% in production and increased costs, which have doubled in the last 4 years, explains Ricardo Koyner, from Cafe Kotawa, adding that the international price variability creates high risks for the activity.

Meanwhile Carlos Aguilera, from Carmen State Coffee, said that prices will remain high for a while, since there are still stocks of green coffee purchased at prices above $300.

"This is nothing new, even the experts argue that it is a cyclical phenomenon, as every 10 years there is a spike in international prices due to lack of coffee," reports

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In 2012/2013 1,751 hectares were planted but in 2014/2015 the figure was only 1,504, due to the incidence of drought, high production costs and falling international prices.

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ICO: Global Coffee Production to Fall

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The Market for High Quality Coffee

May 2012

A drop in productivity from 30 to 23 quintals per hectare in coffee plantations in Costa Rica has made it difficult to fulfil the total current demand from buyers like Starbucks.

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Nontraditional Agricultural Exports Expected to Drop 50%

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The non-traditional agro-export sector of Panama predicts the worst production in 25 years, with a 40% fall in the cultivated area and 50% in volume.

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