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 martesfinanciero.com.
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Following a review of the crops in Brazil and Vietnam, the world's largest producers, a decline of 4% in world production is projected.
Other influences include the crisis in Europe, one of the largest buyers of the grain, and flooding in Colombia which has produced crop losses.
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.
As well as affecting the supply to Starbucks, the decline in production of quality coffee will also affect supply to other large buyers such as Nespresso, Green Mountain and Royal Coffee admitted Ronald Peters, president of the Coffee Institute of Costa Rica (Icafe).
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.
According to the Union of Nontraditional Agro-exporters (Gantrap) in the 2010/11 season, 2,600 hectares of melon, watermelon and pumpkin will be cultivated; 1,500 less than last season.
With the reduction in harvests in Mexico and India, sugar production could decline for the first time since 2009.
World production of sugarcane could decrease by 51% during the 2013-14 season compared to the 2012-13 period, as a result of the decline in prices caused by a fall in production in Mexico and India, according to researchers at Kingsman SA.